IndiaFirst Life Guaranteed Single Premium Plan

FAQs

• What is the IndiaFirst Life Guaranteed Single Premium Plan?

  This a Non-Linked, Non-Participating, Individual, Single Premium Savings, Life Insurance Plan that provides life insurance cover during the entire policy term. The plan requires a single premium payment by the customer prior to policy inception and gives the benefit of financial protection along with savings in a single policy. This policy will financially protect your loved ones through a life insurance cover in case of an unfortunate event, while providing a guaranteed lumpsum benefit at the end of the policy term.

• What do you get at the end of the policy term (maturity benefit)?

  On survival up to the end of policy term, you shall receive the Sum Assured on Maturity. 

  Where, Sum Assured on Maturity (SAM) is defined as the amount which is guaranteed to be payable on maturity of the policy. SAM is equal to Guaranteed Maturity Multiple (GMM) times Single Premium (excluding any extra premium) where GMM varies with the Age of the life assured, Death Benefit Multiple opted and Policy Term. 

  There is an enhancement of maturity benefit factor when paying high premium as per below table 

   

  Premium Bands / Policy Term	5	10	15	20	25	30
  5,00,000 to 9,99,999	1.01	1.01	1.01	1.01	1.01	1.01
  10,00,000 and above	1.02	1.02	1.02	1.02	1.02	1.02

    

  The above factors are multiplicative in nature and will be applied on the Guaranteed Maturity Multiple provided in Annexure A. 

  The maturity benefit defined above will be paid either as lump sum amount or in monthly instalments over the period of 5 years as opted by the policyholder/nominee at any time during policy period / on death of Life Assured. In case of instalment payment of maturity benefit, the instalment benefit amount will be calculated as dividing lump sum amount (say, S) by annuity factor (i.e. a(n)(12)) i.e. S/a(n)(12) where n is the instalment period of 5 years. The SBI savings bank interest rate as on the beginning of financial year will be used to calculate the annuity factor. The current prevailing SBI savings bank interest rate for FY 22-23 is 2.70% p.a. The interest rate used to calculate annuity factor is subject to review on every financial year and will be changed in case of change in SBI savings bank interest rate. 

  The annuity factor defined above will be calculated based on the prevailing SBI savings bank interest rate and once the instalment payment starts, it shall remain level throughout the instalment period. 

  On payment of the maturity benefit, the policy will terminate, and no more benefits will be payable. 

• What happens in case of life assured's demise in this policy (death benefit)?

  In case of death of the Life Assured during the policy term, the following death benefit will be paid to the nominee(s). The defined death benefit is paid out and the policy terminates. 

  The nominee(s) will receive higher of: 

  1. 1) Sum Assured on Deathor 

  2. 2) Surrender Value as on Date of Death 

  Where Sum Assured on Death is defined as: Death Benefit Multiple times Total Premiums Paid. 

  The death benefit defined above will be paid either as lump sum amount or in monthly instalments over the period of 5 years as opted by the policyholder/nominee at any time during policy period / on death of Life Assured. In case of instalment payment of death benefit, the instalment benefit amount will be calculated as dividing lump sum amount (say, S) by annuity factor ( i.e. a(n)(12)) i.e. S/a(n)(12) where n is the instalment period of 5 years. The SBI savings bank interest rate as on the beginning of financial year will be used to calculate the annuity factor. The current prevailing SBI savings bank interest rate for FY 22-23 is 2.70% p.a. The interest rate used to calculate annuity factor is subject to review on every financial year and will be changed in case of change in SBI savings bank interest rate. 

  The annuity factor defined above will be calculated based on the prevailing SBI savings bank interest rate and once the instalment payment starts, it shall remain level throughout the instalment period. On payment of the death benefit, the policy will terminate, and no more benefits will be payable. 

• How does this policy work?

  We have explained the working of the policy with a sample illustration below. 

  Mr. Kumar, 40 years bought the IndiaFirst Life Guaranteed Single Premium Plan for a policy term of 10 years. He decides to pay a single premium of INR 10 Lakhs (excluding taxes). 

  At the end of the policy term, he will receive a maturity benefit of INR 19,02,560 in case of Death Benefit Multiple 1.25 times of Total Premiums Paid. Maturity Benefit shall be subject to applicable tax laws. 

  Even in case he dies during the policy term, his loved ones will be safeguarded with the Death Benefit of INR 12.5 Lakhs in case of Death Benefit Multiple 1.25 times of Total Premiums Paid. 

• What are the tax benefits in this policy?

  Tax benefits may be available on premiums paid and benefits receivable as per prevailing Income Tax Laws. These are subject to change from time to time as per the Government Tax laws. Please consult your tax consultant before buying this policy.