IDBI Federal Life Insurance, a leading private-sector life insurance company in India, has launched a new savings plan called the Dream Builder Plan, which is a non-participating, non-linked, life insurance policy. One of the key benefits of this policy is that it offers guaranteed annual payouts to the policyholder during the last 3 policy years.
When purchasing this plan, policyholders will need to choose a policy term and opt for an amount that they wish to receive as the maturity benefit. The life assured will only need to pay premiums for the first 8 policy years, although the life cover will be provided for the entire policy term.
If the policyholder passes away during the policy term, the death benefit will be paid to the nominee. Furthermore, the nominee will also receive the guaranteed annual payouts from the insurer on the respective due dates. However, the nominee will not have to pay any further premiums after the policyholder’s death to receive this benefit.
Similarly, if the policyholder meets with an accident or contracts an illness that causes total permanent disability, future premium payments will be waived off and the policy coverage will continue till the completion of the policy tenure. In such a case, all due benefits will be paid to the policyholder as per schedule. In addition to the policy benefits, policyholders can also avail tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961, when they purchase this policy.
Individuals between the age of 21 years and 50 years can purchase the Dream Builder Plan. The policy provides can provide coverage to policyholders up to the age of 72 years, subject to the policy tenure. The Dream Builder Plan was designed by IDBI Federal Life Insurance to provide policyholders the means to pay for significant financial expenses that they might have to incur during their lives.
Source: The Economic Times