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Seeking to target high net worth customers, private insurer IDBI Federal Life insurance Company Limited announced the launch of their wealth-building plan, IDBI Federal Wealthsurance Premier Insurance Plan. The brand new product aims to be one of the best in the category as it is a hassle free, single premium ULIP, with a wide array of investment funds and protection benefits bundled in a low charge structure aimed to deliver one of the best-in-class returns in this category.
Announcing the launch of Wealthsurance Premier, Mr. G V Nageswara Rao, MD and CEO of IDBI Federal Life Insurance, said: “Wealth creation is a long-term process with prudent planning playing an important part. Wealthsurance® Premier is a great combination of a wealth and protection plan that assists the customers in wealth creation and management in the long term. At IDBI Federal, we take pride in our innovation. With Wealthsurance Premier, we have customized the product to suit the HNIs by making it a single premium plan that allows one to build wealth for the long term in tranches, with the flexibility of 13 varied investment fund options across the risk-return continuum for active wealth management.
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What is even better, Wealthsurance® Premier can insure HNI’s wealth plan against death, 13 accidental injuries, 17 major diseases, and serious illnesses requiring hospitalization or disablement which prevents engaging in an income-earning activity.”
IDBI Federal Wealthsurance® Premier Insurance Plan is a single premium ULIP designed keeping in mind specific requirements of the HNI class. With a minimum investment option of Rs 5 lakh and top-ups at Rs 10,000, the plan has low and level charges. There is no policy administration and allocation charges for premiums above Rs 25 lakh. The minimum policy term is for 5 years and maximum of 75 years less the age of entry.
To illustrate, at a gross rate of 10% return, due to one of the lowest charges Wealthsurance Premier can deliver 8.53% IRR (without considering mortality charges and service tax) and an IRR of 7.83% (after considering mortality charges and service tax for a Rs 1.25 crore insurance cover) for a Rs 25 lakh premium for a term of 15 years.
Being a comprehensive wealth management solution, Wealthsurance® Premier offers a wide range of investment options like assured returns, variable returns linked to market performance or returns linked to equity market but with protection of capital. Also, tax benefits are availed on the contributions, returns and benefits under sections 80C and 10(10D). In effect, Wealthsurance® Premier is a tax-free wealth management account as money put into it grows without any tax. One can also look at this product for gifting a life time of savings to children or grand children.
Having started in March 2008, IDBI Federal is one of the fastest growing new insurance companies with over 275,534 policies issued and a Sum Assured of Rs 14,924 Crore. It has launched several innovative plans like Wealthsurance®, Retiresurance®, Homesurance®, Bondsurance™, Microsurance®, Termsurance®, Incomesurance™ and Healthsurance®
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