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Is IndiaFirst Life TULIP Plus the ‘plus’ your portfolio needs — or just another ULIP in a crowded market?
Is the IndiaFirst Life TULIP Plus Plan a true upgrade in the ULIP space — or just another variation with shiny features?
Can the IndiaFirst Life TULIP Plus Plan actually beat inflation over time — or will hidden costs erode your gains?
This article takes a closer look at the plan’s features, benefits, and drawbacks—along with a detailed illustration to help you decide.
Table of Contents:
What is the IndiaFirst Life TULIP Plus?
What are the features of the IndiaFirst Life TULIP Plus?
Who is eligible for the IndiaFirst Life TULIP Plus?
What are the benefits of the IndiaFirst Life TULIP Plus?
What are the investment strategies and fund options in the IndiaFirst Life TULIP Plus?
What are the charges in the IndiaFirst Life TULIP Plus?
Grace Period, Discontinuance and Revival of the IndiaFirst Life TULIP Plus
Free Look Period of the IndiaFirst Life TULIP Plus
Surrendering the IndiaFirst Life TULIP Plus
What are the advantages of the IndiaFirst Life TULIP Plus?
What are the disadvantages of the IndiaFirst Life TULIP Plus?
Research Methodology of the IndiaFirst TULIP Plus
Benefit Illustration – IRR analysis of IndiaFirst Life TULIP Plus
IndiaFirst Life TULIP Plus Vs. Othe Investment
IndiaFirst Life TULIP Plus Vs. Pure-Term + PPF/Equity Mutual fund
Final Verdict on IndiaFirst Life TULIP Plus
What is the IndiaFirst Life TULIP Plus?
IndiaFirst Life TULIP Plus 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.
What are the features of the IndiaFirst Life TULIP Plus?
- Secure your family’s future with life insurance coverage of up to 100 times your premium.
- Receive the full Fund Value as a maturity benefit at the end of the policy term.
- Choose from 11 diverse fund options tailored to match your risk profile.
- Boost your savings with the Return of Premium Allocation Charges and Mortality Charges.
- Enjoy lower premium allocation charges when you invest a higher premium amount.
- Avail tax benefits, subject to applicable tax laws.
- Pick from various investment strategies to grow your savings effectively.
- Strengthen your protection with optional riders like the Accidental Death Benefit and Total & Permanent Disability Rider.
Who is eligible for the IndiaFirst Life TULIP Plus?
| Criteria | Minimum | Maximum |
| Age at Entry | 3 years | 65 years |
| Age at Maturity | 18 years | 85 years |
| Policy Term | 15, 20, 25 years | |
| Premium Payment Term | 5, 6, 7, 8, 9, 10 years | |
| Minimum Premium | No Limit, subject to BAUP | |
| INR 36,000 (Annual) | ||
| INR 18,000 (Half Yearly) | ||
| INR 9,000 (Quarterly) | ||
| INR 3,000 (Monthly) | ||
| Minimum Sum Assured – | For Entry Age 3 years to 49 years –
7 times the Annualised Premium |
|
| For Entry Age 50 years and above –
5 times the Annualised Premium |
||
| Premium Payment Modes | Yearly, Half Yearly, Quarterly, Monthly | |
What are the benefits of the IndiaFirst Life TULIP Plus?
1. Death benefit
In the untimely event of the life assured’s demise while the IndiaFirst Life TULIP Plus 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 policyholder will receive the Fund Value at the end of the IndiaFirst Life TULIP Plus Plan 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 Plus Plan policy term (total allocation charge) shall be added back to the fund value as per the table given below
| Policy term | Added to Fund Value at the end of Policy Years | Return of premium allocation charges |
| 15 | 11 to 15 | 25% of the Total Allocation charge is added to the fund value at the end of each year |
| 20 | 11 to 15 | 25% of the Total Allocation charge is added to the fund value at the end of each year |
| 16 to 20 | 50% of the Total Allocation charge is added to the fund value at the end of each year | |
| 25 | 11 to 15 | 25% of the Total Allocation charge is added to the fund value at the end of each year |
| 16 to 20 | 50% of the Total Allocation charge is added to the fund value at the end of each year | |
| 20 to 25 | 75% of the Total Allocation charge is added to the fund value at the end of each year |
Return of Mortality Charge (ROMC) –Mortality charge deducted during the 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 |
| 25 | 100% of the mortality charge collected during the policy term |
What are the investment strategies and fund options in the IndiaFirst Life TULIP Plus?
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 strategies below to ensure that you are getting the optimum returns out of your premiums.
i.) 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 | Dynamic Asset Allocation Fund | 0-80% | 0-80% | 0-40% | High |
| 5 | Equity Elite Opportunities | 60-100% | 0 | 0-40% | High |
| 6 | Liquid 1 Fund | 0 | 0-20% | 80-100% | Low |
| 7 | Flexi Cap Equity Fund | 65-100% | 0% | 0-35% | Moderate to High |
| 8 | Sustainable Equity Fund | 80-100% | 0 | 0-20% | Moderate to High |
| 9 | Macro Trends Fund | 70-100% | 0 | 0-30% | High |
| 10 | Multi Cap Equity Fund | 70-100% | 0 | 0-30% | Moderate to High |
| 11 | Large Cap Equity Fund | 80-100% | 0 | 0-20% | High |
ii.) 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% |
iii.) 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 Plus?
A. Fund Management Charge (FMC)
Charge (FMC) The fund management charge for the various funds offered under this IndiaFirst Life TULIP Plus 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.
B. 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 Plus Plan policy.
C. Premium Allocation Charge
As % of Annualised Premium
Year 1 – 9%,
Year 2 – 6%,
Years 3 to 5 – 3%,
Year 6+ – Nil
D. 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)
E. Partial Withdrawal Charge
There are no partial withdrawal charges applicable.
F. Revival Charge
There are no revival charges applicable.
G. Switching Charge
You are allowed to make unlimited switches in a calendar month.
H. Discontinuance charge
It depends on the year of discontinuance and the premium amount. There is no discontinuance charge from the 5th policy year.
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 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 Plus
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 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 TULIP Plus 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 of the IndiaFirst Life TULIP Plus
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 Plus
Surrender of the Policy during lock-in period: You also have the option to surrender the IndiaFirst Life TULIP Plus Plan 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 Plus?
- Make unlimited free fund switches to realign your investment strategy as your goals change.
- Access your invested amount through Partial Withdrawals during financial emergencies.
- Starting from the second policy year, redirect future premiums between funds for added flexibility.
- Personalise your policy by adjusting premium payment frequency, extending the premium payment or policy term, or reducing the Sum Assured to suit your evolving financial needs.
What are the disadvantages of the IndiaFirst Life TULIP Plus?
- The plan does not offer a loan facility, which limits liquidity in times of financial need.
- Only the net premium—after multiple charges—is invested, reducing the actual amount working for you.
- The risk-to-return ratio is not favourable, making this a less efficient investment avenue.
- A mandatory 5-year lock-in period restricts early access to your funds.
Research Methodology of the IndiaFirst TULIP Plus
Assessing potential returns is crucial when considering a market-linked product.
This section evaluates the investment potential of the IndiaFirst TULIP Plus Plan using data from the policy brochure to help you gauge its performance and compare it with alternative investment options.
Benefit Illustration – IRR analysis of IndiaFirst Life TULIP Plus
A 35-year-old male purchases the IndiaFirst TULIP Plus Plan with a Sum Assured of ₹20 lakhs. The policy term is 20 years, and the premium paying term is 10 years, with an annual premium of ₹1 lakh.
| Male | 35 years |
| Sum Assured | ₹ 20,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 1,00,000 |
If premiums are paid regularly, the investor receives the fund value at maturity. The brochure provides two assumed return scenarios—4% p.a. and 8% p.a., which are indicative and not guaranteed.
| 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 | 20,00,000 | -1,00,000 | 20,00,000 |
| 36 | 2 | -1,00,000 | 20,00,000 | -1,00,000 | 20,00,000 |
| 37 | 3 | -1,00,000 | 20,00,000 | -1,00,000 | 20,00,000 |
| 38 | 4 | -1,00,000 | 20,00,000 | -1,00,000 | 20,00,000 |
| 39 | 5 | -1,00,000 | 20,00,000 | -1,00,000 | 20,00,000 |
| 40 | 6 | -1,00,000 | 20,00,000 | -1,00,000 | 20,00,000 |
| 41 | 7 | -1,00,000 | 20,00,000 | -1,00,000 | 20,00,000 |
| 42 | 8 | -1,00,000 | 20,00,000 | -1,00,000 | 20,00,000 |
| 43 | 9 | -1,00,000 | 20,00,000 | -1,00,000 | 20,00,000 |
| 44 | 10 | -1,00,000 | 20,00,000 | -1,00,000 | 20,00,000 |
| 45 | 11 | 0 | 20,00,000 | 0 | 20,00,000 |
| 46 | 12 | 0 | 20,00,000 | 0 | 20,00,000 |
| 47 | 13 | 0 | 20,00,000 | 0 | 20,00,000 |
| 48 | 14 | 0 | 20,00,000 | 0 | 20,00,000 |
| 49 | 15 | 0 | 20,00,000 | 0 | 20,00,000 |
| 50 | 16 | 0 | 20,00,000 | 0 | 20,00,000 |
| 51 | 17 | 0 | 20,00,000 | 0 | 20,00,000 |
| 52 | 18 | 0 | 20,00,000 | 0 | 20,00,000 |
| 53 | 19 | 0 | 20,00,000 | 0 | 20,00,000 |
| 54 | 20 | 0 | 20,00,000 | 0 | 20,00,000 |
| 55 | 13,60,902 | 24,33,359 | |||
| IRR | 2.00% | 5.82% | |||
At 4% return, the fund value at maturity is ₹13.60 lakhs, resulting in an IRR of just 2% as per the IndiaFirst Life TULIP Plus Plan maturity calculator.
At 8% return, the fund value grows to ₹24.33 lakhs, with an IRR of 5.82% as per the IndiaFirst Life TULIP Plus Plan maturity calculator.
Even under the optimistic 8% scenario, the returns fall short when compared to other market-linked investments, which typically outperform inflation.
Furthermore, the ₹20 lakh sum assured is insufficient for robust financial protection.
Besides underwhelming returns and inadequate life cover, the plan also suffers from poor transparency in fund management and imposes high charges. These factors significantly diminish its appeal as a long-term investment solution.
IndiaFirst Life TULIP Plus Vs. Othe Investment
Any market-linked product should ideally deliver returns that outpace inflation. However, based on the previous illustration, it’s evident that the IndiaFirst Life TULIP Plus Plan underperforms in terms of risk-adjusted returns.
To highlight this further, let’s compare it with alternative strategies using the same investment metrics.
IndiaFirst Life TULIP Plus Vs. Pure-Term + PPF/Equity Mutual fund
The IndiaFirst Life TULIP Plus Plan offers a life cover of ₹10 lakhs along with market-linked investment exposure.
To make a fair comparison, consider a pure term insurance policy with a ₹10 lakh sum assured, costing ₹12,800 annually for a 20-year policy term and 10-year premium payment term. This leaves ₹87,200 per year available for investment.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 20,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 12,800 |
| Investment | ₹ 87,200 |
| Term Insurance + PPF | Term insurance + Equity Mutual Fund | ||||
| Age | Year | Term Insurance premium + PPF | Death benefit | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 35 | 1 | -1,00,000 | 20,00,000 | -1,00,000 | 20,00,000 |
| 36 | 2 | -1,00,000 | 20,00,000 | -1,00,000 | 20,00,000 |
| 37 | 3 | -1,00,000 | 20,00,000 | -1,00,000 | 20,00,000 |
| 38 | 4 | -1,00,000 | 20,00,000 | -1,00,000 | 20,00,000 |
| 39 | 5 | -1,00,000 | 20,00,000 | -1,00,000 | 20,00,000 |
| 40 | 6 | -1,00,000 | 20,00,000 | -1,00,000 | 20,00,000 |
| 41 | 7 | -1,00,000 | 20,00,000 | -1,00,000 | 20,00,000 |
| 42 | 8 | -1,00,000 | 20,00,000 | -1,00,000 | 20,00,000 |
| 43 | 9 | -1,00,000 | 20,00,000 | -1,00,000 | 20,00,000 |
| 44 | 10 | -97,500 | 20,00,000 | -1,00,000 | 20,00,000 |
| 45 | 11 | -500 | 20,00,000 | 0 | 20,00,000 |
| 46 | 12 | -500 | 20,00,000 | 0 | 20,00,000 |
| 47 | 13 | -500 | 20,00,000 | 0 | 20,00,000 |
| 48 | 14 | -500 | 20,00,000 | 0 | 20,00,000 |
| 49 | 15 | -500 | 20,00,000 | 0 | 20,00,000 |
| 50 | 16 | 0 | 20,00,000 | 0 | 20,00,000 |
| 51 | 17 | 0 | 20,00,000 | 0 | 20,00,000 |
| 52 | 18 | 0 | 20,00,000 | 0 | 20,00,000 |
| 53 | 19 | 0 | 20,00,000 | 0 | 20,00,000 |
| 54 | 20 | 0 | 20,00,000 | 0 | 20,00,000 |
| 55 | 25,73,271 | 47,82,294 | |||
| IRR | 6.19% | 10.34% | |||
Low-Risk Strategy – PPF (Public Provident Fund)
If this surplus amount is invested in the PPF, a government-backed debt instrument:
Maturity Value (20 years): ₹25.73 lakhs
IRR: 6.19% (tax-free)
Despite being a low-risk debt product, the PPF delivers returns that match or exceed the TULIP Plus’s 8% return scenario—without market risk or high charges.
High-Risk Strategy – Equity Mutual Fund
For investors with a higher risk appetite, equity mutual funds offer significant upside:
Pre-tax Maturity Value (20 years): ₹53.23 lakhs
Post-tax Maturity Value (after LTCG): ₹47.82 lakhs
Post-tax IRR: 10.34%
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 20 years | 53,23,050 |
| Purchase price | 8,72,000 |
| Long-Term Capital Gains | 44,51,050 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 43,26,050 |
| Tax paid on LTCG | 5,40,756 |
| Maturity value after tax | 47,82,294 |
Equity mutual funds, being fully market-linked like ULIPs, offer superior returns, greater liquidity, and transparency, with the added advantage of flexibility in investment and withdrawal.
In conclusion, the IndiaFirst Life TULIP Plus Plan falls short not only in delivering competitive, risk-adjusted returns but also in terms of liquidity and transparency.
A term insurance + targeted investment strategy offers better protection, higher returns, and enhanced financial flexibility—making it a far more efficient option for long-term financial planning.
Final Verdict on IndiaFirst Life TULIP Plus
The IndiaFirst Life TULIP Plus Plan is a typical Unit-Linked Insurance Plan (ULIP) that combines life insurance coverage with market-linked investment options.
While it offers a variety of investment strategies and fund choices, the actual diversity is limited—most fund options have similar asset allocations, reducing the benefit of true portfolio customisation.
Although the term “T-ULIP” suggests a strong combination of Term insurance and ULIP, the IndiaFirst Life TULIP Plus Plan falls short on both counts. The life cover is often inadequate, and the investment component does not deliver proportionate returns for the level of risk taken.
The plan’s charges are moderately high when compared to other market-linked products. More importantly, the risk–return trade-off is not favourable and it also has a high agent commission.
Investors typically accept higher risk in pursuit of higher returns (alpha), but this plan lacks that potential, limiting wealth creation over the long term.
When it comes to life protection, it’s wise to separate insurance from investment. A pure-term life insurance policy offers sufficient cover at a low cost, allowing the remaining funds to be invested in more efficient vehicles aligned with your goals, time horizon, and risk appetite.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
Before committing to any investment product, it’s important to assess its return potential and suitability. For sound financial decisions, consider consulting a Certified Financial Planner (CFP).
They can guide you in selecting the right investment strategies based on your unique financial objectives, risk tolerance, and time frame.
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