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  • IndiaFirst Life
  • 29 Aug 2023
  • 285 Views

LIFE INSURANCE POLICY & PLANS

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Welcome to IndiaFirst Life Insurance, where securing your loved one's future is not just a responsibility but a promise we take to heart. Our range of life insurance plans are designed to keep the customer needs in mind, ensuring that you find the perfect plan for your unique insurance goal. From the hustle of your early years to the calm of retirement, IndiaFirst Life Insurance provides the protection and peace of mind you deserve at every stage. Explore our diverse life insurance policies, each crafted to resonate with the different chapters of your life. Life is a beautiful journey, and we want to be your trusted companion every step of the way.

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What is Life Insurance?

Answer

At its essence, a life insurance policy is a contract signed between the life insurance provider and a policyholder. Life insurance plans offer a substantial life cover in the form of an assured sum that the insurer pays to the nominees / beneficiaries listed in the policy if the insured person dies during the life policy term. In return for this guarantee, the policyholder agrees to pay a specific premium amount at regular intervals during their lifetime.

 

To safeguard the legally binding nature of a life cover contract, it is essential for the policyholder to accurately disclose all details about their past and present health conditions. No medical life insurance plans allow you to start life insurance without medical tests. However, accurate disclosure of pertinent details is mandatory. 

 

While a term life insurance policy offers life cover for a specific term, permanent life insurance policies continue to remain effective until the death of the policyholder at any age, the payment of life insurance premiums stops, or the life insurance investment is surrendered.

 

Life Insurance Terms You Should Know

Answer
  • Policyholder: When you buy life insurance and make periodic life insurance premium payments, you become a life insurance policyholder. While you own the policy, the life assured within the life insurance cover could be someone else.
  • Life assured: The insured person who has life cover as mentioned in the life insurance policy details.
  • Life insurance premium: The amount you pay to buy life insurance and keep the policy active.
  • Sum assured: The guaranteed sum of money that your nominees / beneficiaries will receive in case of the policyholder's demise.
  • Death benefit: This is the amount paid to the nominee if the policyholder dies during the policy term. The death benefit and the sum assured are not the same — the death benefit is likely to be higher than the sum assured as it includes rider benefits and bonuses (if any).
  • Survival / maturity benefit: Survival benefit is paid to the policyholder upon completing a pre-determined amount of policy tenure. In contrast, maturity benefit is paid when the insured outlasts the life insurance policy term. Pure protection or term life insurance plans do not offer either benefit.
  • Riders: Riders are additional features that can be added to life insurance plans for a fee to expand the scope of the basic life cover policy. Typical life insurance rider options include accidental death benefit rider, accidental total and permanent disability benefit, critical illness cover and waiver of life insurance premium rider.

Types of Life Insurance Policies

Answer

There are many types of life insurance plans in India that you can opt for depending on your needs.

 

  • Participating (par) products are products where the surplus is shared with policyholders in the form of bonuses. They are also referred to as 'with profit' products. These policies usually have a minimum guaranteed amount that is payable upon death or maturity in addition to the bonuses declared from time to time. The bonuses, once declared, accrue to the policy and are guaranteed. Par products have significant exit loads upon policy discontinuance and do not offer customers a choice of asset allocation. However, due to the structure of these products, you are not exposed to the volatility of underlying asset returns and benefit from smoother returns. We typically recommend these products to customers who have a low-risk appetite and want to save for definite goals.
  • Non-participating protection products are basic life insurance plans that provide insurance coverage to guarantee financial security for the insured and kin. Also known as a term plan, a pure protection plan provides life coverage, spanning for 99 to 100 years, for the policy's duration, in exchange for a premium to be paid every year. In case of the policyholder's untimely demise, a term plan provides the predefined sum assured to the nominee in instalments or a lump sum. Protection plans also provide coverage against accidental death, disability, and terminal and critical illnesses.
  • Non-participating savings products are products that offer benefits that are guaranteed in absolute terms at the beginning of the policy, thereby transferring the risk of guarantees and returns to the insurance company. Like par products, these products also have significant exit loads on policy discontinuance and do not offer customers a choice of asset allocation. Customers who have a low-risk appetite and who want to park a portion of their long-term requirements in guaranteed products, transferring the risk of returns, market volatility and interest rate movements to the insurer, typically prefer these products. We also offer immediate annuity products where an income is paid out to the customer as long as they are alive in return for a certain lump sum paid upfront.
  • Unit Linked Insurance Products (ULIP) offer a combination of investment and protection where you can choose the level of life cover subject to minimum levels mandated by regulations. You have the flexibility to decide the asset classes in which your contributions are invested, depending on your risk appetite. We also provide our customers with the flexibility to transfer money among different funds in a tax-efficient manner depending on their market outlook and evolving risk appetite. These features make unit-linked products typically more transparent than other types of products.

Why Choose Life Insurance?

Answer

Life is a journey with different milestones, and at each stage, there's a unique need for financial security. At IndiaFirst Life Insurance, we understand that life is dynamic and your financial security should evolve alongside it. That's why we're here – to redefine life insurance in a way that's not just a safety net but a trusted companion through every twist and turn.
 

Starting Out
 

Embarking on a new chapter? Whether you're getting married or starting a family, life insurance ensures that your loved ones are financially secure, even if the unexpected happens.
 

Building Careers 
 

As your career takes off, so do your responsibilities. Life insurance becomes your partner in securing loans, protecting your family's dreams, and ensuring your hard work pays off, no matter what life throws your way.
 

Home and Family
 

Owning a home and raising a family? Life insurance provides the foundation for a secure future, covering mortgage payments, education expenses, and maintaining your family's lifestyle.
 

Preparing for Retirement
 

Planning for those golden years? Life insurance can be a strategic part of your retirement plan, offering financial stability, supplemental income and peace of mind. 

You Need a Life Cover Insurance Policy For Your Dependents

Answer

One of the fundamental reasons to buy life insurance is to ensure that your nominees or immediate family members have financial support in case of your demise. Often, responsibilities do not end even after you are gone. Different types of life insurance policies ensure that you replace your family's lost income, pay for your children's education, and financially support your spouse even after your death.

 

Navigating Life's Long Road with Whole Life Insurance

Answer

Life insurance isn't just for when you're gone. Imagine living a long, healthy life past your 80s. Take retirement at 60 years, for example – the question isn't merely about having enough savings, but ensuring they last for the next 3-4 decades while keeping up with the rising cost of living. That's where permanent life insurance comes in. It stays with you, building value over time. It ensures you have a financial cushion for the long haul. With options like whole life insurance, the coverage accumulates cash value over the years, presenting an appealing choice regardless of your age. It's not just about the end; it's about enjoying a secure and comfortable retirement. Let's rethink life insurance – not just a plan for later, but a friend for a lifetime.

Your Money, Your Future: Understanding the Dynamics of Life Insurance Investments

Answer

A life insurance investment policy is designed to keep you systematically invested for an extended period. Different types of life insurance plans are connected to different investment instruments. Some life insurance plans are market-linked for higher returns, while other types of life insurance policy options offer profit participation and bonuses. If you opt for life insurance with cashback, you reap the dual benefits of life insurance coverage and periodic cashback to meet your expenses.

How Whole Life Insurance Bridges the Gap in Your Retirement Plan

Answer

While saving for retirement, you hope that your savings last for life long. However, when you factor in increasing health-related expenses and inflation, your savings alone are unlikely to meet your needs. Whole life insurance in India serves to fill this gap and supplement your retirement corpus. With the right types of life insurance plans, you can ensure that a second stream of income is created to replace your professional income after retirement.

Secure Your Finances: Choose Life Insurance with Cashback Benefits

Answer

Life is full of surprises, and it's smart to have a plan that's as flexible as life itself. Imagine having life insurance that not only protects you but also gives you back a portion of what you invested. With life insurance providing cashback, you receive periodic payments that can be used to handle unexpected expenses effortlessly. The beauty of it all is that you can choose the type of life insurance plan that suits your needs, ensuring you get the benefits that matter most to you.

Invest in Your Children's Tomorrow with Life Insurance Plans

Answer

Irrespective of their age, your children will always be your responsibility. When your children are young, life insurance investment plans and life insurance with cashback help you provide for their education expenses and other lifestyle needs. The power of compounding plays out in life insurance investment policies to ensure that your money grows at a guaranteed pace. In the case of special-needs children, their age is irrelevant — they are likely to require lifelong physical and financial help. Life insurance coverage can ensure that their needs continue to be taken care of after their primary caregivers / parent's death.

Whole Life Insurance: A Smart Choice for Your Future, A Gift to Your Children

Answer

As life comes full circle in your older age, the responsibility often shifts to your grown children. Yet, as parents, the desire is to see your children thrive, not feel burdened by taking care of you. Whole life insurance offers a solution to this concern. This type of policy ensures that a part of your premium goes towards building cash value and earning interest. You can access this value through withdrawals or loans, providing financial independence. With features like cash back and retirement coverage, whole life insurance becomes a valuable asset, offering a continuous stream of income that allows you to enjoy your later years stress-free and ensures your children are not burdened with unexpected financial responsibilities.

Figuring Out Your Life Insurance Needs: A Simple Guide

Answer

We understand that planning for the future might seem like a lot to handle, but don't worry – we're here to make it simple for you. Our step-by-step approach ensures that you navigate the complexities of financial planning with confidence.
 

  1. Understand Your Income: Start by looking at what you earn now and what you might earn in the future. We've got tools to help you figure this out.
  2. Check Your Living Costs: Think about how you live now and what might change. We'll guide you in considering these things, so your plan fits your lifestyle.
  3. Know Your Debts: List down any money you owe, like loans. It's essential to understand how debts impact your financial stability.
  4. Plan for the Future: Look ahead to future responsibilities, like your kids' education or weddings. We're here to help you prepare for the costs that come with these big life events.
  5. Put It All Together: We'll help you see the bigger picture by combining all these factors. This way, you'll know exactly how much coverage you need.
  6. Make Smart Choices: With a clear picture of your finances, you can confidently choose a life insurance plan that suits you. Our aim is to give you peace of mind, knowing your loved ones are taken care of, no matter what comes your way. 

What Are the Factors Affecting the Life Insurance Premium?

Answer

The life insurance premium you pay depends on several factors, such as:

  • Age – The earlier you buy life insurance online or offline, the lower the life insurance premium will be.
  • Gender – Women tend to live longer than men and are typically offered lower life insurance premium rates.
  • Medical history – Even with no medical life insurance policies, you are required to disclose your past medical history and family history of illnesses as it impacts your life insurance premium.
  • Smoking habit – Smokers have a higher mortality rate and tend to contract more illnesses than non-smokers. Life insurance premium amounts reflect risk, so smokers tend to pay a higher life insurance premium.
  • Insurer – Choose a transparent and reliable company offering life insurance plans in India to ensure that you get the most competitive rates.

What Are the Tax Benefits of Life Insurance Plans?

Answer

Minimize Your Tax Liability and Maximize Benefits
 

TAX BENEFITS ON LIFE INSURANCE PREMIUM AMOUNTS
 

Under provisions of the IT Act – Section 80C, you can claim a tax deduction of up to Rs. 1.5 lakhs on premiums paid for life insurance in India. Pension life insurance cover premiums are eligible for deductions under Section 80CCC. A maximum deduction of Rs. 25,000 is allowed under Section 80D for health insurance plans.
 

TAX BENEFITS ON LIFE INSURANCE COVER CLAIMS
 

One of the best benefits of life insurance plans is that the claims received are tax-free under Section 10(10D). Read policy documents of the plan you will be purchasing for more details.
 

COMMUTED PENSION TAX BENEFITS
 

Under Section 10(10A) of the IT Act, 1/3rd of the sum withdrawn as cash from deferred annuity life insurance policy plans is called commuted pension and is tax-free. 

 

What Are the Benefits of Buying a Life Insurance Plan Online vs. Offline?

Answer

Buying life insurance online has many benefits. If you buy life insurance online, you are purchasing directly without paying commission to intermediaries. You can make an informed choice by checking life insurance policy details online, reading reviews and comparing types & benefits of policies upfront. You also get 24x7 customer support when you buy a life insurance policy online. Hence buying a life insurance policy online is quicker and easier as compared to offline.

What Are the Options Available in IndiaFirst for Life Insurance Plans?

Answer

IndiaFirst Life Insurance provides different types of life insurance options, including whole life assurance policies, permanent life insurance plans, pure protection life cover, and life insurance investment plans. The primary categories or types of life insurance plans offered by IndiaFirst Life include:

  • ULIP - IndiaFirst Life Wealth Maximizer Plan, IndiaFirst Money Balance Plan, IndiaFirst Life Radiance Smart Invest Plan 
  • Non-Participating Savings - IndiaFirst Life Guaranteed Benefit Plan, IndiaFirst Life Cash Back Plan, IndiaFirst Life Long Guaranteed Income Plan, IndiaFirst Life Saral Bachat Bima Plan, IndiaFirst Life Guaranteed Pension Plan, IndiaFirst Life ‘Insurance Khata’ Plan, IndiaFirst Life Guaranteed Annuity Plan, IndiaFirst Life Guaranteed Single Premium Plan, IndiaFirst Life Guarantee of Life Dreams Plan 
  • Participating - IndiaFirst Life Mahajeevan Plus Plan, IndiaFirst Life Micro Bachat Plan, IndiaFirst Life Little Champ Plan, IndiaFirst Life Guaranteed Monthly Income Plan, IndiaFirst Life Fortune Plus Plan, IndiaFirst Life Simple Benefit Plan, IndiaFirst Life Smart Pay Plan
  • Non-Participating Protection – IndiaFirst Life Plan, IndiaFirst Life Guaranteed Protection Plus Plan 
  • Riders - IndiaFirst Life Waiver of Premium Rider, IndiaFirst Term Rider

 

by IndiaFirst Life
Headquartered in Mumbai, IndiaFirst Life Insurance Company Limited (IndiaFirst Life), with a paid-up share capital of INR 663 crore, is one of the country's youngest life insurance companies. Our key differentiators are our simple, easy-to-understand products that are fairly-priced and efficiently serviced.We offer a diversified suite of over 46 need-based products & Riders (as of 31st March 2022) catering to varied customer segments, leveraging multiple distribution capabilities and augmenting various investment options. In all, propositions under the categories of Protection, Assured Savings, Wealth, Pension, Health and Group Funds for Employee Liabilities form a complete suite of offerings that help our customers prepare for the certainties of life. Our products are easy to understand and competitively priced with risk management being our core strength.

 

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