India's 1st IRDAI Approved Insurance Web Aggregator
IndiaFirst Cash Back Plan
views
views
IndiaFirst Cash Back Plan
IndiaFirst Cash Back Plan is a nonparticipating Money Back Plan. The plan offers pay-outs at regular intervals to meet financial needs. Along with liquidity, the plan offers death benefit, upon demise of policyholder, the nominee gets higher of 10 times the annualized premium or sum assured on maturity along with accumulated guaranteed additions.
Key Features of IndiaFirst Cash Back Plan
Guaranteed pay-outs – at regular intervals
Limited Premium Paying Term – 5, 7 and 10 years
Guaranteed additions – after every policy anniversary
Income Tax Benefit - Life Insurance premiums paid up to Rs. 1, 50,000 are allowed as a deduction from the taxable income each year under section 80C
COMPARE THIS PLAN WITH OTHER MONEY BACK PLANS
How does the plan work?
Benefits paid under the plan – Maturity/Survival and Death Benefit. Illustrated with an example below:
Example:
Mr. Avinash, aged 30 years, a bank official wants to save for his future and create a provision for regular pay out during the Plan term. He has opted IndiaFirst Cash Back Plan with a Plan term of 15 years and premium payment term of 10 years. The sum assured under on maturity under the Plan is Rs 2, 00,000. He has to pay Rs 16,888 yearly. He wants to know how much he will get on maturity / death and as well as survival benefit?
*The amount is in Rs. and is exclusive of service tax
Benefits Payable:- Maturity Benefit = 60% of Sum Assured on maturity + Guaranteed Addition equal to 7% of Annualized Premium
= 1, 20,000 + 7% * 16,888 * 15
= 1, 20,000 + 17,732
= 1, 37,732 Death Benefit = Max (10* Annualized Premium, Sum Assured on maturity) + Guaranteed Additions equal to 7% of Annualized Premium * Till Year of Death
= Max (10 * 16,888, 2, 00,000) + 7% * 16,888* 6 years (assuming year of death is 7th year)
= 2, 00,000+ 7093
= 2, 07,093 Survival Benefit = 20% of Sum Assured on maturity (2, 00,000) payable on 5th, and 10th year plus maturity benefit
= 40,000 will be payable on 5th and 10th year plus Maturity Benefit at end of Plan term
Benefits you get from IndiaFirst Cash Back Plan
Death Benefit – In case of death of the Life Insured within the Policy Tenure, the nominee gets:-
Higher of 10 times of annualized premium or
105% of all premiums paid
Maturity Benefit – On survival till the end of the Policy Tenure, the life assured will receive 60% of the sum assured at maturity along with guaranteed additions. Plus, the life assured will receive regular pay-outs during the term. The pay-out frequency and the amount is given below -
Pay-out year and Policy Term
9 years
12 years
15 years
3
20% SA on Maturity
-
-
4
-
20% SA on Maturity
-
5
-
-
20% SA on Maturity
6
20% SA on Maturity
-
-
8
-
20% SA on Maturity
-
9
60% SA on Maturity + Guaranteed Additions
-
-
10
-
-
20% SA on Maturity
12
-
60% SA on Maturity + Guaranteed Additions
-
15
-
-
60% SA on Maturity + Guaranteed Additions
In the above, SA stands for Sum Assured
Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,50,000 are allowed as a deduction from the taxable income each year under section 80C and the Maturity Proceeds are tax free under section 10(10)D subject to fulfilment of terms and conditions.
Eligibility conditions & other restrictions in IndiaFirst Cash Back Plan
Particulars
Minimum
Maximum
Entry Age of Life Insured (in years
Policy Term(in years)
9
15
45
12
15
50
15
15
55
Age at Maturity (in years)
-
70
Sum Assured (in Rs.)
50,000
No Limit
Policy Term (in years)
9,12,15
Premium Payment Term (in years)
5,7,10
Premium (in Rs.)
6000
Payment modes
Monthly, Quarterly, Half Yearly, Yearly
Additional Features and Benefits of IndiaFirst Cash Back Plan
Paid-up Value – the plan acquires guaranteed paid-up value, after two/three full years.
Paid up value payable on maturity = Sum Assured on Maturity * (No. of Premiums Paid / Total Number of Premiums Payable) + Guaranteed Additions – Survival Benefits paid, if any)
Paid up value payable on death = Sum Assured on death * (No. of Premiums Paid / Total Number of Premiums Payable) + Guaranteed Additions)
High Sum Assured Rebate – discount in premium per thousand sum assured on maturity.
Free look – If the policyholder is not convinced with Terms and Conditions of the policy, then, h/she can cancel the policy within 15 days from the date of receipt of policy document.
Riders – There are no additional riders in this plan.
Loans – There is no loan facility in this plan.
What happens if?
You stop paying the premium - If the policyholder stops paying the premium within 30 days from the premium due date, the policy lapses and all benefits cease.
You want to revive the policy - The policy can be revived within the 2 years revival period.
You want to surrender the policy – policyholder can surrender any time after the payment of one full year’s premium. The amount payable on surrender will be higher of the Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV).
You want a loan against your policy – There is no loan facility in this plan.
