IDBI Federal Wealthsurance Premier ULIP–Targeting the wealthy

IDBI Federal Wealthsurance Premier ULIP is a single premium ULIP, with a broad array of investment funds and protection benefits bundled together on a low-charge structure. The single-premium ULIP serves more as an investment than an insurance cover. It is easier to sell for agents and the one-time payment is suitable for customers. The charges on Wealthsurance Premier is lower than other single-premium ULIPs, but the hefty premium the customer is required to pay makes up for the lower charges.

The minimum premium is Rs5 lakh. The premium allocation charge (PAC) is 0.5%, while the policy administration charge is calculated at 0.05(%) per cent per month or 0.6(%) per cent per annum on premiums between Rs5 lakh to Rs10 lakh, and 0.02(%) per cent per month or 0.24(%) per cent per annum on premiums above Rs10 lakh to Rs25 lakh. There is no PAC and policy administration charge for premiums above Rs25 lakh. The maximum fund management charge is 1.35(%) per cent (for all ULIPs), which is in fact lower than any mutual fund expense ratio. The minimum policy term is 5 years and the maximum is 75 years, less the age of entry. It is a long duration policy term indeed.

The product offers flexibility of investment according to an individual's risk-return profile. There is a choice of assured returns, variable returns linked to market performance and returns linked to market, but with the protection of capital. The market-linked product has self-managed or expert-managed options. There are no charges for switches.

But mortality charges are high. SBI Life has one of the lowest mortality charges for ULIPs. The mortality charges for Wealthsurance Premier ULIP are more than similar ULIPs by LIC, ICICI, ING Vyasa and Max New York Life, but it is similar to Bajaj Allianz iGain III. It is also lower than such new ULIPs like Birla Sunlife Foresight.

The minimum sum assured depends upon the age at entry. If the person is younger than 45, the minimum sum insured is 1.25 times the single premium amount. If the person is 45 or older, the minimum sum insured is 1.1 times the single premium amount. There is no maximum limit on the sum insured. The limit, if any, is determined by underwriting.

The plan has optional insurance benefits like comprehensive health and accident cover. It also has major diseases and serious illness benefits, with payment of lump-sum cash as well as hospital cash benefit through a daily cash allowance. The accident benefit has an accidental death and disablement benefit.

Upon the unfortunate demise of the person whose life is insured, prior to maturity, the insurer shall pay the nominee the basic sum assured, or the fund value as of the date of intimation of death. The death benefit will be at least 105% of total premiums paid.

Wealthsurance Premier can insure HNI's wealth plan against death, 13 accidental injuries, 17 major diseases, and serious illnesses requiring hospitalisation or disablement which prevents engaging in an income-earning activity.

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Life Insurance | Health Insurance | Ulips | Term Plan