This is a participating traditional pension plan by IndiaFirst Life Insurance Co. Ltd. While investment returns are pegged to the participating fund’s performance, it offers guaranteed returns in initial years.
What do you get?
There are three premium payment options—single, limited, and regular. You start by choosing the premium payment term and sum assured and depending on factors like your age and policy term, the annual premium will be arrived at. Under the regular and limited options, every year you will get 9% of the cumulative premiums in the initial years. The sum of these guaranteed additions will get added to the total benefit available to you on death or maturity. Subsequently, the bonuses will accrue. Under the single premium option, there are no guaranteed additions.
How many years you get this 9% addition will depend on the premium payment term. So, under the limited pay option if you choose a premium payment term of five years, you will get guaranteed additions in the first two years. And for a regular option with a policy term of at least 15 years, you will get the additions for the first six years. From the next year, bonuses will begin to accrue. The bonus will depend on the participating fund’s performance and is declared as a percentage of sum assured.
