Summer Project Sachin

8/9/2019 Summer Project Sachin

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A

SUMMER TRAING PROJECT REPORT

ON

ANALYSIS OF VARIOUS INSURANCE

PLANS

OF

IDBI FORTIS LIFE INSURANCE CO. LTD.1st Floor, H.B. Twin Tower, Netaji Subash Place Pitam Pura,

New Delhi-110034

Submitted for the partial fulfillment of the requirement for

the award

OfMASTER OF BUSINESS ADMINISTRATION

SUBMITTED TO SUBMITTED BY

DR. RAHAT ALI SACHIN KUMAR

(HOD) MBA (IIIrd Sem.)

(FINANCE & MARKETING)

ROLL NO. 0822370036

VIVEKANAND INSTITUTE OF TECHNOLOGY &

SCIENCE

33-34 KM STONE, DELHI -HAPUR ROAD, (NH-24),JINDAL NAGAR GHAZIABAD


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DECLARATION

I, HEREBY CERTIFY THAT THE SURVEY DATA COLLECTION AND

ANALYSIS WORK RELATED TO RESEARCH PROJECT REPORT

ON ANALYSIS OF VARIOS INSURANCE PLANS OF IDBI FORTIS

HAS BEEN CARRIED OUT EXCLUSIVELY ON MY OWN EFFORT

UNDER THE SUPERVISION OF MR. SACHIN BANSAL (AGENCY

MANAGER)

SACHIN KUMARROLL NO. 0822370036


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PREFACE

The business of insurance is related to the protection of economic value of assets.

The assets would have been created through the efforts of the owner, in the

expectation that, either through the income generated there from the some other

output, some of his needs would be met. If assets get lost earlier, being destroyed

or made non-functional, through an accident or other unfortunate event, the owner

and those deriving benefits there from suffer. Insurance is a mechanism that helps

to reduce such adverse consequences.

Insurance plays a major role in different perspective. For economic development

investments are necessary. Investments are made out of savings. A life insurance

company is a major investment for the mobilization of saving of people,

particularly from the middle and lower income groups. These savings are

channeled in to the investments for economic growth. In order to amenable to

statistical predictions, insurance risks must be handled on a large scale.

All organization face change in their environment with resultant change in their

markets and in the ability to satisfy their markets. Each organization is faced with

new marketing problems and opportunities in their existing and potential market.

Marketing decision makers cope with these challenges in a variety of ways. The

marketers is being required to forecast, forecast the risk and uncertainness in

their own way, supported by market research.

Man on earth can entirely eliminate knows no method but scientific method can

minimize the element of uncertainties that can result from back of information

without orientation, Market research is a process of collecting information about

who, why and how of actual and potential consumers in a particular market. The

main purpose of market research is the ability to continually foresee both in the

long and short term.


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ACKNOWLDGEMENT

There are many people in IDBI FORTIS LIFE INSURANCE who had helped me

during the course of the project. It is my duty to acknowledge and thank them for

their help. As a matter of course thanks are due to the following persons in the

given order:

AGENCY MANAGER:Mr. SACHIN BANSAL,IDBI FORTIS LIFE INSURANCE

CO. LTD.1st Floor, H.B. Twin Tower, Netaji Subash Place Pitam Pura, New

Delhi-110034.who has been there as and when I required their help in no mater

what respect. Never the less I have learnt the major managerial skills which would

be helpful in my career.

Others: This part includes the day to day people whom I use to meet in the

organization. They are the advisors working there; this include the staff working

out there and even the people whom I met in the NCR, who were kind enough to

spare a few minutes of their precious time and to take part in the survey.

Last but not the least my special thanks to my parents without their support my

MBA course would not have been possible.

SACHIN KUMAR

MBA-III Sem.ROLL NO. 0822370036


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EXECUTIVE SUMMARY

In todays competitive world the topper is always doing something different from

others or may be the same thing in a much more different way. The same logic

goes for the business world too. With new competitors coming every now and

then the field of business, the company positioning should be strong enough to

retain its position in business.

IDBI FORTIS LIFE INSURANCE COMPANY LIMITED has positioned itselfstrongly with high-class advisors, unit manager, and technical persons.

The study that is being made is that to find the ANALYSIS OF VARIOUS

INSURANCE PLANS OF IDBI FORTIS

To make this research mostly Primary Data is being used, taking a sample size

of 80 people. The Research Methodology that is being implemented in this study

is SamplingMethod.

This result which was found from this research clearly shows a company should

be more flexible to the training program they organized for the high profile advisor.

The project undertaken is the through study of the services and activities, which

the company is willing to give each advisor.

From the survey it was revealed that IDBI FORTIS is doing quite well in all the

sections of its operations, but still it needs some perfection to attract more and

more HIGH PROFILE ADVISOR so that they will give more policy for the

company.


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TABLE OF CONTENT

GENERAL VIEW OF INSURANCE

WHAT IS INSURANCE?

BRIEF HISTORY OF INSURANCE

PURPOSE AND NEED OF INSURANCE

INDIAN INSURANCE SECTOR

COMPANY PROFILE

BRIEF HISTORY

FUNCTIONS

CHAIRMAN MESSAGE

MD & CEO MESSAGE

VISION

PRODUCT OF CMPANY

RESEARCH OBJECTIVE

RESEARCH METHODOLOGIES

METHOD

DATA COLLECTION METHOD

SAMPLE SIZE

SAMPLE COMPOSITION

RESEARCH DESIGN

RESPONSE OF QUESTIONNAIRE

FINDING

SUGGESTIONS AND RECOMMENDATION

CONCLUSION

APPENDIX QUESTIONNAIRE


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BIBLIOGRAPHY


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ABOUT INSURANCE INDUSTRY

WHAT IS INSURANCE?

The business of insurance is related to the protection of the economic values of

assets. Every asset has a value; the assets would have been created through the

efforts of the owner. The asset is valuable to the owner, because he expects to

get some benefits from it. The benefit may be an income or something else. It is afactory or a cow, the product generated by is sold and income generated. In the

case of a motor car, it provides comfort and convenience in transportation. There

is no direct income.

Every asset is expected to last for a certain period of time during which it will

perform. After that, the benefit may not be available. There is a life-time for a

machine in a factory or a cow or a motor car. None of them will lose for ever. The

owner is aware of this and he can so manage his affairs that by the end of that

period of life-time, a substitute is made available. Thus, he makes sure that the

value of income is not lost. However, the asset may get lost earlier. An accident or

some other unfortunate event may destroy it or make it non financial. In that case,

the owner and those deriving benefits there from, would be deprived of the benefit

and the planned substitute would not have been ready. There is an adverse or

unpleasant situation. Insurance is a mechanism that helps to reduce the effect of

such adverse situation.

BRIEF HISTORY OF INSURANCE

The business of insurance started with marine business. Traders, who used to

gather in the Lloyds coffee house in London, agreed to share the losses to their

goods while being carried by ships. The losses used to occur because of pirates

who robbed on the high seas or because of bad weather spoiling the goods or

sinking the ship. The first insurance policy was issued in 1583 in England. In


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India, insurance began in 1876 with life insurance being transacted by an English

company, the European and the Albert. The first Indian insurance company was

the Bombay Mutual Assurance Society Ltd, formed in 1870. This was followed by

the Oriental Life Assurance Co. in 1874, the Bharat in 1896 and the Empire of

India in 1897.

Later, the Hindustan Cooperative was formed in Calcutta, the United India in

Madras, the Bombay Life in Mumbai, the National in Calcutta, the New India in

Mumbai, the Jupiter in Mumbai and the Lakshmi in New Delhi. These were all

Indian companies, started as a result of the swadeshi movement in the early1900s. By the year 1956, when the life insurance was nationalized and the Life

Insurance Corporation of India (LIC) was formed on 1st September 1956, there

were 170 companies and 75 provident fund societies transacting life insurance

business in India. After the amendment to the relevant laws in 1999, the L.I.C. did

not have the exclusive privilege of doing life insurance business in India. By

31.3.2002, eleven new insurers had been registered and and had begun to

transact life insurance business in India.

PURPOSE AND NEED OF INSURANCE

Assets are insured, because they are likely to be destroyed, through accidental

occurrences. Such possible occurrences are called perils, Fire, floods,

breakdown, lightning, earthquakes, etc, are perils. If such perils can cause

damage to the asset, we say that the asset is exposed to that risk. Perils are the

events. Risks are the consequential losses or damages. The risk to a owner of a

building, because of the peril of an earthquake, may be a few lakhs or few crores

of rupees, depending on the cost of the building and the contents in it.

The risk only means that there is a possibility of loss or damage. The damage

may or may not happen. Insurance is relevant only if there are uncertainties. If

there is no uncertainty about the occurrence of an event, it cannot be insured

against. In the case of a human being, death is certain, but the time of death is


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uncertain, In the case of a person who is terminally ill, the time of death is not

uncertain, though not exactly known. He cannot be insured.

Insurance does not protect the asset. It does not prevent its loss due to the peril.

The peril cannot be avoided through insurance. The peril can sometimes be

avoided, through better safety and damage control management. Insurance only

tries to reduce the impact of the risk and the owner of the assets and those who

depend on that asset. It only compensates the losses and that too, not fully.

Only economic consequences can be insured. If the loss is not financial,insurance may not be possible. Examples of non economic losses are love and

affection of parents, leadership of managers, sentimental attachments to family

heirlooms, innovative and creative abilities, etc.


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INDIAN INSURANCE SECTOR

The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance

Corporation Act, 1956 and General Insurance Business (Nationalisation) Act,

1972, Insurance Regulatory and Development Authority (IRDA) Act, 1999 and

other related Acts.

Life Insurance Corporation of India (LIC)Life Insurance Corporation of India (LIC) was formed in September, 1956 by an

Act of Parliament, viz., Life Insurance Corporation Act, 1956, with capital

contribution from the Government of India. The then Finance Minister, Shri

C.D. Deshmukh, while piloting the bill, outlined the objectives of LIC thus: to

conduct the business with the utmost economy, in a spirit of trusteeship; to

charge premium no higher than warranted by strict actuarial considerations; to

invest the funds for obtaining maximum yield for the policy holders consistentwith safety of the capital; to render prompt and efficient service to policy

holders, thereby making insurance widely popular.

Since nationalisation, LIC has built up a vast network of 2,048 branches, 100

divisions and 7 zonal offices spread over the country. The Life Insurance

Corporation of India also transacts business abroad and has offices in Fiji,

Mauritius and United Kingdom. LIC is associated with joint ventures abroad in

the field of insurance, namely, Ken-India Assurance Company Limited,

Nairobi; United Oriental Assurance Company Limited, Kuala Lumpur and Life

Insurance Corporation (International) E.C. Bahrain. The Corporation has

registered a joint venture company in 26th December, 2000 in Kathmandu,

Nepal by the name of Life Insurance Corporation (Nepal) Limited in

collaboration with Vishal Group Limited, a local industrial Group. An off-shore

company L.I.C. (Mauritius) Off-shore Limited has also been set up in 2001 to

tap the African insurance market.


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General Insurance:

General insurance business in the country was nationalised with effect from 1st

January, 1973 by the General Insurance Business (Nationalisation) Act, 1972.

More than 100 non-life insurance companies including branches of foreign

companies operating within the country were amalgamated and grouped into

four companies, viz., the National Insurance Company Ltd., the New India

Assurance Company Ltd., the Oriental Insurance Company Ltd., and the

United India Insurance Company Ltd. with head offices at Calcutta, Bombay,

New Delhi and Madras, respectively. General Insurance Corporation (GIC)

which was the holding company of the four public sector general insurance

companies has since been delinked from the later and has been approved as

the "Indian Reinsurer" since 3rd November 2000. The share capital of GIC

and that of the four companies are held by the Government of India. All the

five entities are Government companies registered under the Companies Act.

The general insurance business has grown in spread and volume after

nationalisation. The four companies have 2699 branch offices, 1360 divisionaloffices and 92 regional offices spread all over the country. GIC and its

subsidiaries have representation either directly through branches or agencies

in 16 countries and through associate/ locally incorporated subsidiary

companies in 14 other countries. A wholly- owned subsidiary company of GIC,

i.e. Indian International Pte. Ltd. is operating in Singapore and there is a joint

venture company, viz. Kenindia Assurance Ltd. in Kenya. A new wholly

owned subsidiary called New India International Ltd., UK has also beenregistered.

MAJOR POLICY CHANGES

Reforms In Insurance Sector


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Insurance sector has been opened up for competition from Indian private

insurance companies with the enactment of Insurance Regulatory and

Development Authority Act, 1999 (IRDA Act). As per the provisions of IRDA

Act, 1999, Insurance Regulatory and Development Authority (IRDA) was

established on 19th April 2000 to protect the interests of holder of insurance

policy and to regulate, promote and ensure orderly growth of the insurance

industry. IRDA Act 1999 paved the way for the entry of private players into the

insurance market which was hitherto the exclusive privilege of public sector

insurance companies/ corporations. Under the new dispensation Indian

insurance companies in private sector were permitted to operate in India withthe following conditions:

Company is formed and registered under the Companies Act, 1956;

The aggregate holdings of equity shares by a foreign company, either by itself or

through its subsidiary companies or its nominees, do not exceed 26%, paid up

equity capital of such Indian insurance company;

The company's sole purpose is to carry on life insurance business or general

insurance business or reinsurance business.

The minimum paid up equity capital for life or general insurance business is

Rs.100 crores.

The minimum paid up equity capital for carrying on reinsurance business has

been prescribed as Rs.200 crores.

The Authority has notified 27 Regulations on various issues which include

Registration of Insurers, Regulation on insurance agents, Solvency Margin,Re-insurance, Obligation of Insurers to Rural and Social sector, Investment

and Accounting Procedure, Protection of policy holders' interest etc.


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IDBI FORTIS

Company introduction


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A new era of Insurance

BRIEF HISTORY

IDBI Fortis Life Insurance Co Ltd, is a joint venture between three leading

financial conglomerates Indias premier development and commercial bank,

IDBI, Indias leading private sector bank, Federal Bank and Europes premier

Bancassurer, Fortis, each of which enjoys a significant status in their respective

business segments. In this venture, IDBI owns 48% equity while Federal Bank

and Fortis own 26% equity each.

IDBI Fortis launched its first set of products across India in March 2008, after

receiving the requisite approvals from the Insurance Regulatory Development

Authority (IRDA). Today, we offer our services through a vast nationwide network

across the branches of IDBI Bank and Federal Bank in addition to a sizeable

network of advisors and partners.

At IDBI Fortis we endeavor to deliver products that provide value and

convenience to the customer. Through a continuous process of innovation in

product and service delivery we intend to deliver world-class wealth management,

protection and retirement solutions to Indian customers.

About our Heritage

IDBI Bank Ltd. continues to be, since its inception, Indias premier industrial

development bank. Created in 1956 to support Indias industrial backbone, IDBI

Bank has since evolved into a powerhouse of industrial and retail finance. Today,

it is amongst Indias foremost commercial banks, with a wide range of innovativeproducts and services, serving retail and corporate customers in all corners of the

country from over 538 branches and more than 921 ATMs. The Bank offers its

customers an extensive range of diversified services including project financing,

term lending, working capital facilities, lease finance, venture capital, loan

syndication, corporate advisory services and legal and technical advisory services

to its corporate clients as well as mortgages and personal loans to its retail clients.

As part of its development activities, IDBI Bank has been instrumental in

sponsoring the development of key institutions involved in Indias financial sector


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such as the Securities and Exchange Board of India (SEBI), National Stock

Exchange of India Limited (NSE) and National Securities Depository Ltd.

Federal Bank is one of Indias leading private sector banks, with a dominant

presence in the state of Kerala. It has a strong network of over 600 branches and

600 ATMs spread across India. The bank provides over four million retail

customers with a wide variety of financial products. Federal Bank is one of the first

large Indian banks to have an entirely automated and interconnected branch

network. The Bank operates on the core banking platform and is RTGS/ NEFT

enabled through which it offers state-of-the-art technology enabled products andservices. In addition to interconnected branches and ATMs, the Bank has a wide

range of services like Internet Banking, Mobile Banking, Tele Banking, and Any

Where Banking, debit cards, online bill payment and call centre facilities to offer

round the clock banking convenience to its customers. The Bank has been a

pioneer in providing innovative technological solutions to its customers and the

Bank has won several awards and recommendations.

Fortis is an international insurance group composed of Insurance Belgium, a

leader in life and non-life insurance in Belgium distributing its insurance products

through the network of Fortis Bank and independent insurance brokers and

Insurance

International with subsidiaries in the UK, France, Hong Kong, Luxembourg (Non-

life), Germany, Turkey, Russia and Ukraine, and joint ventures in Luxembourg

(Life), Portugal, China, Malaysia, Thailand and India.

Functions of IDBI

Help create a positive image of the industry and enhance consumer

confidence.

Assist maintaining high standards of ethics and governance.

Promote awareness regarding the role and benefits of life insurance.

Organize structured and proactive discussions with Government,

lawmakers and regulators.


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Conduct research in life insurance, publish monographs and contribute to

development of the sector.

Act as forum of interaction with other organizations of the financial services

sector.

Play leading role in insurance education, research, training and

conferences.

Provide help and guidance to members when necessary.

Be an active link between the Indian life insurance industry and the global

markets.

Who are we?

IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial

conglomerates IDBI, Fortis and Federal Bank. With the impressive pedigree of

these three financial giants, IDBI Fortis aims to provide innovative wealth

management, protection and retirement solutions to customers all across India.

At IDBI Fortis, we strongly believe that our human capital will play a vital role in

the delivery of our products to our customers. The IDBI Fortis vision is to build a

customer-centric Agency Channel that sets industry benchmarks for reach, quality

and cost effectiveness.

We believe that by investing in and building human capital we can achieve our

vision.

How will we make a difference in your life?A wise man once said that there is no greater joy than making a difference in

another persons life. By becoming a Wealthsurance Advisor with IDBI Fortis, you

too can experience that joy.

We will provide you with the necessary tools in the form of specialized training

and support to help your customers build wealth and achieve long-term financial

security for their loved ones.

Equally importantly, while helping others, you will also help yourself.


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Last but not the least, by becoming an IDBI Fortis Wealthsurance Advisor you can

choose the time of your work at your own convenience. Essentially, you can be

your own boss.

What is Your Role?

As a Wealthsurance Advisor with us, your role is not to just sell insurance. It is

about making a difference in peoples lives, an insurance sale being a by-product

of that.

Your role will allow you to meet people with special individual needs. You will help

them analyze their financial situation and provide them with solutions which willhelp them achieve those goals and dreams.

Wouldnt you like to be the person whom people thank when they have

successfully managed to fund their childrens higher education, retire comfortably

or to build personal wealth over the long term?

Partners in Progress

We strongly believe that our success lies in your success. Hence, we will supportyou with:

Customer-centric and easy-to-sell Innovative Products

Investment Expertise

Customized Training Programmers

Essentially, we will equip you with all the processes and tools necessary to create

multiple sales which in turn will lead to your success in business.

CHAIRMAN MESSAGE

Yogesh Agarwal

With great delight, I present before you IDBI Fortis Life Insurance Co Ltd, a

company committed to bringing you products that help realize your unique dreams

and aspirations. Everyone has life goals but you need a reliable partner to work

with in making a secured plan that can achieve those goals. IDBI Fortis will offer

innovative solutions that meet your protection, savings and investment needs. The


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insurance proposition offered by IDBI Fortis will help you meet all of your personal

goals whether it is to educate your child, build or manage wealth, establish a

retirement fund or gain protection against medical costs.

IDBI Fortis comes with impeccable parentage, being the result of the coming

together of three financial giants: IDBI Bank, Federal Bank and Fortis.

MD & CEO MESSAGE

G V Nageswara Rao

At IDBI Fortis, we think differently about insurance. We have set out to create

products that help realise your unique dreams and aspirations, by drawing upon

the power of insurance. Our Wealthsurance line of products combines wealth

creation and insurance protection into one powerful financial solution.

Wealthsurance Plans allow you to build wealth with planned as well as flexible

savings along with a choice of investment options. What is more, once you sign

up, Wealthsurance Plans can ensure that your financial goals are achieved even if

there were unforeseen crises such as death, accident, disablement or serious

illness.

IDBI FORTIS

Vision and value

Maintaining integrity through our value

Our Vision

To be the leading provider of wealth management, protection and retirement

solutions that meets the needs of our customers and adds value to their lives.

Our Mission

To continually strive to enhance customer experience through innovative product

offerings, dedicated relationship management and superior service delivery while


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striving to interact with our customers in the most convenient and cost effective

manner.

To be transparent in the way we deal with our customers and to act with integrity.

To invest in and build quality human capital in order to achieve our mission.

Our Values

Transparency: Crystal Clear communication to our partners and

stakeholders

Value to Customers: A product and service offering in which customers

perceive value

Rock Solid and Delivery on Promise: This translates into being financially

strong, operationally robust and having clarity in claims

Customer-friendly: Advice and support in working with customers andpartners

Profit to Stakeholders: Balance the interests of customers, partners,

employees, shareholders and the community at large


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IDBI FORTIS

Wealthsurance

Wealthsurance Foundation Plan


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UIN: 135L001V01

Wealthsurance: Insured Wealth Plans to grow wealth under a

protective cover

Wealthsurance offers you Insured Wealth Plans. They allow you to

create build and manage wealth by giving several choices and great

flexibility so that your plan meets your specific needs. You can decide

how you wish to save so that it suits your savings habit. You can choose

how your money is invested so that you can grow wealth as per your

investment preferences. What is even better, Wealthsurance protects

your wealth plans with insurance benefits so that your wealth-building

efforts remain unaffected in unforeseen events and your financial goals

can still be achieved.

What is Wealthsurance?

Wealthsurance combines wealth creation and insurance protection into

one powerful financial solution. Unlike other investment alternatives, it

allows you to ensure that your goals of wealth creation are achieved

even in the event of serious illness, accidents, disablement or death.

Wealth Plan with a powerful range of Investment Choices

Wealth creation does not happen by chance, it needs a plan.

Wealthsurance is a wealth plan which allows you to build and manage

wealth. You can save into the Plan as much money as you want,

whether at one time, at regular intervals or as per your convenience.

Wealthsurance offers a wide choice of investment options from which

you can select one or more, based on your preferences.


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The investment options we offer are designed to meet the needs of all

types of investors depending upon their risk appetite, stage of life or

investment horizon. You can choose options that give

(a) Assured fixed returns, (b) variable returns linked to market

performance or (c) returns linked to equity market but with protection

of capital. Wealth grows in your plan based on the options you have

chosen.

Wealth Plan can be insured against unforeseen events

Wealthsurance can protect your Wealth Plan against a range of events

such as death, terminal illness, 17 major diseases sickness requiring

hospitalization, serious accidental injuries or total and permanent

disablement. With other investment products, if any such

event happens, you may not be able to save as planned or even be

forced to withdraw from your savings. But in Wealthsurance, these

benefits allow you to meet additional expenses without affecting yourfund value so that your plans to save and accumulate wealth are not

affected even if life throws surprises. Once you sign up for it, your

Wealthsurance Plan works even if you are not able to.

Wealth grows better under a protective cover because lifes

uncertainties cannot deplete wealth, which otherwise they would

normally do.

Wealthsurance is for those who will live

Life insurance is sometimes thought of as for those who might die, but

Wealthsurance is for those who will live. Usually life insurance products

provide benefits upon death, but

Wealthsurance is designed to also give Living Benefits to ensure your

well-being in your own lifetime.

How does Wealthsurance work?


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Wealthsurance gives you (a) Investment Account and

(b) Insurance Account.

My Investment Account

From the premiums you pay, Premium Allocation Charge is deducted.

The balance amount goes into the investment options you choose in the

proportion you specify. IDBI Fortis Investment Basket contains all the

investment options we offer.

The balance in your Investment Account reflects the wealth built over

time from your premium contributions and the returns from the

investment options chosen by you.

My Insurance Account

You can also choose any of the insurance benefits we offer under IDBI

Fortis Insurance Basket. You pay for only those benefits you choose and

the charges are deducted from your Investment Account.

My Wealthsurance Plan: Get the one you need

Wealthsurance has many options so that you can choose what suits

your circumstances. You can make your Wealthsurance Plan in two

ways.

Ready Plans for typical needs

We have developed several Ready Plans to meet the typical needs ofcustomers. A Ready Plan is simply a set of pre-chosen options of the

Wealthsurance Foundation Plan. Each Ready Plan is aimed at a specific

need. There is quite likely a Ready Plan that suits your needs in which

case you can simply choose the Plan.

Custom Plan for specific needs


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If a Ready Plan does not meet your needs, you can design your own

Custom Wealthsurance Plan with 5 simple steps:

Step 1: Choose the premiums you wish to contribute

Step 2: Choose the investment options your money goes into

Step 3: Choose the Sum Insured for Life and Terminal Illness Benefit

Step 4: Choose the optional insurance benefits you need

Step 5: Choose Plan Term based on your horizon for building wealth and

for enjoying insurance benefits

Main Features of Wealthsurance

Plan

Contribute money in a flexible way that suits your savings

habit

Choose (a) Single Premium or (b) Regular Premiums. Pay

premiums for a limited period and enjoy benefits for a longer

period.

Pay additional top-up premiums whenever you want. Grow wealth

faster and get tax benefits.

Choose how your money is invested from a wide choice of

investment options, based on your return expectations and risk

tolerance

Choice of (a) Assured Fixed Returns, (b) Variable Returns linked to

market performance, (c) Returns linked to market but with

protection of capital.

Investment options available for risk-averse as well as risk taking

investors


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Choice of stocks, bonds and money market funds

Decide how you wish to manage your investments

Switch amongst investment options any time and manage your

portfolio, free of charges and taxes

Leave management of your portfolio entirely to us, if you do not

have the time or inclination

Flexibility to choose the insurance benefits you need

You can choose the amount of life insurance and terminal illness

benefit you need

Get Optional Insurance Benefits on suffering major diseases,

hospitalization, accidental death or disablement

Premiums can be waived in case of your death or disablement, so

that your plans are well protected

Withdraw funds in case of need, after three years

Make your Wealthsurance Plan quickly and easily

Choose a Ready Plan for typical needs

Develop a Custom Plan for special needs

Get tax benefits on contributions and benefits

Tax-free income helps grow wealth faster

Option to create exclusive funds for loved ones

Change your Plan as your needs change

Flexibility to change premiums and benefits to suit your changing

needs


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PREMIUM MODE

Pay premiums in a flexible manner: Build wealth easily with

convenient savings

Wealthsurance allows you to save in a manner that best suits your

savings habit. It is very flexible in premium contributions. You can save

in a disciplined manner and also get flexibility to contribute additional

amounts whenever you have extra money. Wealthsurance allows you to

pay premiums just one time or for a limited period and yet enjoy

insurance benefits for a long period. Flexible premiums allow you to

build wealth in a convenient manner and also get tax benefits.

Types of Premiums

Wealthsurance has two types of premiums: (a) Basic Premiums and (b)

Top-up Premiums.

(a) Basic Premiums

When you choose your Wealthsurance Plan, you have to indicate the

premiums you wish to contribute. These are your Basic Premiums. You

can choose either Single Premium or Regular Premium.

Single Premium: If you choose Single Premium, you have to simply

make a one-time payment at the time of taking the Plan.

Minimum amount is Rs 20,000.

Regular Premium: If you choose Regular Premium, you have to

indicate (a) Amount, (b) Frequency of payment and

(c) Payment Term. Minimum amount is Rs 10,000 per year, payable in

quarterly, half-yearly or annual installments as you choose.


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Minimum amount is Rs 1,000 per month, if you choose monthly

payment mode. Minimum premium payment period is 3 years.

(b) Top-up Premiums

Over and above the Basic Premiums, you can pay Top-up Premiums.

Minimum amount is Rs 5,000 at a time and you can pay whenever you

want and any number of times until the maturity of your Plan. Top-ups

allow you to contribute additional premiums if and when you want, grow

wealth at your convenience and get tax benefits. Top-up Premiums can

be paid only if you have paid all the Basic Regular Premiums due till

date.

Top-up Premiums may require additional sum insured

If total of Top-up Premiums paid exceed 25% of Basic Premiums paid

(whether Single or Regular) till the date of any Top-up, the excess

amount should have life insurance cover equal to 125%. to ensure that

you have flexibility to pay the amount of Top-up

Premiums you want please choose a higher Sum Insured at the time oftaking Wealthsurance Plan. You can also apply to us to increase Sum

Insured at a later date if you so wish.

Best of both worlds

Basic Premiums enable you to become a disciplined saver and invest in

a systematic, methodical way to build wealth. Top-up Premiums give

you the flexibility to contribute additional premiums whenever you haveextra money so that you can reach your goals faster. Together, they

give you great flexibility to save, invest and grow wealth.

Premium Allocation Charge

Premium Allocation Charge is deducted from the premiums you pay and

the balance amount is invested in the investment options of your

choice. You can think of it as similar to entry load in the case of mutualfunds.


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Single Premium and Top-up Premiums

Amount of Single or

Top-up Premium

Premium

Allocation ChargeRs 20,000 - Rs 49,999 1.5%Rs 50,000 - Rs 99,999 1%Rs 1,00,000 - Rs 2,49,999 0.5%Rs 2,50,000 and above Nil

Regular Premium

Amount of

Regular Premium

(per year)

Premium Payment Term (years)

3 - 4 5 - 9 10 -

14

15 -

19

20

&more

Rs 10,000 - Rs 29,999 4% 3.75% 3.5% 3.25% 3%Rs 30,000 - Rs 47,999 3.75% 3.5% 3.25% 3% 2.75%Rs 48,000 - Rs 71,999 3.25% 3.25% 3% 2.75% 2.5%Rs 72,000 - Rs 95,999 3% 3% 2.75% 2.5% 2.25%Rs 96,000 - Rs

2,39,999

2.75% 2.75% 2.5% 2.25% 2%

Rs 2,40,000 - Rs

5,99,999

2.5% 2.5% 2.25% 2% 1.75%

Rs 6,00,000 andabove

2.25% 2.25% 2% 1.75% 1.5%

Eligibility Conditions

Any person over the age of 18 years can apply to us to take a

Wealthsurance Plan. You can designate yourself or any other person (in

whom you have insurable interest) as the Insured Person. The InsuredPerson should be at least one month old but not more than 65 years


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old. Age of the Insured Person cannot exceed 75 years at the end of

Plan Term. Wealthsurance allows you to pay premiums and get tax

benefits for yourself, while the insurance benefits can cover your

spouse or child.

Where the Insured Person is a minor, the policy will vest in the minor

upon attaining majority at the age of 18 years.

IDBI Fortis Investment Basket: Tools for

building your wealth

The power of Wealthsurance is provided by the wide choice of

investment options it offers. They give you great flexibility

in how you build and manage wealth. The full range of investments we

offer is called the IDBI Fortis Investment Basket.

You can choose one or more options from the basket based on your

return expectations and risk tolerance. You can also switch and change

your investment options from time to time, as you wish.

The investment options we offer are designed to meet the needs of all

types of investors. You can choose the options that best suit your needs

of safety, liquidity and returns.

Fixed Return Options

We offer investment options that give fixed assured returns for those

who prefer to get fixed or floating rate of return on their investment.

Capital Guaranteed Options

We also offer options where we guarantee the face value of each unit

on the specified maturity date. A part of the money is invested in stock


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markets and your returns depend upon the market performance. These

are suitable for those who want to invest in equity markets, without fear

of loss of principal.

Market Fund Options

We offer a range of funds that invest in stocks, bonds and money

market. The returns on these funds are dependent upon the market

performance. Returns and risk vary by the type of fund.

Manage yourself or leave it to us

We offer two ways in which you can manage your investments:

Do-it-yourself: You can decide to invest in the various options and

change them from time to time, as you wish. This is suitable when you

have a specific idea where you wish to invest or you have the time and

inclination to manage your investments from time to time.

Leave-it-to-us: Alternatively, you can leave it entirely to us to manage

your investment strategy from time to time by simply indicating how

much risk you are prepared to take. We give you a choice of three risk

levels: Cautious, Moderate and Aggressive.

Equity exposure is restricted, based on the risk level you choose.

MAJOR INVESTMENT AREAS

OF WEALTHSURANCE

Types of Investment Options (FUNDS)


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We offer five types of Investment Options: (a) Monthly Interest Account

which gives interest at a declared rate on your account balance, (b)

Guaranteed Return Funds which give fixed, assured returns for a

specified period, (c) Capital

Guaranteed Funds which ensure that your principal is protected even

while investing in stocks, (d) Market Linked Funds where you can

choose to invest in stocks, bonds or money market and get market

returns, (e) Asset Allocator Funds where

you can leave the management of your funds entirely to us, by simply

indicating the level of risk you are prepared to take.

1. Fixed Return Options: When you want fixed,

assured returns

A. Monthly Interest Account

Risk: Low

Monthly Interest Account gives you fixed interest on the account

balance. You can choose to deposit any proportion or all of your

premiums into it, whether regular or top-up Premiums.

Your Account will earn interest at the declared rate on the daily

outstanding balance. The balance in your Account, consisting of

premiums deposited and interest earned, is available to switch into any

other investment option and for withdrawals as permitted.

Interest Rate: At the beginning of each month, IDBI Fortis will declare

a credit rate by way of interest


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for this Account. The interest rate will be declared out of the estimated

income from the underlying segregated portfolio of investments after

(a) appropriation of fund management charge of 1%, and (b) transfers

to/from a smoothing reserve. Your account balance will grow each day

at the declared interest rate. Rates declared for the Account are

available at www.idbifortis.com

The purpose of Monthly Interest Account is to provide a smoothed

return to the investors from out of the investment income of the

underlying portfolio. For this purpose, a reserve for smoothing of

interest rate will be maintained.

Investment Pattern: The Monthly Interest Account is a segregated

fund which will invest 100% of the money in fixed income investments

including government securities, treasury bills, bank deposits,

certificates of deposit, corporate securities, commercial paper,

securitized papers, structured products, money market instruments,

etc. The fund may use derivatives to meet its objective to the extentpermitted by the applicable guidelines.

B. Guaranteed Return Funds

Risk: Low

Guaranteed Return Funds give you an assured, fixed return for a

specified period. Each fund matures on a specified date and carries a

minimum Guaranteed Maturity Value for each unit. Each fund is

available for investment for a limited period after the opening date

during which units are allotted

at the Net Asset Value. Upon maturity of the fund, you will receive the

Net Asset Value as on the maturity date or the Guaranteed Maturity

Value for the units you hold, whichever is higher.


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Available Funds: The available funds and the guaranteed maturity

value for each unit that they carry are declared by us from time to time.

You can select a fund from those available at the time you pay the

premium. You can also switch into them when they are available. The

available funds are given at

www.idbifortis.com

Liquidity: Guaranteed Return Funds mature on the specified date.

However, if you wish, you can redeem them before maturity at the Net

Asset Value and the guarantee will not apply.

Investment Objective: Guaranteed Return Funds are segregated

closed-ended funds with specific maturity date and a minimum

guaranteed maturity value per unit. They aim to generate a fixed return

by investing in fixed income instruments with maturities close to the

maturity date of the fund and follow a buy-and-hold strategy.

Investment Pattern: These funds invest up to 100% of the moneys in

fixed income investments including government securities, treasury

bills, bank deposits, certificates of deposit, corporate securities,

commercial paper, securitized papers, structured products and money

market instruments.

The fund may use derivatives to meet its objective to the extent

permitted by the applicable guidelines.

Fund Management Charge: A fund management charge of 1.5% p.a.

will be appropriated while computing the Net Asset Value of the

Guaranteed Return Funds.

2. Capital Guaranteed Options: You can invest in

stocks without losing the principal


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C. Capital Guaranteed Funds

Risk: Medium

Capital Guaranteed Funds guarantee the return of at least the face

value of each unit on the specified maturity date. Returns are, however,

not guaranteed and depend upon the performance of the equity

portfolio of the fund and the stock market.

Available Funds: Capital Guaranteed Funds are segregated closed-

ended funds with specified maturity date. Each fund is available for

investment for a limited period after the opening date during which

units are allotted at the Net Asset Value. Upon maturity, you receive the

Net Asset Value as on the maturity date or the face value of each unit

you hold, whichever is higher.

The available funds are declared by IDBI Fortis from time to time. You

can select a Capital Guaranteed

Fund from those available at the time you pay the premium. You can

also switch into them when they are available. The available funds are

given at www.idbifortis.com

Investment Strategy: Capital Guaranteed Funds are managed using

capital protection techniques including portfolio insurance strategies

and manage the exposure to equity and debt with a view

to obtaining equity exposure consistent with capital protection and the

guaranteed maturity value.

The funds will implement ratcheting strategy as decided by IDBI Fortis.

Under ratcheting, when the Capital Guaranteed Funds have made

returns over and above the amount needed to provide for guaranteed

value, the returns may be locked-in by investing in debt so that you

are assured of those returns even if the market moves adversely in the

future. Ratcheting may reduce future exposure to equity.


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Capital Guaranteed Funds may also use derivatives to meet their

objectives to the extent permitted by applicable guidelines.

Investment Pattern: Capital Guaranteed Funds will manage exposure

to fixed income investments and equities as stated below:

Range of Debt exposure: 40%-100%

Range of Equity exposure: 0-60%

Liquidity: Capital Guaranteed Funds mature on the specified date.

However, if you wish you can also redeem them before maturity at the

Net Asset Value, but the guarantee will not apply.

Fund Management Charge: The funds carry a fund management

charge of 2.25% p.a. which is applied before computing the Net Asset

Value.

3. Market Fund Options: For investing in stocks, bonds

or money market

Market Linked Funds are similar to mutual funds. They are open-ended

funds which invest in equity, debt or money market as per their

investment objectives. The Net Asset Value (NAV) of each fund is

published on a daily basis.

You can invest your premiums into, switch into or switch out of any fund

at any time at the NAV. Your gain or loss is the difference between the

value at which you invested and the value at which you exited. In

Market Linked Funds, the

NAV depends on the market value of the underlying investments. The

expected return and risk vary by the Fund.

We offer the following funds:

Fund: D1. Equity Growth Fund

Risk: High


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Investment Objective: Seeks to invest in listed stocks and aims

to generate high returns by picking stocks that have growth prospects.

It aims to diversify risk by investing in large-cap as well as mid-cap

stocks and across multiple sectors.

Investment Pattern: Fixed Income Investments including Cash

and Money Market Allocation Equities and Equity-linked Instruments

Allocation: 0 - 50%

50 - 100%

Fund: D2. Nifty Index Fund

Risk: High

Investment Objective: Nifty Index Fund invests in Nifty stocksand aims to track the index as closely as possible.

Investment Pattern: Fixed Income Investments including

Cash and Money Market Equities and Equity-linked Instruments

Allocation: 0 - 20%

80 - 100%

Fund: D3. Bond Fund

Medium


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Investment Objective: Seeks to invest in fixed income

investments and aims to generate returns from interest coupons and

the opportunities in changing yield curve. The duration of the

underlying portfolio may be high or low, depending upon the market

conditions.

Investment Pattern: Fixed Income Investments including

Cash and Money Market

Allocation:100%

Fund: D4. Income Fund

Risk:Low

Investment Objective: Aims to generate a return by seeking to

invest in fixed income investments that carry low or medium market

risk

Investment Pattern:Fixed Income Investments including

Cash and Money Market

Allocation:100%

Fund: D5. Liquid Fund

Risk:Low


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Investment Objective: Seeks to invest in overnight money and

other money market instruments

Investment Pattern:Money Market, Cash and

Short-term Debt

Allocation:100%

4. Asset Allocator Funds: When you want us tomanage your investment allocation

E. Asset Allocator Funds

In Asset Allocator Funds, our fund managers choose how much to invest

in stocks, bonds or money market, depending upon their view on the

markets.

Leave-it-all-to-us: Asset Allocator Funds are suited to those who wish

to leave the management of their investment strategy entirely to us.

Risk Profile: We manage the funds based upon your risk preference.

You can choose amongst three risks levels: Cautious, Moderate and

Aggressive. The equity component is restricted, based on the risk

profile chosen by you.

Structure:Asset Allocator Funds are funds of funds which invest in the

other investment options within IDBI Fortis Investment Basket including

the Market Linked Funds. Equity component may go up to 25% in

Cautious, 50% in Moderate and 100% in Aggressive


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GENERAL INSTRUCTION

Minimum allocation to a fund: Minimum amount of premium

direction or redirection in any investment fund should be at least 15%

of the annual premium.

Unit Price Formula: Calculation of unit price for a unit-linked fund

depends on whether that fund has net creations or redemptions on the

valuation date. Net Asset Value for each unit is determined as: Market

value of investments plus expenses incurred in the purchase of assets

(if the fund has net unit creations) or less expenses incurred in the sale

of assets (if the fund has net unit redemptions) plus value of current

assets plus accrued income net of management charges less current

liabilities less provisions, divided by the number of units on issue.

Investment Guidelines: All segregated funds will be managed,

subject to compliance with applicable statutory regulations and

guidelines. At present, investments in other than approved securities

(including third party mutual funds) cannot exceed

25%. Also, as per present guidelines of IRDA, a policy owner cannot

invest more than 40% of total fund in liquid fund. All of the funds will

also trade in derivatives, invest in third-party funds or engage in short

selling to the extent permitted by the applicable regulations.

Fund Management Charges: Fund Management Charges are

2% p.a. for Equity Growth Fund, 1.75% p.a. for Nifty Index Fund,

1.5% p.a. for Bond Fund, 1.25% p.a. for Income Fund and 1% p.a. for

Liquid Fund. For Asset Allocator Funds, additional

Fund Management Charges are 0.25% p.a., 0.5% p.a., and 0.75% p.a.

for Cautious, Moderate and Aggressive respectively.


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We reserve the right to increase charges for any fund by up to 0.75%

p.a., with prior approval of IRDA.

We will charge you or deduct from your investment amount any taxes,

duties or surcharges of whatever description levied or that may be

levied by any statutory authority.

New Funds: IDBI Fortis will introduce new funds, from time to time, to

meet changing needs of investors, market conditions and regulatory

environment. Similarly, old funds may be withdrawn or merged. As a

policy owner, the entire suite of investment options under IDBI Fortis

Investment Basket will be available to you, unless specifically excluded.

Living Benefits

IDBI Fortis Insurance Basket: Protect your Wealth Plans & Get

Living Benefits

Besides allowing you to build wealth, Wealthsurance protects your

Wealth Plans with insurance. While many life insurance products

provide benefits upon death, Wealthsurance is designed to also offer

Living Benefits. Living Benefits help you to overcome the crises during

your lifetime. The full range of insurance benefits we offer is called the

IDBI Fortis Insurance Basket. Please refer to our Insurance Basket Guide

for details of the optional health, accident and disablement insurancebenefits which are also available with your Wealthsurance Plan.

Life and Terminal Illness Benefit: Get benefits on death as well as

terminal illness

We pay benefits under your Wealthsurance Plan in the event of(a)

death, and (b) terminal illness.


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A. Death Benefit

We pay Death Benefit in the event of death of the Insured Person due to

any cause, natural or accidental. Death Benefit is the higher of the

following two amounts:

(a) Sum Insured or

(b) The Fund Value in your Investment Account.

Upon payment of Death Benefit, your Wealthsurance Plan is terminated.

B. Terminal Illness Benefit

While most life insurance policies pay benefits upon death, a unique

feature of Wealthsurance Plan is accelerated payment of benefit upon

diagnosis of terminal illness.

We pay Terminal Illness Benefit if the Insured Person is diagnosed as

terminally ill and is expected to live for not more than six months. We

may require the diagnosis to be made by a specialist medical

practitioner appointed by us.

Terminal Illness Benefit is equal to Sum at Risk (i.e. Sum Insured minusFund Value), subject to a maximum of Rs 25 lakhs. If Fund

Value is greater than Sum Insured then there is no Sum at Risk and

Terminal Illness Benefit does not apply.

Upon payment of the Terminal Illness Benefit, we will reduce the

Sum Insured by the amount of the Terminal Illness Benefit paid.

The policy continues as before except with reduced Sum Insured.

You can choose your Sum Insured

In your Wealthsurance Plan, you can choose the Sum Insured within the

minimum and maximum limits specified below.

Minimum Sum Insured

The minimum Sum Insured depends upon whether you have chosen

Single or Regular Premium.


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Single Premium: In Single Premium, the minimum Sum Insured is 1.25

times the Single Premium Amount where policy term is less than 10

years and 1.10 times the Single Premium Amount where policy term is

10 years or more.

Regular Premium: In Regular Premium, the minimum

Sum Insured is 5 times of Annual Regular Premium Amount.

Maximum Sum Insured

There is no maximum limit on Sum Insured. The limit, if any, is

determined by underwriting.

Exclusions

(a) Death Benefit is not paid in the event of suicide, attempted suicide,

or self-injury within 12 months from the commencement of the Plan, (b)

Terminal Illness Benefit is not paid in the event of attempted suicide or

self-injury, and (c) Death or Terminal

Illness Benefit is not paid before completion of age 7 if theInsured Person is a child. In above cases, only the Fund Value will be

paid.

Mortality and Terminal Illness Charges

To meet the cost of Life and Terminal Illness Cover, Mortality and

Terminal Illness Charges are deducted at the beginning of each month

by cancellation of units in your Investment Account.Mortality and Terminal Illness Charges are calculated on the Sum at

Risk which is defined as Sum Insured minus Fund Value.

If the Fund Value in your account exceeds the Sum Insured, then Sum

at Risk is taken as zero.

Charges (excluding service tax, cess and any other statutory levies) for

sample ages for a healthy adult are as below:


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Per annum per Rs 1,000 Sum at Risk (Rs)Age (years) 25 30 35 40 45 50

Male Mortality Charge 1.81

1.86

2.14

2.98

4.31

6.99

Terminal Illness

Charge

0.0

6

0.0

6

0.0

7

0.0

9

0.1

3

0.2

2Total 1.8

7

1.9

2

2.2

1

3.0

7

4.4

4

7.2

1Femal

e

Mortality Charge 1.7

4

1.8

5

1.9

0

2.4

0

3.4

3

5.2

0Terminal Illness

Charge

0.0

5

0.0

6

0.0

6

0.0

7

0.1

1

0.1

6Total 1.7

9

1.9

1

1.9

6

2.4

7

3.5

4

5.3

6

At the time of underwriting, the charges may be increased, based on

your family history and medical condition.

Policy Administration Charge

A flat charge of Rs 60 per month will be deducted by cancellation of

units at the beginning of each month.

RIDERS

Optional Insurance Benefits: Protect your plans with

Health, Accident and Waiver of Premium Benefits

Besides Life and Terminal Illness Benefit, Wealthsurance offers a

number of optional insurance benefits. They protect you and your


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wealth plans if you suffer major diseases, undergo hospitalization,

suffer serious accidental injuries, or become disabled.

We offer the following optional benefits by way of riders, which you can

choose as needed. You pay for only those benefits that you choose. The

charges for the benefits you choose are collected by cancellation of

units in your Investment Account. Please refer to our IDBI Fortis

Insurance Basket brochure for details, costs, exclusions and conditions

of each benefit.

1. Health Benefits

Major Diseases Benefit

If the Insured Person is diagnosed with any of the 17 specified major

diseases, a lump sum cash amount is paid as benefit. The benefit is

intended to take care of medical expenses and loss of earning that

result when a major illness strikes.

The diseases covered are (1) Heart Attack, (2) Coronary BypassSurgery,

(3) Heart Valve Replacement, (4) Surgery of the Aorta, (5) Cancer,

(6) Stroke, (7) Kidney failure, (8) Major organ transplant, (9) Paralysis,

(10) Coma, (11) Multiple Sclerosis, (12) Alzheimers disease,

(13) Parkinsons Disease. (14) Benign Brain Tumour, (15) Major Head

Trauma,

(16) Major burns and (17) Primary Pulmonary Arterial Hypertension.You can choose the Benefit Amount, which can be a maximum of

Rs 20 lakhs but not more than your Life and Terminal Illness Benefit

Sum Insured.

Hospital Cash Benefit

If the Insured Person is admitted to a hospital upon medical advice for

the treatment of any illness or injury, a daily cash allowance and otherbenefits as specified are paid.


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Hospital Cash Benefit is available in capsules that you can buy, subject

to a maximum of 8 capsules. Depending upon the number of capsules

you buy, Normal Benefit varies from Rs 500 to Rs 4,000 for each day of

hospitalization from the third day onwards. Normal

Benefit is paid if admitted in other than ICU. In case of admittance to

ICU, ICU Benefit is paid which varies from Rs 1,000 to Rs 5,000 per day.

Recovery Benefit is paid in case of hospitalization for more than five

days. Recovery Benefit is equal to twice the Normal Benefit payable per

day.

2. Accident and Disability Benefits

Accidental Death Benefit

In the event of the death of the Insured Person due to an accident, an

additional lump sum cash amount is paid as benefit.

You can choose the Benefit Amount, which can be a maximum of

Rs 50 lakhs but not more than your Life and Terminal Illness BenefitSum Insured.

Accidental Death and Disablement Benefit

In the event of the death or permanent disablement of the Insured

Person due to an accident, a lump sum cash amount is paid as benefit.

Different types of accidental injuries are covered with entitlement

specified as a percentage of Benefit Amount. You can choose theBenefit Amount, which can be a maximum of Rs 50 lakhs but not more

than your Life and Terminal Illness Benefit Sum Insured.

3. Waiver of Premiums

Waiver of Premium Benefit on Death

In the event of the death of the Policy Owner, the future regularpremiums are waived and treated as paid.


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Waiver of Premium Benefit on Total and Permanent

Disablement

In the event of total and permanent disablement of the Policy Owner,

the future regular premiums are waived and treated as paid

Liquidity through Withdrawals and Surrender

Wealthsurance allows you to build wealth over the long term. At the

same time, we recognize that you might have need

for funds before maturity of the Plan. We offer liquidity with (a) Partial

Withdrawals, (b) Surrender.

Partial Withdrawals

From out of the Fund Value in your Investment Account, you can

withdraw money for any purpose by making Partial Withdrawals,

subject to the following restrictions:

No withdrawals are permitted in the first three years.

After three years, you can make Withdrawals as follows:

(a) You can make Withdrawals whenever you need and as many times

as you desire.

(b) Each Partial Withdrawal should be for a minimum of Rs 10,000.

When you withdraw, you should always leave as minimum balance the

higher of (a) Top-up Premiums paid in the past three years or (b)

Annual Regular Premium Amount in the case of a Regular Premium Plan

or Rs 20,000 in the case of a Single Premium Plan.

No withdrawals are permitted if the Insured Person is below 18 years.

Charges

There are no charges for Partial Withdrawals. However,


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IDBI Fortis reserves the right to introduce a Partial Withdrawal Charge

not exceeding 7.5% of the amount withdrawn, with the prior approval of

the IRDA.

Reduction in Death and Terminal Illness Benefits

If the Insured dies or is diagnosed for terminal illness before the age of

60, the Sum Insured will be reduced by any Partial

Withdrawals made in the preceding two years.

After age 60 of the Insured Person, the Sum Insured will be reduced by

the total amount of all Partial Withdrawals made after age 58 onwards.

Surrender

When you wish to terminate your Wealthsurance Plan before maturity,

you can surrender your Plan. However, you cannot surrender your

policy in the first three years of the Plan.

Upon surrender, we will pay you the Fund Value less Surrender Charge.

The Surrender Charge is a percentage of the Single

Premium or Annual Regular Premium that you have chosen in the Plan

according to the table alongside

Surrender Charge as a percentage of Single Premium

or Annual Regular Premium

Complete

d

policy

years

at the

date of

Single

Premiu

m

Regular Premium Payment Term (years)3-4

yrs

5-9

yrs

10-14

yrs

15-19

yrs

20+

yrs


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Surrende

r

3 4% 17.5% 20 30% 45% 60%4 2% 15% 20% 30% 45% 60%5 Nil 10% 15% 27.5% 45% 60%6 Nil Nil 10% 25% 45% 60%7 Nil Nil Nil 20% 40% 60%8 Nil Nil Nil 10% 35% 60%9 Nil Nil Nil Nil 30% 55%10 Nil Nil Nil Nil 20% 50%11 Nil Nil Nil Nil 10% 40%

12 Nil Nil Nil Nil Nil 30%13 Nil Nil Nil Nil Nil 10%14 and

above

Nil Nil Nil Nil Nil Nil

Or at

Maturity

Nil Nil Nil Nil Nil Nil

Plan your horizon with Policy Term

Policy Term is the maturity period of your Wealthsurance Plan. At the

end of the Policy Term, your Plan will terminate and you will receive the

Maturity Benefit. Your insurance benefits will cease.

Choice of Policy Term

The minimum Policy Term you can choose is 10 years. If the Insured

Person is a child, the minimum Policy Term should be 18 years less age

of the child at entry or 10 years, whichever is longer. There is no

maximum except that the age of the Insured Person cannot exceed 75

at the end of the Policy Term.

In Wealthsurance, you enjoy the benefits throughout the Policy Term.

You should choose a Policy Term, based on (a) your investment horizon

for building wealth, and (b) how long you wish to enjoy the

Life and Terminal Illness Cover and other insurance benefits.


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Consider choosing a long Policy Term since you have the option of

liquidity through Withdrawals and Surrender, if you are in need of

funds.

Maturity Benefit

Maturity Benefit is equal to the Fund Value in your Investment

Account on the date of maturity. Upon payment of the Maturity

Benefit, your Wealthsurance Plan is terminated.

Settlement Option

If you so choose, you need not withdraw the entire Maturity Benefit on

the maturity date. You can withdraw it in installments as you choose,

within five years from the maturity date. During this period, your Fund

Value will continue to grow in the Investment Account and you will also

bear the investment risk as before except where we make specific

guarantees. Life Cover and Optional Insurance

Benefits cease at the maturity of the Plan and are not provided duringthe period of the settlement option.

Tax Benefits of WealthsuranceTM Plan

Wealthsurance Plan gives you attractive tax benefits. Contributions by

way of premiums are eligible for deduction under Sec 80C. Insurance

charges for health benefits are eligible for deduction under Sec 80D.

Benefits are tax-free under

Sec 10(10D), allowing you to earn tax-free income and benefits.

Please note that the following is only for your information and you

should seek tax advice from your tax advisor. Please also note that tax


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laws may change from time to time and, therefore, the terms and

conditions, as also the benefits may change.

Tax Deduction on Contributions

The premiums you contribute in your Wealthsurance Plan are eligible

for tax deduction under Sec 80C up to a limit of Rs 1 lakh per year. In

effect, you do not pay tax on that portion of your income which you

save in Wealthsurance Plan.

If you choose Major Diseases Benefit or Hospital Cash Benefit, the

charges payable for them are eligible for deduction under Sec 80D up

to a limit of Rs 15,000 per year.

Tax-Free Benefits

Under Sec 10(10D), all the Benefits you receive under

Wealthsurance Plan is tax-free without any limit. Thus the benefits are

fully available to meet the needs of financial security of your loved ones

or to take care of your expenses as in the case of medical crises.

Thus, all the returns you earn on the various investment options are

tax-free. Your wealth grows faster in Wealthsurance without tax impact.

When you compare returns on the investment options offered under

Wealthsurance with other investment alternatives, you should remember the

tax-free nature of Wealthsurance.

No Tax Deduction at Source

There is no tax deduction at source.

Conditions

Benefits under Sec 80C and Sec 10(10D) are available only if the

premium payable in any year is not more than 20% of

Sum Insured. Also, the benefit under Sec 80C is available if you are theInsured Person and Policy Owner or you being the Policy


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Owner paid the money for Insured Person who is either your spouse or

child.

SWITCHES

Change your Plan if your needs change

Wealthsurance is designed to meet your changing savings, investment

and insurance needs. You can make changes to your Plan if your needs

change. Wealthsurance is thus a flexible plan which can meet your

needs, without the need to have new plans.

When your wealth-building plans change

Your needs and requirements may change over time and so should your

Wealthsurance Plan. You may have the following situations:

You are not able to pay the premiums you have committed to pay.

You wish to build more wealth and want to pay more premiums.

You wish to change the way your premiums are invested.

Your Plan gives you flexibility in the following ways:

A. Non-payment of Basic Premiums

There could be times when you are not able to pay premiums as

planned. We give you the flexibility to skip payment of premiums and

yet enjoy all the insurance benefits, provided that you have paid

premiums for at least three years.

After payment of premiums for at least three years, if you wish to take

a break from payment of premiums, you can skip payment of

premiums. Life and Terminal Illness Cover as also other Optional

Insurance Benefits will continue and charges will be collected as


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applicable. You can revive the Plan within two years by paying all due

premiums, failing which your Plan will be terminated and you will be

paid the Surrender Value. If you wish your Plan to continue even after

the revival period without payment of premiums, you can apply to us

and we may agree at our discretion and subject to our underwriting

requirements.

After three years, if on a monthly policy anniversary during the time

you have not paid premiums, your Surrender Value is estimated to fall

below the Annual Regular Premium Amount, your Plan will be

automatically terminated and you will be paid the Surrender Value,

subject to a minimum value of one Annual Regular Premium Amount.

Non-payment of Premiums in the first three years

In the first three years, if you fail to pay premiums within 30 days from

the due date, your life insurance cover and other optional insurance

benefits will be suspended immediately and collection of mortality

charges and charges for optional insurance benefits will also cease.You can, however, revive the Plan at any time within two years from the

date of first non-payment by paying all the due premiums. Upon revival,

your insurance benefits will be reinstated, subject to underwriting. If

you fail to revive within two years, the Plan will be automatically

terminated and you will be paid the Surrender Value, at the end of the

revival period or expiry of three years from plan commencement,

whichever is later,

B. Build more wealth by paying more premiums

You can contribute additional premiums into your Wealthsurance

Plan to build more wealth by contributing Top-up Premiums.

You can also apply to us to increase your Regular Premium amount or

term. Increase in premium is subject to meeting the requirement of

minimum Sum Insured under the Plan.Any increase in Sum Insured is subject to underwriting.


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C. Change your Investment Options

Your investment preferences may change over time. You can change

the mix of your investment options in the following two ways:

Premium Redirection, which changes the way your future premiums

are invested. There is no charge for changing your Premium

Redirection.

Switches which allow you to shift your investment, from one

investment option to another investment option. There are no charges

for switches. However, IDBI Fortis reserves the right to introduce Switch

Charges not exceeding 2.5% of the amount switched, with the prior

approval of IRDA.

When your insurance needs change

Over time, your insurance needs may also change.

Wealthsurance allows you to increase or decrease the amount of

insurance benefits and to add or remove optional insurance benefits.Any increase in benefits is subject to acceptance after underwriting.

Any reduction is subject to minimum levels as required by the Plan

being maintained.

Create Exclusive Funds for loved ones

A useful feature under Wealthsurance is that you will be able to create

exclusive funds for the benefit of your loved ones which you can be

sure no one will be able to access. These funds are legally protected

from creditors and claimants on estate such as legal heirs, parties to

disputes or creditors.

Married Womens Property Act


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Under Sec 6 of the Married Womens Property Act, 1874, a married man

can take an insurance policy on his own life and express it to be for the

benefit of his wife or children. When such intent is expressed on face of

the policy, it shall be deemed to be a trust for the benefit of the named

beneficiaries and it shall not be subject to the control of the husband or

his creditors or form the part of his estate. The Act also provides that

nothing contained in the provision shall operate to destroy or impede

the right of any creditor to be paid out of the proceeds of any policy of

assurance which may have been affected with intent to defraud

creditors.

Set up Wealthsurance Plan for your loved ones

You can ask for endorsement of your Wealthsurance Plan for the benefit

of your wife or children or any combination of them under the Married

Womens Property Act. You can also indicate the percentage share of

each of them in the Plan. Once endorsed, the Plan will be exclusively for

the benefit of the named beneficiaries.

IDBI FORTIS

Bondsurance

IDBI Fortis Bondsurance Plan

Invest Rs 1 lakh and get Rs 1.847 lakhs after 10 years, plus life

cover.(For a person in age band of 8-32 years. Maturity amount

varies depending upon age and term.)

Guaranteed return on your investment with life insurance.

Plus Tax Benefits under Sec 80C & Sec 10(10D)

Bondsurance is a single premium plan where you need to make a one-

time investment. You can choose a maturity period of 5 or 10 years. At

the end of the chosen period, you will receive a guaranteed maturity


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amount. In case of death before the maturity date, a Death Benefit

which is also guaranteed will be paid. Thus you can get life insurance

cover while earning an assured return on your investment. The

premium you pay is eligible for deduction of tax under Sec 80C of the

Income Tax Act. Also, the Maturity Benefit and the Death Benefit are

tax-free under Sec 10(10D) of the Income Tax Act.

1. Guaranteed Maturity Amount gives you an assured

return

Choose your Maturity Benefit and Maturity Period. And pay a single

premium.

Bondsurance gives you guaranteed returns. You have to choose (a) the

Maturity Benefit, and (b) the Maturity Period. Based on your choice, the

investment you have to make by way of single premium is determined.

Maturity Benefit: You can choose any amount as the Maturity Benefit.

The amount you choose is guaranteed and will be paid to you on the

maturity date.

Maturity Period: You can choose the Maturity Period, which can be

either 5 or 10 years. The Maturity Period is the policy term of your

Bondsurance Plan.

Single Premium Amount: You have to make a one-time investment

by way of a single premium. The single premium amount is based on

your choice of Maturity Benefit, Maturity Period and the age of the

Insured Person in completed years as on the date of application, as per

the Premium Table below. Minimum single premium payable is Rs

20,000. There is no maximum limit.


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PREMIUM TABLE

Age of

Insured

Premium per Rs 1,000 of Maturity Benefit

Person (in

complete

d years)

Maturity Period

5 years

Maturity Period

10 years

8-32 Rs 778.98 Rs 555.2833-37 Rs 785.91 Rs 567.1638-42 Rs 797.78 Rs 583.9843-47 Rs 819.56 Rs 625.5648-52 Rs 861.13 Rs 700.7853-55 Rs 936.36 Not Available

The above premiums are exclusive of service tax and education cess,

which are payable in addition. Premiums may be revised, based on

market conditions

Discount on Single Premium Amount: If you choose a Maturity

Benefit of Rs 1, 50,000 or higher, you will also get a discount on the

single premium amount as per the Discount Table below. The discount

will reduce the single premium payable and increase your effective

return.

DISCOUNT TABLE

Maturity

Benefit

Discount for 5-

year Maturity

Period

Discount for 10-year Maturity

Period

Rs

1,50,000

2% 3.5%


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to Rs

3,99,999

Rs

4,00,000

to Rs

9,99,999

2.5% 4.5%

Rs

10,00,000

andabove

3% 5.25%

Discount rate applies on the premium as per the Premium Table.Service tax and education cess are payable on the single premium

amount after discount.

Examples

(a) You would like to receive Rs 1 lakh as Maturity Benefit after 5 years

and you are 30 years old. You will need to pay Rs 77,898 as single

premium plus Rs 802 as service tax and education cess. It translates toan effective tax-free annual return of 4.91% on your investment. You

will also get a life insurance cover of Rs 3, 89,490.

(b) You would like to receive Rs 10 lakhs as Maturity Benefit after 10

years and you are 30 years old. You will need to pay Rs 5, 26,128 as

single premiums, after a discount of 5.25%, plus Rs 5,419 as service tax

and education cess. It translates to an effective tax-free annual return


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of 6.52% on your investment. You will also get a life insurance cover of

Rs 26, 30,639

2. Life Insurance Cover provides protection

Ensure financial security of the family in the case of

unfortunate death.

Besides giving assured returns, Bondsurance also provides a life

insurance cover. While the emotional loss of death can never be made

up, the life insurance cover ensures that the financial security of loved

ones is taken care of.

Death Benefit: In the unfortunate event of death of the Insured Person

before the maturity date, a Death Benefit equal to five times the single

premium amount will be paid. The Death Benefit (which is the Sum

Insured) is guaranteed. The Plan will terminate upon the payment of

Death Benefit.

Insured Person: You can take the policy on yourself or any other

person in whom you have insurable interest. The person on whom you

take the policy is the Insured Person. If you take the policy on yourself,

the Death Benefit will be paid to your nominee in the unfortunate event

of your death. If you take the policy on another person, you as the

owner of the policy will receive the Death Benefit if the Insured Person

dies before the maturity date. You will also receive the Maturity Benefit

on the maturity date if the Insured Person survives (except in the case

of a minor as given below).

Minor as Insured Person:You can also take the policy on a minor as

the Insured Person. In the case of a minor, the Bondsurance Plan will


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vest in the minor upon attaining majority. In that event, the Maturity

Benefit will be paid to the minor who has attained majority.

Exclusions: If the Insured Person, whether sane or insane, commits

suicide within 12 months from the commencement of the plan, only the

single premium amount will be refunded. If the Insured Person is a

minor, life cover will commence after two years from plan

commencement or upon attaining majority, whichever is earlier. In case

of death during that period, only the single premium amount will be

refunded.

3. Tax Benefits incentives you to get protection with

assured returns

Tax Benefits enhance your returns and reward the financial

security of insurance.

Bondsurance is designed to give you attractive tax benefits.

Bondsurance gives you two benefits under the Income Tax Act, Sec 80C

and Sec 10(10D).

Deduction under Sec 80C:Your investment in Bondsurance is eligible

for deduction under Sec 80C of the Income Tax Act up to the limit of Rs

1, 00,000 (along with other eligible investments). Thus you save

income-tax when you invest in Bondsurance.

Tax-free Benefits under Sec 10(10D):The Maturity Benefit and also

the Death Benefit are tax-free under Sec 10(10D) of the Income Tax

Act, without any limit. There is also no tax deduction at source. Thus

your investment grows in Bondsurance, free of any tax impact.


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The benefits above are as per present tax laws. Please note that tax

laws may change from time to time. You are also advised to consult and

be guided by your tax advisor.

4. Surrenderfacility and loan eligibility provide

liquidity before maturity

In case of financial need, premature surrender is available.

Banks can also give loans against Bondsurance at their

discretion.

Bondsurance also provides liquidity before maturity.

Surrender: After one year, you have the option to prematurely redeem

your Bondsurance Plan by surrender. You will receive Special Surrender

Value, which will be announced by us from time to time. It will,

however, never be less than 80% of your single premium amount.

Loan: IDBI Fortis does not offer a loan facility against this plan.

Loan Eligibility: Banks may accept Bondsurance as collateral to give

loans. The loan is, however, entirely at the discretion of the bank, and

the terms and conditions as determined by the bank. At your request,

we can register an assignment to provide collateral to the bank.

5. Simple and convenient process

Hassle-free sign-up.

The process to buy the Bondsurance Plan is very simple and

convenient.


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For Sum Insured equal to or less than Rs 5 lakhs, you may be eligible

for a non-medical life insurance cover and all you need to do is simply

filling in the proposal form along with the necessary documents.

For Sum Insured greater than Rs 5 lakhs, you will need to complete our

Full Personal Health Statement form in addition to the proposal form

and undergo a medical test, if required. Issuance of the Bondsurance

Plan is subject to our underwriting guidelines.

Eligibility conditions for Bondsurance

Minimum Age at

entry(as on last

birthday)

8 years (For a term of 10 years)


Maximum Age at

entry(as on lastbirthday)



Maximum Age at

maturity

60 years

Minimum

Documents

Summer Project Sachin