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Is the IndiaFirst Life Guaranteed Single Premium Plan a smart one-time investment for long-term security, or does it fall short of expectations?
Can the IndiaFirst Life Guaranteed Single Premium Plan offer true financial peace of mind, or is it just another insurance product with limited benefits?
Can the IndiaFirst Life Guaranteed Single Premium Plan deliver guaranteed benefits, or are there better alternatives in the market?
In this review, we will analyse the features, benefits, and drawbacks of the IndiaFirst Life Guaranteed Single Premium Plan, along with detailed return calculations.
Table of Contents:
What is the IndiaFirst Life Guaranteed Single Premium Plan?
What are the features of the IndiaFirst Life Guaranteed Single Premium Plan?
Who is eligible for the IndiaFirst Life Guaranteed Single Premium Plan?
What are the benefits of the IndiaFirst Life Guaranteed Single Premium Plan?
Free Look period of IndiaFirst Life Guaranteed Single Premium Plan
Surrendering IndiaFirst Life Guaranteed Single Premium Plan
What are the advantages of the IndiaFirst Life Guaranteed Single Premium Plan?
What are the disadvantages of the IndiaFirst Life Guaranteed Single Premium Plan?
Research Methodology of the IndiaFirst Life Guaranteed Single Premium Plan
Benefit Illustration – IRR Analysis of IndiaFirst Life Guaranteed Single Premium Plan
IndiaFirst Life Guaranteed Single Premium Plan Vs. Other Investments
IndiaFirst Life Guaranteed Single Premium Plan Vs. Pure-Term + ELSS
Final verdict on IndiaFirst Life Guaranteed Single Premium Plan
What is the IndiaFirst Life Guaranteed Single Premium Plan?
IndiaFirst Life Guaranteed Single Premium Plan is a Non-Linked, Non-Participating, Individual, Savings, Life Insurance Plan.
IndiaFirst Life Guaranteed Single Premium Plan is designed to ensure a long-term financial safety net for your loved ones with a life cover throughout the tenure of the policy, along with savings in the form of a guaranteed lump sum payout at the end of the policy term to attain your financial goals.
What are the features of the IndiaFirst Life Guaranteed Single Premium Plan?
- Provides long-term financial security for your loved ones with life insurance coverage for up to 30 years.
- Offers guaranteed lump sum or income payouts over five years in the event of the life assured’s demise.
- Choose between insurance coverage of 1.25 times or 10 times the single premium (available for entry age up to 45 years).
- Assured Maturity Benefit upon policy completion.
- Higher premium bands qualify for an Enhanced Maturity Benefit.
- Conveniently available for purchase online.
Who is eligible for the IndiaFirst Life Guaranteed Single Premium Plan?
| Minimum | Maximum | |
| Age at entry | 90 days | For Death Benefit multiple of 1.25 times – 70 years For Death Benefit multiple of 10 times – 45 years |
| Age at maturity | 18 years | For Death Benefit multiple of 1.25 times – 85 years For Death Benefit multiple of 10 times – 60 years |
| Premium payment term | Single pay | |
| Policy term | 5/10/15/20/25/30 years | |
| Sum assured on maturity | ₹ 1,12,000 | No limit |
| Single premium | ₹ 1,00,000 | No limit |
What are the benefits of the IndiaFirst Life Guaranteed Single Premium Plan?
1. Maturity benefit
On survival up to the end of the IndiaFirst Life Guaranteed Single Premium Plan policy term, provided the policy is in force, you shall receive the Sum Assured on Maturity (SAM).
SAM is equal to Guaranteed Maturity Multiple (GMM) times Single Premium (excluding any extra premium) where GMM varies with the Age of the policyholder, Death Benefit Multiple opted and Policy Term.
2. Death benefit
In case of death of the Life Assured during the IndiaFirst Life Guaranteed Single Premium Plan policy term, the claimant/beneficiary will receive higher of:
- Sum Assured on Death (Death Benefit Multiple Times Total Premiums Paid) or
- Surrender value as of Date of Death
Free Look period of IndiaFirst Life Guaranteed Single Premium Plan
In case you disagree with any of the policy terms and conditions and have not made any claim, you shall 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 Single Premium Plan
The IndiaFirst Life Guaranteed Single Premium Plan policy will acquire a surrender value immediately on the payment of a Single Premium. At the time of surrender, a higher Guaranteed Surrender value (GSV) or Special Surrender value (SSV) will be payable.
What are the advantages of the IndiaFirst Life Guaranteed Single Premium Plan?
- Enjoy a hassle-free, one-time payment with a single premium option.
- Enhance your coverage with the Accidental Death Benefit Rider and Total & Permanent Disability Rider by paying an additional premium.
- Access a loan of up to 80% of the acquired surrender value.
What are the disadvantages of the IndiaFirst Life Guaranteed Single Premium Plan?
- The sum assured is insufficient.
- This plan does not offer loyalty additions or bonuses.
- Your funds remain locked until the policy term ends.
- The returns are relatively low.
Research Methodology of the IndiaFirst Life Guaranteed Single Premium Plan
Long-term investments should help you accumulate a substantial corpus to achieve your financial goals. While the IndiaFirst Life Guaranteed Single Premium Plan provides guaranteed maturity benefits, it is essential to evaluate its returns through proper calculation.
Let’s determine the Internal Rate of Return (IRR) for this plan based on the figures provided in the policy brochure. Calculating the IRR enables you to make an informed investment decision.
Benefit Illustration – IRR Analysis of IndiaFirst Life Guaranteed Single Premium Plan
A 40-year-old male invests a single premium of ₹10 lakhs in the IndiaFirst Life Guaranteed Single Premium Plan with a policy term of 20 years.
The sum assured is ₹12.50 lakhs, and at the end of the term, he receives a maturity benefit of ₹35.70 lakhs. The calculated IRR for this cash flow is 6.57% as per the IndiaFirst Life Guaranteed Single Premium Plan maturity calculator.
| Male | 40 years |
| Sum Assured | ₹ 12,50,000 |
| Policy Term | 20 years |
| Premium Paying Term | Single pay |
| Annualised Premium | ₹ 10,00,000 |
| Age | Year | Annualised premium / Maturity benefit | Death benefit |
| 40 | 1 | -10,00,000 | 12,50,000 |
| 41 | 2 | 0 | 12,50,000 |
| 42 | 3 | 0 | 12,50,000 |
| 43 | 4 | 0 | 12,50,000 |
| 44 | 5 | 0 | 12,50,000 |
| 45 | 6 | 0 | 12,50,000 |
| 46 | 7 | 0 | 12,50,000 |
| 47 | 8 | 0 | 12,50,000 |
| 48 | 9 | 0 | 12,50,000 |
| 49 | 10 | 0 | 12,50,000 |
| 50 | 11 | 0 | 12,50,000 |
| 51 | 12 | 0 | 12,50,000 |
| 52 | 13 | 0 | 12,50,000 |
| 53 | 14 | 0 | 12,50,000 |
| 54 | 15 | 0 | 12,50,000 |
| 55 | 16 | 0 | 12,50,000 |
| 56 | 17 | 0 | 12,50,000 |
| 57 | 18 | 0 | 12,50,000 |
| 58 | 19 | 0 | 12,50,000 |
| 59 | 20 | 0 | 12,50,000 |
| 60 | 35,70,000 | ||
| IRR | 6.57% |
The IndiaFirst Life Guaranteed Single Premium Plan offers a guaranteed maturity amount, similar to fixed-return instruments. However, while the returns are comparable to fixed-income or debt instruments, this plan lacks liquidity.
Given the 20-year investment horizon, the returns are relatively low. Even a lump sum investment in a bank fixed deposit could offer similar or potentially better returns while providing the flexibility to access funds anytime. Additionally, the sum assured is inadequate.
The key drawbacks of the IndiaFirst Life Guaranteed Single Premium Plan include limited liquidity, insufficient life coverage, and average returns.
IndiaFirst Life Guaranteed Single Premium Plan Vs. Other Investments
Since the returns from the IndiaFirst Life Guaranteed Single Premium Plan are not favourable for investors, let’s explore better alternatives for your lump sum investment.
As this IndiaFirst Life Guaranteed Single Premium Plan combines insurance and savings, a more effective approach is to separate these components into two distinct products—one for life coverage and the other for investment.
IndiaFirst Life Guaranteed Single Premium Plan Vs. Pure-Term + ELSS
For life insurance, a pure-term policy with a sum assured of ₹12.50 lakhs costs a single premium of ₹1.11 lakhs for a 20-year term. This leaves ₹8.89 lakhs available for investment, which can be allocated based on your risk appetite.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 12,50,000 |
| Policy Term | 20 years |
| Premium Paying Term | Single pay |
| Annualised Premium | ₹ 1,11,000 |
| Investment | ₹ 8,89,000 |
Low-risk investors can opt for debt instruments. High-risk investors can invest in equity for potentially higher returns. In this scenario, we consider investing the lump sum in an ELSS (Equity Linked Savings Scheme) fund.
| Term insurance + ELSS | |||
| Age | Year | Term Insurance premium + ELSS | Death benefit |
| 40 | 1 | -10,00,000 | 12,50,000 |
| 41 | 2 | 0 | 12,50,000 |
| 42 | 3 | 0 | 12,50,000 |
| 43 | 4 | 0 | 12,50,000 |
| 44 | 5 | 0 | 12,50,000 |
| 45 | 6 | 0 | 12,50,000 |
| 46 | 7 | 0 | 12,50,000 |
| 47 | 8 | 0 | 12,50,000 |
| 48 | 9 | 0 | 12,50,000 |
| 49 | 10 | 0 | 12,50,000 |
| 50 | 11 | 0 | 12,50,000 |
| 51 | 12 | 0 | 12,50,000 |
| 52 | 13 | 0 | 12,50,000 |
| 53 | 14 | 0 | 12,50,000 |
| 54 | 15 | 0 | 12,50,000 |
| 55 | 16 | 0 | 12,50,000 |
| 56 | 17 | 0 | 12,50,000 |
| 57 | 18 | 0 | 12,50,000 |
| 58 | 19 | 0 | 12,50,000 |
| 59 | 20 | 0 | 12,50,000 |
| 60 | 76,30,360 | ||
| IRR | 10.69% | ||
The pre-tax maturity value of the ELSS investment is ₹85.75 lakhs. After accounting for capital gains tax, the post-tax maturity value is ₹76.30 lakhs (refer to the tax calculation below).
The IRR for the ELSS investment combined with a pure-term life insurance policy is 10.69% (post-tax return).
| ELSS Tax Calculation | |
| Maturity value after 20 years | 85,75,555 |
| Purchase price | 8,89,000 |
| Long-Term Capital Gains | 76,86,555 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 75,61,555 |
| Tax paid on LTCG | 9,45,194 |
| Maturity value after tax | 76,30,360 |
By separating insurance and investment, this strategy delivers returns that outpace inflation, helping you achieve long-term financial goals. Additionally, it provides liquidity—something the IndiaFirst Life Guaranteed Single Premium Plan lacks.
These key advantages make the IndiaFirst Life Guaranteed Single Premium Plan unsuitable for both your insurance and investment needs.
Final verdict on IndiaFirst Life Guaranteed Single Premium Plan
The IndiaFirst Life Guaranteed Single Premium Plan is a traditional endowment plan that combines insurance coverage with a lump sum investment option. It may appeal to investors looking to park their funds and retrieve them later.
This combination might seem attractive to those seeking both insurance and investment in a single product. However, by merging these two aspects, the plan falls short of effectively delivering on either front.
A long-term investment that generates lower returns than a debt instrument is not an ideal choice for parking a lump sum.
Moreover, the funds remain locked until the end of the policy term, and the life coverage provided is not as robust as other available options.
These factors make the IndiaFirst Life Guaranteed Single Premium Plan an unattractive choice and it also has a high agent commission.
Opting for a pure-term life insurance policy is a better approach, as it provides substantial coverage at a lower cost. This allows you to invest the remaining funds in higher-yielding instruments aligned with your risk appetite.
By keeping insurance and investment separate, you ensure strong financial protection for your loved ones without the limitations of bundled plans.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
For personalized financial guidance or tailored investment strategies, consult a Certified Financial Planner (CFP). They can help create a customized plan based on your risk tolerance, financial goals, and investment horizon.
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