IndiaFirst Life Smart Pay Plan

How does the IndiaFirst Life Smart Pay Plan work?

The IndiaFirst Life Smart Pay Plan is a money-back policy that ensures that you get your money back at periodic intervals. This plan is designed to ease the fulfilment of your financial goals through money back during the premium paying period itself. At the end of the policy term, the maturity benefits are paid out in a lump sum. This amount includes the remaining sum assured and any bonuses accrued during the term.

In case of the death of the policy holder while the policy is still in force, the beneficiaries get the full sum assured irrespective of the pay-outs made over the policy tenure. Money back policies could be participating/with-profit or non-participating/no-profit. In a participating plan such as the IndiaFirst Life Smart Pay Plan, the insurer shares the profits made during the policy term with the policy holder in the form of accrued bonuses (if any).

You can also choose to add riders to your policy to expand your coverage. Typically, a percentage of the sum assured is paid out at regular intervals over the term of the policy in the form of a survival benefit. The actual percentage paid as survival benefits and the interval period varies, depending on the policy conditions. With the IndiaFirst Life Smart Pay Plan, you receive 103% of one annualised premium as survival benefit.

How is the IndiaFirst Life Smart Pay Plan different from other traditional insurance plans in India?

Insurance has long been looked at as a way to create a safety net in case of extenuating circumstances such as the untimely death of a breadwinner in the family. Buying insurance savings plans offers a good avenue to save and invest your money while enjoying the benefits of low-risk exposure and the peace of mind that comes with traditional life cover. With so many investments and savings plans in India, it is important for you to have the right information so you can make the best choice for yourself and your family’s financial security.

Some of the popular insurance savings plans include money back policies, term insurance, endowment policies, whole life savings plans, and ULIPs. Here’s how the IndiaFirst Life Smart Pay Plan compares against them.

IndiaFirst Life Smart Pay Plan vs. traditional life insurance term plan

A term insurance policy is also known as a pure protection insurance plan. In such a plan, you pay a fixed and affordable premium to the insurer on a monthly/quarterly/half-yearly/yearly basis for a fixed policy term, in return for traditional cover. In case of the unfortunate demise of the policy holder, a term insurance policy provides death benefits in the form of a lump sum amount to the beneficiaries.

In proportion to the low premiums that are typical of term life insurance plans, the sum assured provided is a significantly high amount. However, if you survive till the end of the policy term, there are no survival or maturity benefits due to you.

With the IndiaFirst Life Smart Pay Plan money back savings plan, you have the flexibility of shorter pay commitments while you enjoy life cover for the duration of the policy. In addition, at the end of the IndiaFirst Life Smart Pay Plan policy term, you stand to receive the guaranteed sum assured at maturity, accrued simple reversionary bonus (if declared), and terminal bonus (if declared).

With the IndiaFirst Life Smart Pay Plan, you receive 103% of one annual premium back as a survival benefit at the end of the 4/5/6/7^th policy year depending on your chosen premium payment term. If the life assured does not survive till the end of the policy term, the nominees stand to receive the entire sum assured irrespective of whether the survival benefit has been paid out, as well as bonuses, if any.

IndiaFirst Life Smart Pay Plan vs. endowment plans

A money back savings plan like the IndiaFirst Life Smart Pay Plan falls under the umbrella of endowment policies. In a pure endowment policy, you get all the benefits of traditional insurance plans with respect to life cover. In addition, you stand to gain a substantial lump sum amount paid out as maturity benefits at the end of the policy term. In case of the untimely death of the policy holder during the policy term, the nominees receive death benefits as a lump sum amount or staggered monthly pay-outs, depending on the conditions of the chosen policy.

In comparison, the IndiaFirst Life Smart Pay Plan money back savings plan is an endowment plan that offers the benefit of liquidity. Instead of only receiving a large sum as a pay-out at the end of the policy term, you also get your money back as a survival benefit at a specific stage in the policy term. This way you get to enjoy the benefits of survival throughout the course of the policy and not just at the end. Meet your goals of savings with Life Insurance and liquidity bundled together in one money back policy.

IndiaFirst Life Smart Pay Plan vs. whole life savings plan

While traditional life insurance term plans and endowment policies protect your life for up to 60-70 years, a whole life insurance plan typically offers traditional cover till you are alive or reach a predefined age of 99/100 years, whichever happens first. In a whole life savings plan, you can choose to extend the policy at maturity or claim the survival benefits and bonuses, if any.

Unlike the flexible IndiaFirst Life Smart Pay Plan money back savings with life insurance policy, a whole life savings plan does not offer periodic pay-outs. If liquidity and a regular influx of money are important to you, then the IndiaFirst Life Smart Pay Plan will best suit your needs. Not only will you receive 103% of one annualised premium as survival benefit during the policy term, but you can also enjoy shorter pay commitments (5-8 years) with life cover for the entire policy term.

IndiaFirst Life Smart Pay Plan vs. ULIPs

As a traditional insurance-cum-savings plan, money back policies are not market-linked. They are perfect financial instruments for those who are risk-averse. ULIPs or Unit-linked insurance policies are for those who have a slightly higher risk appetite. ULIPs are insurance-cum-investment plans that are dependent on the movements in the market.

With the IndiaFirst Life Smart Pay Plan, the sum assured at maturity is guaranteed and not subject to market risks.

Why do I need the IndiaFirst Life Smart Pay Plan?

The IndiaFirst Life Smart Pay Plan is a money back savings plan that is perfect for those who want life protection along with a regular income from insurance investments. If you have dependents, it is understandable to be worried about their financial security in your absence. With inflation and increasing costs of living, what is good enough today is unlikely to make ends meet in a few years to come. With an insurance savings plan, you get to hedge against rising costs as well as the loss of wages in case of your untimely demise.

The IndiaFirst Life Smart Pay Plan is a money back savings plan that features low-risk exposure, guaranteed returns, shorter pay commitments, and liquidity.

For the peace of mind of traditional cover

Enjoy a traditional life cover with the IndiaFirst Life Smart Pay Plan—a money back savings plan with life cover for the duration of the policy. In case of your untimely demise, the death benefits doled out is a lump sum amount that can help financially secure your family in your absence. With the IndiaFirst Life Smart Pay Plan, you continue to enjoy life cover benefit even if you miss paying one premium (applicable after you have paid two full years’ premiums).

To reap survival and maturity benefits

Not only can you bank on traditional life cover, but you can also look forward to survival benefits under the IndiaFirst Life Smart Pay Plan money back policy. Unlike term insurance policies that offer pure protection and no survival benefits, the IndiaFirst Life Smart Pay Plan ensures your financial security in any eventuality. At survival till the maturity of the policy, you stand to receive the guaranteed sum assured at maturity and accrued bonuses (if announced).

For risk-free returns

Some people have a high risk appetite while many just do not. Those with a higher risk appetite can invest in market-linked plans, stocks, or mutual funds. However, this does not mean that the risk-averse have no options when it comes to investing. With the IndiaFirst Life Smart Pay Plan, you can enjoy the benefits of risk-free returns.

To avail of the benefits of liquidity

One of the primary factors to differentiate the IndiaFirst Life Smart Pay Plan from other savings instruments is the benefit of liquidity that this plan offers. At a predetermined interval during the policy term, you will receive 103% of one year’s annualised premium payment amount. You could choose to withdraw this amount or invest in back in the IndiaFirst Life Smart Pay Plan as premium payment. This survival benefit offers you the liquidity you need to handle current expenses without having to break or surrender the IndiaFirst Life Smart Pay Plan.

For you, from you

Wouldn’t it be nice if a generous person steps in whenever you have new expenses and just handles it for you? With the IndiaFirst Life Smart Pay Plan, you are that generous person for yourself. This plan is a gift from you to you—pay for a limited number of years and enjoy life cover till the end of the policy term, get survival and maturity benefits along with bonuses (if any), and enjoy the peace of mind that your loved ones will be taken care of with the death benefit, in case of an unfortunate event during the policy period.

What are the key features of the IndiaFirst Life Smart Pay Plan?

IndiaFirst Life Smart Pay Plan is a perfect mix of disciplined savings with the benefit of life cover and liquidity. This limited payment plan also offers shorter pay commitments and access to your funds within the premium-paying period.

• Pay for a shorter period with options suiting your time horizon and fulfil your long-term goals with IndiaFirst Life Smart Pay Plan
• Continue to enjoy life cover benefits even if you miss one premium payment (applicable after you have paid two full years’ premiums)
• Enjoy the upside of earnings with an annual bonus (if declared)
• Get 103% of one annual premium back as survival benefit under the IndiaFirst Life Smart Pay Plan
• At the end of term, you get the sum assured at maturity plus accrued bonuses (if declared)
• Option to add the Waiver of Premium Rider to secure your loved ones from the burden of paying future premiums
• Easy and convenient online purchase option
• Tax benefit may be available on the premiums paid and benefits received as per prevailing tax laws

What are the benefits of the IndiaFirst Life Smart Pay Plan?

The IndiaFirst Life Smart Pay Plan is a non-linked, participating, limited pay, money back life insurance plan that is designed to facilitate the fulfilment of your financial goals through money back during the premium paying period itself, the continuation of your life cover benefit in case you miss paying one premium, the potential to earn bonuses (if declared) at maturity, while protecting your loved ones with the help of a life cover in case of the policy holder’s unfortunate demise.

Assured returns

With the IndiaFirst Life Smart Pay Plan, you can rest assured that the money you have saved will return to you along with a little something extra. Before the last year’s premium payment, you receive a survival benefit equal to 103% of your annualized premium under the policy.

No risk

As a non-linked plan, the IndiaFirst Life Smart Pay Plan presents little to no risk to the investor. Your sum assured and survival/maturity/death benefits are not affected by fluctuating market fund values. As long as the policy is kept in force with regularly paid premiums, you stand to receive the benefits listed under the IndiaFirst Life Smart Pay Plan.

Multiple advantages

Traditional cover + 103% of one annualized premium as money-back + participatory bonuses (if any) + tax savings—the IndiaFirst Life Smart Pay Plan is one plan that offers myriad advantages.

Life cover continuance

Continue enjoying traditional life cover benefits even if you miss the payment of one premium, once your policy acquires paid-up value. The policy will continue to remain in force for a period of one year from the first unpaid premium date.

Flexibility

When it comes to the premium payment duration and mode, the IndiaFirst Life Smart Pay Plan gives you complete flexibility. You can choose a plan term of 10 or 15 years and premium payment term of 5 years for a 10-year policy, and 5/6/7/8 years for a 15-year policy, at your discretion. In the unfortunate event of the life assured’s demise during the term of the policy, the death benefits paid out to the nominee could either be in the form of a lump sum or as a monthly income pay-out over the next 5/10/15 years.

Optional add-on riders

With the IndiaFirst Life Smart Pay Plan, you have the option to add advanced riders to ensure that your policy suits your needs. Under this plan, the available riders include the Waiver of Premium on Death, Waiver of Premium on Accidental Total Permanent Disability or (diagnosis of) Critical Illness, and Waiver of Premium on Death or Accidental Total Permanent Disability or Critical Illness.

Participatory bonuses

Under the agreement of a participating or with-profit savings plan such as the IndiaFirst Life Smart Pay Plan, the insurer may announce a simple reversionary bonus and/or terminal bonus. These amounts have the potential to further enhance the final pay-out you receive at the time of maturity of the policy.

Loan facility

You may avail of a loan against the IndiaFirst Life Smart Pay Plan. The amount of the loan that you may avail of at any point in time will depend on the surrender value, and is up to 90% of the available surrender value.

Tax benefits

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.

What are the eligibility criteria for the IndiaFirst Life Smart Pay Plan?

• The minimum age at entry for a policy term of 10 years is 8 years, and for a policy term of 15 years is 3 years.
• The maximum age at maturity is 65 years.
• Buy the plan for 10- or 15-year policy term, and pay limited premiums for 5 years for a 10-year policy or 5/6/7/8 for a 15-year policy
• The minimum basic sum assured is Rs. 1,50,000. There is no limit on the maximum sum assured.
• The minimum premium is Rs. 18,000 yearly, Rs. 9,215 half-yearly, Rs. 4,662 quarterly or Rs. 1,566 on a monthly frequency, with no limit on maximum premium.