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IndiaFirst Guaranteed Retirement Plan

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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. 

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. 

Key Features of IndiaFirst Insurance Guaranteed Retirement Plan 


  • Three premium payment plan options: Single, limited or premium (as in Table 1)
  • Death benefit: 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. 
  • Maturity Benefit: 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. 
  • Minimum Sum Assured: Rs 500,000 for regular and limited premium plans & Rs 100,000 for single premium plan. 
  • Maximum Sum Assured: 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
COMPARE THIS PLAN WITH OTHER PENSION PLANS

 

Eligibility Conditions and Other Restrictions in IndiaFirst Guaranteed Retirement Plan
 
  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      


Additional Features and Benefits of IndiaFirst Guaranteed Pension Plan
  • Tax benefits on Premium Paid: Tax deductions are available on premium paid under section 80 (CCC) 
  • Tax benefits on Maturity and Withdrawals:  Tax benefit on the extent of commuted amount (currently upto third of vesting amount) 
  • Death Benefit: Tax deductible under Section 10 (D)
  • Loan Facility: Not available 
What happens if?

What if you miss your premium payments?

The plan lapses without acquiring paid-up status if: 

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. 

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