IndiaFirst Life Guaranteed Benefit Plan is a Non-Participating, Non-Linked, Individual, Savings Life Insurance Plan. It not only provides a shorter pay commitment of 5 to 12 years but also gives you savings and protection in a single policy.

It provides you with a multitude of options that will modify itself to suit your needs while keeping you secure with life cover.

What are the features of the IndiaFirst Life Guaranteed Benefit Plan?

Choose between the Income Benefit or Lump Sum Benefit option based on your financial needs.
Receive payouts as Monthly Income, Annual Income, and a Maturity Benefit at the end of the policy term.
Enjoy policy benefits for the full term while paying premiums for only a limited period.
Stay protected with a one-year life cover extension, even if you miss a premium payment (applicable after paying premiums for two full years).
Strengthen your family’s financial security with the Waiver of Premium Rider.
Provide for your loved ones with a death benefit, available as a lump sum payment or in instalments over five years.
Avail tax benefits on premiums paid and benefits received, as per prevailing tax laws.

Who is eligible for the IndiaFirst Life Guaranteed Benefit Plan?

Criteria	Lump-Sum Benefit Option	Income Benefit Option
Minimum Age at Entry	8 years	4 years
Maximum Age at Entry	60 years	55 years
Minimum Age at Maturity	18 years
Maximum Age at Maturity	For POSP LI: 65 years	For POSP LI: 65 years
Maximum Age at Maturity	For other than POSP LI: 85 years	For other than POSP LI: 76 years
Minimum Sum Assured on Death (Rs.)	5,00,000
Maximum Sum Assured on Death (Rs.)	For POSP LI: 10,00,000
Maximum Sum Assured on Death (Rs.)	For other than POSP LI: As per Board Approved Underwriting Policy
Minimum Policy Term	10 years	15 years

What are the benefits of the IndiaFirst Life Guaranteed Benefit Plan?

1. Survival benefit

Lump-sum Benefit option

Nil

Income Benefit option

This option will help you attain your liquidity goals as you receive a fixed monthly income during the Income Period. You can also choose from one of the following Premium Payment Terms (PPT)-Gap Period (GP)-Income Period (IP)

Premium Payment Term	Gap Period	Income Period
5 years	5 years	5 years
6 years	6 years	6 years
7 years	7 years	7 years
7 years	8 years	6 years

2. Maturity benefit

You stand to receive the Guaranteed Sum Assured on maturity, at the end of the IndiaFirst Life Guaranteed Benefit Plan policy term, as the maturity benefit in the policy.

Lumpsum Benefit

The Guaranteed Sum Assured on Maturity will be calculated by multiplying the age and term-wise maturity benefit factor by the Annualized Premium.

Income Benefit

The Guaranteed Sum Assured on Maturity is X times the Monthly Income. X is based on the chosen premium payment term and gap period.

3. Death benefit

The Sum Assured on Death in the IndiaFirst Life Guaranteed Benefit Plan policy will be paid to the nominee(s) in case of the death of the Life Assured.

Death Benefit is paid out to the nominee(s) either as a lump sum or as a monthly income over the next 5 years. You can also opt for the Waiver of Premium Rider for the continuation of benefits.

Lumpsum Benefit: The Sum Assured on Death is 10 times the annualized premium.

Income Benefit: The Sum Assured on Death is 11 times the annualized premium.

Grace Period, Discontinuance and Revival of IndiaFirst Life Guaranteed Benefit Plan

Grace Period

This IndiaFirst Life Guaranteed Benefit 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

In the event of non-payment of due premiums under the policy within the grace period, the policy will lapse. The risk cover will cease, and no further benefits will be payable in case of a lapsed policy.

The IndiaFirst Life Guaranteed Benefit Plan policy will lapse if less than one full year’s premium has been paid.

In case of non-payment of premium before the expiry of the grace period, the policy will acquire paid-up value provided that at least one full year’s premium has been paid.

Revival

You may revive your policy within 5 years from the due date of the first unpaid regular premium, but before the Maturity Date.

Free Look Period for IndiaFirst Life Guaranteed Benefit Plan

If you disagree with any of those terms or conditions, you have the option of returning the policy within 30 days from the date of receipt of the policy, whether received electronically or otherwise.

Surrendering IndiaFirst Life Guaranteed Benefit Plan

At the time of surrender, a 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.

The IndiaFirst Life Guaranteed Benefit Plan policy shall acquire a Guaranteed Surrender Value on payment of premium for at least two consecutive years.

Special Surrender Value (SSV) shall become payable after the completion of the first policy year, provided one full year premium has been received.

What are the advantages of the IndiaFirst Life Guaranteed Benefit Plan?

Enhance your base policy by adding riders for additional coverage.
Access a loan of up to 80% of the available surrender value when needed.
Enjoy the assurance of guaranteed benefits throughout the policy term.
Secure your family’s future by ensuring that in case of death, accidental total permanent disability, or a defined critical illness, future premiums are waived while the policy benefits continue.

What are the disadvantages of the IndiaFirst Life Guaranteed Benefit Plan?

The Income Benefit is generally meant for discretionary expenses.
This plan does not offer loyalty additions.
Although the benefits are guaranteed, the returns are relatively low.
The sum assured may fall short of meeting your financial needs.

Research Methodology of IndiaFirst Life Guaranteed Benefit Plan

The IndiaFirst Life Guaranteed Benefit Plan offers both an Income Benefit and a Lump Sum Benefit option. When selecting a variant, it’s crucial to consider your cash flow requirements while also evaluating the returns associated with each option.

Let’s analyse a benefit illustration from the policy brochure to assess the cash flow pattern and its overall value.

Benefit Illustration – IRR Analysis of IndiaFirst Guaranteed Benefit Plan

Consider a 35-year-old male opting for the Lump Sum Benefit under this plan. He chooses a sum assured of ₹5 lakhs with a policy term of 15 years and a premium-paying term of 5 years, paying an annual premium of ₹50,000.

Male	35 years
Sum Assured	₹ 5,00,000
Policy Term	15 years
Premium Paying Term	5 years
Annualised Premium	₹ 50,000

Under the Lump Sum Benefit option, the maturity benefit is paid as a lump sum at the end of the policy term. At maturity, he receives ₹4.53 lakhs, resulting in an Internal Rate of Return (IRR) of 4.66% as per the IndiaFirst Life Guaranteed Benefit Plan maturity calculator.

Such returns are unattractive for a long-term investor.

Age	Year	Annualised premium / Maturity benefit	Death benefit
35	1	-50,000	5,00,000
36	2	-50,000	5,00,000
37	3	-50,000	5,00,000
38	4	-50,000	5,00,000
39	5	-50,000	5,00,000
40	6	0	5,00,000
41	7	0	5,00,000
42	8	0	5,00,000
43	9	0	5,00,000
44	10	0	5,00,000
45	11	0	5,00,000
46	12	0	5,00,000
47	13	0	5,00,000
48	14	0	5,00,000
49	15	0	5,00,000
50		4,53,150

	IRR	4.66%

While the Lump Sum Benefit does not provide regular income (survival benefits), its low IRR suggests that the Income Benefit option—despite offering periodic payouts—would likely yield an even lower return.

Given these subpar returns, the IndiaFirst Life Guaranteed Benefit Plan is not an ideal choice for those looking to achieve their long-term financial goals.

IndiaFirst Life Guaranteed Benefit Plan Vs. Other Investments

Analysing cash flow and comparing returns across different investment options is crucial for making well-informed financial decisions. To ensure a meaningful comparison, it’s essential to use consistent metrics, as demonstrated in the earlier illustration.

The IndiaFirst Life Guaranteed Benefit Plan combines life insurance with guaranteed benefits. A more effective approach is to separate these components for better financial outcomes.

IndiaFirst Life Guaranteed Benefit Plan Vs. Pure-term + ELSS

A pure-term life insurance policy with a sum assured of ₹5 lakhs costs an annual premium of ₹5,400, with a 5-year premium-paying term and a 15-year policy term. This leaves ₹44,600 annually for investment.

Pure Term Life Insurance Policy
Sum Assured	₹ 5,00,000
Policy Term	15 years
Premium Paying Term	5 years
Annualised Premium	₹ 5,400
Investment	₹ 44,600

Investments can be tailored to your risk profile—high-risk investors may opt for equity instruments, while low-risk investors may prefer debt instruments. For this comparison, we consider ELSS (Equity Linked Savings Scheme) as the investment option.

Age	Year	Term Insurance premium + ELSS	Death benefit
35	1	-50,000	5,00,000
36	2	-50,000	5,00,000
37	3	-50,000	5,00,000
38	4	-50,000	5,00,000
39	5	-50,000	5,00,000
40	6	0	5,00,000
41	7	0	5,00,000
42	8	0	5,00,000
43	9	0	5,00,000
44	10	0	5,00,000
45	11	0	5,00,000
46	12	0	5,00,000
47	13	0	5,00,000
48	14	0	5,00,000
49	15	0	5,00,000
50		9,05,902

	IRR	10.33%

At the end of 15 years, the ELSS corpus grows to ₹9.85 lakhs. After deducting the capital gains tax, the post-tax value is ₹9.05 lakhs, resulting in a post-tax IRR of 10.33%.

ELSS Tax Calculation
Maturity value after 15 years	9,85,602
Purchase price	2,23,000
Long-Term Capital Gains	7,62,602
Exemption limit	1,25,000
Taxable LTCG	6,37,602
Tax paid on LTCG	79,700
Maturity value after tax	9,05,902

This alternative strategy not only provides higher returns but also offers greater flexibility to adjust withdrawals based on your financial needs.

In contrast, the IndiaFirst Life Guaranteed Benefit Plan falls short in both returns and withdrawal flexibility, making it a less effective choice for long-term wealth accumulation.

Final Verdict on IndiaFirst Life Guaranteed Benefit Plan

The IndiaFirst Life Guaranteed Benefit Plan is designed to provide regular income and/or maturity benefits, offering flexibility to choose a variant based on your cash flow needs. However, its low returns make it an unattractive investment option.

Moreover, the sum assured may not be sufficient to provide adequate financial security for your family in case of unforeseen events.

Since neither the insurance nor the investment component offers substantial benefits, this plan is not ideal for inclusion in your investment portfolio, and it also has a high agent commission.

A more effective approach is to separate investments from life insurance.

A pure-term life insurance policy ensures strong financial protection for your family, while a well-diversified investment portfolio, aligned with your risk tolerance, can help generate higher returns and provide better liquidity for your financial goals.

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Choosing the right investment and insurance products is essential for effective financial planning. Consider consulting a Certified Financial Planner to develop a personalized strategy tailored to your risk profile and long-term financial objectives.