IndiaFirst Life Insurance Company has launched two equity-linked insurance products (or ULIPs), which are in compliance with the new IRDA guideline and also plans to launch more products (which will be a mix of ULIP, health and traditional products) in the following months.
The products are –
- IndiaFirst Smart Save Plan and
- IndiaFirst Young India Plan
They both provide insurance cover as well as market linked investments growth. In other words these products will cater to the needs of customers who are looking for long term protection coupled with wealth creation. They offer the option of partial withdrawals and portability facilities amongst others.
About the company:
IndiaFirst is a joint venture life insurance company promoted by Bank of Baroda and Andhra Bank, India and UK’s Legal & General.
The company has already activated all 4,500 bank branches and plans to strengthen its distribution network by launching its alternate channels shortly.
What the IRDA Guidelines state?
As per the new IRDA guidelines effective from September 1, the commission paid to distributors and expenses charged by insurers will no longer be front-loaded and will be distributed over the lock-in period of the schemes, which has been raised to five years from three years earlier.
What is the current scenario?
Currently ULIP products account for about 80(%) per cent of the total premium collected by the 23 private life insurance companies.
How does the Guideline work?
Under the new guideline, IRDA has fixed the floor on guaranteed returns from ULIP pension plans at 4.5 per cent, which will greatly benefit policyholders saving up for retirement.
Benefits of the new Guideline regarding ULIPs:
The new guidelines from the Insurance Regulatory and Development Authority (IRDA) would protect ULIP-holders from mis-selling by agents and heavy commissions are likely to make the equity-linked instruments more investor-friendly.
Know more about insurance and individual Product.
Possibly Related Posts:
- IndiaFirst Maha Jeevan Plan – Key Features
- India First Money Balance Plan – Key Features
- IndiaFirst Retirement Benefits Plan – Key Features
- IndiaFirst Employee Benefits Plan – Key Features
- IndiaFirst Group Credit Life Plan – Features
- IndiaFirst Group Term Plan – Features
- IndiaFirst Annuity Plan – Features
- IndiaFirst Secure Save Plan – Features
- IndiaFirst Simple Life Plan – Features
- IndiaFirst Life Plan – Features