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Is the IndiaFirst Life TULIP Plan your gateway to wealth creation and protection, or is it just another ULIP with fancy packaging?
Does the IndiaFirst Life TULIP deliver on its promise of high coverage and returns, or is it more hype than help?
Can the IndiaFirst Life TULIP Plan truly offer the best of both worlds—term insurance and market returns—or are there smarter ways to invest?
In this article, we break down how ULIPs work and take a closer look at the IndiaFirst Life TULIP Plan—its key features, benefits, and drawbacks—to help you make an informed decision.
Table of Contents
What is the IndiaFirst Life TULIP?
What are the features of the IndiaFirst Life TULIP?
Who is eligible for the IndiaFirst Life TULIP?
What are the benefits of the IndiaFirst Life TULIP?
What are the investment strategies and fund options in the IndiaFirst Life TULIP?
What are the charges in the IndiaFirst Life TULIP?
Grace Period, Discontinuance and Revival of the IndiaFirst Life TULIP
Free Look Period for the IndiaFirst Life TULIP
Surrendering the IndiaFirst Life TULIP
What are the advantages of the IndiaFirst Life TULIP?
What are the disadvantages of the IndiaFirst Life TULIP?
Research Methodology of IndiaFirst Life TULIP
Benefit Illustration – IRR Analysis of IndiaFirst Life TULIP
IndiaFirst Life TULIP Vs. Other Investments
IndiaFirst Life TULIP Vs. Pure-term + Equity Mutual Fund
Final Verdict on IndiaFirst Life TULIP
What is the IndiaFirst Life TULIP?
IndiaFirst Life TULIP is a non-par, unit-linked, individual savings life insurance plan.
It is designed to provide high life insurance coverage for those who want term-like protection as well as maximise returns on their savings and create additional wealth for a comfortable life ahead. Rider cover adds to the protection.
What are the features of the IndiaFirst Life TULIP?
- Protect your family with a life insurance cover of up to 50 times your premium.
- Receive the Fund Value as a maturity benefit at the end of the IndiaFirst Life TULIP Plan policy term.
- Choose from 10 diverse fund options based on your risk profile and financial goals.
- Boost your savings with the Return of Premium Allocation Charge and Return of Mortality Charge.
- Enjoy unlimited free switches and premium redirection to optimise your fund’s performance.
- Potential tax benefits available as per current tax laws.
- Strengthen your coverage with optional riders like Accidental Death Benefit and Total & Permanent Disability Benefit.
- Pick from multiple investment strategies tailored to help grow your savings effectively.
Who is eligible for the IndiaFirst Life TULIP?
What are the benefits of the IndiaFirst Life TULIP?
1.Death benefit
In the untimely event of the life assured’s demise while the IndiaFirst Life TULIP Plan policy is in force, the Nominee(s) will receive the death benefit under the policy equal to the higher of –
- Fund value as on the date of receipt of the intimation of death or
- Sum assured or
- 105% of the total premiums paid to date of death
The amount of Sum Assured on death shall be reduced to the extent of the partial withdrawals made, if any, during the two years immediately preceding the date of death of the Life Assured. The lump sum amount payable at the time of death will be payable either –
- As a lump sum payout, or
- In a monthly instalment
2.Maturity benefit
The IndiaFirst Life TULIP Plan policyholder will receive the Fund Value at the end of the policy term. On maturity, you may choose to
- Receive the entire fund value as a lump sum payment, or
- Receive this payment in equal units at regular intervals (i.e. monthly/quarterly/half-yearly/yearly as chosen by the policyholder) for a maximum period of 5 years
3.Return of charges
Return of Premium Allocation Charge (ROAC) – Premium allocation charges deducted during the IndiaFirst Life TULIP Plan policy term (total allocation charge) shall be added back to the fund value as per the table given below
| Policy term | Return of premium allocation charges |
| 15 | 200% of the total allocation charge is added to the fund value at maturity |
| 20 | 200% of the total allocation charge is added to the fund value at the end of the 15th policy year |
| 500% of the total allocation charge is added to the fund value at maturity. |
Return of Mortality Charge (ROMC) –Mortality charge deducted during the IndiaFirst Life TULIP Plan policy term shall be added to the fund value as per the table given below –
| Policy term | Return of mortality charges |
| 15 | 100% of the mortality charge collected during the policy term |
| 20 | 100% of the mortality charge collected during the policy term |
What are the investment strategies and fund options in the IndiaFirst Life TULIP?
IndiaFirst Life Term with Unit Linked Insurance Plan (TULIP) boasts of multiple options of investment strategies. You can choose and opt for any one of the below strategies to ensure that you are getting the optimum returns out of your premiums.
Self-Managed Strategy
Under this option, you get access to 10 below given segregated funds, control over how to utilise your premiums and full freedom to switch from one fund to another. You can choose to put your premiums in one, multiple or all of these options based on your risk appetite and needs.
| Asset Allocation | |||||
| S. No | Fund Name | Equity | Debt | Money Market | Returns and Risk Profile |
| 1 | Equity1 | 80-100% | 0 | 0-20% | High |
| 2 | Balanced1 | 50-70% | 30-50% | 0-20% | Moderate to High |
| 3 | Debt1 | 0 | 70-100% | 0-30% | Moderate |
| 4 | Value | 70-100% | 0 | 0-30% | Very high |
| 5 | Dynamic Asset Allocation Fund | 0-80% | 0-80% | 0-40% | High |
| 6 | Equity Elite Opportunities | 60-100% | 0 | 0-40% | High |
| 7 | Liquid 1 Fund | 0 | 0-20% | 80-100% | Low |
| 8 | Flexi Cap Equity Fund | 65-100% | 0% | 0-35% | Moderate to High |
| 9 | Sustainable Equity Fund | 80-100% | 0 | 0-20% | Moderate to High |
| 10 | Macro Trends Fund | 70-100% | 0 | 0-30% | High |
Age-Based Investment Strategy
Your premium after deduction of applicable charges will be distributed between Equity1 Fund, Debt1 Fund and Value Fund based on your age. As you grow older and move from one band to another, your funds are redistributed.
This strategy will balance your portfolio and adjust the risk exposure as you grow older. The age-wise fund distribution is shown in the table below.
| Age (Years) | Equity 1 | Debt1 | Value |
| Upto25 | 40% | 30% | 30% |
| 26-35 | 35% | 40% | 25% |
| 36-45 | 30% | 50% | 20% |
| 46-55 | 25% | 60% | 15% |
| 56-65 | 20% | 70% | 10% |
| 66-70 | 15% | 80% | 5% |
| 71 & above | 5% | 90% | 5% |
Smart Switch Strategy:
This investment strategy is designed to systematically move your savings into low-risk fund options near maturity to safeguard your returns. In this strategy, you may choose to save in any or all of the 10 available fund options.
When you choose this strategy, funds are systematically moved to the Liquid 1 Fund in the last 5 policy years to ensure your hard-earned money is secure from any sudden market dips. The movement to the Liquid 1 Fund will happen in the manner specified as per the table below –
| Start of Policy Year | Fund allocation in Chosen Funds | Liquid1 Fund Allocation |
| T-4 | 80% | 20% |
| T-3 | 70% | 30% |
| T-2 | 40% | 60% |
| T-1 | 10% | 90% |
| T | 0% | 100% |
What are the charges in the IndiaFirst Life TULIP?
i).Fund Management Charge (FMC)
Charge (FMC) The fund management charge for the various funds offered under this plan is 1.35% per annum. The fund management charge applicable for the discontinuance fund is 0.50% p.a. on the discontinuance fund value.
ii).Mortality Charge
The mortality charges are based on the age and sex of the life assured. The Annual mortality charge rates are guaranteed for the entire duration of the IndiaFirst Life TULIP Plan policy.
iii).Premium Allocation Charge
As % of Annualised Premium
Year 1 – 9%,
Year 2 – 6%,
Years 3 to 5 – 3%,
Year 6+ – Nil
iv).Policy Administration Charge
Annual Premium Frequency – 2% of the Annualised Premium for the first Policy Year, inflating @ 5% p.a. (max up to Rs. 6,000 per annum)
v).Partial Withdrawal Charge
There are no partial withdrawal charges applicable.
vi).Revival Charge
There are no revival charges applicable.
vii)Switching Charge
You are allowed to make unlimited switches in a calendar month.
viii)Discontinuance charge
It depends on the year of discontinuance and the premium amount. There is no discontinuance charge from the 5th policy year.
ix).Inference from the charges:
Although the plan refunds certain charges, it doesn’t account for the time value of money. Moreover, some charges are deducted regularly throughout the IndiaFirst Life TULIP Plan policy term.
Over time, these ongoing deductions can significantly erode your investment value and reduce long-term returns.
Grace Period, Discontinuance and Revival of the IndiaFirst Life TULIP
Grace Period
A grace period of 30 days for payment of all premiums under quarterly, half-yearly, and yearly modes and 15 days under the monthly mode is given.
Discontinuance
Discontinuance of the IndiaFirst Life TULIP Plan 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 policy.
Discontinuance of the IndiaFirst Life TULIP Plan 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 TULIP
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 TULIP
Surrender of the IndiaFirst Life TULIP Plan 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 TULIP?
- Enjoy unlimited free fund switches to adapt your investment strategy as your goals evolve.
- Access your accumulated funds through Partial Withdrawals in case of financial emergencies.
- From the second policy year, you can redirect future premiums from one fund to another, offering greater flexibility.
- Customise your policy by changing the premium payment frequency, extending the premium paying or policy term, or even reducing the Sum Assured as per your changing needs.
What are the disadvantages of the IndiaFirst Life TULIP?
- The plan has a 5-year lock-in period, restricting early access to your funds.
- Only the net premium, after deducting various charges, is invested, reducing the effective investment amount.
- The risk–return trade-off is unfavourable, making it a less efficient investment option.
- No loan facility is available under this plan, limiting liquidity during financial emergencies.
Research Methodology of IndiaFirst Life TULIP
In this section, we evaluate the potential returns from the IndiaFirst Life TULIP plan using a benefit illustration provided in the official policy brochure. This analysis aims to help you assess whether this product aligns with your investment goals.
Benefit Illustration – IRR Analysis of IndiaFirst Life TULIP
Let’s consider the case of a 35-year-old male who opts for a sum assured of ₹30 lakhs, with a policy term of 15 years and a premium paying term of 6 years. The annual premium is ₹1 lakh, and the maturity benefit is payable at the end of the IndiaFirst Life TULIP Plan policy term.
| Male | 35 years |
| Sum Assured | ₹ 30,00,000 |
| Policy Term | 15 years |
| Premium Paying Term | 6 years |
| Annualised Premium | ₹ 1,00,000 |
Returns are illustrated under two scenarios—assuming investment returns of 4% p.a. and 8% p.a. These projections are not guaranteed and serve only illustrative purposes.
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -1,00,000 | 30,00,000 | -1,00,000 | 30,00,000 |
| 36 | 2 | -1,00,000 | 30,00,000 | -1,00,000 | 30,00,000 |
| 37 | 3 | -1,00,000 | 30,00,000 | -1,00,000 | 30,00,000 |
| 38 | 4 | -1,00,000 | 30,00,000 | -1,00,000 | 30,00,000 |
| 39 | 5 | -1,00,000 | 30,00,000 | -1,00,000 | 30,00,000 |
| 40 | 6 | -1,00,000 | 30,00,000 | -1,00,000 | 30,00,000 |
| 41 | 7 | 0 | 30,00,000 | 0 | 30,00,000 |
| 42 | 8 | 0 | 30,00,000 | 0 | 30,00,000 |
| 43 | 9 | 0 | 30,00,000 | 0 | 30,00,000 |
| 44 | 10 | 0 | 30,00,000 | 0 | 30,00,000 |
| 45 | 11 | 0 | 30,00,000 | 0 | 30,00,000 |
| 46 | 12 | 0 | 30,00,000 | 0 | 30,00,000 |
| 47 | 13 | 0 | 30,00,000 | 0 | 30,00,000 |
| 48 | 14 | 0 | 30,00,000 | 0 | 30,00,000 |
| 49 | 15 | 0 | 30,00,000 | 0 | 30,00,000 |
| 50 | 7,13,479 | 11,18,289 | |||
| IRR | 1.39% | 5.08% | |||
Under the 4% scenario, the projected fund value is ₹7.13 lakhs, translating to an Internal Rate of Return (IRR) of just 1.39% as per the IndiaFirst Life TULIP Plan maturity calculator,.
Under the 8% scenario, the projected fund value rises to ₹11.18 lakhs, with an IRR of 5.08% as per the IndiaFirst Life TULIP Plan maturity calculator,.
These figures reveal that the plan delivers subpar returns, even under the higher return assumption. The low IRRs suggest limited wealth creation potential, increasing the risk of falling short of your financial goals.
For long-term investors seeking meaningful growth, the IndiaFirst Life TULIP does not offer compelling value as an investment avenue.
IndiaFirst Life TULIP Vs. Other Investments
As an investor, you aim to grow your wealth by earning returns that beat inflation. Allocating funds to low-return market-linked instruments like ULIPs may not serve this purpose effectively.
Let’s explore an alternative investment strategy that offers better yield and flexibility, using the same parameters as the earlier illustration.
IndiaFirst Life TULIP Vs. Pure-term + Equity Mutual Fund
In the previous scenario, the IndiaFirst Life TULIP plan had a sum assured of ₹30 lakhs with an annual premium of ₹1 lakh.
For a fair comparison, we consider a pure term life insurance policy with a higher sum assured of ₹50 lakhs, which costs just ₹17,200 annually (15-year term, 5-year premium paying term).
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 50,00,000 |
| Policy Term | 15 years |
| Premium Paying Term | 5 years |
| Annualised Premium | ₹ 17,200 |
| Investment | ₹ 82,800 |
By choosing term insurance, you save ₹82,800 per year, which can then be invested based on your risk profile. opt for safe instruments like PPF for stable, tax-free returns, or choose equity mutual funds for higher market-linked growth.
Let’s assume the saved amount of ₹82,800 is invested in an equity mutual fund.
| Age | Year | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 35 | 1 | -1,00,000 | 30,00,000 |
| 36 | 2 | -1,00,000 | 30,00,000 |
| 37 | 3 | -1,00,000 | 30,00,000 |
| 38 | 4 | -1,00,000 | 30,00,000 |
| 39 | 5 | -1,00,000 | 30,00,000 |
| 40 | 6 | -1,00,000 | 30,00,000 |
| 41 | 7 | 0 | 30,00,000 |
| 42 | 8 | 0 | 30,00,000 |
| 43 | 9 | 0 | 30,00,000 |
| 44 | 10 | 0 | 30,00,000 |
| 45 | 11 | 0 | 30,00,000 |
| 46 | 12 | 0 | 30,00,000 |
| 47 | 13 | 0 | 30,00,000 |
| 48 | 14 | 0 | 30,00,000 |
| 49 | 15 | 0 | 30,00,000 |
| 50 | 19,52,687 | ||
| IRR | 9.79% |
The projected maturity value is ₹21.40 lakhs. After accounting for capital gains tax, the post-tax value is ₹19.52 lakhs. This results in a post-tax IRR of 9.79%, far superior to the 5.08% IRR offered by the IndiaFirst Life TULIP plan at an 8% assumed return rate.
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 15 years | 21,40,357 |
| Purchase price | 5,14,000 |
| Long-Term Capital Gains | 16,26,357 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 15,01,357 |
| Tax paid on LTCG | 1,87,670 |
| Maturity value after tax | 19,52,687 |
This alternative strategy offers:
- Higher returns that beat inflation
- Greater flexibility to align with your goals
- Liquidity, which ULIPs generally lack
By separating insurance and investment, you not only get adequate life cover but also maximise wealth creation. Unlike ULIPs, where returns are compromised by charges and lock-in periods, this approach empowers you with control, efficiency, and better financial outcomes.
Hence, the IndiaFirst Life TULIP may not be a suitable choice for long-term goal-based investing.
Final Verdict on IndiaFirst Life TULIP
The IndiaFirst Life TULIP Plan combines life insurance coverage with a market-linked investment option. On death or at maturity, the benefits are payable either as a lump sum or in instalments.
Beyond this, however, the plan functions like a standard ULIP, which is known for delivering suboptimal returns.
Upon analysing the potential outcomes, it becomes evident that this plan does not help build a substantial corpus over time.
Furthermore, the sum assured may be insufficient to offer meaningful financial protection for your family. Choosing the IndiaFirst Life TULIP may, in fact, hinder your investment journey and it also has a high agent commission.
Relying on a combination of term insurance and a Unit-Linked Insurance Plan is not an effective approach for meeting your financial goals.
Instead, consider purchasing a pure term life insurance policy for comprehensive risk cover, and invest the rest separately in instruments aligned with your goals and risk appetite. This strategy provides better returns, higher liquidity, and greater flexibility compared to ULIPs.
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For tailored advice, always consult a Certified Financial Planner (CFP) who can design a personalised financial plan based on your risk profile, time horizon, and objectives.
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