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Is the IndiaFirst Life Smart Pay plan the key to financial peace of mind, or are there more rewarding options available?
Does the IndiaFirst Life Smart Pay Plan live up to its promises, or is it just another insurance product with hidden limitations?
Is the IndiaFirst Life Smart Pay Plan the best financial move you can make today, or should you be looking elsewhere for better growth and protection?
This review provides a detailed analysis of its key features, benefits, and drawbacks to help you make an informed decision.
Table of Contents:
What is the IndiaFirst Life Smart Pay Plan?
What are the features of the IndiaFirst Life Smart Pay Plan?
Who is eligible for the IndiaFirst Life Smart Pay Plan?
What are the benefits of the IndiaFirst Life Smart Pay Plan?
Grace Period, Discontinuance and Revival of IndiaFirst Life Smart Pay Plan
Free Look Period for IndiaFirst Life Smart Pay Plan
Surrendering IndiaFirst Life Smart Pay Plan
What are the advantages of the IndiaFirst Life Smart Pay Plan?
What are the disadvantages of the IndiaFirst Life Smart Pay Plan?
Research Methodology of IndiaFirst Smart Pay Plan
Benefit Illustration – IRR Analysis of IndiaFirst Smart Pay Plan
IndiaFirst Life Smart Pay Plan Vs. Other Investments
IndiaFirst Life Smart Pay Plan Vs. Pure-term + ELSS
Final Verdict on IndiaFirst Life Smart Pay Plan
What is the IndiaFirst Life Smart Pay Plan?
IndiaFirst Life Smart Pay Plan is a Non-Linked, Participating, individual, money-back savings Life Insurance Plan. This plan is designed to ease the fulfilment of your financial goals through money back during the premium paying period itself.
The plan gives you an upside in the form of a bonus (if declared) at maturity while protecting your loved ones through a life cover in case of any unfortunate event.
What are the features of the IndiaFirst Life Smart Pay Plan?
- Pay for a shorter duration with flexible options tailored to your time horizon while working toward your long-term goals.
- Continue to enjoy life coverage even if you miss one premium payment (applicable after paying two full years’ premiums).
- Benefit from potential earnings through an annual bonus (if declared).
- Receive 103% of your annual premium as a survival benefit.
- At maturity, get the Sum Assured along with any accrued bonuses (if declared).
- Enhance your coverage with optional riders, including Accidental Death Benefit, Waiver of Premium, and Total & Permanent Disability Rider, by paying an additional premium.
- Avail potential tax benefits on premiums paid and benefits received, subject to prevailing tax laws.
Who is eligible for the IndiaFirst Life Smart Pay Plan?
| Criteria | Parameter |
| Age at entry | Minimum: 8 years for a policy term of 10 years 3 years for a policy term of 15 years 90 days for policy term 20 & 25 years Maximum – 50 years |
| Maximum Age at Maturity | 75 years |
| Premium Payment Term & Policy Term | 5 years PPT for 10/15 years Policy Term 6/7/8 years PPT for 15 years Policy Term 10/12 years PPT for 15/20/25 years Policy Term 15/17 years PPT for 20/25 years Policy Term 20 years PPT for 25 years Policy term |
| Premium | Minimum 18,000 yearly 9,215 half–yearly 4,662 quarterly 1,556 monthly Maximum – No limit |
| Premium Paying Modes – Modal Factors | Yearly Half – Yearly – 0.5119 Quarterly – 0.2590 Monthly – 0.0870 |
| Sum Assured | Minimum: 1,50,000
Maximum: No limit |
What are the benefits of the IndiaFirst Life Smart Pay Plan?
1. Maturity benefit
You stand to receive the following at maturity: –
- Guaranteed Sum Assured at Maturity; plus
- Accrued Simple Reversionary Bonuses, if declared; plus
- Terminal Bonus, if declared
2. Survival benefit
You will receive your survival benefit as per the table below:
| Premium paying term | Payout Year (103% of one annualized premium is paid at the end of this policy year) |
| 5 years | 4th year |
| 6 years | 5th year |
| 7 years | 6th year |
| 8 years | 7th year |
| 10 years | 9th Year |
| 12 years | 11th Year |
| 15 years | 14th Year |
| 17 years | 16th Year |
| 20 years | 19th Year |
3. Death benefit
In the unfortunate event of the life assured’s demise during the term of the policy, the Death Benefit is paid out to the nominee either as a lump sum or as a monthly income over a period of 5 years. Death Benefit will be higher of,
- Sum Assured on Death + accrued Simple reversionary bonus, if declared + Terminal bonus, if declared or
- 105% of total premiums paid, excluding any extra premium and taxes, if collected explicitly till the date of death
Sum Assured on Death is the highest of:
- 10 times the Annualized Premium, or
- Absolute amount assured to be paid on death
- Minimum guaranteed Sum Assured on Maturity
Grace Period, Discontinuance and Revival of IndiaFirst Life Smart Pay Plan
Grace Period
This IndiaFirst Life Smart Pay 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
The IndiaFirst Life Smart Pay Plan policy will lapse after the expiry of the grace period from the date of the first unpaid premium if less than one full year premium has been paid and any subsequent premium is not duly paid.
The policy will acquire paid-up value after the expiry of the grace period from the date of the first unpaid premium if at least one (1) full year’s premium has been paid and any subsequent due premiums are not paid.
Revival
A Paid-Up policy can be revived (to the original benefits) within five years from the date of the first unpaid Premium.
Free Look Period for IndiaFirst Life Smart Pay Plan
In case you disagree with any of the policy terms and conditions and you have not made any claim, you shall have the option of returning the policy to us for cancellation, stating the reasons for the same, within 30 days from the date of receipt of the policy document, whether received electronically or otherwise.
Surrendering IndiaFirst Life Smart Pay Plan
The IndiaFirst Life Smart Pay Plan policy will acquire Surrender Value after the payment of the first full year premium. The policy shall acquire a Guaranteed Surrender Value on payment of premium for at least two consecutive years.
At the time of surrender, the higher of the 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.
What are the advantages of the IndiaFirst Life Smart Pay Plan?
- Avail a loan of up to 90% of the available surrender value.
- Enjoy a premium discount when opting for a higher sum assured.
- Enhance your coverage by adding riders to the base policy.
- The full death benefit remains in force for one year from the first unpaid premium date, provided the first two annual premiums have been paid.
What are the disadvantages of the IndiaFirst Life Smart Pay Plan?
- Returns are relatively low compared to other investment options.
- The sum assured may be insufficient to meet financial needs.
- Maturity benefits are not guaranteed, as they depend on bonuses.
- The single-payment survival benefit may not be investor-friendly.
Research Methodology of IndiaFirst Smart Pay Plan
The IndiaFirst Life Smart Pay Plan offers a limited premium payment period, providing a single-payment survival benefit before the premium payment term ends and a maturity benefit at the end of the policy term.
While the plan offers two payouts, it is essential to evaluate its returns to make an informed decision. Let’s analyse the Internal Rate of Return (IRR) based on a quote from the insurer’s portal.
Benefit Illustration – IRR Analysis of IndiaFirst Smart Pay Plan
A 40-year-old male pays an annual premium of ₹96,100 for 15 years under a 20-year policy term, with a sum assured of ₹15 lakhs.
| Male | 40 years |
| Sum Assured | ₹ 15,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 15 years |
| Annualised Premium | ₹ 96,100 |
He receives a survival benefit of ₹98,983, followed by the maturity benefit, including bonuses. The analysis considers two illustrative investment returns: 4% p.a. and 8% p.a. These figures are purely indicative and do not represent guaranteed returns.
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 40 | 1 | -96,100 | 15,00,000 | -96,100 | 15,00,000 |
| 41 | 2 | -96,100 | 15,00,000 | -96,100 | 15,00,000 |
| 42 | 3 | -96,100 | 15,00,000 | -96,100 | 15,00,000 |
| 43 | 4 | -96,100 | 15,00,000 | -96,100 | 15,00,000 |
| 44 | 5 | -96,100 | 15,00,000 | -96,100 | 15,00,000 |
| 45 | 6 | -96,100 | 15,00,000 | -96,100 | 15,00,000 |
| 46 | 7 | -96,100 | 15,00,000 | -96,100 | 15,00,000 |
| 47 | 8 | -96,100 | 15,00,000 | -96,100 | 15,00,000 |
| 48 | 9 | -96,100 | 15,00,000 | -96,100 | 15,00,000 |
| 49 | 10 | -96,100 | 15,00,000 | -96,100 | 15,00,000 |
| 50 | 11 | -96,100 | 15,00,000 | -96,100 | 15,00,000 |
| 51 | 12 | -96,100 | 15,00,000 | -96,100 | 15,00,000 |
| 52 | 13 | -96,100 | 15,00,000 | -96,100 | 15,00,000 |
| 53 | 14 | -96,100 | 15,00,000 | -96,100 | 15,00,000 |
| 54 | 15 | 2,883 | 15,00,000 | 2,883 | 15,00,000 |
| 55 | 16 | 0 | 15,00,000 | 0 | 15,00,000 |
| 56 | 17 | 0 | 15,00,000 | 0 | 15,00,000 |
| 57 | 18 | 0 | 15,00,000 | 0 | 15,00,000 |
| 58 | 19 | 0 | 15,00,000 | 0 | 15,00,000 |
| 59 | 20 | 0 | 15,00,000 | 0 | 15,00,000 |
| 60 | 15,00,000 | 15,00,000 | 31,05,000 | 15,00,000 | |
| IRR | 0.82% | 6.17% | |||
At a 4% return, the maturity benefit is ₹15 lakhs, resulting in an IRR of just 0.82% as per IndiaFirst Life Smart Pay Plan maturity calculator, offering no real value addition.
At an 8% return, the maturity benefit increases to ₹31.05 lakhs, yielding an IRR of 6.17% as per IndiaFirst Life Smart Pay Plan maturity calculator, which is still lower than most debt instruments.
The IndiaFirst Life Smart Pay Plan has a rigid cash flow structure and delivers subpar returns. Additionally, the sum assured is inadequate to provide meaningful financial protection for a family.
Given its low returns, inflexible payout structure, and insufficient life coverage, this plan does not serve as a suitable option for either investment or insurance purposes.
IndiaFirst Life Smart Pay Plan Vs. Other Investments
As an investor, you may seek higher returns and better liquidity. Unfortunately, the IndiaFirst Life Smart Pay Plan does not meet these expectations. Instead of combining insurance and investment, a more effective approach is to separate them to achieve better results.
Let’s explore an alternative strategy using the same premium outlay.
IndiaFirst Life Smart Pay Plan Vs. Pure-term + ELSS
A pure-term insurance policy with a sum assured of ₹15 lakhs costs an annual premium of ₹17,900 for a 20-year term with a 10-year premium payment period. This leaves ₹78,200 per year for investment during the first 10 years.
For the next five years, since the premium-paying term in the previous illustration was 15 years, the investable amount increases to ₹96,100 annually.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 15,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 17,900 |
| Investment | ₹ 78,200 |
| Term insurance + ELSS | |||
| Age | Year | Term Insurance premium + ELSS | Death benefit |
| 40 | 1 | -96,100 | 15,00,000 |
| 41 | 2 | -96,100 | 15,00,000 |
| 42 | 3 | -96,100 | 15,00,000 |
| 43 | 4 | -96,100 | 15,00,000 |
| 44 | 5 | -96,100 | 15,00,000 |
| 45 | 6 | -96,100 | 15,00,000 |
| 46 | 7 | -96,100 | 15,00,000 |
| 47 | 8 | -96,100 | 15,00,000 |
| 48 | 9 | -96,100 | 15,00,000 |
| 49 | 10 | -96,100 | 15,00,000 |
| 50 | 11 | -96,100 | 15,00,000 |
| 51 | 12 | -96,100 | 15,00,000 |
| 52 | 13 | -96,100 | 15,00,000 |
| 53 | 14 | -96,100 | 15,00,000 |
| 54 | 15 | 2,883 | 15,00,000 |
| 55 | 16 | 0 | 15,00,000 |
| 56 | 17 | 0 | 15,00,000 |
| 57 | 18 | 0 | 15,00,000 |
| 58 | 19 | 0 | 15,00,000 |
| 59 | 20 | 0 | 15,00,000 |
| 60 | 51,73,774 | 15,00,000 | |
| IRR | 9.92% | ||
| ELSS Tax Calculation | |
| Maturity value after 20 years | 57,83,314 |
| Purchase price | 7,82,000 |
| Long-Term Capital Gains | 50,01,314 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 48,76,314 |
| Tax paid on LTCG | 6,09,539 |
| Maturity value after tax | 51,73,774 |
Assuming this surplus is invested in an ELSS fund:
The single-payment survival benefit of ₹98,983 is withdrawn from the investment.
The remaining corpus (₹ 51.73 Lakhs) is withdrawn at maturity to match the earlier plan’s maturity payout.
This strategy results in an IRR of 9.92% (post-tax return), significantly higher than the returns from the IndiaFirst Life Smart Pay Plan.
By separating insurance and investment, this approach offers superior returns and better liquidity, making it a far more efficient financial strategy.
Final Verdict on IndiaFirst Life Smart Pay Plan
Typically, survival benefits are paid at regular intervals, with the final maturity benefit provided at the end of the policy term. However, despite its name, the IndiaFirst Life Smart Pay Plan does not offer a “smart” payment structure and it also has high agent commission.
The survival benefit is paid only once, and the final maturity benefit is received at the end of the term. These rigid payouts do not align with the plan’s branding.
An analysis of returns reveals that the plan delivers below-average performance. Additionally, the sum assured is inadequate for meaningful financial protection.
The combination of an inefficient cash flow structure, low returns, and insufficient coverage makes this plan an unfavourable choice—neither suitable for investment nor insurance.
Avoid endowment and money-back plans, as they fail to serve both insurance and investment needs effectively. Instead, opt for a pure-term life insurance policy, which provides high coverage at an affordable premium.
Investments should be selected strategically, considering your risk tolerance, financial goals, and investment horizon.
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For a comprehensive financial strategy, consult a Certified Financial Planner who can provide personalized guidance tailored to your needs.
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