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
At regular intervals
5, 7 and 10 years
After every policy anniversary
Life Insurance premiums paid up to Rs. 1, 50,000 are allowed as a deduction from the taxable income each year under section 80C
Benefits
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
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
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.
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.
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.
There are no additional riders in this plan.
There is no loan facility in this plan.
How it works
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
Eligibility
| 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 | ||
FAQs
You stop paying the premiumIf 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 policyThe policy can be revived within the 2 years revival period.
You want to surrender the policyPolicyholder 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 policyThere is no loan facility in this plan.
