IDBI Federal Retiresurance Group Insurance Plan

*Please note that the quotes shown will be from our partners

Introduction/Overview

IDBI Federal Retiresurance Group Insurance Plan is a group insurance plan designed specifically for employer-employee groups providing employers a plan to manage the employees’ retirement compensations like gratuity, superannuation or leave encashment.

Key Features

  • It is a yearly renewable plan
  • The plan can be availed  only by employer-employee groups where a minimum of 10 members are required
  • A Master Policy held by the employer is issued covering the members for a pre-determined amount.
  • Defined Benefit scheme and Defined Contributions scheme is covered under the scope of the plan
  • Gratuity, Superannuation and Leave Encashment is managed under the Defined Benefit scheme while only Group Superannuation is managed under the Defined Contribution scheme

Benefits

  • A guaranteed Minimum Floor Rate @ 0.5% p.a. will be credited to the policy account quarterly throughout the term
  • A non-negative Additional Interest rate will be credited to the policy account quarterly
  • A non-negative Residual Additions from the 5th policy year will be credited to the policy account to meet the maximum Reduction in Yield
  • On death, under the Defined Contribution scheme, the aggregate Account balance is paid subject to a minimum of 100.1% of all premiums paid for each member and for the Defined Benefits scheme, the accrued liability as per scheme rules is payable
  • On death under the Gratuity and Leave Encashment scheme, the accrued liability + a fixed Sum Assured equal to Rs.1000 is payable
  • The benefits as payable in case of death are payable in  case of retirement, resignation or disablement of members except the Sum Assured of Rs.1000

Product Specification:

 

Minimum

Maximum

Entry Age (Last Birthday)

18 years

79 years

Maturity Age (Last Birthday)

-

80 years

Size of the group

10 members

No limit

Contribution

50,000

No limit

Frequency of Contribution

Annual, half-yearly, quarterly, monthly

 

Policy Details

Grace Period: not applicable under the plan

Policy Termination or Surrender Benefit: on surrender, the balance in the policy account net of applicable surrender charges and Market Value Adjustment is returned

Free Look Period: If you would not be pleased with the coverage, and terms and conditions of the policy, you have the option of canceling the policy within 15 days of receipt of the policy documents, provided there has been no claim.

Additional Features or Riders

  • Employers can make additional contributions as per the terms and conditions

Documents Required

Policyholder has to fill up an ‘Application form/ proposal form’ with accurate medical history along with the details of every group member.