IDBI Federal launches endowment plan LifeInsurance Suvidha

MUMBAI: In keeping with the trend of life insurers fortifying their traditional portfolio further, IDBI Federal Life Insurance has recently launched an endowment plan - LifeInsurance Suvidha. It is being promoted as a product that ensures simple purchase procedure and documentation.

Features

The product offers life cover of up to Rs 3 lakh, along with an accidental death cover equivalent to the sum assured. Policyholders are not required to undergo any medical tests prior to buying the policy. It promises guaranteed additions of Rs 50 per 1000 sum insured for the initial three policy years.

From the fourth policy year onwards, reversionary bonuses kick in, while terminal bonus will come into the picture in the event of the life assured's death or upon maturity. The premium paying term ranges from 10-20 years, while the policy tenure is between 15 to 25 years. You can choose from a premium-policy-term combination of 10/15 years, 12/18 years, 15/20 years, 15/21 years and 20/25 years.

Why go for it : You can consider this plan if you prefer traditional endowment plans and are looking to boost your existing life cover.

Why not : The primary objective of buying a life insurance policy is financially securing your dependants' interests. But, in this case, the maximum cover offered, including accidental death, is just Rs 6 lakh, which may not be adequate.