Most Asked

Surrender is a facility given to the policy holder to cancel the policy after completion of the
lock-in period, completion of premium payment term or any other lock-in period prescribed
by the product guidelines.

a) Surrender request can be accepted for policies that have the status of Inforce, Paid
up, Policy Discontinuance or Cover Continuance.
b) The request should be received on completion of the policy lock-in period
c) In case the policy has been assigned, for Assigned, HUF and MWP policies request
for surrender should be received from the Assignee, Karta and Trustee respectively
under consent from the Policyholder.
d) In case of Unit linked plans, the date and time stamp is mandatory on the request
form. This is required for NAV allocation.

         a. If the request is received before 3.00 p.m. i.e. pre cut-off, then the same business day NAV will be allocated to the customer.

         b. If the request is received after 3.00 p.m. i.e. post cut-off, then the next business day NAV will be allocated to the customer.

 e) Request will be rejected if Life Insured is a Minor

a. Surrender Request Form duly filled and signed.
b. Policy Document / Indemnity Bond in lieu of Policy Document
c. Cancelled cheque or bank statement/pass book copy duly attested by bank and
Policyholder.
d. If ‘NEW ACCOUNT’ is mentioned on the cheque then we require the bank statement
/ passbook.
e. For NRE / NRI Account we require confirmation from the bank, which should state
that all premiums are paid from NRI account
f. Self attested Pan Card copy
g. NOC from the bank (In case assigned to the bank)
h. Fund transfer to new application letter
i. If customer is a NRI then:
          i. He/she will have to provide the copies of his/her Passport with entry and exit dates.
           Declaration (for change in residential status NRI – Indian)

Product Payable on Surrender/Termination
Retiresurance Pension Plan
(UIN: 135L008V01)
Entire amount can be paid out to the
customer and no declaration is required
Retiresurance Pension Plan
(UIN: 135L008V02)

Entire amount can be paid out to the
customer and no declaration is required

Retiresurance Milestone
Pension Plan
(UIN: 135L020V01)

1/3 rd of the surrender amount is
refundable to customer and 2/3 rd to
purchase an annuity plan or the entire
amount to purchase an annuity plan

Retiresurance Guaranteed
Pension Plan
(UIN: 135N017V01)

1/3 rd of the surrender amount is
refundable to customer and 2/3 rd to
purchase an annuity plan or the entire
amount to purchase an annuity plan

Policies issued on or before 31st March 2012 Policies issued on or after 1st April 2012

Applicable to only those policies where the sum assured is less than 5 times of the premium paid

  • Payouts Rs. 100,000 and above within same financial year will have to be taxed
  • 2% of the payout amount if Valid PAN is available with policy
  • 20% of the payout amount if PAN is NOT avialable with policy

Applicable to only those policies where the sum assured is less than 10 times of the premium paid

  • Payouts Rs. 100,000 and above within same financial year will have to be taxed
  • 2% of the payout amount if Valid PAN is available with policy
  • 20% of the payout amount if PAN is NOT avialable with policy

a) TDS is deducted at the client level and not at the policy level.

b) Payouts only in case of non-compliant policies of a particular client should be aggregated for the purpose of determining the threshold amount of Rs. 1,00,000/-.

c) TDS is deducted from the gross amount and not from net amount.

d) In case of surrender/termination of a ULIP policy, TDS should be deducted before
deduction of the surrender/policy termination charges.
e) In case of an Assignment, the owner of the policy changes and the payout is made
to the assignee. In such a case, TDS is applicable to the new owner (i.e. assignee
should be considered).
f) If a payment is being made to a person or institution in the capacity of a legal heir,
Karta under HUF, Trustee under MWP Act, employer under employer –employee
scheme; then TDS is applicable to such a claimant. PAN of such claimants is
required.
g) Threshold of Rs. 1 Lakh should be ascertained for all policies taken together on the
life of Life Assured.
h) If policy payment is settled in favor of more than 1 claimant, then the PAN of all
claimants are required.

Form 15G and Form 15H are self declaration forms to be submitted by residents which can
help a person avoid TDS incase one is not liable to pay income tax at the end of the year (i.e.
if total taxable income of a person shall not exceed the basic exemption limit for that
relevant Financial Year (Rs 2.5 lakhs for FY14-15 & 15-16). Form 15H is for senior citizens (a
person who is above 60 yrs) and Form 15G is for others.

Some Pointers to Keep In Mind

   a) Nonresident/NRI cannot submit this form
   b) 15G cannot be filed by any person who is in receipt of an amount that exceeds the applicable basic exemption limit as per IT provisions.
   c) Valid PAN is mandatory , otherwise the tax would be deducted at the rate of 20%
   d) These forms are to be submitted in duplicate, one of which is forwarded to the Income Tax department before 7th of the next month. In case there is a holiday on the 7 th , then the previous working day of that month The form should be submitted.
         a. at the beginning of each financial year or
         b. at the time of payout request or
         c. Before receiving any taxable amount from the policy, so as to avoid a situation where TDS has already deducted before its receipt.
    e) No reversal of TDS will be done for late receipt of Form 15G/H (i.e.: after deduction of TDS). However, such Form 15G/H received will be used for the payment made in
rest of the year.
     f) New set of forms are required to be filed every year and the eligibility criteria as stated above needs to be examined every year before furnishing the forms.

The status of a person as a resident or non-resident depends on his period of stay in India.
The period of stay is counted in the number of days for each Financial Year beginning from
1st April to 31st March (known as previous year under the Income-tax Act). The definition is
explained in simple terms as under.
If an individual who satisfies both the understated conditions of section 6 of the Income-Tax
Act, then he becomes a Non-Resident.

Condition Status
He is not in India for 182 days or more during the relevant previous year. If yes, then he is a non-resident. (now check the next condition.)
He is not in India for 60 days or more during the previous year and he is not in India for 365 days or more during the 4 years prior to the previous year If yes, then he is a non-resident

Partial Withdrawal is an option given to the Policyholder to withdraw certain amounts from
the policy after completion of the lock-in period or after completion of premium payment
term (as prescribed in the product guidelines).

a. Change request from customer or “Application for Insurance Change” available in downloads section on www.idbifederal.com

b. Self attested - Valid DOB Proof (AN card /Aadhar card / Voter ID / Passport copy / Birth Certificate)

a. Partial withdrawal request can be accepted for policies with a status of Inforce, Policy
Discontinuance or Cover Continuance.
b. In case the policy has been assigned, the request should be received from the Assignee
with the consent of the policyholder.
c. For MWPA & HUF policies, the request should be received from the Trustee & Karta
respectively.
d. For Unit linked policies, the date and time stamp is mandatory on the request form. This
is required for NAV allocation.

  • If the request is received before 3.00 p.m. i.e. pre-cut off, then the same working day NAV will be allocated to the customer.
  • If the request is received after 3.00 p.m. i.e. post cut-off, then the next working day NAV will be allocated to the customer.

e. Request will be rejected if the Life Assured is a Minor

Other Questions

a. Partial withdrawal request can be accepted for policies with a status of Inforce, Policy
Discontinuance or Cover Continuance.
b. In case the policy has been assigned, the request should be received from the Assignee
with the consent of the policyholder.
c. For MWPA & HUF policies, the request should be received from the Trustee & Karta
respectively.
d. For Unit linked policies, the date and time stamp is mandatory on the request form. This
is required for NAV allocation.

  • If the request is received before 3.00 p.m. i.e. pre-cut off, then the same working day NAV will be allocated to the customer.
  • If the request is received after 3.00 p.m. i.e. post cut-off, then the next working day NAV will be allocated to the customer.

e. Request will be rejected if the Life Assured is a Minor

a. Partial withdrawal request form
b. Cancelled cheque or bank statement/Pass book copy duly attested by bank and
policyholder.
c. If ‘NEW ACCOUNT’ is mentioned on the cheque then we require bank statement /
passbook.
d. In case the policy is assigned, then the NOC from the Assignee
e. Fund transfer to new application letter ( for fund transfer cases)
f. Pan Card copy - Non compliant cases
g. For NRE / NRI Account we require confirmation from the bank that states that all
premiums are paid from NRI account Declaration ( for change in residential status
NRI – Indian .)

Policies Issued prior to 30 th Sept’14 Policies Issued post 30 th Sept’14

Regular Premium

  • One annulised premium to be retained and the balance can be utilized towards partial withdrawal.
  • Any top up made needs to be added to the annulised premium and the balance can be utilized towards partial withdrawal

Regular Premium

Two annulised premium, to be retained and the balance can be utilized towards partial withdrawal.

Any top up made needs to be added to the
annulised premium and the balance can
be utilized towards partial withdrawal

Single Premium

  • Minimum amount of Rs. 20000/- to be retained and the balance can be utilized towards partial withdrawal.
  • Any top up made needs to be added to the minimum amount and the balance can be utilized towards partial withdrawal

Single Premium

  • Higher of 50% of Single Premium OR Rs. 20000/- to be retained and the balance can be utilized towards partial withdrawal.
  • Any top up made needs to be added and the balance can be utilized towards partial withdrawal

 

Yes, TDS is applicable for partial withdrawal surrender, maturity, and termination payouts.

Fund switch is a facility given to the policyholder to switch some or all units from one unit- linked fund to one or more other unit-linked funds. Units in the old fund are cancelled and units are allocated in the new fund or funds Future Premium Redirection allows you to redirect your future regular premiums into a different allocation pattern than your current allocation pattern as per your risk profile and needs. This will not, however, rebalance your current investments

Free look is an option given to the policyholder for canceling the policy within the free look period of 15 days from the date of receipt of policy document.

a. Request can be accepted for the Inforce policy only

b. The request can be accepted 30 days before the due date for Inforce policies

Customers have an option to decrease / increase premium or sum assured as per the prevailing product features.

Top-up is a facility provided in Unit linked Life Insurance Policies. It is an amount that can be paid by a policyholder at any point of time to increase his fund value.

a. Addition of riders is currently not permissible.

b. Request for Rider Deletion can be accepted only for inforce policies

c. Date and time stamp is mandatory on the request form

Latest from our blog

Blog
ULIP

Revealed! How To Get Protection, Growth And Tax Saving From One Investment

Blog
ULIP

Here’s An Investment That Secures Your Family And Also Beats Inflation

Blog
ULIP

Get Future Ready With Savings Plans

Blog
Online Plans

Make Your Online Term Plan Your Family’s Monthly Pay Cheque

Blog
Online Plans

Look Beyond Low Premiums When You Buy Online Term Plans

Pages

Need help