IndiaFirst Life Simple Benefit Plan: Good or Bad? An Insightful Review
Is the IndiaFirst Life Guaranteed Monthly Income Plan the perfect recipe for a worry-free future, or does it leave gaps in your financial security?
Is the IndiaFirst Life Guaranteed Monthly Income Plan a smart choice for your long-term goals, or does it fall short of expectations?
Can the IndiaFirst Life Guaranteed Monthly Income Plan be your key to financial independence, or are there hidden factors that might change your decision?
This review explores the plan’s features, benefits, and drawbacks, helping you understand how it works and whether it’s the right choice for you.
What is the IndiaFirst Life Simple Benefit Plan?
What are the features of the IndiaFirst Life Simple Benefit Plan?
Who is eligible for the IndiaFirst Life Simple Benefit Plan?
What are the benefits of the IndiaFirst Life Simple Benefit Plan?
Grace Period, Discontinuance and Revival of the IndiaFirst Life Simple Benefit Plan
Free Look Period for IndiaFirst Life Simple Benefit Plan
Surrendering IndiaFirst Life Simple Benefit Plan
What are the advantages of the IndiaFirst Life Simple Benefit Plan?
What are the disadvantages of the IndiaFirst Life Simple Benefit Plan?
Research Methodology of IndiaFirst Life Simple Benefit Plan
Benefit Illustration – IRR Analysis of IndiaFirst Life Simple Benefit Plan
IndiaFirst Life Simple Benefit Plan Vs. Other Investments
IndiaFirst Life Simple Benefit Plan Vs. Pure-term + ELSS
Final Verdict on IndiaFirst Simple Benefit Plan
IndiaFirst Simple Benefit Plan is a Non-Linked, Participating Endowment Life Insurance Plan. The policy offers protection as well as an opportunity to save for the future through safe instruments.
You can choose the premium you are willing to contribute regularly, and your sum assured will be determined based on your age, the term of the policy and the premium per thousand.
| Minimum age at entry | 18 years |
| Maximum age at entry | 50 years |
| Maximum age at maturity | 70 years |
| Policy term | 15 to 25 years |
| Premium paying mode | Monthly, Six monthly or yearly. |
| Minimum sum assured | ₹ 20,000 |
| Maximum sum assured | ₹ 5,00,000 |
In case of the Life Assured’s untimely demise, a lump sum amount will be payable to the Nominee(s).
The death benefit is higher of (Guaranteed Sum Assured or 10 times Annualized Premium) + Accrued Bonus till death, if declared.
The death benefit payable at any point of time shall not be less than 105% of the total premiums payable.
The guaranteed sum assured on maturity, along with the simple reversionary bonus, if declared, and the terminal bonus, if declared, is paid at the end of the IndiaFirst Life Guaranteed Monthly Income Plan policy term.
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.
The IndiaFirst Life Guaranteed Monthly Income Plan policy does not acquire any value if you stop paying your premium during the first two policy years.
The policy acquires a guaranteed paid-up value if you stop paying your premiums after two full policy years. The paid-up value will be the proportional Sum Assured plus the accumulated bonus, if declared.
The paid-up value is payable at the date of maturity or on the death of the life assured before the maturity date
The IndiaFirst Life Guaranteed Monthly Income Planoffers a five-year revival period during which you can revive your policy.
In case you do not agree with any 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.
You can surrender the IndiaFirst Life Guaranteed Monthly Income Plan policy any time after the payment of two full year’s premiums. The amount payable on surrender will be the higher of the Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV).
The IndiaFirst Life Simple Benefit Plan combines savings and insurance, allocating premiums to both components. To assess its investment potential, calculating the Internal Rate of Return (IRR) offers a more accurate evaluation than simply analysing cash flows.
Let’s examine the benefit illustration from the policy brochure to understand the plan’s performance.
A 35-year-old male opts for the IndiaFirst Life Simple Benefit Plan with a sum assured of ₹2 lakhs. The policy term and premium payment term are both 20 years, with an annual premium of ₹8,380.
| Male | 35 years |
| Sum Assured | ₹ 2,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 20 years |
| Annualised Premium | ₹ 8,380 |
At the end of the policy term, he will receive a maturity benefit that includes the Simple Revisionary Bonus and Terminal Bonus. The benefit illustration considers two assumed future return scenarios: 8% p.a. and 4% p.a.
These rates are not guaranteed and do not reflect the maximum or minimum possible returns, as the actual policy value depends on various factors, including future investment performance.
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -8,380 | 2,00,000 | -8,380 | 2,00,000 |
| 36 | 2 | -8,380 | 2,00,000 | -8,380 | 2,00,000 |
| 37 | 3 | -8,380 | 2,00,000 | -8,380 | 2,00,000 |
| 38 | 4 | -8,380 | 2,00,000 | -8,380 | 2,00,000 |
| 39 | 5 | -8,380 | 2,00,000 | -8,380 | 2,00,000 |
| 40 | 6 | -8,380 | 2,00,000 | -8,380 | 2,00,000 |
| 41 | 7 | -8,380 | 2,00,000 | -8,380 | 2,00,000 |
| 42 | 8 | -8,380 | 2,00,000 | -8,380 | 2,00,000 |
| 43 | 9 | -8,380 | 2,00,000 | -8,380 | 2,00,000 |
| 44 | 10 | -8,380 | 2,00,000 | -8,380 | 2,00,000 |
| 45 | 11 | -8,380 | 2,00,000 | -8,380 | 2,00,000 |
| 46 | 12 | -8,380 | 2,00,000 | -8,380 | 2,00,000 |
| 47 | 13 | -8,380 | 2,00,000 | -8,380 | 2,00,000 |
| 48 | 14 | -8,380 | 2,00,000 | -8,380 | 2,00,000 |
| 49 | 15 | -8,380 | 2,00,000 | -8,380 | 2,00,000 |
| 50 | 16 | -8,380 | 2,00,000 | -8,380 | 2,00,000 |
| 51 | 17 | -8,380 | 2,00,000 | -8,380 | 2,00,000 |
| 52 | 18 | -8,380 | 2,00,000 | -8,380 | 2,00,000 |
| 53 | 19 | -8,380 | 2,00,000 | -8,380 | 2,00,000 |
| 54 | 20 | -8,380 | 2,00,000 | -8,380 | 2,00,000 |
| 55 | 2,00,000 | 2,80,000 | |||
| IRR | 1.65% | 4.67% | |||
At a 4% return scenario, the maturity value after 20 years is ₹2 lakhs, yielding an IRR of just 1.65% as per the IndiaFirst Life Guaranteed Monthly Income Plan maturity calculator, which is lower than the interest rate offered by a savings account.
At an 8% return scenario, the maturity value after 20 years is ₹2.80 lakhs, with an IRR of 4.67% as per the IndiaFirst Life Guaranteed Monthly Income Plan maturity calculator, which is still lower than a bank fixed deposit.
These returns are quite low, making the IndiaFirst Life Simple Benefit Plan an ineffective investment for wealth creation. Additionally, the life coverage provided is insufficient to meet a family’s financial security needs.
Given these limitations, the plan falls short in both insurance and investment aspects, making it an unfavourable option for investors.
The IndiaFirst Life Simple Benefit Plan offers a minimum sum assured of ₹20,000 and a maximum of ₹5 lakhs. However, as per IRDAI guidelines, the minimum sum assured for a standard pure-term policy (Saral Jeevan Bima) is ₹5 lakhs.
Any coverage below this threshold is inadequate to provide meaningful financial security for a family.
In the previous illustration, the sum assured is only ₹2 lakhs, which falls short of offering substantial life insurance protection.
A pure-term policy with a ₹5 lakh sum assured, a 20-year term, and a 20-year premium payment period costs ₹2,800 annually. This leaves ₹5,580 available for investment, which can be allocated based on an individual’s risk preference.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 5,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 20 years |
| Annualised Premium | ₹ 2,800 |
| Investment | ₹ 5,580 |
Risk-averse investors can choose PPF (Public Provident Fund) for stable returns. Risk-tolerant investors may opt for ELSS (Equity Linked Savings Scheme) for higher growth potential.
| Term insurance + ELSS | |||
| Age | Year | Term Insurance premium + ELSS | Death benefit |
| 35 | 1 | -8,380 | 5,00,000 |
| 36 | 2 | -8,380 | 5,00,000 |
| 37 | 3 | -8,380 | 5,00,000 |
| 38 | 4 | -8,380 | 5,00,000 |
| 39 | 5 | -8,380 | 5,00,000 |
| 40 | 6 | -8,380 | 5,00,000 |
| 41 | 7 | -8,380 | 5,00,000 |
| 42 | 8 | -8,380 | 5,00,000 |
| 43 | 9 | -8,380 | 5,00,000 |
| 44 | 10 | -8,380 | 5,00,000 |
| 45 | 11 | -8,380 | 5,00,000 |
| 46 | 12 | -8,380 | 5,00,000 |
| 47 | 13 | -8,380 | 5,00,000 |
| 48 | 14 | -8,380 | 5,00,000 |
| 49 | 15 | -8,380 | 5,00,000 |
| 50 | 16 | -8,380 | 5,00,000 |
| 51 | 17 | -8,380 | 5,00,000 |
| 52 | 18 | -8,380 | 5,00,000 |
| 53 | 19 | -8,380 | 5,00,000 |
| 54 | 20 | -8,380 | 5,00,000 |
| 55 | 4,23,587 | ||
| IRR | 8.19% | ||
Assuming ELSS as the investment vehicle, the pre-tax maturity value reaches ₹4.50 lakhs. After deducting the capital gains tax, the post-tax maturity value stands at ₹4.23 lakhs, with an IRR of 8.19%.
| ELSS Tax Calculation | |
| Maturity value after 20 years | 4,50,299 |
| Purchase price | 1,11,600 |
| Long-Term Capital Gains | 3,38,699 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 2,13,699 |
| Tax paid on LTCG | 26,712 |
| Maturity value after tax | 4,23,587 |
This comparison demonstrates that separating insurance and investment yields better financial outcomes. Traditional insurance plans typically offer limited coverage and modest returns, whereas combining a pure-term policy with strategic investments like PPF or ELSS provides superior financial security and wealth creation potential.
The IndiaFirst Simple Benefit Plan is a basic endowment plan designed to channel your savings, with premiums allocated toward both life coverage and investment. However, the sum assured is too low to meet a family’s essential financial needs, and the savings component offers subpar returns.
As a result, the plan fails to provide significant value from both an insurance and investment perspective.
Traditional policies like this can disrupt your financial planning and leave you unprepared for future uncertainties. Therefore, the IndiaFirst Simple Benefit Plan may not be the best choice for securing your financial future and it also has high agent commission.
A better approach is to opt for a Pure-Term Life Insurance Policy to protect your family while investing separately to grow your wealth. Diversifying your investments across different asset classes ensures both security and financial growth, helping you achieve your long-term goals.
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