IndiaFirst Guaranteed Retirement Plan
IndiaFirst Insurance Guaranteed Retirement Plan Review
IndiaFirst Guaranteed Retirement Plan is a non-linked, participating, endowment deferred Pension plan. It essentially means the policy holder will get a lump-sum as death benefit or on maturity with annual bonuses in later years. The policy guarantees certain fixed return in the initial plan years, revisionary bonuses along with defined assured benefit, if applicable.
Key Features
Tax deductions are available on premium paid under section 80 (CCC)
Tax benefit on the extent of commuted amount (currently upto third of vesting amount)
Tax deductible under Section 10 (D)
Not available
Benefits
- Will be higher of Defined assured benefit or 105 percent of total premium paid along with sum of all guaranteed additions and bonuses, if any applicable. Defined Assure Benefit is the available corpus as a result of accumulated premiums paid previously compounded annually at 0.15 percent is.
- Death during deferment period: In case of death of the policy holder during the deferment period, the nominee has the option to either withdraw the entire proceeds of the plan or use the proceeds to buy an annuity plan at the then prevalent rates from IndiaFirst.
At the end of policy term, the policyholder will receive higher of Sum assured (along with guaranteed fixed return of 9 percent of total premium paid for the first 2, 4 or 6 plan years as mentioned earlier plus annual bonus, if any, paid after the deferment period ) or Defined assured benefit.
Rs 500,000 for regular and limited premium plans & Rs 100,000 for single premium plan.
Rs 100,000 for single premium and no upper limit for regular and limited premium paying plans.
Discount of 1 percent of regular & limited premium when sum assured is Rs 10 lakhs or above. For single premium plan , similar discount of 1 percent of single premium is available on sum assured of Rs 20 lakhs and above .
Guaranteed return of 9% on the total premiums paid during first 2/4/6 plan years as premium payment term
How it works
The plan is available in single premium, limited premium and regular payment modes for which the policy plan terms are 5-40- years, 10 to 35 years and 15 to 35 years respectively. Based on your age and policy term, begin by choosing the premium payment term and sum assured. The minimum sum assured on maturity under ‘Regular’ and ‘Limited’ premium payment plans is Rs 500,000 with no upper cap on upper limit while minimum sum assured under ‘Single’ Plan Term is Rs 100,000. The life assured has the option to either opt for ‘Single Premium Plan’ paying the premium in a single count or to pay the premium monthly, quarterly, half-yearly or yearly under ‘Regular’ or ‘Limited’ premium payment modes till the period as mentioned under:
| Premium Payment Mode | Premium Payment Term | Plan Term |
| Single Premium | One Pay | 5 to 40 years |
| Limited Premium | 5 years | 10 to 35 years |
| Regular Premium | 10 years | 15 to 35 years |
| 10 years | 15 to 35 years |
Other than policyholder, a nominee and appointee can be included in the plan. The policy holder or life assured can nominate an appointee incase the nominee is a minor. In case of death of the policy holder, the appointee will receive and hold the money until the nominee reaches the age of 18. To avail the plan in regular or limited premium plans, the person should have completed the age of 25 years while there is no minimum age requirement for availing the single premium option and maximum age for regular premium is 55 years, 70 years for limited premium plan and 75 years for single premium . It is also to be noted that the minimum age at the end of the plan term should be 40 years (on last birthday) and maximum is 80 years. The plan provides dual benefit of 9 percent fixed return on the total premiums paid during the initial policy years plus annual bonuses (is decided by the management based on financial performance of the company) in later years of the policy term. Fixed guaranteed return is available for the first 2, 4 & 6 year plans under regular and limited paying premium options depending upon policy term.
Eligibility
| Regular Premium Payment Plan | Limited Premium | Single Premium | At the end of Term of Plan | |
|---|---|---|---|---|
| Minimum Age | 25 years (on last birthday) | 25 years (on last birthday) | 0 years | 40 years (last birthday) |
| Maximum Age | 55 years (on last birthday) | 70 years | 75 years | 80 years (last birthday) |
| Sum Assured on maturity (Minimum) | Rs. 5,00,000 | Rs. 5,00,000 | Rs. 1,00,000 | |
| (Maximum) | No limit | |||
| Premium Payment Mode & Corresponding Plan Term | One Pay, & 5-40 Years | 5 years & 10 -35 years | ||
| 10 years & 15-35 years | ||||
| 10 years & 15-35 years | ||||
FAQs
What if you miss your premium payments?For a plan of term more than 10 years: If the premium payments are stopped during the first three years of plan years.
For a plan term of less than 10 years: If you stopped paying your premiums during first two plan years.
What if premiums are stopped after the policy achieves paid-up value? If the policyholder fails to pay the premium within the grace period, the policy will be converted into paid-up. No bonus and guaranteed returns are provided if the policy is converted into paid-up status.
What if my plan is lapsed? Two year revival period is offered to revive the plan. No benefits are paid during this period. The plan will acquire paid-up status immediately after the payment of premium under single premium plan.
