IDBI Federal Bondsurance Plan addresses the needs of those willing to invest for a short to medium term, to earn an attractive guaranteed return along with tax benefits.
For instance, customers in the age bracket of 8 to 32 years would get a Guaranteed Maturity Amount of Rs. 1,38, 293 for a single premium of Rs. 1,00,000 in Bondsurance for a 5 year term, thus an effective tax-free return of 14.89%. For the same investment for a 10 year term, the plan would give a Guaranteed Maturity Amount of Rs. 2,09, 480, thus an effective tax-free return of 11.73%. This is in addition to getting a life cover of Rs.5 Lakhs (5 times of the premium paid) to ensure financial security of the family in the unfortunate event of death. The premiums and the Guaranteed Maturity Amount would vary with the age of the customer and the term chosen.
“In today’s volatile market situation, there is a growing customer preference for safe and guaranteed return products to balance their portfolio. With premium of as low as Rs. 20,000, Bondsurance is specially crafted for those seeking a one-time lump sum investment that delivers attractive tax-free guaranteed returns along with the promise of life insurance protection”, said G. V. Nageswara Rao, MD & CEO, IDBI Federal Life Insurance Co Ltd.
Investment in the plan is eligible for deduction under Sec 80C and the Guaranteed Maturity Amount is tax-free under Sec 10(10D) of the Income-tax Act.
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 is payable to the nominee. The death benefit (which is the Sum Insured) is guaranteed and the plan will terminate up on the payment of the death benefit.
Other benefits of the IDBI Federal Bondsurance Plan include:
- Simple and convenient process to buy
- Discount on single premium in case the Guaranteed Maturity Benefit is equal to or greater than Rs. 1,50,000