IndiaFirst Annuity Plan

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

IndiaFirst Annuity Plan – Overview

IndiaFirst Annuity Plan is a non-linked, non-participating, traditional immediate annuity plan. The annuity payouts begin immediately after payment of a single lump sum amount (known as the purchase price). The plan allows one to choose the retirement age and gives a steady retirement income for as long as the annuitant is alive. A fixed annuity every month allows one to enjoy the retirement years and ensures that a suitable lifestyle can be maintained. 

IndiaFirst Annuity Plan – Key Features

  • Traditional Pension Plan: This pension plan pays a regular guaranteed income to the retiree at the end of his/ her services. It helps the annuitant maintain a decent standard of living and live the retired life on his/ her own terms.
  • Immediate Annuity Plan: The annuity payments of a stated amount start as soon as the single lump sum amount is paid
  • Single Premium Policy: This traditional lifetime annuity plan can be purchased by paying the premium in a single payment
  • Monthly Annuity Payouts: A definite regular monthly income is paid to the annuitant throughout his/ her retirement years
  • Lifetime Benefit: The fixed annuity is paid on a monthly basis during the lifetime of the annuitant i.e. for as long as he/ she is alive
  • Choice of Retirement Age: The policyholder can choose the retirement age as per his/ her needs
  • Relaxed Entry Age: The minimum age while applying for the plan is 40 years and the maximum age is 80 years. This allows maximum people to benefit from this annuity plan.
  • Multiple Payment Options: The payment for the annuity plan can be made by cheque, demand draft (DD) or Electronic Clearing Service (ECS) 

IndiaFirst Annuity Plan – Benefits

  • Annuity Benefit: Annuity payouts (series of fixed payments) are paid to the annuitant on a monthly basis as per the plan schedule during his/ her lifetime i.e. for as long as he/ she is alive. Annuity begins immediately from the next month after payment of lump sum premium.
  • Death Benefit: There is no Death Benefit payable since it is an annuity plan
  • Vesting Benefit:There are 3 options available to the policyholder at vesting of a deferred annuity/ pension plan:
    • He/ she can take 1/3rd of the tax-free Fund Value and purchase an annuity with the remaining 2/3rd either from IndiaFirst Life Insurance or from any other life insurance company
    • He/ she can purchase an annuity with 100% of the lump sum either from IndiaFirst Life Insurance or from any other life insurance company
    • He/ she can take the entire Fund Value and be taxed as per the current income tax laws
  • Surrender Benefit: There is no Surrender Benefit payable under this plan
  • Tax Benefits: Tax benefits can be availed as per the Income Tax Act, 1961. However, no tax benefit is available on the purchase amount. If the policyholder purchases an annuity plan from the proceeds of a deferred annuity/ pension plan, he/ she will not be taxed on the proceeds of the pension plan that he/ she used to purchase the annuity plan. 

IndiaFirst Annuity Plan – Product Specifications 

 

Minimum

Maximum

Entry Age (last birthday)

40 years

80 years

Purchase Price

Rs. 50,000

-

Premium Payment Term

Single Pay

Annuity Payout Frequency

Monthly

 

IndiaFirst Annuity Plan – Policy Details 

Cancellation of Plan: The insurance company provides a free look period of 15 days from the date of receipt of the policy to review its terms and conditions. If one feels that it is not the right plan for him/ her or disagrees with any of its terms and conditions, he/ she can return the policy to the insurance company along with written reasons for such objections. The insurance company will then refund an amount equal to the premium received (purchase price) after deducting the stamp duty. 

Policy Loan: No loan facility is available under this plan 

Non-Participating Plan: Since this is a non-participating plan, it does not participate in the surplus earnings of the fund or in the profits of the insurance company. No bonus is payable under the plan. The plan benefits are restricted to the promised annuity. 

Surrender Value: The plan cannot be surrendered and therefore does not have any Surrender Value 

Prohibition of Rebate: Section 41 of the Insurance Act, 1938 (as amended by Insurance Laws Amendment Act, 2015) forbids accepting rebates in any form. The law states that:

  • No person shall allow or offer to allow, directly or indirectly, as an inducement to any person to take, renew or continue insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except for such a rebate that is allowed in accordance with the published prospectus or tables of the insurer
  • Any person making a default in complying with the provisions of this section of the Insurance Act, 1938 is liable to a penalty of a fine which may extend to Rs. 10 lakh

You may also to read: IndiaFirst Life Pension Plans