Dear Basu Sir,
IDBI Federal has recently launched an Online Term Insurance called IDBI Federal iSurance. It looks very cheap (1Cr cover for Rs.6954/- annual premium, including taxes!).
In their description of death Benefit, they have mentioned – In case of your unfortunate death during the policy term we will pay your beneficiary the highest of the 3 amounts given below:
- Life cover as chosen by you
- 105% of all the premium paid till the date of death
- 10 times the annual premium (if you are less than 45 years) or 7 times the annual premium (if you are 45 years or above)
I did not understand the above clearly, because, Point 2 and 3 can never be greater than point 1, then why even mention them? or is there any other meaning, which I am not able to understand?