Indiafirst Group Credit Life Plan

The IndiaFirst Group Credit Life Plan from IndiaFirst Life Insurance is a non-participating, non-linked group protection plan that offers coverage to policyholders with outstanding loans, protecting their dependents in the event of the policyholder’s death by paying off the outstanding loan amount. The plan secures members against home, education, personal as well as automobile loans, thus providing comprehensive coverage from liabilities. The plan has a tenure ranging from 5 years to 30 years, based on the master policyholder’s requirements. The long tenure enables the members to benefit from liability coverage for a significant part of the loan tenure.

Eligibility- Who is the IndiaFirst Group Credit Life Plan for?

The IndiaFirst Group Credit Life Plan is targeted at employers looking at providing lenders protection in the event of the unfortunate demise of lenders. The plan conversely protects lenders (of a common borrower) against loan liabilities, with their dependents protected in the event of their death. The plan has certain eligibility criteria which have to be met, which are mentioned below:

Parameter	Eligibility
Minimum entry age	18 years
Maximum entry age	69 years
Maximum maturity age	75 years
Minimum group size	50 members
Maximum group size	No limit
Minimum policy term	Limited premium- 5 years Regular premium- 5 years Single premium- 2 years
Maximum policy term	30 years

Sum Assured and Premium Range- What You Get and What It Costs

Sum Assured:

The sum assured is the amount that the policyholder/member stands to receive, excluding any taxes or benefits. The sum assures under the IndiaFirst Group Credit Life Plan is a minimum of Rs.5,000 and a maximum of Rs.50 crore. Under the plan, this cover is provided against the member’s loan. Under the plan, members can choose between two sum assured options, a level term cover and a decreasing term cover.

Premium:

The premium is the amount payable by the policyholder/member for the coverage provided. Members can pay their premiums either annually, half-yearly or monthly, based on their convenience. The minimum premium amount would depend on the loan amount and other variables such as the age of the member, policy tenure, premium paying mode, sum assured option chosen etc.

The policy provides for two types of cover, based on which the sum assured and premium payment is decided, as mentioned in the table below:

	Level term cover	Decreasing cover
Premium	Choice of regular/limited/single premium.	Choice of limited or single premium.
Plan term	Plan term would be equal to the loan term at the time of plan inception.	Plan term would be equal to the loan term at the time of plan inception.
Sum assured	Sum assured would be: Equal to the initial loan amount. The amount would be fixed and not change during the period of coverage. A certificate of insurance would be provided to the member at the time of policy inception.	Sum assured would be the initial loan amount, which would decrease over the loan tenure as per the loan repayment schedule. The member would be provided with a certificate of insurance at the time of policy inception.

Plan Coverage- What the IndiaFirst Group Credit Life Plan covers

The IndiaFirst Group Credit Life Plan works in the following way:

• The master policyholder chooses the coverage and the premium payment mode.
• The member can choose the sum assured type, opting for either a level term or a decreasing term cover based on his/her convenience.
• The policy term is then selected, based on which the premium amount is calculated.
• The plan allows for two joint borrowers (considered one member) under the policy.

The coverage offered under the plan is the death benefit. The death benefit applicable to both the master policyholder and the member is outlined in the table below, based on the type of coverage applied for:

	Level term cover	Decreasing term cover
Nominee/legal heir	The nominee will receive the sum assured as mentioned at the policy’s inception through the master policyholder.	The outstanding loan amount would be provided to the nominee through the master policyholder.
Master policyholder	The nominee/legal heir would be required to pay the outstanding loan amount to the master policyholder. Any balance amount would be retained by the nominee.	The outstanding loan amount would have to be paid to the master policyholder.

Exclusions

The policy provides for a pay-out in the event of the death of the member. However, there are certain exclusions in which case the company will not pay any benefit. The exclusion under this plan is as follows:

Suicide: In the event of the member committing suicide within 12 months of the date of the policy’s inception or renewal, the nominee will not receive any death benefit. Instead, he/she will receive 80% of the premiums paid.

Other Key Features- Freelook Period, Surrender Value, Grace Period etc.

The features and benefits provided by the IndiaFirst Group Credit Life Plan are as follows:

Free look period	If the policyholder is not satisfied with any of the conditions or provisions of the policy, he/she may return the policy during the free look period and not incur any penalties. The free look period is 15 days from the date of receipt of the physical policy document. For distance marketing policies, it is 30 days from the date of receipt of the policy.
Grace period	Policyholders who default on a premium instalment are provided with a 30 day grace period within which the premium amount can be paid with no penalties.
Moratorium benefit	If the loan disbursement and the date of loan repayment are different, the member can avail of a moratorium benefit, as follows: The moratorium period allows for risk cover to begin before the actual loan repayment schedule starts.
Surrender of plan	The plan can be surrendered by the master policyholder and the member at any time during the policy term. If a member chooses to foreclose on the loan before the policy term, the master policyholder surrenders the policy but the member can choose to continue with the life cover till the end of the policy term.
Surrender value	In the event of surrender of the policy before the loan is paid off, the surrender value is calculated. There is no surrender value for regular premium plans.
Policy revival	The policy can be revived within a period of 1 year from the date of the last premium being paid. The policy can be revived by either the member or the master policyholder. For the policy to be revived, the following terms have to be met: All outstanding premiums have to be paid. The member passing medical tests and financial underwriting as per prevalent rules at the time.
Policy termination	The policy can be terminated under the following circumstances: At the time of policy maturity. If the premium is not paid within the grace period provided. In the event of the member committing suicide. If the member or master policyholder provides information that is fraudulent or incorrect.

Tax Benefits- How You Can Save With the IndiaFirst Group Credit Life Plan

The IndiaFirst Group Credit Life Plan offers policyholders tax benefits through investing in the policy, providing them life cover as well as tax exemptions. The tax benefits offered to policyholders are as listed below:

• The policyholder can avail tax benefits on insurance premiums paid under Section 80C of the Income Tax Act of 1961.
• Under Section 10(10D) of the Income Tax Act of 1961, all benefits received from a life insurance policy such as maturity benefit, death benefit, survival benefit etc. are eligible for tax deductions.

It is to be noted that tax exemptions are subject to change. It is advisable to consult with a tax advisor for information on current exemptions.

Other Benefits- How You Can Save With the IndiaFirst Group Credit Life Plan

The IndiaFirst Group Credit Life Plan ensures the financial stability of the member’s dependents by taking the loan liability off their shoulders. In addition to this and other features offered under the plan, IndiaFirst customers can enjoy a host of other benefits such as the ones mentioned below:

• Customers can access information pertaining to plans and policies such as policy brochures, sample policy documents as well as information on their policies at the click of a few buttons by visiting the IndiaFirst website.
• Customers who have filed a claim can track its status online, instead of having to visit a branch office or write to the company for updates. Any additional documentation, if required, will also be mentioned on the policyholder’s account (accessible from the website), thus expediting the process.
• Customers looking to pay their premiums can do so using a number of methods, both offline as well as online. Customers who wish to pay online can do so by issuing a standing instruction, paying through debit/credit cards or through NEFT. Offline methods include paying by cheque or cash.

Why you should buy the IndiaFirst Group Credit Life Plan from IndiaFirst Life Insurance?

IndiaFirst Life Insurance is a joint venture between Andhra Bank, Bank of Baroda and the Legal & General Group. The private life insurance company has a large presence across the country, serving clients through over 8,000 branches. The company provides a range of life insurance products to their customers, from savings plans to health and retirement options. The company also has a high claim settlement ratio and is known for its customer service. In addition, the company emphasises on putting their customers’ satisfaction and convenience above all else, which is seen through various measures.