A flexible money back plan.

IDBI's Incomesurance, with its money back plan, offers flexible payouts depending on your premium and tenure to suit your needs

HOW about an insurance plan that combines the features of a typical endowment policy along with the benefits of a money back plan? That's just what IDBI Fortis Life Insurance has introduced with its latest offering, Incomesurance.

Typically money- back plans and other investments give you payments on fixed dates, making it difficult to match your cash flows with your needs. To overcome this dilemma, the Incomesurance plan promises flexible payouts. The premium paid by you, the tenure and your payout period will determine the amount of payout made on your policy ( See box). For instance, in the Annual Payout Option, a guaranteed sum is paid at the end of each year during the payout period. This option is ideal if you want steady income stream, say, post retirement, or you want to plan for regular recurring expenses. The guaranteed annual payout is the total of a minimum annual payout and an additional annual payout. While the former is declared at the beginning, the additional payout will be declared after you pay each premium and depends upon the interest rates prevailing at the time of payment.

The calculation of the additional annual payout ( bonus) is based on a transparent link to a publicly declared government securities interest rate and not decided by the insurance company's internal accounting.

Alternatively, you can choose the flexible payout option if you want to accumulate the entire payout amount, along with the applicable interest, till the policy's maturity.

This can help you to receive a larger lumpsum payout. You can also choose to make cash withdrawals from the accumulated amount once a month. This option works well if you are saving up for something and you do not know exactly when you will need the money.

" The most unique feature of the Incomesurance plan is that the customer gets to know the increase in guaranteed income at the time of each premium payment.

One does not have to wait till the maturity of the plan or declaration of bonus," says G. V. Nageswara Rao, managing director and CEO, IDBI Fortis Life Insurance.

For the death benefit, the plan offers a Lump Sum Cover option where a lumpsum is paid upon death. The company also offers a waiver of premium option, where all future premiums will be waived on the death of the policy- holder.

Here's another carrot: Incomesurance offers a premium discount if the sum insured is above Rs 4 lakh. The premium is eligible for tax deduction under Sec 80C but the guaranteed annual payout and other benefits upon death are tax- free under Sec 10( 10D).

GAINS IN SHORT

PAYOUT PREMIUM

Yrs 5 10 15 5 yrs

PERIOD PAYMENT PERIOD

15937 9561 6167 10 yrs 15604 9384 6116

POLICY DETAILS

PREMIUM PAYMENT PERIOD: 5,10 or 15 years

PAYOUT PERIOD

5 or 10 years. Flexible pay out option also available which allows you to choose annual Payments or let them accumulate earning interest or with draw at maturity or whenever needed Policy Term Premium Payment Period plus Payout Period

MINIMUM ANNUAL PAYOUT

5 years 20% of Sum Insured ( if you pay premiums for 10 or 15 yrs) 16% of Sum Insured ( if you pay premiums for 5 yrs)

10 YEARS 10% of Sum Insured ( if you pay premiums for 10 or 15 yrs) 8% of Sum Insured ( if you pay premiums for 5 yrs)

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