IndiaFirst Life Guaranteed Benefit Plan

IndiaFirst Life Guaranteed Benefit Plan

Accomplishing your future goals has become a lot easier with the IndiaFirst Life Guaranteed Benefit Plan—a single solution that can be customised to meet a multitude of needs. This guaranteed income insurance plan features the benefits of traditional cover and a guaranteed saving plan. As a non-linked, non-participating, limited premium, endowment life insurance plan, the IndiaFirst Life Guaranteed Benefit Plan opens up a path of financial certainties for you and your loved ones.

Fulfilling your goals is a powerful feeling. But at any point in time, you are faced with choices—which goals should you be focusing on, what resources do you have, and how much can you divert towards meeting specific goals. The IndiaFirst Life Guaranteed Benefit Plan modifies itself to match your needs while keeping your family's future secure with traditional life cover.

What does the IndiaFirst Life Guaranteed Benefit Plan offer?

The word 'guarantee' inspires a sense of security. It offers you something concrete that you can bank on. In the past, traditional saving instruments were enough to meet the needs of the future. With the burgeoning economy, rising prices, and inflation, maintaining financial stability in the future requires much more than a fixed deposit or two. This is where the IndiaFirst Life Guaranteed Benefit Plan come into the investment picture.

Created with risk-averse investors in mind, the IndiaFirst Life Guaranteed Benefit Plan is an income-insurance tool that offers maturity benefits, cashback, periodic endowments, and traditional life cover—guaranteed. In typical guaranteed income insurance plans, you select a policy term during which your life is insured.

The IndiaFirst Life Guaranteed Benefit Plan features a limited pay option, allowing you to pay premiums for a limited period. After this, you can enjoy a few gap years during which your investments continue to grow and then receive regular income pay-outs in a mode of your choosing.

You can choose to receive pay-outs in a lump sum or in instalments over a period of 5, 10 or 15 years  to ensure a steady second stream of income with the IndiaFirst Life Guaranteed Benefit Plan.

A market-linked policy is subject to the highs and lows experienced by the funds. However, a non-linked guaranteed income plan is not affected by the volatility of the market at all. Your savings continue to accumulate, earn interest, and grow. At the same time, you enjoy the peace of mind that comes with knowing that your money and financial security are never at risk with the IndiaFirst Life Guaranteed Benefit Plan.

The IndiaFirst Life Guaranteed Benefit Plan serves as a second stream of income that you can bank on because you are the one who built it. This endowment assurance policy takes the guesswork out of it. You know exactly what you will be getting through the policy term and at maturity at the policy term's very start. 

By choosing the IndiaFirst Life Guaranteed Benefit Plan, you are choosing peace of mind and financial stability in the years to come. Plan today to enjoy the myriad benefits of an endowment life insurance policy—periodic guaranteed income, traditional life cover, shorter pay commitments, and complete flexibility.

Is the IndiaFirst Life Guaranteed Benefit Plan a good fit for me?

There was a time when a single person's income was enough to run a family. In today's fast-paced consumption-driven world, you need all the help you can get. The IndiaFirst Life Guaranteed Benefit Plan works as a second stream of income that kicks in when you need it the most. The certainty that this endowment assurance plan with guaranteed benefits offers allows you to enjoy your today knowing that your tomorrow is planned for.

The IndiaFirst Life Guaranteed Benefit Plan is a good fit for you if:

• You want to save for your future efficiently.
• You're worried about your financial security in your old age and would like to make provisions for yourself today.
• You understand that life presents many uncertainties that are almost certain to happen. Guaranteed benefits from the IndiaFirst Life Guaranteed Benefit Plan offer peace of mind, no unpleasant surprises, and no risk to your invested corpus.
• You hope to create a second stream of income that has the potential to replace your salary once your professional income ceases.
• You want the security of traditional life cover while you save systematically. In case of your unfortunate demise during the policy term, your family's financial necessities will be met with the life cover sum assured offered by the IndiaFirst Life Guaranteed Benefit Plan.
• You want a flexible plan that can be customised to give you what you need when you need it.
• You want to give your savings an extra boost with the benefits of life cover and survival/maturity benefits at the end of the IndiaFirst Life Guaranteed Benefit Plan term.
• You want to reap tax benefits on your invested corpus.
• You want a smart yet safe savings instrument that is not linked to volatile market values, so you do not ever need to fear losing your savings.

How to tailor the IndiaFirst Life Guaranteed Benefit Plan to suit your needs?

The IndiaFirst Life Guaranteed Benefit Plan offers you the opportunity to systematically save with a risk-free instrument that provides periodic guaranteed pay-outs. The traditional life cover component of this plan provides you protection and peace of mind that your family's needs will be met even in your absence. Consider these factors so you can tailor the IndiaFirst Life Guaranteed Benefit Plan to suit your financial needs:

Your time horizon

When it comes to the IndiaFirst Life Guaranteed Benefit Plan, you have multiple variants with limited pay terms. You have three different time horizons to consider—your premium payment term, potential gap years, and the entire policy term. If your savings goal is to put aside money for your child's education expenses due in five years, you can choose a premium payment term of five years. In this way, you can save during this period, and your child can get pay-outs right in time to meet his/her needs. Your life remains covered for the entire policy term.

Your pay-out requirements

The IndiaFirst Life Guaranteed Benefit Plan offers different pay-out options. You can choose to receive your money back in a recurring monthly payment (ideal for income replacement post-retirement), in a lump sum (ideal to meet specific capital expenditure that you know is coming up), or annual income. A lump sum payment may work better for some people, while others might want lifelong pay-outs doled out in a monthly mode. With the IndiaFirst Life Guaranteed Benefit Plan, you can choose between the Income Benefit and the Lumpsum Benefit option for pay-outs.

Your influencers

You have a mental checklist that needs to be met before you invest in anything. Understanding the factors that influence you is vital to understand which of your needs have to be fulfilled. It is also essential to budget well to balance your income, expenses, and savings. Consider your current lifestyle, your projected financial needs in the future, your budget, the importance of potential tax savings, the peace of mind of traditional life cover, and growth to beat inflation in the years to come. Once you have these answers, you can customise your IndiaFirst Life Guaranteed Benefit Plan to match your expectations and hopes.

What is the IndiaFirst Life Guaranteed Benefit Plan?

The IndiaFirst Life Guaranteed Benefit Plan is a non-linked, non-participating, limited premium, endowment life insurance policy. This guaranteed benefit plan provides the option to pay for a short period (5-7 years), life insurance coverage for the policy duration, and several pay-out options to choose from.

Non-linked endowment assurance policy

As a non-linked policy, the IndiaFirst Life Guaranteed Benefit Plan runs independently and is not connected to market fund values. The endowment policy offers guaranteed benefits because the offerings are not impacted by the volatile market's highs and lows.

Non-participating guaranteed income plan

In a non-participating policy, there are no dividends, bonuses, or profit-sharing options. In comparison with participating policies, non-participating plans offer higher security, guaranteed returns intimated to you on day one, and comparatively lower premium rates.

Limited pay endowment plan

As a limited pay guaranteed income plan, the IndiaFirst Life Guaranteed Benefit Plan offers you a shorter pay commitment. You can choose to pay premiums for 5-7 years and receive pay-outs in your preferred mode for a fixed period after that till the plan term ends. Not only do you pay for a shorter amount of time, but you can also defer pay-outs with gap years, enjoy the benefits of life cover till the end of the policy term, and periodic money-back during the distribution period of the policy.

How does the IndiaFirst Life Guaranteed Benefit Plan work?

With the IndiaFirst Life Guaranteed Benefit Plan, your policy term depends on your chosen benefit option.

Lumpsum Benefit: Under the Lumpsum Benefit option, you can choose a premium payment term of 5,6 or 7 years with a full policy term of 10-16 years. This option will help you achieve your long-term goals as you receive a lumpsum amount at the policy term's end.

Income Benefit: Under the Income Benefit option, the time horizon of the policy gets divided into three parts—premium payment term, gap period, and income period. In this option, your premium payment term ranges from 5-7 years, a gap period from 5-8 years, and an income period from 5-7 years. The total policy term under the Income Benefit option ranges from 15 to 21 years. This option will help you attain your liquidity goals as you receive a fixed monthly income during the Income Period. You can choose the monthly payment you want to receive subject to a minimum of Rs. 10,000 per month.

You can choose to pay the premiums at a monthly, quarterly, half-yearly, or yearly frequency. You can also choose to add the IndiaFirst Life Waiver of Premium (WOP) Rider for premium paying terms of 6 and 7 years. Rider options include Waiver of Premium on Death, Waiver of Premium in Accidental Total Permanent Disability or (diagnosis of) Critical Illness, and Waiver of Premium on Death or Accidental Total Permanent Disability or Critical Illness.

Here's an example to help you understand the policy better:

At 35 years of age, Mr. Kumar purchased the IndiaFirst Life Guaranteed Benefit Plan under the Income Benefit option for the 7-8-6 Premium Payment Term–Gap Period–Income Period combination. To receive a monthly income of Rs. 35,000, he paid a monthly premium of Rs. 35,138 for the premium payment term of 7 years. After a gap period of 8 years, he will start receiving a monthly income of Rs. 35,000 for the Income Period of 6 years. He will also receive an Annual Income of Rs. 1,92,500 every year of the Income Period other than at the end of the term.

At maturity, Kumar will receive Rs. 22,75,000. In total, he will receive a 1.95x benefit of the total premiums paid in the plan. In the case of the policy holder's unfortunate demise during the 14^th year of the policy, for instance, his loved ones will be safeguarded with the Death Benefit of Rs. 44,42,746. His nominee(s) can choose to receive the death benefit as a lump sum or as income over a period of 5, 10, 15 years.

What are the key features of the IndiaFirst Life Guaranteed Benefit Plan?

• Accomplish your future goals by choosing from Income Benefit or Lumpsum Benefit option as per your need.
• Tailor the plan to suit your requirements, as you get to choose from multiple Policy Term and Premium Payment Term options under the Income Benefit option.
• Short Premium Payment Term options of 5, 6, or 7 Years to help fulfil your long-term aspirations.
• Get a three-way boost in the Income Benefit option. Receive Monthly Income, Annual Income as well as Maturity at the end of the policy term.
• Give your savings the extra boost with the Lumpsum benefit option.
• Pay premiums only for a limited period while benefitting from your policy for an entire term.
• Continue to enjoy life cover benefit for one full year even if you miss paying one premium (applicable after you have paid two full years' premiums).
• Safeguard your family further by opting for Waiver of Premium Rider. Protect them from the burden of paying future premiums in case of death, accidental total permanent disability, or any of the defined critical illness while continuing the guaranteed income insurance policy's benefits.
• Support your loved ones through death benefit as a one-time payment or in instalments over a period of 5, 10, or 15 years.
• Tax benefit may be available on the premiums paid and benefits received as per prevailing tax laws.

What are the eligibility criteria to buy the IndiaFirst Life Guaranteed Benefit Plan?

• The minimum age for applying is 8 years for the Lumpsum Benefit option and 4 years for the Income Benefit option in this guaranteed income plan.
• The maximum age for applying is 60 years for the Lumpsum Benefit option and 55 years for the Income Benefit option in this endowment policy.
• The Premium Payment Term is 5/6/7 years for both options under this endowment assurance policy.
• Under the Lumpsum Benefit option, the minimum policy term is 10 years, and the maximum policy term is 16 years.
• Under the Income Benefit option, this guaranteed income plan offers you the flexibility to choose from 4 variants based on the Premium Payment Term–Gap Period–Income Period combination: 5-5-5, 6-6-6, 7-7-7, or 7-8-6.
• The savings plan allows a minimum sum assured of Rs. 5,00,000. There is no limit on the maximum sum assured.
• The minimum premium is Rs. 50,000 (yearly), Rs. 25,595 (half-yearly), Rs. 12,950 (quarterly) and Rs. 4,350 (monthly), with no limit on maximum premium in this endowment plan.

View the Premium Table here.