Creating a successful enterprise goes beyond individual effort, for it is the work of a group which contributes to the overall performance of any entity. The IndiaFirst Group Term Plan is designed to provide protection and a sense of belonging to members of different groups, ensuring that their welfare is taken care of. Not only does this pure term plan help improve the morale of employees, it helps employers/group heads retain talent and create a better environment.
This plan is designed to meet the expectations of different groups, subject to them satisfying a few basic criteria.
|Parameters||Criteria for eligibility|
|Minimum age at entry||18 years for employer-employee groups 14 years for other groups|
|Maximum age at entry||70 years|
|Minimum group size||50 members|
Sum Assured – The plan provides protection to members of the group, with the amount determined by taking the premium into consideration. While the minimum cover is Rs.5,000 per member, the master policyholder can choose to increase this to a maximum of Rs.5 crore per member, based on the organisation’s requirements.
|Minimum sum assured (per member)||Rs.5,000|
|Maximum sum assured (per member)||Rs.5 crore|
Premium Range – The premium amount determines the cover provided to members. The master policyholder should ensure that the premium amount is in line with the budget of the organisation. While some master policyholders pay the amount through a separate budgetary allocation, certain others might ask members to contribute to the premium. The premium can be paid either every month, each year, or every six months.
|Premium payment frequency||
*The premium varies based on the age of policyholder, sum assured, location, etc. With the implementation of GST the price of purchasing a policy has increased. Please check all rates at the time of purchase.
|Death Benefit||IndiaFirst will pay a death benefit through the master policyholder. The amount payable depends on the cover chosen. The master policyholder in turn pays the amount to the nominee.|
|Maturity Benefit||There is no maturity benefit under this plan.|
There is a suicide exclusion under this plan. According to this exclusion, the insurer will not pay any sum assured if a new member commits suicide within 1 year of gaining membership into the plan. This exclusion applies only to individuals who have not been a member previously. In case any other member commits suicide, the insurer will pay a certain amount as sum assured.
Other Key Features
|Grace period||30 days|
|Revival||A policy can be revived by paying the premium amount within a specified period of time.|
|Plan type||Pure term plan|
The IndiaFirst Group Term Plan provides tax benefits not just to the master policyholder, but also to the members of the group. In case the entire premium is paid by the master policyholder without any contribution from the members, he/she can avail benefits under Section 37(1) of the Income Tax Act. The entire amount paid by him/her qualifies for deduction.
In case members of the group make a contribution to the premium, the master policyholder cannot avail any tax benefits. Members, however, are eligible for benefits under Section 80C of the Act.
The amount received as a death benefit is free from tax, as per provisions under Section 10(10D) of the Act.
Note that the tax laws can change from time to time. It is recommended to consult a tax expert in order to utilise all the benefits provided by the government.
This is an ideal plan for groups of different sizes and definitions. While most group plans do not provide an option to customise them, a master policyholder has additional power when it comes to this policy. The plan provides flexibility in terms of adding new members, as and when they join a particular organisation.
The plan can be renewed each year, with it easy to complete the formalities.
IndiaFirst insurance company, as an organisation brings expertise in the field, having won numerous awards since its inception in 2010. As an ISO 9001:2008 certified company one can be rest assured about the quality of services and products it provides.
The grievances solved ratio of the insurer stood at an impressive 98.82% during the year 2015-16, highlighting their dedication towards customer satisfaction. Given these points purchasing this policy can be a smart move for organisations.