IndiaFirst Simple Benefit Plan

*Please note that the quotes shown will be from our partners

Introduction/Overview

The IndiaFirst Simple Benefit Plan is a non-linked endowment Insurance Plan with Bonus facility. It offers life cover plus assured savings and helps to enhance the wealth of the policyholders with the bonuses available under this policy. Policyholders just have to save regularly and protection is provided to the their loved ones in case of the untimely demise of the policyholder, while the policyholders themselves receive a lump sum benefit if they survive the policy term.

Key Features

  • This policy is a non-linked endowment insurance plan with both Maturity and Death Benefits.
  • The policy helps to increase the policyholders’ savings through regular premiums and by way of the Simple Reversionary Bonus and Terminal Bonus.
  • On the premature demise of the policyholder, nominees may receive up to ten times the annualized premium.
  • The policy application process is simple and hassle-free with an instant Over-the-counter plan issuance that has simplified underwriting.

Benefits

  • If the policyholder survives until the policy matures, he or she receives a Maturity Benefit, which is Guaranteed Sum Assured plus the Simple Reversionary Bonus and Terminal Bonus if any.
  • In the sad and unfortunate event of the demise of the policyholder, the nominee receives a Death Benefit.  The Death Benefit paid is the Guaranteed Sum Assured plus the Accrued Reversionary Bonus and Terminal Bonus. The Death Benefit is calculated as the following:
  1. When the entry age is less than 45 years, the Death Benefit is the higher of ten times the annualized premium or 100% of the Guaranteed Sum Assured plus the Accrued Bonus and Term Rider Sum Assured (if any).
  2. When the entry age is 45 years or higher, the Death Benefit is the higher of seven times the annualized premium or 100% of the Guaranteed Sum Assured plus the Accrued Bonus and Term Rider Sum Assured (if any).
  • Tax benefits are available as per sections 80(C) and 10 (10D) of the Income Tax Act.
  • This policy provides Simple Reversionary Bonus and Terminal Bonus that are paid as part of the Maturity Benefit or Death Benefit.

Product Specification:

 

Minimum

Maximum

Entry Age of the Life Assured (Last Birthday)

18 years

50 years

Maturity Age (Last Birthday) of the Life Assured

-

70 years

Policy Term (PT) in years

15 years

25 years

Premium Paying Term (PPT) in years

Regular pay

Premium Paying Frequency

Yearly, Half-yearly, Monthly

Annual Premium

Rs. 2000

Rs. 32340

Sum Assured

Rs. 20000

Rs. 500000

 

Policy Details

Grace Period: There is a limited timeframe of 30 days from the due date of the unpaid premium to pay all dues. The timeframe for monthly mode of payment is fifteen days.

Policy termination or Surrender Benefit: The policy may be surrendered after three years of full premium payment. If policy premiums are not paid for two full years, then the policy will lapse. If the policy is not reinstated within the revival period, the policy is terminated. Termination of the policy also occurs on payment of the Maturity benefit or the Death Benefit.

Free look period: Policyholders have a limited free look period of fifteen days from the date of receiving policy documents to review the policy. This timeframe is extended to thirty days in case the policy was sold via distance marketing. If the policyholder does not wish to continue with the policy, then he or she can cancel the policy. The customer will receive premiums paid minus a proportionate premium for the risk borne by the company, including as any extra expenses, such as towards a medical examination or stamp duty charges.

Inclusions

A policy loan may be availed after the policy acquires Surrender Value, on the condition that the loan amount does not exceed 90% of the Surrender Value.

Additional Features or riders

  • The revival of a lapsed policy is possible if the policyholder submits a request for reinstatement within a timeframe of two years from the date of the first unpaid premium.
  • If premiums for three policy years are paid, and subsequently the policyholder fails to pay the due premiums within the Grace Period, then the policy acquires Paid- up Value.

Exclusions

The term insurance cover is void if the person insured, whether sane or insane at the time, commits suicide within one year from the start of the policy cover. The company will refund 80% of the premiums paid to the nominee. In case the person insured commits suicide within one year from the policy reinstatement, the nominee will receive the higher of 80% of the premiums paid or the Surrender Value.

Documents Required

The policyholder has to fill up an ‘Application form ’with identity proof, bank account proof, address proof and a recent photograph. Select cases may require income proof and medical examination.