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Is the IndiaFirst Life POS Cashback Plan a smart way to secure protection with returns — or just a glorified savings plan with limited upside?
Is the IndiaFirst Life POS Cashback Plan worth locking into for years — or are there smarter investment options with similar security?
Is the IndiaFirst Life POS Cashback Plan truly a hassle-free solution for peace of mind — or a compromise on benefits in the name of simplicity?
In this review, we break down the plan’s features, pros and cons, and provide a detailed illustration to help you understand how it truly works.
Table of Contents:
What are the IndiaFirst Life POS Cashback Plan?
What are the features of the IndiaFirst Life POS Cashback Plan?
Who is eligible for the IndiaFirst Life POS Cashback Plan?
What are the benefits of the IndiaFirst Life POS Cashback Plan?
Grace Period, Discontinuance and Revival of the IndiaFirst Life POS Cashback Plan
Free Look Period for the IndiaFirst Life POS Cashback Plan
Surrendering the IndiaFirst Life POS Cashback Plan
What are the advantages of the IndiaFirst Life POS Cashback Plan?
What are the disadvantages of the IndiaFirst Life POS Cashback Plan?
Research Methodology of IndiaFirst Life POS Cashback Plan
Benefit Illustration – IRR Analysis of IndiaFirst Life POS Cashback Plan
IndiaFirst Life POS Cashback Plan Vs. Other investments
IndiaFirst Life POS Cashback Plan Vs. Other Investments
Final Verdict on IndiaFirst Life POS Cashback Plan
What are the IndiaFirst Life POS Cashback Plan?
The IndiaFirst Life POS Cashback Plan is a Non-Linked, Non-Participating, Limited premium, Money Back Insurance Plan. The Plan guarantees payouts at periodic intervals to meet your specific needs and an assured maturity payout to secure your future.
The IndiaFirst Life POS Cashback Plan policy will also ensure your family’s financial security in case of the life assured’s unfortunate demise.
What are the features of the IndiaFirst Life POS Cashback Plan?
- Pay premiums for a limited period and receive periodic payouts every 3rd, 4th, or 5th policy year, depending on the policy term you choose.
- Make contributions during your active earning years while enjoying benefits throughout the policy duration of 9, 12, or 15 years.
- Enjoy regular survival benefits paid during the IndiaFirst Life POS Cashback Plan policy term.
- Get a boost from guaranteed additions credited to your policy at the end of every policy year.
- The plan provides life cover equal to the higher of 10 times the annualised premium or the sum assured at maturity, along with accumulated guaranteed additions.
- You may be eligible for tax benefits on premiums paid and benefits received, as per prevailing tax laws.
Who is eligible for the IndiaFirst Life POS Cashback Plan?
| Minimum age at the time of applying for the plan | 15 years as of last birthday | |
| Maximum age at the time of applying for the plan | 45/50 years as on last birthday | |
| Maximum cover ceasing age | 65 years as on the last birthday | |
| Plan Term & Premium Paying Term | Policy term | Premium Paying Term |
| 9 years | 5 years | |
| 12 years | 7 years | |
| 15 years | 10 years | |
| Minimum Sum assured | ₹ 50,000 | |
| Maximum Sum assured | ₹ 10,00,000 | |
| Minimum Premium | Yearly – Rs 6,000 Half Yearly – Rs 3,071 Quarterly – Rs 1,554 Monthly – Rs 522 |
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What are the benefits of the IndiaFirst Life POS Cashback Plan?
1. Death benefit
In case of the life assured’s unfortunate demise, the nominee shall receive the death benefit, which shall be the sum of the Sum Assured on death and the guaranteed addition till the date of death.
Where Sum Assured on death is defined as the highest of:
- Guaranteed Sum Assured at maturity, or
- 10 times the annualised premium, excluding modal factor, extra premium/rider premium, if any, or
- Any absolute amount assured to be paid on death, or
- 105% of total premiums paid, excluding applicable taxes and extra premium/ Rider premium, if any, under the IndiaFirst Life POS Cashback Plan policy.
The guaranteed Sum Assured on maturity is the Basic Sum Assured or an Absolute amount assured to be paid on death.
2. Survival benefit
The life assured will receive periodical payouts during the IndiaFirst Life POS Cashback Plan policy term. The payout amount will vary depending on the sum assured at maturity opted for by the policyholder.
The payout frequency and the amount are given below:
| Payout Year / Policy Term | 9 Years | 12 Years | 15 Years |
| 3 | 20% of Sum Assured on Maturity | _ | _ |
| 4 | _ | 20% of Sum Assured on Maturity | _ |
| 5 | _ | _ | 20% of Sum Assured on Maturity |
| 6 | 20% of Sum Assured on Maturity | _ | _ |
| 8 | _ | 20% of Sum Assured on Maturity | _ |
| 10 | _ | _ | 20% of Sum Assured on Maturity |
3. Maturity benefit
The life assured will receive 60% of the sum assured at maturity, along with guaranteed additions based on the policy term as a maturity benefit.
The guaranteed additions will depend on the IndiaFirst Life POS Cashback Plan policy term as mentioned below:
| Policy Term | Rate of Guaranteed Additions as % of one Annualised Premium at every policy year end |
| 9 years | 5% of Annualised Premium |
| 12 years | 6% of Annualised Premium |
| 15 years | 7% of Annualised Premium |
Grace Period, Discontinuance and Revival of the IndiaFirst Life POS Cashback Plan
Grace Period
This 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
Before Acquiring Paid-up Value: The policy lapses without acquiring any paid-up value if you stop paying your premium during the first two policy years. The plan offers a five-year revival period during which you can revive your policy. No benefits will be payable during this period.
After Acquiring Paid-up Value: The policy acquires a guaranteed paid-up value if you stop paying your premiums after two full years. Survival Benefit and Guaranteed Additions will not be payable once the policy becomes paid up
Revival
You may revive your IndiaFirst Life POS Cashback Plan policy as long as you do it within five years from the due date of the first unpaid premium, but before the maturity date.
Free Look Period for the IndiaFirst Life POS Cashback Plan
In case you do not agree with any IndiaFirst Life POS Cashback Plan policy terms and conditions, you have the option of returning the policy within 15 days from the date of receipt of the policy.
The free look period for policies purchased through distance marketing or electronic mode will be 30 days.
Surrendering the IndiaFirst Life POS Cashback Plan
The product pays a surrender value if the policyholder surrenders the policy at any time during the policy term after payment of 2 full years’ premium.
The amount payable on surrender will be the higher of the Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV).
What are the advantages of the IndiaFirst Life POS Cashback Plan?
- Guaranteed additions boost the overall maturity benefit of your policy.
- Enjoy a rebate for opting for a higher sum assured.
- Enhance your coverage by adding optional riders to the base policy.
What are the disadvantages of the IndiaFirst Life POS Cashback Plan?
- This policy does not offer a loan facility.
- You cannot customise the policy term or premium payment duration to suit your specific needs.
- The sum assured offered under the plan may fall short of providing adequate financial protection.
- While the plan promises guaranteed benefits, the overall returns are not attractive from an investment standpoint.
Research Methodology of IndiaFirst Life POS Cashback Plan
The IndiaFirst Life POS Cashback Plan offers guaranteed benefits, including two survival payouts during the policy term and a maturity payout at the end.
While the promise of guaranteed cash flows may sound appealing, it’s crucial to examine the actual returns and cash flow structure before making an investment decision. Let’s break it down with an example.
Benefit Illustration – IRR Analysis of IndiaFirst Life POS Cashback Plan
A 30-year-old individual purchases the IndiaFirst Life POS Cashback Plan with a sum assured of ₹2 lakhs. The policy term is 15 years, with a premium payment term of 10 years and an annual premium of ₹16,888.
| Male | 30 years |
| Sum Assured | ₹ 2,00,000 |
| Policy Term | 15 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 16,888 |
Survival Benefits of ₹40,000 (20% of the sum assured) are paid at the end of the 5th and 10th policy years. Maturity Benefit of ₹1.37 lakhs is paid at the end of the 15th year, including 60% of the sum assured and guaranteed additions.
| Age | Year | Annualised premium / Maturity benefit | Death benefit |
| 30 | 1 | -16,888 | 2,00,000 |
| 31 | 2 | -16,888 | 2,00,000 |
| 32 | 3 | -16,888 | 2,00,000 |
| 33 | 4 | -16,888 | 2,00,000 |
| 34 | 5 | -16,888 | 2,00,000 |
| 35 | 6 | 23,112 | 2,00,000 |
| 36 | 7 | -16,888 | 2,00,000 |
| 37 | 8 | -16,888 | 2,00,000 |
| 38 | 9 | -16,888 | 2,00,000 |
| 39 | 10 | -16,888 | 2,00,000 |
| 40 | 11 | 40,000 | 2,00,000 |
| 41 | 12 | 0 | 2,00,000 |
| 42 | 13 | 0 | 2,00,000 |
| 43 | 14 | 0 | 2,00,000 |
| 44 | 15 | 0 | 2,00,000 |
| 45 | 1,37,732 | 2,00,000 | |
| IRR | 3.39% |
When we assess this payout structure, the Internal Rate of Return (IRR) works out to only 3.39% as per the IndiaFirst Life POS Cashback Plan maturity calculator, which is quite low.
Even though the plan offers guaranteed payouts, the returns are not rewarding, especially when compared to other low-risk investment alternatives.
Moreover, Survival benefits cannot be deferred or accumulated, limiting flexibility and the sum assured of ₹2 lakhs is too low to serve as meaningful life insurance coverage.
In summary, low returns, a rigid cash flow structure, and inadequate life cover make the IndiaFirst Life POS Cashback Plan unsuitable as either a wealth-building tool or an effective insurance product.
IndiaFirst Life POS Cashback Plan Vs. Other investments
A long-term savings plan that delivers returns below the inflation rate ultimately fails to serve its purpose. The core issue with such low returns often lies in the bundling of insurance with investment, as seen in the IndiaFirst Life POS Cashback Plan.
A more effective approach is to separate insurance and investment, allowing each to serve its specific purpose.
IndiaFirst Life POS Cashback Plan Vs. Other Investments
As per IRDAI regulations, the minimum sum assured for a pure-term life insurance policy is ₹5 lakhs, which the earlier illustration does not meet. In this comparison, we assume life coverage of ₹5 lakhs and proceed with the calculation.
A 15-year pure-term policy with ₹5 lakhs sum assured costs around ₹3,500 per year (10-year premium payment term). The remaining ₹13,388 per year is invested in an equity mutual fund.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 5,00,000 |
| Policy Term | 15 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 3,500 |
| Investment | ₹ 13,388 |
To mirror the cashback structure of the IndiaFirst Plan, we simulate similar periodic withdrawals and make the final redemption at the end of 15 years. Capital gains are taxed only at the end, leveraging the ₹1.25 lakh annual LTCG exemption.
| Term insurance + Equity Mutual Fund | |||
| Age | Year | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 30 | 1 | -16,888 | 5,00,000 |
| 31 | 2 | -16,888 | 5,00,000 |
| 32 | 3 | -16,888 | 5,00,000 |
| 33 | 4 | -16,888 | 5,00,000 |
| 34 | 5 | -16,888 | 5,00,000 |
| 35 | 6 | 23,112 | 5,00,000 |
| 36 | 7 | -16,888 | 5,00,000 |
| 37 | 8 | -16,888 | 5,00,000 |
| 38 | 9 | -16,888 | 5,00,000 |
| 39 | 10 | -16,888 | 5,00,000 |
| 40 | 11 | 40,000 | 5,00,000 |
| 41 | 12 | 0 | 5,00,000 |
| 42 | 13 | 0 | 5,00,000 |
| 43 | 14 | 0 | 5,00,000 |
| 44 | 15 | 0 | 5,00,000 |
| 45 | 2,74,350 | ||
| IRR | 9.01% | ||
By the end of the term, the pre-tax value of the investment stands at ₹2.76 lakhs, and the post-tax value at ₹2.74 lakhs, yielding an IRR of 9.01%. And if you skip interim withdrawals and let the investment grow uninterrupted, the returns could be even higher.
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 15 years | 2,76,560 |
| Purchase price | 1,33,880 |
| Long-Term Capital Gains | 1,42,680 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 17,680 |
| Tax paid on LTCG | 2,210 |
| Maturity value after tax | 2,74,350 |
This alternative not only provides higher returns but also offers liquidity and flexibility, features that the IndiaFirst Life POS Cashback Plan lacks.
In short, separating insurance and investment helps you protect your family adequately while building wealth more efficiently, making it a far more effective strategy for achieving your financial goals.
Final Verdict on IndiaFirst Life POS Cashback Plan
The IndiaFirst Life POS Cashback Plan may appeal to those seeking guaranteed returns, but a deeper look reveals significant drawbacks that limit its suitability as a comprehensive financial solution.
What the Plan Offers — and Where It Falls Short
While the plan ensures fixed payouts at regular intervals, it comes with a rigid structure:
- You can’t alter the premium payment term or payout timings
- The policy term is locked in
- Cash flows are fixed and cannot be customised to suit your actual needs
- Inadequate Coverage & Low Returns
This inflexibility means the plan may not support your financial milestones when you need them most, resulting in a disconnect between your goals and the policy’s benefits and it also has a high agent commission.
A Smarter Financial Strategy
Instead, opt for a pure-term life insurance policy, which offers substantial coverage at minimal cost.
The balance can be invested in diversified instruments like mutual funds, allowing you to:
- Earn higher, inflation-beating returns
- Maintain liquidity and flexibility
- Align investments with your specific life goals
Combining insurance and investment in a single product like the IndiaFirst Life POS Cashback Plan often leads to compromised returns and inadequate protection.
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