indiafirst life guaranteed annuity plan
Is the IndiaFirst Life Guaranteed Annuity Plan truly a reliable source of lifelong income — or does it offer too little, too late?
Is the IndiaFirst Guaranteed Annuity Plan ideal for conservative investors — or too rigid for those seeking adaptive income?
Is the IndiaFirst Guaranteed Annuity Plan your financial safety net — or a safety cage that restricts future flexibility?
This article delves into the plan’s features, benefits, and drawbacks. In addition to a thorough review, it also explores strategies for making the most of your retirement corpus.
What is the IndiaFirst Life Guaranteed Annuity Plan?
What are the features of the IndiaFirst Life Guaranteed Annuity Plan?
Who is eligible for the IndiaFirst Life Guaranteed Annuity Plan?
What are the annuity options and the benefits of the IndiaFirst Life Guaranteed Annuity Plan?
Free Look Period for the IndiaFirst Life Guaranteed Annuity Plan
Surrendering the IndiaFirst Life Guaranteed Annuity Plan
What are the advantages of the IndiaFirst Life Guaranteed Annuity Plan?
What are the disadvantages of the IndiaFirst Life Guaranteed Annuity Plan?
Research Methodology of IndiaFirst Life Guaranteed Annuity Plan
Benefit Illustration – IRR Analysis of IndiaFirst Life Guaranteed Annuity Plan
IndiaFirst Life Guaranteed Annuity Plan Vs. Other Investments
IndiaFirst Life Guaranteed Annuity Plan Vs. Fixed-Income Instruments
IndiaFirst Life Guaranteed Annuity Plan Vs. Inflation-Adjusted Income
Final Verdict on the India First Life Guaranteed Annuity Plan
IndiaFirst Life Guaranteed Annuity Plan is a non-linked, non-participating, general savings annuity plan. The plan provides you with 12 different options to choose from, allowing you to receive a regular income on a monthly, quarterly, half-yearly, or yearly basis, as chosen.
| Minimum | Maximum | |
| Age at entry (First Annuitant) | 40 years as on last birthday | 80 years as on last birthday |
| Premium (Purchase Price) | ₹ 1,00,000 | No limit |
| Annuity Amount | ₹ 1,000 per month ₹ 12,500 per annum | No limit |
The annuity will be payable in arrears for the life of the annuitant or until the end of a certain period, whichever is later.
On the death of the annuitant or at the end of a certain period, whichever is later, the annuity payments will cease, and no further amount will be payable.
The annuitant has the option to choose a certain period of 5 or 10, or 15 years
This option is applicable for a single life only
The deferment period in this option is 5-10 years. After the end of the deferment period, the annuity will be payable immediately in arrears as per the annuity payment frequency chosen for the life of the annuitant.
On the death of the annuitant during the deferment period, 110% of the purchase price will be payable to the nominee(s) / legal heir(s) of the annuitant.
On the death of the annuitant after the deferment period, the annuity payments will cease, and 100% of the purchase price will be payable to the nominee(s) / legal heir(s) of the annuitant.
This option is applicable for a single life only
If you disagree with any of the terms and conditions, you can return your IndiaFirst Life Guaranteed Annuity Plan policy document within 30 (thirty) days from the date of receipt of your Policy document.
You will be eligible to receive a surrender value only if you have bought any of the following options. The Guaranteed Surrender Value (GSV) will be:
| Annuity Option | Guaranteed Surrender Value (GSV) |
| Life Annuity with return of 100% of purchase price | 10% of the purchase price |
| Joint Life Last Survivor Annuity for Life with return of 100% of purchase price | 10% of the purchase price |
| Deferred Life Annuity with Return of Purchase Price, where the deferment period is 5 to 10 years | During Deferment Period: 75% of Purchase Price during the first three (3) policy years 90% of the Purchase Price thereafter, for the remaining Deferment Period |
| After Deferment Period: 10% of Purchase Price | |
| Life Annuity with Return of Purchase Price on diagnosis of Critical illness | 10% of the purchase price |
| Life Annuity with Return of Purchase Price in parts | 10% of the purchase price |
| Escalating Life Annuity with Return of Purchase Price | 10% of the purchase price |
While the assurance of a fixed annuity may seem attractive, it shouldn’t be the only factor when considering the IndiaFirst Life Guaranteed Annuity Plan.
Evaluating the Internal Rate of Return (IRR) provides a clearer picture of whether the plan aligns with your long-term financial goals.
Let’s examine an example from the policy brochure: A 60-year-old male invests a single premium of ₹20 lakhs under Plan Option 2: Life Annuity with Return of 100% of Purchase Price, opting for annual payouts.
| Male | 60 years |
| Purchase Price | ₹ 20 Lakhs |
| Life Expectancy | 85 years |
| Annuity (per annum) | 1,24,564 |
He receives an annual annuity of ₹1,24,564, and at the age of 85, the entire purchase price is returned to the nominee. Based on these cash flows, the IRR works out to just 6.12% as per the IndiaFirst Life Guaranteed Annuity Plan maturity calculator.
| Age | Option 2: Life Annuity with return of 100% of purchase price |
| 60 | -20,00,000 |
| 61 | 1,24,564 |
| 62 | 1,24,564 |
| 63 | 1,24,564 |
| 64 | 1,24,564 |
| 65 | 1,24,564 |
| 66 | 1,24,564 |
| 67 | 1,24,564 |
| 68 | 1,24,564 |
| 69 | 1,24,564 |
| 70 | 1,24,564 |
| 71 | 1,24,564 |
| 72 | 1,24,564 |
| 73 | 1,24,564 |
| 74 | 1,24,564 |
| 75 | 1,24,564 |
| 76 | 1,24,564 |
| 77 | 1,24,564 |
| 78 | 1,24,564 |
| 79 | 1,24,564 |
| 80 | 1,24,564 |
| 81 | 1,24,564 |
| 82 | 1,24,564 |
| 83 | 1,24,564 |
| 84 | 1,24,564 |
| 85 | 20,00,000 |
| IRR | 6.12% |
While this provides guaranteed income, it’s important to note that funds are locked in for life. A bank Fixed Deposit (FD) may offer a higher return along with the flexibility to access your capital when needed.
In comparison, this annuity plan falls short in both returns and liquidity. More flexible investment options with better yield potential are available, which we’ll explore in the next section.
The primary objective of retirement planning isn’t just saving a large corpus—but using it wisely to generate steady income while maintaining control and flexibility over your investments.
Alternative strategies can offer better returns and tailored cash flows that adapt to your needs.
Fixed-Income Alternatives (as of June 2025)
Here are a few low-risk options for generating regular income in retirement:
Bank Fixed Deposit (FD): A safe option offering predictable returns and regular interest payouts.
Senior Citizen Savings Scheme (SCSS): Backed by the Government of India, this scheme offers attractive interest rates with minimal risk and quarterly payouts.
RBI Floating Rate Bonds: These government bonds offer interest rates linked to market trends, providing the potential for rising income—though with some interest rate risk.
| Investment Option | Expected Returns |
| Bank Fixed Deposit (FD) | 6-7% p.a. |
| Senior Citizen Savings Scheme (SCSS) | 8.20% p.a. |
| RBI Floating Rate Savings Bond | 8.05% p.a. |
These instruments provide liquidity and access to your capital, unlike annuities. However, the key drawback is their inability to beat inflation over the long term. Fixed income loses purchasing power with time, limiting your financial independence in later years.
Let’s revisit the ₹20 lakh retirement corpus used in the IndiaFirst Life Guaranteed Annuity Plan illustration. Instead of locking it into an annuity, here’s an alternate investment strategy:
Asset Allocation:
Withdrawal Plan:
Every 5 years, rebalance the portfolio by transferring equity gains into debt to replenish the income pool. Final transfer from equity to debt occurs at age 71 to preserve stability in later years. This allocation can be adjusted based on personal risk appetite and goals.
| Age | Equity Portion | Shift from Equity to Debt | Debt Portion | ||||
| Opening Balance | Yearly withdrawal | Closing Balance | Opening Balance | Yearly withdrawal | Closing Balance | ||
| 61 | 12,00,000 | – | 13,44,000 | – | 8,00,000 | 1,24,564 | 7,15,962 |
| 62 | 13,44,000 | – | 15,05,280 | – | 7,15,962 | 1,24,564 | 6,26,882 |
| 63 | 15,05,280 | – | 16,85,914 | – | 6,26,882 | 1,24,564 | 5,32,457 |
| 64 | 16,85,914 | – | 18,88,223 | – | 5,32,457 | 1,24,564 | 4,32,367 |
| 65 | 18,88,223 | – | 21,14,810 | – | 4,32,367 | 1,24,564 | 3,26,271 |
| 66 | 21,14,810 | 5,00,000 | 18,08,587 | 5,00,000 | 8,26,271 | 1,32,038 | 7,35,887 |
| 67 | 18,08,587 | – | 20,25,618 | – | 7,35,887 | 1,32,038 | 6,40,080 |
| 68 | 20,25,618 | – | 22,68,692 | – | 6,40,080 | 1,32,038 | 5,38,525 |
| 69 | 22,68,692 | – | 25,40,935 | – | 5,38,525 | 1,32,038 | 4,30,876 |
| 70 | 25,40,935 | – | 28,45,847 | – | 4,30,876 | 1,32,038 | 3,16,769 |
| 71 | 28,45,847 | 28,45,847 | -0 | 28,45,847 | 31,62,616 | 1,39,960 | 32,04,015 |
| 72 | -0 | – | -0 | – | 32,04,015 | 1,39,960 | 32,47,898 |
| 73 | -0 | – | -0 | – | 32,47,898 | 1,39,960 | 32,94,414 |
| 74 | -0 | – | -0 | – | 32,94,414 | 1,39,960 | 33,43,721 |
| 75 | -0 | – | -0 | – | 33,43,721 | 1,39,960 | 33,95,987 |
| 76 | -0 | -0 | 0 | -0 | 33,95,987 | 1,48,358 | 34,42,487 |
| 77 | 0 | – | 0 | – | 34,42,487 | 1,48,358 | 34,91,777 |
| 78 | 0 | – | 0 | – | 34,91,777 | 1,48,358 | 35,44,024 |
| 79 | 0 | – | 0 | – | 35,44,024 | 1,48,358 | 35,99,407 |
| 80 | 35,99,407 | 1,48,358 | 36,58,112 | ||||
| 81 | 36,58,112 | 1,57,259 | 37,10,904 | ||||
| 82 | 37,10,904 | 1,57,259 | 37,66,863 | ||||
| 83 | 37,66,863 | 1,57,259 | 38,26,181 | ||||
| 84 | 38,26,181 | 1,57,259 | 38,89,057 | ||||
| 85 | 38,89,057 | 1,57,259 | 39,55,705 | ||||
Results:
This strategy outperforms the IndiaFirst Life Guaranteed Annuity Plan on multiple fronts:
Annuity plans offer certainty, but come with trade-offs in return and liquidity. A well-balanced equity-debt portfolio can provide a superior and sustainable retirement income strategy.
The IndiaFirst Life Guaranteed Annuity Plan offers a steady stream of income for life, with the flexibility to begin payouts immediately or after a deferment period.
It provides 12 different annuity options, including variants with or without the return of purchase price, escalating income options, and fixed-period annuities with lifelong coverage thereafter.
You can also customise the payout frequency—monthly, quarterly, half-yearly, or yearly—based on your needs.
While the plan ensures predictable income, a closer look at the returns reveals that its performance is relatively poor compared to other retirement solutions and it also has a high agent commission.
Depending solely on this annuity for post-retirement income may leave you financially underprepared in the long run, particularly as inflation erodes purchasing power.
Retirement planning should be tailored to individual needs rather than relying on a standard annuity product. A diversified approach—allocating your corpus between equity and debt—can offer better returns, inflation-adjusted income, and greater financial flexibility.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
For a well-structured and sustainable retirement plan, it is advisable to consult a Certified Retirement Planner who can design a strategy aligned with your financial goals, risk profile, and long-term objectives.
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