IDBI Federal Life Insurance launches ‘Bondsurance Plan'

IDBI Federal Life Insurance Company has launched a ‘Bondsurance Plan' with guaranteed returns and life cover.

The plan is meant for those willing to invest for a short to medium term to earn a guaranteed return along with tax benefits.

The insurance company, in its product illustration, said customers in the 8 to 32 years age bracket would get a guaranteed maturity amount of Rs 1,38, 293 for a single premium of Rs 1 lakh for a 5-year term. The effective tax-free return would work out to 14.89 per cent, said a company statement.

The guaranteed maturity amount is in addition to getting a life cover of Rs 5 lakh (5 times the premium paid) to ensure financial security for the family in the unfortunate event of death of the subscriber.

The premiums and the guaranteed maturity amount would vary with the age of the customer and the term chosen.

According to Mr G. V. Nageswara Rao, MD & CEO, IDBI Federal Life Insurance, “In today's volatile market situation, there is a growing customer preference for safe and guaranteed return products to balance their investment portfolio.

“With premium of as low as Rs 20,000, Bondsurance has been 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.”

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.

Other benefits of the Bondsurance plan include discount on single premium in case the guaranteed maturity benefit is equal to or greater than Rs 1,50,000 and liquidity before maturity through special surrender value after the first year, said a company statement.

kram@thehindu.co.in