IndiaFirst Life Fortune Plus: Good or Bad? An Insightful Review
Is the IndiaFirst Life Fortune Plus Plan your gateway to financial security, or just another policy with hidden catches?
can investing in IndiaFirst Life Fortune Plus a smart move, or are there more rewarding alternatives waiting to be explored?
Does the IndiaFirst Life Fortune Plus Plan provide real benefits, or is it just another complicated insurance product?
Let’s analyse its features, benefits, and drawbacks to find out.
What is IndiaFirst Life Fortune Plus Plan?
What are the features of IndiaFirst Life Fortune Plus Plan?
Who is eligible for IndiaFirst Life Fortune Plus Plan?
What are the benefits of the IndiaFirst Life Fortune Plus Plan?
Grace Period, Discontinuance and Revival of IndiaFirst Life Fortune Plus Plan
Free Look Period for IndiaFirst Life Fortune Plus Plan
Surrendering IndiaFirst Life Fortune Plus Plan
What are the advantages of the IndiaFirst Life Fortune Plus Plan?
What are the disadvantages of the IndiaFirst Life Fortune Plus Plan?
Research Methodology of IndiaFirst Life Fortune Plus Plan
Benefit Illustration – IRR Analysis of IndiaFirst Life Fortune Plus Plan
IndiaFirst Life Fortune Plus Plan Vs. Other Investments
IndiaFirst Life Fortune Plus Plan Vs. Pure-term + PPF / ELSS
Final Verdict on IndiaFirst Life Fortune Plus Plan
IndiaFirst Life Fortune Plus Plan is a Non-Linked, Participating, Individual, Life Limited Premium Savings Plan. It provides life insurance cover during the entire IndiaFirst Life Fortune Plus Plan policy term of 15 or 20 years.
The plan requires a shorter pay commitment (of 6,7,8,9, 10, 11 or 12 years) and gives the benefit of financial protection along with savings in a single policy.
| Criteria | Details | |
| Minimum Age at Entry | 1 month – For Policy Term 20 years3 years – For Policy Term 15 years | Death Benefit multiple of 10x |
| 51 years | Death Benefit multiple of 7x | |
| Maximum Age at Entry | 50 years | Death Benefit multiple of 10x |
| 60 years | Death Benefit multiple of 7x | |
| Minimum Age at Maturity | 20 years | Policy Term: 20 years |
| 18 years | Policy Term: 15 years | |
| Maximum Age at Maturity | 70 years | Death Benefit multiple of 10x |
| 80 years | Death Benefit multiple of 7x | |
| Policy Term & Premium Payment Term | Policy Term | Premium Payment Term |
| 15 years | 6 years, 7 years, 8 years, 9 years and 10 years | |
| 20 years | 6 years, 7 years, 8 years, 9 years, 10 years, 11 years and 12 years | |
| Sum Assured on Death | Minimum: INR 168,000 | Maximum: No Limit |
| Annual Premium | Minimum: INR 24,000 | Maximum: No Limit |
| Premium Paying Modes and Modal Factors | Premium Frequency | Factor to be applied to Annual Premium |
| Yearly | 1 | |
| Half – yearly | 0.5119 | |
| Quarterly | 0.259 | |
| Monthly | 0.087 |
Guaranteed Survival Benefit PLUS Cash Bonus, if declared, shall be payable from the end of the Premium Payment Term till Maturity, on survival of the life assured.
At the inception of the IndiaFirst Life Fortune Plus Plan policy, the policyholder shall have an option to defer the Guaranteed Survival Benefit and Cash Bonus, if declared, which shall accumulate annually.
If the accumulated benefits are not taken by the policyholder during the policy tenure, the same shall be payable along with other benefits payable at the time of termination of the policy in the form of death, maturity or surrender.
On survival up to the end of the IndiaFirst Life Fortune Plus Plan policy term provided the policy is in force and fully paid-up, you shall receive the Sum Assured on Maturity PLUS Terminal Bonus if declared.
Sum Assured on Maturity (SAM) = Maturity Benefit Factor X Annualized Premium (AP) x Premium Paying Term
The nominee(s) will receive the higher of:
Where Sum Assured on death is defined as: Higher of
Cash Bonus: If declared, it will be calculated on the Sum Assured at Maturity and payable along with the Guaranteed Survival Benefit, starting from the end of the Premium Paying Term till maturity, as per the payout mode selected.
Terminal Bonus: If declared, it will be paid either on death, on maturity or on surrender
Grace Period
This IndiaFirst Life Fortune Plus Plan policy has a grace period of 30 days for yearly, half-yearly and quarterly frequencies and 15 days for monthly frequency from the premium due date.
Discontinuance
The policy will lapse if less than one full year’s premium has been paid. If policy is lapsed and is not revived during the revival period, it will be foreclosed without paying any benefit after expiry of the revival period.
The IndiaFirst Life Fortune Plus Plan policy will acquire paid-up value after the expiry of the grace period from the date of the first unpaid premium if at least one (1) full-year premium has been paid and any subsequent due premiums are not paid.
Revival
You may revive your policy within 5 years from the due date of the first unpaid premium but before the expiry of the policy term
If you disagree with any of those terms or conditions, you have the option of returning the IndiaFirst Life Fortune Plus Plan policy to the insurer for cancellation, stating the reasons for your objection within 30 days from the date of receipt of the policy.
The IndiaFirst Life Fortune Plus Plan policy will acquire surrender value after first full year premium has been paid. At the time of surrender higher of Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV) will be payable.
The surrender value payable will vary by policy term and policy year of surrender.
Like other endowment plans, IndiaFirst Life Fortune Plus provides life coverage throughout the IndiaFirst Life Fortune Plus Plan policy term, along with either a regular income or a lump sum maturity benefit.
The cash flow is straightforward: You pay premiums for a limited period and receive payouts upon maturity. Beyond these payouts, evaluating the plan’s viability requires analysing the Internal Rate of Return (IRR).
Here’s a benefit illustration from the IndiaFirst Life Fortune Plus Plan policy brochure: A 35-year-old male chooses IndiaFirst Life Fortune Plus with a sum assured of ₹15.75 lakhs. The policy term is 15 years, and he pays an annual premium of ₹1,50,000 for 10 years.
| Male | 35 years |
| Sum Assured | ₹ 15,75,000 |
| Policy Term | 15 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 1,50,000 |
If all premiums are paid, the maturity benefit, including bonuses, is provided. The projected returns are based on assumed investment rates of 4% and 8%, but these figures are not guaranteed and do not reflect the maximum or minimum returns one may earn.
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 36 | 2 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 37 | 3 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 38 | 4 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 39 | 5 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 40 | 6 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 41 | 7 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 42 | 8 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 43 | 9 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 44 | 10 | -1,50,000 | 15,00,000 | -1,50,000 | 15,00,000 |
| 45 | 11 | 0 | 15,75,000 | 0 | 15,75,000 |
| 46 | 12 | 0 | 15,75,000 | 0 | 15,75,000 |
| 47 | 13 | 0 | 15,75,000 | 0 | 15,75,000 |
| 48 | 14 | 0 | 15,75,000 | 0 | 15,75,000 |
| 49 | 15 | 0 | 15,75,000 | 0 | 15,75,000 |
| 50 | 16,90,500 | 15,75,000 | 21,53,550 | 15,75,000 | |
| IRR | 1.14% | 3.46% | |||
At 4%, the estimated maturity benefit is ₹16.90 lakhs, yielding an IRR of just 1.14%, as per the IndiaFirst Life Fortune Plus Plan maturity calculator which is lower than typical savings account rates.
At 8%, the projected maturity benefit is ₹21.53 lakhs, resulting in an IRR of 3.46%, as per the IndiaFirst Life Fortune Plus Plan maturity calculator which is even less than bank fixed deposit returns.
Despite the 15-year duration, the plan’s returns fail to keep pace with inflation, making it ineffective for wealth creation. Additionally, the life cover is inadequate to provide meaningful financial security.
Given these shortcomings, IndiaFirst Life Fortune Plus is not a suitable choice for meeting financial goals and may hinder your overall financial plan.
For life coverage, opting for a pure-term IndiaFirst Life Fortune Plus Plan policy is always a smarter choice. These policies provide only life insurance, offering a death benefit in case of an unfortunate event, with no additional payouts.
They come with affordable premiums and high coverage, allowing you to invest the savings separately to meet your financial goals. Let’s analyse the cost-effectiveness of this approach with a scenario.
A pure-term policy with a ₹16 lakh sum assured costs approximately ₹9,900 in annual premiums, whereas the IndiaFirst Life Fortune Plus Plan charges ₹1,50,000 for a sum assured of ₹15.75 lakhs.
By investing the premium difference based on your risk appetite, you can generate significantly better returns.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 16,00,000 |
| Policy Term | 15 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 9,900 |
| Investment | ₹ 1,40,100 |
High-risk investors may prefer equities, while conservative investors might opt for debt. In this example, the surplus funds are invested in either a PPF account or an Equity-Linked Savings Scheme (ELSS).
| Term Insurance + PPF | Term insurance + ELSS | ||||
| Age | Year | Term Insurance premium + PPF | Death benefit | Term Insurance premium + ELSS | Death benefit |
| 35 | 1 | -1,50,000 | 16,00,000 | -1,50,000 | 16,00,000 |
| 36 | 2 | -1,50,000 | 16,00,000 | -1,50,000 | 16,00,000 |
| 37 | 3 | -1,50,000 | 16,00,000 | -1,50,000 | 16,00,000 |
| 38 | 4 | -1,50,000 | 16,00,000 | -1,50,000 | 16,00,000 |
| 39 | 5 | -1,50,000 | 16,00,000 | -1,50,000 | 16,00,000 |
| 40 | 6 | -1,50,000 | 16,00,000 | -1,50,000 | 16,00,000 |
| 41 | 7 | -1,50,000 | 16,00,000 | -1,50,000 | 16,00,000 |
| 42 | 8 | -1,50,000 | 16,00,000 | -1,50,000 | 16,00,000 |
| 43 | 9 | -1,50,000 | 16,00,000 | -1,50,000 | 16,00,000 |
| 44 | 10 | -1,47,500 | 16,00,000 | -1,50,000 | 16,00,000 |
| 45 | 11 | -500 | 16,00,000 | 0 | 16,00,000 |
| 46 | 12 | -500 | 16,00,000 | 0 | 16,00,000 |
| 47 | 13 | -500 | 16,00,000 | 0 | 16,00,000 |
| 48 | 14 | -500 | 16,00,000 | 0 | 16,00,000 |
| 49 | 15 | -500 | 16,00,000 | 0 | 16,00,000 |
| 50 | 29,34,415 | 16,00,000 | 44,36,947 | 16,00,000 | |
| IRR | 6.44% | 10.45% | |||
For the PPF account, which requires a minimum 15-year investment, adjustments were made in the final year due to the 10-year premium payment term. The maturity value stands at ₹29.34 lakhs, yielding an IRR of 6.44%.
For the ELSS fund, the investment grows to ₹48.52 lakhs over 15 years, with a post-tax value of ₹44.36 lakhs and an IRR of 10.45%.
| ELSS Tax Calculation | |
| Maturity value after 15 years | 48,52,797 |
| Purchase price | 14,01,000 |
| Long-Term Capital Gains | 34,51,797 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 33,26,797 |
| Tax paid on LTCG | 4,15,850 |
| Maturity value after tax | 44,36,947 |
This alternative strategy not only provides life coverage but also delivers superior returns compared to the IndiaFirst Life Fortune Plus Plan. For those seeking both robust financial protection and wealth creation, the IndiaFirst Life Fortune Plus Plan falls short.
The IndiaFirst Life Fortune Plus Plan is an endowment IndiaFirst Life Fortune Plus Plan policy that offers flexibility in receiving benefits. You can choose to receive survival income at regular intervals or accumulate it and receive a lump sum at the end of the term.
However, beyond this flexibility, it remains a traditional endowment plan.
An analysis of returns reveals that this is a low-yielding product, making it unlikely to help you achieve your financial goals. Additionally, the sum assured is relatively low and may not be sufficient to meet your family’s essential financial needs, and it also has high agent commission.
Overall, the IndiaFirst Life Fortune Plus Plan falls short in both life coverage and investment returns.
To build long-term financial security, it is essential to create a well-diversified investment portfolio that aligns with your risk tolerance, goals, and investment horizon.
At the same time, choosing a pure-term life insurance IndiaFirst Life Fortune Plus Plan policy is a prudent decision, as it provides cost-effective, high coverage tailored to your future goals, current earnings, and liabilities.
Traditional plans that combine insurance and investment often fail to support a strong financial strategy. Instead, a goal-based investment approach will help you achieve better financial outcomes.
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For a customized plan that fits your specific needs, consulting a Certified Financial Planner can provide valuable guidance.
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