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Is the IndiaFirst Life Guarantee of Life Dreams Plan the perfect tool to achieve your life goals, or are there better alternatives?
Can the IndiaFirst Life Guarantee of Life Dreams Plan provide the right balance of security and growth, or is it just another insurance product with limitations?
Can the IndiaFirst Life Guarantee of Life Dreams Plan truly secure your financial future, or does it come with hidden caveats?
This review provides a detailed look at the plan’s features, advantages, and disadvantages, complete with clear illustrations.
Table of Contents:
What is the IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan?
What are the features of the IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan?
Who is eligible for the IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan?
Grace Period, Paid-up and Revival of IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan
Free Look Period of IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan
Surrendering IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan
What are the advantages of the IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan?
What are the disadvantages of the IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan?
Research Methodology of IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan
Benefit illustration – IRR Analysis of IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan
IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan Vs. Other Investments
IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan Vs. Pure-Term + ELSS
Final Verdict on IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan
What is the IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan?
IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan is a Non-Linked, Non-Participating, Individual Saving, Limited Premium Paying, Life Insurance Plan. It offers a range of Income options to cater to different customer needs.
It guarantees a second source of income to help you achieve your financial goals, along with a Life Cover to safeguard your family against the uncertainties of life.
What are the features of the IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan?
- Variety of Income Options: Choose from three income alternatives – Immediate, Intermediate, and Deferred Income.
- Comprehensive Life Insurance: Safeguard your family’s future with life cover that lasts for the entire policy duration.
- Guaranteed Income: Enjoy a steady, guaranteed income stream for 20, 30, or 40 years, depending on the income option you select.
- Reward for Timely Payments: Benefit from loyalty incentives for on-time premium payments.
- Enhanced Income for Women: Female policyholders receive a higher income benefit.
- Tax Advantages: Take advantage of tax benefits on both premiums paid and benefits received, in line with current tax regulations.
Who is eligible for the IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan?
| Criteria | Minimum | Maximum |
| Age at entry | 90 days | Immediate Income and Intermediate Income Option For PPT 6 – 50 years For PPT 8 and 10 – 55 years Deferred Income Option For PPT 6 – 50 years For PPT 8 and 10 – 60 years |
| Age at maturity | 20 years | 90 years |
| Premium payment term | 6/8/10 years | |
| Policy term | 20/30/40 years | |
| Premium payment frequency and minimum premium | Yearly – 48,000 Half-Yearly – 24,571 Quarterly – 12,432 Monthly – 4,176 |
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What are the plan options and the benefits of the IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan?
1. Immediate Income option
Survival Benefit
Base Income starts at the end of the first policy year and continues till the end of the IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan Policy term.
The base income payable every year will be enhanced by the Loyalty Income
Income payable will stop increasing once the policyholder stops paying his due premium or after the end of the Premium Payment Term (whichever is earlier).
Maturity Benefit
On survival till the end of the IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan policy term, Sum Assured on Maturity will be payable. Where the sum Assured on Maturity is equal to 75% of the sum of all Annualized Premiums payable under the policy.
2. Intermediate Income Option
Survival Benefit
Income will be payable from the end of the 5th policy year and will continue till the end of the IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan Policy Term.
The base income will be enhanced by the Loyalty Income every year.
Income payable will stop increasing once the policyholder stops paying his due premium or after the end of the Premium Payment Term (whichever is earlier).
Maturity Benefit
On survival till the end of the IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan policy term, Sum Assured on Maturity will be payable. Where the sum Assured on Maturity is equal to 75% of the sum of all Annualized Premiums payable under the policy.
3. Deferred Income Option
Survival Benefit
Income will be payable starting from the end of the 10th policy year and will continue till the end of the Policy Term.
Loyalty Income enhances Base Income every 5 years, starting from the 16th policy year, till the end of the IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan policy term.
Additionally, two cashbacks shall also be payable; both equal to 50% of Annualized Premium, will be payable at the end of the 3rd policy year and at the end of the Premium Payment Term.
Maturity Benefit
On survival till the end of the IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan policy term, Sum Assured on Maturity will be payable. Where the sum Assured on Maturity is equal to 125% of the sum of all Annualized Premiums payable under the policy.
Death Benefit (applicable to all income options)
Death Benefit will be highest of:
- Sum Assured on Death (10 times of Annualized Premium)
- 105% of Total Premiums Paid till the date of death
- Sum Assured on Maturity (75%/125% of the sum of all Annualized Premium), minus the survival benefits paid to date
- Surrender value as on the date of death
Grace Period, Paid-up and Revival of IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan
Grace Period
You are provided with a Grace Period of 15 days under the monthly mode and 30 days for other premium payment modes.
Paid-up
This IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan policy will acquire a reduced paid-up value on payment of the first year’s premium in full.
In the event of non-payment of due premiums within the grace period, the policy will lapse if it has not acquired a paid-up value. The risk cover will cease, and no further benefits will be payable in case of a lapsed policy.
In case of non-payment of premium within the grace period, the policy will acquire paid-up value provided at least one full year’s premium has been paid. The benefits will be reduced proportionately.
Revival
You may revive your IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan Policy within 5 years from the due date of the first unpaid regular premium but before the Maturity Date.
Free Look Period of IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan
In case you disagree with any of the terms and conditions and have not made any claim, you shall have the option of returning the policy within 30 days from receipt of your policy document whether received electronically or otherwise
Surrendering IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan
Guaranteed Surrender Value (GSV) is acquired, if you have paid Premiums for at least the first two full policy years. Special Surrender Value (SSV) is acquired, if you have paid full Premiums for the first full policy year.
The amount payable on surrender will be higher than Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV).
What are the advantages of the IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan?
- Personalized Payout Date: opt to receive your annual income on a date that holds special significance for you or your loved ones.
- Continued Coverage: Benefit from the Life Cover Continuance Benefit, ensuring you stay covered even if you miss a premium payment, at no extra cost.
- Enhanced Base Income: Increase your base income with a higher annualized premium.
- Optional Riders: Additional riders can be added to your plan at an extra cost.
- Access to policy loans, with a maximum loan amount of up to 80% of the surrender value.
What are the disadvantages of the IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan?
- Limited Life Cover: The provided life cover might not be sufficient.
- Potential for Impulsive Spending: Receiving annual income could lead to unplanned expenditures.
- Lower Comparative Returns: The overall returns tend to be on the lower side.
- Inflexible Income Timing: The income benefit cannot be deferred, which may not meet your financial requirements.
- Impact on Investment Growth: Annual withdrawals can disrupt the compounding effect of your investments.
Research Methodology of IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan
The IndiaFirst Guarantee of Life Dreams (GOLD) Plan offers annual cash payouts that increase over time, along with a maturity benefit at the end of the policy term based on the selected plan option.
However, investing in this plan should not be based solely on the promise of guaranteed cash flow; the overall returns are a more critical factor. Let’s examine an example to understand this better by calculating the Internal Rate of Return (IRR).
Benefit illustration – IRR Analysis of IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan
Consider a 30-year-old male who opts for the IndiaFirst Guarantee of Life Dreams (GOLD) Plan with a sum assured of ₹20 Lakhs. The policy term is 30 years, with a premium payment term of 10 years, and he pays an annual premium of ₹2 Lakhs.
| Male | 30 years |
| Sum Assured | ₹ 20,00,000 |
| Policy Term | 30 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 2,00,000 |
Starting at the end of the 5th policy year, he receives income benefits beginning with ₹79,622 in the first payout, which increases annually.
In addition, he receives a maturity benefit of ₹15 Lakhs (which is 75% of the base sum assured) at the end of the policy term. The IRR for these cash flows is calculated to be 5.12% as per the IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan maturity calculator.
| Age | Year | Annualised premium / Maturity benefit | Death benefit |
| 30 | 1 | -2,00,000 | 20,00,000 |
| 31 | 2 | -2,00,000 | 20,00,000 |
| 32 | 3 | -2,00,000 | 20,00,000 |
| 33 | 4 | -2,00,000 | 20,00,000 |
| 34 | 5 | -2,00,000 | 20,00,000 |
| 35 | 6 | -1,20,378 | 20,00,000 |
| 36 | 7 | -1,12,913 | 20,00,000 |
| 37 | 8 | -1,05,448 | 20,00,000 |
| 38 | 9 | -97,983 | 20,00,000 |
| 39 | 10 | -90,518 | 20,00,000 |
| 40 | 11 | 1,16,945 | 20,00,000 |
| 41 | 12 | 1,16,945 | 20,00,000 |
| 42 | 13 | 1,16,945 | 20,00,000 |
| 43 | 14 | 1,16,945 | 20,00,000 |
| 44 | 15 | 1,16,945 | 20,00,000 |
| 45 | 16 | 1,16,945 | 20,00,000 |
| 46 | 17 | 1,16,945 | 20,00,000 |
| 47 | 18 | 1,16,945 | 20,00,000 |
| 48 | 19 | 1,16,945 | 20,00,000 |
| 49 | 20 | 1,16,945 | 20,00,000 |
| 50 | 21 | 1,16,945 | 20,00,000 |
| 51 | 22 | 1,16,945 | 20,00,000 |
| 52 | 23 | 1,16,945 | 20,00,000 |
| 53 | 24 | 1,16,945 | 20,00,000 |
| 54 | 25 | 1,16,945 | 20,00,000 |
| 55 | 26 | 1,16,945 | 20,00,000 |
| 56 | 27 | 1,16,945 | 20,00,000 |
| 57 | 28 | 1,16,945 | 20,00,000 |
| 58 | 29 | 1,16,945 | 20,00,000 |
| 59 | 30 | 1,16,945 | 20,00,000 |
| 60 | 16,16,945 | 20,00,000 | |
| 5.12% |
While the plan does offer guaranteed, regular payouts, its returns are lower than the rate of inflation. Furthermore, the annual payouts might not be sufficient to cover larger expenses, and the inability to defer these payouts could encourage unnecessary spending.
Additionally, the life cover provided may not adequately address your family’s long-term financial needs.
In summary, although the IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan provides guaranteed benefits and life cover over an extended period, its relatively low returns and insufficient life coverage make it less suitable for achieving long-term financial objectives.
IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan Vs. Other Investments
The IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan offers the advantage of increasing income even before the premium payment term ends, along with life coverage throughout the policy term.
However, it’s worth exploring alternative investments that provide similar benefits with potentially higher returns by decoupling insurance from investments.
IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan Vs. Pure-Term + ELSS
Using the same parameters as before, consider a scenario where you purchase a pure-term life insurance policy with a sum assured of ₹20 Lakhs.
This policy requires an annual premium of ₹19,000 over a 10-year term, leaving you with ₹1,81,000 each year for investment, which can be allocated according to your risk tolerance.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 20,00,000 |
| Policy Term | 30 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 19,000 |
| Investment | ₹ 1,81,000 |
For low-risk investors, options such as the Public Provident Fund (PPF) might be suitable, while those with a higher risk appetite could consider equity-based investments like Equity-Linked Savings Schemes (ELSS). In this example, we assume that the funds are invested in an ELSS fund.
| Term insurance + ELSS | |||
| Age | Year | Term Insurance premium + ELSS | Death benefit |
| 30 | 1 | -2,00,000 | 20,00,000 |
| 31 | 2 | -2,00,000 | 20,00,000 |
| 32 | 3 | -2,00,000 | 20,00,000 |
| 33 | 4 | -2,00,000 | 20,00,000 |
| 34 | 5 | -2,00,000 | 20,00,000 |
| 35 | 6 | -1,20,378 | 20,00,000 |
| 36 | 7 | -1,12,913 | 20,00,000 |
| 37 | 8 | -1,05,448 | 20,00,000 |
| 38 | 9 | -97,983 | 20,00,000 |
| 39 | 10 | -90,518 | 20,00,000 |
| 40 | 11 | 1,16,945 | 20,00,000 |
| 41 | 12 | 1,16,945 | 20,00,000 |
| 42 | 13 | 1,16,945 | 20,00,000 |
| 43 | 14 | 1,16,945 | 20,00,000 |
| 44 | 15 | 1,16,945 | 20,00,000 |
| 45 | 16 | 1,16,945 | 20,00,000 |
| 46 | 17 | 1,16,945 | 20,00,000 |
| 47 | 18 | 1,16,945 | 20,00,000 |
| 48 | 19 | 1,16,945 | 20,00,000 |
| 49 | 20 | 1,16,945 | 20,00,000 |
| 50 | 21 | 1,16,945 | 20,00,000 |
| 51 | 22 | 1,16,945 | 20,00,000 |
| 52 | 23 | 1,16,945 | 20,00,000 |
| 53 | 24 | 1,16,945 | 20,00,000 |
| 54 | 25 | 1,16,945 | 20,00,000 |
| 55 | 26 | 1,16,945 | 20,00,000 |
| 56 | 27 | 1,16,945 | 20,00,000 |
| 57 | 28 | 1,16,945 | 20,00,000 |
| 58 | 29 | 1,16,945 | 20,00,000 |
| 59 | 30 | 1,16,945 | 20,00,000 |
| 60 | 56,14,306 | 20,00,000 | |
| 7.80% | |||
Between years 5 and 10, you begin withdrawing funds from the ELSS investments. By the end of the 10th year, the accumulated ELSS amount is transferred into an instrument yielding 7% per annum to support annual withdrawals.
This strategy ensures annual withdrawal aligns with the survival benefits offered by the IndiaFirst Life GOLD plan and the final investment value is fully withdrawn to align with the maturity benefit.
| ELSS Tax Calculation | |
| Maturity value after 10 years | 28,96,697 |
| Purchase price | 18,10,000 |
| Long-Term Capital Gains | 10,86,697 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 9,61,697 |
| Tax paid on LTCG | 1,20,212 |
| Maturity value after tax | 27,76,485 |
The final pre-tax value of the ELSS fund is ₹28.96 Lakhs, which post-tax reduces to ₹27.76 Lakhs. This amount is then invested in a 7% per annum instrument. Following a similar withdrawal pattern as the IndiaFirst GOLD Plan, the final value of the investments grows to ₹56.14 Lakhs.
The combined Internal Rate of Return (IRR) for this strategy—incorporating both the pure-term life insurance and the ELSS investment—comes out to 7.80% post-tax.
This return not only beats inflation but also suggests that avoiding regular withdrawals could lead to even greater returns. Overall, when planning for long-term financial goals, separating insurance from investments tends to yield better financial outcomes compared to traditional life insurance policies.
Final Verdict on IndiaFirst Life Guarantee of Life Dreams (GOLD) Plan
The IndiaFirst Guarantee of Life Dreams (GOLD) Plan comes in three variants, with the timing of the regular income payouts varying—starting either at the end of the first policy year or later.
It promises guaranteed increasing income and family protection. However, while the prospect of a steady income stream may seem appealing, the returns are lower than those offered by basic debt instruments.
Moreover, the rising income benefits are unlikely to cover major expenses and may even encourage unnecessary spending.
Additionally, the sum assured provided by the plan is insufficient to meet your future financial needs. By attempting to combine both insurance and investment, the plan falls short in both aspects.
As a long-term investment, the IndiaFirst Guarantee of Life Dreams (GOLD) Plan is unlikely to satisfy most investors and it also has a high agent commission.
For those seeking regular income, it is generally more effective to separate investments from life insurance. Pure-term life insurance, on the other hand, offers robust protection for your family against unforeseen risks.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
To meet your financial goals, it is advisable to build an investment portfolio that aligns with your risk tolerance, life objectives, and time horizon. If you need assistance, consulting a Certified Financial Planner can help you develop a personalized financial plan for a secure future.
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