IndiaFirst Secure Save Plan - Life Insurance

Your joy, Our security.....IndiaFirst Secure Save Plan

Before you start readingImportant noteIndiaFirst Secure Save Plan is referred to as the Planthroughout the brochure.How will this brochure help you?This brochure gives you details of how the plan worksthroughout its lifetime. It’s an important document torefer to.To help your understandingWe’ve done our best to explain everything as simplyas possible; however you’re likely to come acrosssome terms you’re unfamiliar with. Where possible,we’ve explained these.We have used plain language that’s easy tounderstand and believe this brochure is a good placeto start when considering an investment.ContentsPg. No.Pg. No.Introduction........................................................................22Executive summary..........................................................2213. 17. Protection Prohibition from market accepting fluctuations rebate....................... ..................6518. 14. Charges Submission under of false this plan or incorrect .........................................8information..... 51. About your plan........................................................ 2 19. About IndiaFirst Life Insurance .............................61. About your plan........................................................2 15. Missing your premium..........................................102. Term of the plan......................................................... 22.3.Term of the plan........................................................2People involved in the plan......................................216. Discontinuing your plan .......................................104. 3. People Premium involved paying in modes.......................................... the plan....................................2317. Cancelling your plan ...............................................115. 4. Premium Amount you paying can modes..........................................3invest............................................3 18. Moving between plans – Portability option .....116.5.Life Cover under this plan....................................... 3Amount you can invest ..........................................37. Maturity benefit........................................................ 319. Loan benefits ...........................................................116.8.Calculation of sum assured...................................3Tax benefit...................................................................320. Valuation of units....................................................129. 7. Maturity Death benefit............................................................. benefit........................................................3421. Allocation of premiums to units.........................1210. 8. Tax Missing benefit..................................................................4your premium............................................ 4 22. Broad risks ................................................................1311. Grace period...............................................................49. Death benefit.............................................................4 23. Suicide by life assured...........................................1312. Surrender of plan...................................................... 410. Funds available..........................................................5 24. Prohibition from accepting rebate.....................1413. Service tax..................................................................514. 11. Switching Cancelling and you premium plan.................................................. redirection ...................6515. 12. Partial Loan benefits..............................................................5withdrawals ..................................................625. Submission of false or incorrect information .1426. About IndiaFirst Life Insurance ..........................1416. Suicide by Life Assured............................................51

IntroductionYour joy, our security...All of us dream about the perfect house, the besteducation, the latest car – the finest that life has tooffer for our loved ones.We understand the importance of these dreams andpresent you a simple plan to help you secure them.Our IndiaFirst Secure Save plan offers you an assuredamount plus additional returns in the form of bonusdeclared by the company.We will pay the sum assured plus all bonuses paid tilldate in case of the life assured’s untimely demise,ensuring the financial security of his/her loved ones.Executive summaryKey features• You can build your savings systematically, throughregular premium contributions based on yourincome and needs• The plan offers a death benefit equal to the basicsum assured in case of the life assureds’ untimelydemise. The death benefit along with the simplereversionary bonus accumulated (till death) andadditional sum assured as per the term rider (ifchosen) will be paid out• The basic sum assured along with simplereversionary bonus and terminal bonus, if any willbe paid at the end of the plan term.• Under Section 80C you can enjoy tax benefits onthe premium you invest. You can also get taxbenefits on the benefits you receive at maturity ofyour plan, under Section 10(10D)Risk factors• The simple bonus to be declared every financialyear end depends upon the surplus generatedunder this and any similar kind of product.• The bonus rate may vary from time to time.1. What is the IndiaFirst Secure Save Plan?IndiaFirst Secure Save Plan is a non linked with profitsavings plan.2. What is the term of the plan?This is a regular premium plan with the option ofchoosing a 10 to 30 year plan term.3. Who are the people involved in theplan?This plan may include the ‘Life Assured’, the‘Policyholder’, the ‘Nominee’ and the ‘Appointee’.Who is a life assured?Life assured is the person, on whose life the plandepends. On the life assured’s death, the benefit ispaid out and the plan ends. Any Indian citizen can bethe life assured, as long as -Minimum age at the time ofapplying for the planMaximum age at the time ofapplying for the planMaximum age at end of theplan termWho is a policyholder?5 years as on thelast birthday65 years as on thelast birthday75 years as on thelast birthdayA policyholder is the person who holds the plan. Thepolicyholder may or may not be the life assured. Youmust be at least 18 years as on your last birthday atthe time of applying for the plan, to be a policyholder.Who is a nominee?A nominee is the beneficiary under the plan whoreceives the death benefit in case of the life assured’sdemise. The nominee is appointed by you, thepolicyholder. The nominee can even be a minor (i.e.below 18 years of age).Who is an appointee?An appointee is the person whom you may nominateat the time of applying for the plan in case your2

1nominee is a minor. The appointee takes care of theplan in your absence.4. What are the premium paying modesavailable?You may pay your premium monthly, six monthly oryearly.5. How much can you invest?Monthly ` 1,044Six monthly ` 6,143Yearly ` 12,000Premium frequencySix-monthly 0.5119Monthly 0.0870Minimum investmentThe following premium frequency factors for sixmonthly and monthly policies will apply on AnnualPremiums. The Company offers a rebate of 1% onannualized premium of more than ` 20,000Factor to be applied toannual premium6. What is the life cover under this plan?The life cover is equal to the basic sum assured that ispayable under the plan. You can choose the sumassured as per your requirements. The sum assuredlimits are -Minimum sum assured ` 1,00,000Maximum sum assured ` 20,00,00,000You can also choose additional life cover with thehelp of the IndiaFirst Term Rider that is offered alongwith this plan. The additional life cover chosen underthe IndiaFirst Term Rider cannot exceed the basicsum assured amount under the plan. Please refer tothe IndiaFirst Term Rider brochure for detailedinformation.For example: You choose to be covered for` 3,00,000 under the IndiaFirst Secure Save Plan.You can opt for additional life cover up to ` 3,00,000under the IndiaFirst Term Rider as well.7. What do you receive at the end of theplan term?The basic sum assured along with the simplereversionary bonus and terminal bonus, if any, is paidat the end of the plan term.The simple reversionary bonus, if any will beannounced by the company at the end of the financialyear. The rate of the simple reversionary bonus maydiffer from time to time.What is a simple reversionary bonus?A simple reversionary bonus, if any, is a percentage ofthe sum assured declared by us. The rate of bonus orpercentage of the sum assured is not fixed and maychange from time to time.What is a terminal bonus?It is the bonus that may be announced by us at theend of the financial year. This bonus amount will becredited into the plan at the end of the plan term.8. Tax benefits under this planCurrently you are eligible for the below mentionedtax benefits. These are subject to change from time totime. However, you are advised to consult your taxconsultantTax benefits on the premiums paidYou are eligible for tax deductions up to ` 1,00,000on premiums paid under Section 80C of the IncomeTax Act, 1961Tax benefits on the maturity amount andwithdrawalsYou can get full tax benefits on the maturity amountand the withdrawal amounts under Section 10(10) D,of the Income Tax Act, 19613

Death benefitsDeath benefits are tax free under section 10(10) D ofthe Income Tax Act, 19619. What happens in case of the lifeassured’s demise?A lump sum amount will be paid to the nominee inthe unfortunate event of the life assured’s demise.The lump sum amount will be equal to the basic sumassured plus the simple reversionary bonusaccumulated till death, if any. Also, the sum assuredchosen under the IndiaFirst Term Rider will be paid tothe nominee.For example: You choose to be covered for` 3,00,000 under the IndiaFirst Secure Save Plan andhave opted for additional life cover up to ` 3,00,000under the IndiaFirst Term Rider as well. In theunfortunate event of the life assured’s demise, thenominee will receive ` 6,00,000 plus the simplereversionary bonus accumulated till death.The amount will be paid out to the appointee if thenominee is a minor.10. Your options if you miss paying yourpremiumsFirst three plan yearsThe plan does not acquire any value, if you stoppaying premium during the first three plan years.We offer a 2 year revival period during which you canrevive your plan. No benefits will be payable duringthis period.Fourth plan year onwardsThe plan acquires a guaranteed paid up value, if youstop paying your premiums after three full years. Thepaid up value will be the proportional basic sumassured plus the accumulated bonus. We will pay thepaid up value at the date of maturity or on death ofthe life assured before maturity date. The plan stopsparticipating in the profit once it becomes paid up.The paid up value is equal to -Basic sum assured * No. of premiums paid / Totalnumber of premiums payableWhat are your options to revive the plan?You may revive your plan within a specified periodby -• Simply paying the pending premium amountalong with interest from the due date of firstunpaid premium• Begin the payment of premiumsYou may revive your plan as long as you do it within 2years from the due date of the first unpaid premiumbut before the maturity date. No benefits will bepayable during this period other than paid up value, ifany, in the event of death. The revival is subject tosatisfactory medical and financial underwriting. Ifyou do not revive your plan by the end of the revivalperiod and if you have paid your regular premiums forless than 3 years, then the plan does not acquire anypaid up value and the plan terminates.11. Is there a grace period for missedpremiums?We provide you a grace period of 15 days for paymentof all premiums under the monthly mode and aperiod of 30 days for payment of all premiums underthe six monthly and yearly mode. This period startsfrom the due date of each premium payment. All yourplan benefits continue during this grace period.12. Can you surrender your plan?Yes. While we do not encourage you to surrenderyour plan, you may choose to surrender the same forimmediate cash, any time after the payment of threefull premiums.The amount payable on surrender will be higher ofguaranteed surrender value (GSV) and specialsurrender value (SSV).4

The GSV is -30% of total premium paidLess: i. First year premiumii. Any extra premium and rider premium, if any.The SSV is -Paid up value * SSV factor at the time of surrenderThe SSV factor will be determined by us from time totime.13. Is service tax applicable? If yes, whobears it?Yes. The service tax will have to be borne by you, thepolicyholder.14. Can you cancel your plan?Yes, you may cancel your plan if you disagree withany of the terms and conditions within the first 15days (free look period) of the receipt of your plandocument. You can return the plan to us, whilestating your specific objections.Do you get any refund when you cancel yourplan?Yes. We will refund an amount equal to the -Premium paidLess: i. Pro-rata premium for the time the plan was inforceii. Any stamp duty paidiii.Expenses incurred on medical examination,if any15. Can you avail of a loan under this plan?Yes, you may benefit from a loan facility under thisplan.The amount of the loan that you may avail at anypoint of time will depend on the surrender value. Youmay avail of a loan up to 90% of the availablesurrender value. The minimum loan amount shouldbe ` 1,000. As and when the outstanding loanprincipal along with interest exceeds surrendervalue, the plan will be compulsorily surrendered andthe outstanding loan along with interest will berecovered from the surrender proceeds and planterminates.16. What happens in case the life assuredcommits suicide?There will be no death benefit payable, if the lifeassured commits suicide within 12 months from thedate of risk commencement. This is irrespective ofwhether the life assured, was sane or insane at thetime death.The benefit payable will be equal to the surrendervalue provided the premium has been paid for 3 fullyears if the life assured commits suicide within 12months from the date of revival / re-instatement.17. You are prohibited from acceptingrebate in any formProhibition of Rebate: Section 41 of theInsurance Act, 1938 states• No person shall allow or offer to allow, eitherdirectly or indirectly, as an inducement to anyperson to take out or renew or continue aninsurance in respect of any kind of risk relating tolives or property in India, any rebate of the wholeor part of the commission payable or any rebate ofthe premium shown on the Policy, nor shall anyperson taking out or renewing or continuing aPolicy accept any rebate, except such rebate asmay be allowed in accordance with the publishedprospectuses or tables of the insurer• Any person making default in complying with theprovisions of this section shall be punishable witha fine which may extend to five hundred rupees18. What happens in case of submissionof information which is false or incorrect?5

Indisputability Clause: Section 45 of theInsurance Act, 1938 statesNo policy of Life Insurance shall, after the expiry oftwo years from the date on which it was effected, becalled in question by an Insurer on the ground that astatement made in the proposal for insurance or anyreport of a medical officer or referee or friend of theInsurer or in any other document leading to the issueof the Policy, was inaccurate or false, unless theinsurer shows such statement Was on materialmatter or suppressed facts which it was material todisclose and that it was fraudulently made by thepolicy holder and that the policy holder knew at thetime of making it that the statement was false or thatit suppressed facts which it was material to disclose.Provided that nothing in this section shall prevent theinsurer from calling for proof of age at any time if he isentitled to do so, and no policy shall be deemed to becalled in question merely because the terms andconditions of the policy are adjusted on subsequentproof that the age of the life assured was incorrectlystated in the proposal.19. About IndiaFirst Life InsuranceIndiaFirst Life Insurance Company is a joint venturebetween Bank of Baroda, Andhra Bank and Legal andGeneral (UK).Bank of Baroda is one of the largest public sectorbanks in the country with an enviable network of over3900 branches that spreads across the geography ofIndia and over 70 branches across 25 countriesglobally. This behemoth financial institution is over100 years old and has been built on financialprudence, corporate governance and mostimportantly – the trust of valuable customers like you.Andhra Bank has been serving the Indian customerfor over 89 years and currently has a network of over1716 branches. The bank has developed best in classdeposit and lending schemes for its valuedcustomers.Both the banks are nationalized and provide best inclass products and services to every Indian citizen.Legal & General is one of UK’s leading financialinstitutions with a heritage of over 150 years. Itprovides life assurance, pensions, investments andgeneral insurance plans to over 5.5 million customersacross UK. It brings rich fund management andinsurance experience to India.The table below gives the indicative standard premium rate (exclusive of service tax) per ` 1,00,000 of sumassured for males-AgeTerm10 15 20 25 3020 10,439 6,732 4,863 3,730 2,97030 10,454 6,760 4,910 3,802 3,07940 10,557 6,904 5,108 4,067 3,42550 10,888 7,331 5,658 - -60 11,692 8,434 - - -65 12,612 - - - -For female lives above 18 years, an age set-back of 3 years will be applied subject to the condition that theapplicable rate will not be lower than the male rate at age 18 years.6

The following table gives an example which shows the benefits under a policy with 20 year plan term and basicsum assured of ` 5,00,000 on death or maturity based on certain assumed bonus rates*.Plan yearBasic sum Assumed bonus rate Assumed bonus rate Assumed bonus rateassured @ 1% p.a. @ 3% p.a. @ 5% p.a.Death Maturity Death Maturity Death Maturitybenefit benefit benefit benefit benefit benefit1 500000 5,05,000 5,15,000 5,25,0005 500000 5,25,000 5,75,000 6,25,00010 500000 5,50,000 6,50,000 7,50,00015 500000 5,75,000 7,25,000 8,75,00020 500000 6,00,000 6,00,000 8,00,000 8,00,000 10,00,000 10,00,000* Bonus rates are not guaranteed but the basic sum assured is guaranteed at death or maturity.Bonus rate may vary from year to year depending upon the performance of the company.The Sales Brochure is consistent with the product features filed with the Authority.Insurance is the subject matter of the solicitationProduct UIN No.: 143N012V01, 143B001V01Registered and Corporate Office Address:IndiaFirst Life Insurance Company Limited,301, 'B' Wing, The Qube, Infinity Park, Dindoshi - Film City Road, Malad (East), Mumbai - 400 097.Website: www.indiafirstlife.comRegistration No.: 143Toll Free No.: 1800 209 8700SMS to 5667735, SMS charges apply.Advt. Ref. No.: SB00117