» IndiaFirst Money Balance Plan : automatic trigger-based ULIP

IndiaFirst Money Balance Plan : automatic trigger-based ULIP

IndiaFirst Money Balance Plan is a unit linked savings plan that helps you save for the future, while limiting your exposure to market fluctuations.

IndiaFirst Money Balance Plan offers you an insurance cover on your life and additionally helps you earn and secure returns on the money that you invest.

With ‘automatic trigger-based’ investment strategy, IndiaFirst helps you save systematically and transfer the earnings on your investment in a relatively safe fund that gives consistent returns. Most importantly, the life cover promises the sum assured in case of the life assured’s unfortunate demise.

You can optimize your investments with the help of ‘automatic trigger-based’ investment strategy. IndiaFirst helps in building your savings systematically while securing the earnings on your investment through an automatic transfer in relatively safe funds that give consistent returns.

You may pay your premium(s) either regularly or for a limited period of time or through a single payment.

The plan offers a life cover in case of the life assured’s unfortunate demise. You can also get easy access to your money by being able to withdraw partially.

Under Section 80C you can enjoy Tax Benefits on the premium that you invest. You also get tax benefits on the benefits that you receive on maturity of your plan, under Section 10(10D)

You can make the most of your investments by ‘switching’ from one fund to another.
There are two funds : Equity1 and Debt1 Fund, available under this plan.

All your premiums (net of charges) are allocated either under the Equity1 Fund or Debt1 Fund. In respect of investment in Equity1 Fund we will automatically transfer the earnings on your investment in Equity1 Fund to Debt1 Fund based on a predefined trigger (rate of return).

What is “automatic trigger-based”?

Let us start with an example.

Assume that the fund value is now at 23,350 which is higher than 110% of the net amount in the Equity1 Fund (assumed you have Rs. 20,510 available after deductions on the premium paid). In such case, 2,840 (23,350- 20,510) shall be transferred to Debt1 Fund through the automatic trigger based transfer.

Thus, the policy holder will be able to enjoy and secure up to a certain extent the upswings in fund value due to market linked performance of the Equity1 Fund by switching the gains from the equity fund to a relatively safe Fund.

The customer will have the flexibility to cancel the automatic trigger based transfer option for future transactions after duly informing the company through a formal request.

You are allowed to make 52 free switches in a plan year. However, the unused free switches cannot be carried forward to the next plan year.

Can i withdraw Partially?
You may access your money in case of any emergency, by withdrawing partially. Partial withdrawal is allowed after life assured attains age 18 years (in case of minor). There are no partial withdrawal charges applicable

If you miss paying your premiums, you are entitled to use one of the following options –

Option 1: Revival of the plan, or
Option 2: Complete withdrawal from the plan without any risk cover

In case you have not paid your premiums, we will send you a notice within 15 days from the date of expiry of the grace period and ask you to use the options mentioned above, within 30 days. You have to use the preferred option within 30 days from the date of receipt of notice. If we have not received any communication from you at the end of 30 days from the receipt of the notice by you, we will believe it as your wish to use option 2 for complete withdrawal from the plan without any risk cover.

During this period your plan will be in force and mortality and other charges will continue to be applied. In case of death during this period (i.e. before
exercising any of the above options) the benefit payable is the same as described earlier.

You can revive your plan within a specified period by
a. Simply paying the pending premium amount
b. Begin the payment of premiums

The revival is subject to satisfactory medical and financial underwriting. You will be required to bear medical cost, if any.

Do you get guaranteed returns from any of the funds mentioned in your plan?
No. None of our Funds (Equity1 or Debt1) offer a guaranteed or assured return. The past performance of our other funds does not necessarily indicate the future performance of any of these funds.

Overall, this is a new type of plan, which automatically switches the gain to a secured fund. If opted for this, it would be beneficial as we know debt funds are more secure funds which are invested in bonds. One bad about this plan is, it doesn’t allow you play with multiple funds. Apart from this, the charges are high, like an example if premium paid for 30,000 the amount available for policy holder is 20,510, which is a lot of loss.

Again this is ULIP plan, market risks are more and there is no gaurantee of any fixed NAV.