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Is the IndiaFirst Life Money Balance Plan truly balancing risk and return — or just another ULIP with a fancy name?
Does the IndiaFirst Life Money Balance Plan adapt to changing markets — or follow a rigid rulebook that may not suit all conditions?
Can the IndiaFirst Life Money Balance Plan offer market-linked returns with peace of mind — or does the balancing act come at the cost of potential gains?
This article will help you explore the plan and decide whether it aligns with your financial goals.
Table of Contents:
What is the IndiaFirst Life Money Balance Plan?
What are the features of the IndiaFirst Life Money Balance Plan?
Who is eligible for the IndiaFirst Life Money Balance Plan?
What are the benefits of the IndiaFirst Life Money Balance Plan?
What are the investment strategies and fund options in the IndiaFirst Life Money Balance Plan?
What are the charges in the IndiaFirst Life Money Balance Plan?
Grace Period, Discontinuance and Revival of the IndiaFirst Life Money Balance Plan
Free Look Period for the IndiaFirst Life Money Balance Plan
Surrendering the IndiaFirst Life Money Balance Plan
What are the advantages of the IndiaFirst Life Money Balance Plan?
What are the disadvantages of the IndiaFirst Life Money Balance Plan?
Research Methodology of IndiaFirst Life Money Balance Plan
Benefit Illustration – IRR Analysis of IndiaFirst Life Money Balance Plan
IndiaFirst Life Money Balance Plan Vs. Other Investments
IndiaFirst Life Money Balance Plan Vs. Pure-term + Equity Mutual Fund
Final Verdict on IndiaFirst Life Money Balance Plan
What is the IndiaFirst Life Money Balance Plan?
IndiaFirst Life Money Balance Plan is a Unit Linked, Non-Participating, Individual Savings Life Insurance Policy. It offers you insurance cover on your life and additionally helps you earn and secure returns on the premiums that you pay.
What are the features of the IndiaFirst Life Money Balance Plan?
- You have the flexibility to pay your premiums regularly, for a limited term, or through a one-time lump sum payment.
- The plan provides life cover to protect your loved ones in case of the life assured’s untimely demise.
- With the built-in ‘automatic trigger-based’ investment strategy, you can aim to optimise your savings.
- If you need funds during an emergency, then you can make partial withdrawals after the lock-in period.
- Additionally, enjoy tax benefits as per the prevailing tax laws.
Who is eligible for the IndiaFirst Life Money Balance Plan?
| Minimum age at the time of applying for the plan | 5 years as on the last birthday | |
| Minimum age at the time of maturity | 18 years as on the last birthday | |
| Maximum age at the time of applying for the plan | 65 years as on last birthday | |
| Maximum cover ceasing age | 75 years as on the last birthday | |
| Premium Paying term and Policy term | Premium Paying term | Policy term |
| Regular Premium – Equal to policy term | 10 to 70 years | |
| Limited Premium – 5, 7 years | 10 to 25 years | |
| Single Premium – One-time payment only | 5 to 20 years | |
| Minimum Sum assured | Regular and Limited Premium For Age 5 to 49 years – 7* Annualised Premium For Age 50 and above – 5* Annualised Premium Single Premium For ages 5 to 49 years -1.25 times of single premium For Age 50 and above – 1.1 times of single premium |
|
| Maximum Sum assured | Based on age, premium paying term and policy term | |
What are the benefits of the IndiaFirst Life Money Balance Plan?
1. Maturity Benefit
You receive the fund value at the end of the IndiaFirst Life Money Balance Plan policy term. On maturity, you may choose to
- Receive the entire fund value as a lump sum payout
- Receive your maturity payout up to a period of 5 years by opting for the ‘Settlement Option
2. Death Benefit
In the untimely event of the life assured’s demise while the policy is in force, the Nominee(s) will receive the benefit under the IndiaFirst Life Money Balance Plan policy equal to the higher of
- Fund value as on the date of death or
- Sum assured.
The death benefit can be either received
- As a lump sum amount, or
- As monthly instalments up to a period of 5 years, if the policyholder has opted for the ‘Settlement Option’ at the inception of the policy
What are the investment strategies and fund options in the IndiaFirst Life Money Balance Plan?
A. Automatic trigger option
The policyholder’s fund value of the Equity 1 fund is compared with the net amount invested in that fund at the end of each day. If the investment return is 10% or greater, all the appreciation amount will be moved from the Equity 1 fund to the Debt 1 fund.
B. Fund Options
The policyholder can invest in any of these funds in the desired proportion. Further, during the IndiaFirst Life Money Balance Plan policy term, the policyholder will have the right to switch between these funds, subject to a maximum of two switches in a calendar month.
| Asset Allocation | |||||
| S. No | Fund Name | Equity | Debt | Money Market | Returns and Risk Profile |
| 1 | Equity1 | 80-100% | 0 | 0-20% | High |
| 2 | Debt1 | 0 | 70-100% | 0-30% | Moderate |
| 3 | FlexiCap | 65-100% | 0% | 0-35% | High |
| 4 | Sustainable Equity | 80-100% | 0 | 0-20% | High |
What are the charges in the IndiaFirst Life Money Balance Plan?
i.) Premium Allocation charge
| Yearly, Half-yearly | Monthly | |
| Year 1 | 6.70% | 5.00% |
| Years 2 to 4 | 4.00% | 4.00% |
| Year 5 and above | 3.50% | 3.50% |
ii.) Fund Management Charge (FMC)
| Fund Name | Fund Management Charge |
| Equity1 | 1.35% |
| Debt1 | 1.35% |
| FlexiCap | 1.35% |
| Sustainable Equity | 1.35% |
iii.) Policy Administration Charge
For regular/ limited premium, the charges are 1.8% of the annual premium per annum, increasing by 5% every policy year. This is subject to a cap of 5% of annual premium p.a. or Rs 6,000 per annum, whichever is lower.
For single premium business, the charges are 1.20% of the single premium for the first ten years and 0% thereafter. This is subject to a cap of Rs 6,000 per annum.
iv.) Mortality Charges
Annual Mortality Charge is expressed in rupees per 1000 sum at risk, which is the sum assured less fund value, subject to this becoming non-negative.
Mortality charges for in-force policies are levied on the sum at risk, which is the sum assured or 105% of the total premiums paid at any time, whichever is higher, less fund value, less partial withdrawal made during the two years preceding the death of the life assured, if any, subject to this becoming positive.
v.) Discontinuance Charges
It depends on the year of discontinuance and the premium amount. There is no discontinuance charge from the 5th policy year onwards.
vi.) Switching Charge
You are allowed to make only two switches in a calendar month.
vii.) Partial Withdrawal Charge
There are no partial withdrawal charges applicable.
Inference from the charges: The charges are deducted throughout the policy term, continuously reducing your investable amount. Over time, this has a compounding effect, ultimately diminishing both your corpus and long-term returns.
Grace Period, Discontinuance and Revival of the IndiaFirst Life Money Balance Plan
For other than single premium policies
Grace Period
A grace period of 30 days for payment of all premiums under half-yearly and yearly modes and 15 days under the monthly mode is given.
Discontinuance
Discontinuance of the Policy during the lock-in period: The policy shall be discontinued due to non-payment of premium, and the fund value, after deducting the applicable discontinuance charges, shall be credited to the discontinued policy fund and the risk cover shall cease.
At the end of the lock-in period, we will pay the proceeds of the discontinuance fund to you and terminate the IndiaFirst Life Money Balance Plan policy.
Discontinuance of the Policy after the Lock-in-period: The policy will be converted into a paid-up policy with reduced paid-up sum assured (original sum assured multiplied by the total number of premiums paid to the original number of premiums payable as per the terms and conditions of the policy).
Revival
Policy can be revived within the Revival Period of three years
Free Look Period for the IndiaFirst Life Money Balance Plan
You have a free look period of 30 (Thirty) days from the date of receipt of your Policy document, whether received electronically or otherwise, to review the terms and conditions of the policy and in case you disagree with any of those terms and conditions, you shall have an option to return the policy.
Surrendering the IndiaFirst Life Money Balance Plan
For Single Premium Policies
Surrender of the Policy during the lock-in period: The IndiaFirst Life Money Balance Plan policyholder has an option to surrender anytime during the lock-in period.
Upon receipt of a request for surrender, the fund value, after deducting the applicable discontinuance charges, shall be credited to the discontinuance policy fund.
The policy shall continue to be invested in the discontinuance policy fund, and the proceeds from the discontinuance fund shall be paid at the end of the lock-in period.
Surrender of the Policy after the Lock-in-period: The IndiaFirst Life Money Balance Plan policyholder has an option to surrender the policy at any time. Upon receipt of a request for surrender, the fund value as on the date of surrender shall be payable.
For other than Single premium Policies
Surrender of the Policy during lock-in period: You also have the option to surrender the policy anytime, and the proceeds of the discontinued policy shall be payable at the end of the lock-in period or date of surrender, whichever is later.
Surrender of the Policy after the Lock-in-period: You also have the option to surrender the policy anytime, and we will pay the proceeds of the policy to you.
What are the advantages of the IndiaFirst Life Money Balance Plan?
- You can enhance your base policy by adding optional riders for additional protection.
- Enjoy the flexibility of making up to two free fund switches each policy month to align your investments with changing goals or market conditions.
What are the disadvantages of the IndiaFirst Life Money Balance Plan?
- The plan offers limited liquidity during the first five policy years, restricting access to your funds.
- It does not provide any loan facility, reducing financial flexibility in times of need.
- The sum assured may fall short of adequately covering your family’s essential financial needs.
- Additionally, high charges associated with the plan can significantly erode your overall returns.
Research Methodology of IndiaFirst Life Money Balance Plan
This section is a critical part of the review, where we evaluate the potential returns of the IndiaFirst Life Money Balance Plan.
By calculating the Internal Rate of Return (IRR), we can assess the plan’s performance and compare it with other market-linked investment options. Let’s consider the benefit illustration from the policy brochure:
Benefit Illustration – IRR Analysis of IndiaFirst Life Money Balance Plan
A 30-year-old male purchases the IndiaFirst Life Money Balance Plan with a sum assured of ₹10 lakhs, a policy term of 20 years, and a premium paying term of 5 years. He pays an annual premium of ₹50,000.
| Male | 30 years |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 5 years |
| Annualised Premium | ₹ 50,000 |
At the end of the term, the fund value is paid out based on market performance. The illustration assumes returns of 4% and 8% per annum—purely indicative and non-guaranteed.
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 30 | 1 | -50,000 | 10,00,000 | -50,000 | 10,00,000 |
| 31 | 2 | -50,000 | 10,00,000 | -50,000 | 10,00,000 |
| 32 | 3 | -50,000 | 10,00,000 | -50,000 | 10,00,000 |
| 33 | 4 | -50,000 | 10,00,000 | -50,000 | 10,00,000 |
| 34 | 5 | -50,000 | 10,00,000 | -50,000 | 10,00,000 |
| 35 | 6 | 0 | 10,00,000 | 0 | 10,00,000 |
| 36 | 7 | 0 | 10,00,000 | 0 | 10,00,000 |
| 37 | 8 | 0 | 10,00,000 | 0 | 10,00,000 |
| 38 | 9 | 0 | 10,00,000 | 0 | 10,00,000 |
| 39 | 10 | 0 | 10,00,000 | 0 | 10,00,000 |
| 40 | 11 | 0 | 10,00,000 | 0 | 10,00,000 |
| 41 | 12 | 0 | 10,00,000 | 0 | 10,00,000 |
| 42 | 13 | 0 | 10,00,000 | 0 | 10,00,000 |
| 43 | 14 | 0 | 10,00,000 | 0 | 10,00,000 |
| 44 | 15 | 0 | 10,00,000 | 0 | 10,00,000 |
| 45 | 16 | 0 | 10,00,000 | 0 | 10,00,000 |
| 46 | 17 | 0 | 10,00,000 | 0 | 10,00,000 |
| 47 | 18 | 0 | 10,00,000 | 0 | 10,00,000 |
| 48 | 19 | 0 | 10,00,000 | 0 | 10,00,000 |
| 49 | 20 | 0 | 10,00,000 | 0 | 10,00,000 |
| 50 | 2,52,316 | 5,74,167 | |||
| IRR | 0.05% | 4.72% | |||
At 4% assumed return, the final fund value is ₹2.52 lakhs, yielding an IRR of just 0.05% as per the IndiaFirst Life Money Balance Plan maturity calculator—essentially no growth over the total premiums paid.
At 8% assumed return, the fund value is ₹5.74 lakhs, resulting in an IRR of 4.72% as per the IndiaFirst Life Money Balance Plan maturity calculator, which is still lower than the return from a typical long-term debt instrument.
Although the plan invests your money in market-linked funds, the returns in both scenarios fall short of what you’d expect from a 20-year investment horizon.
Given the low IRRs, the IndiaFirst Life Money Balance Plan does not appear to be a compelling choice for building long-term wealth or meeting major financial goals.
IndiaFirst Life Money Balance Plan Vs. Other Investments
The IndiaFirst Life Money Balance Plan falls short of delivering inflation-beating returns. Fortunately, there are better alternatives that offer superior growth potential. In this section, let’s explore a more efficient approach by separating insurance from investment.
IndiaFirst Life Money Balance Plan Vs. Pure-term + Equity Mutual Fund
Instead of combining life cover and investment in one product, you can opt for a pure-term life insurance policy with a sum assured of ₹10 lakhs.
A 20-year term policy with a 5-year premium paying term would cost around ₹12,000 annually. Compared to the ₹50,000 annual premium in the earlier example, this leaves you with ₹38,000 each year to invest and build wealth.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 5 years |
| Annualised Premium | ₹ 12,000 |
| Investment | ₹ 38,000 |
Now, let’s consider how this ₹38,000 can grow if invested in a market-linked product. For high-risk investors, equity mutual fund schemes are a strong option.
| Age | Year | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 30 | 1 | -50,000 | 10,00,000 |
| 31 | 2 | -50,000 | 10,00,000 |
| 32 | 3 | -50,000 | 10,00,000 |
| 33 | 4 | -50,000 | 10,00,000 |
| 34 | 5 | -50,000 | 10,00,000 |
| 35 | 6 | 0 | 10,00,000 |
| 36 | 7 | 0 | 10,00,000 |
| 37 | 8 | 0 | 10,00,000 |
| 38 | 9 | 0 | 10,00,000 |
| 39 | 10 | 0 | 10,00,000 |
| 40 | 11 | 0 | 10,00,000 |
| 41 | 12 | 0 | 10,00,000 |
| 42 | 13 | 0 | 10,00,000 |
| 43 | 14 | 0 | 10,00,000 |
| 44 | 15 | 0 | 10,00,000 |
| 45 | 16 | 0 | 10,00,000 |
| 46 | 17 | 0 | 10,00,000 |
| 47 | 18 | 0 | 10,00,000 |
| 48 | 19 | 0 | 10,00,000 |
| 49 | 20 | 0 | 10,00,000 |
| 50 | 13,34,311 | ||
| IRR | 9.70% |
Equity Mutual Fund Scenario: Assuming a long-term average return, the investment grows to ₹14.79 lakhs (pre-tax) over 20 years. After applying capital gains tax, the post-tax maturity amount is approximately ₹13.34 lakhs. This results in an IRR of 9.70%
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 20 years | 14,79,927 |
| Purchase price | 1,90,000 |
| Long-Term Capital Gains | 12,89,927 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 11,64,927 |
| Tax paid on LTCG | 1,45,616 |
| Maturity value after tax | 13,34,311 |
This approach not only beats inflation but also helps accumulate a much larger corpus to meet your long-term financial goals. In comparison, the IndiaFirst Life Money Balance Plan yields significantly lower returns, which may lead to a shortfall in your target corpus.
Final Verdict on IndiaFirst Life Money Balance Plan
The IndiaFirst Life Money Balance Plan combines life insurance coverage with market-linked investment opportunities. While investors often choose such plans, hoping to generate market-level returns (or even alpha), this plan falls short.
The returns are unable to beat inflation, defeating the core objective of market-based investing. The risk taken simply doesn’t justify the underwhelming returns.
Like most ULIPs, this plan comes with high charges, which significantly eat into the overall returns. These costs reduce the plan’s competitiveness when compared to other market-linked products.
In essence, investing in the IndiaFirst Life Money Balance Plan may hinder your ability to achieve long-term financial goals and it also has a high agent commission.
A smarter approach would be to separate insurance from investment. opt for a pure-term insurance policy to secure high life cover at an affordable cost. For wealth creation, consider building a diversified investment portfolio aligned with your risk profile and financial objectives.
Selecting the right financial products can bring you closer to your dreams.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
If you’re unsure about which insurance or investment path to take, consulting a Certified Financial Planner (CFP) can help. They can guide you with a personalised, goal-based financial plan tailored to your unique needs.
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