TATA AIA Life Insurance Fortune Guarantee Plan

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TATA AIA Life Insurance Fortune Guarantee Plan Review

TATA AIA Life Insurance Fortune Guarantee Plan is a traditional, non-participating Endowment Insurance Plan where the maturity benefit is guaranteed.


Highlights of the TATA AIA Life Insurance Fortune Guarantee Plan

  • This is a traditional Endowment Plan which does not participate in bonus declarations. 
  • Premiums under the plan are paid only for a limited tenure which is fixed for 5 years.
  • The Maturity Benefit payable under the plan is guaranteed and is expressed as a percentage of the total premiums paid. 
  • Riders are available under the plan for a more comprehensive coverage.
  • Female lives are entitled to higher benefits.


Working of the TATA AIA Life Insurance Fortune Guarantee Plan

  • The policyholder chooses the amount of premium he wants to pay.
  • The Basic Sum Assured is then determined as 10 times the annual premium paid. 
  • On death during the period, the death benefit is paid.
  • On maturity, the maturity benefit is paid which is guaranteed and depends on the total premiums paid.


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Benefits and Features of TATA AIA Life Insurance Fortune Guarantee Plan

  • Maturity Benefit – When the plan matures and the premiums have been duly paid, the Maturity Sum Assured is paid which is calculated as follows:
    Maturity benefit factor * total premiums paid
    The maturity benefit factor depends on the sex, entry age and the amount of premium paid and is as follows:
For males:
Entry Age Premium Range
Rs.50,000 to Rs.74,999 Rs.75,000 to Rs.99,999 Rs.1 lakhs to Rs.499,999 Rs.5 lakhs to Rs.999,999 Rs.10 lakhs and above
8 to 15 years 146% 150% 154% 156% 158%
16 to 20 years 145% 149% 153% 155% 157%
21 to 25 years 144% 148% 152% 154% 156%
26 to 30 years 143% 148% 151% 153% 155%
31 to 35 years 143% 146% 150% 152% 154%
36 to 40 years 141% 145% 149% 151% 153%
41 to 45 years 140% 144% 149% 150% 152%
46 to 50 years 139% 143% 147% 149% 151%
51 to 55 years 138% 141% 145% 149% 149%

For Females
Entry Age Premium Range
Rs.50,000 to Rs.74,999 Rs.75,000 to Rs.99,999 Rs.1 lakhs to Rs.499,999 Rs.5 lakhs to Rs.999,999 Rs.10 lakhs and above
8 to 15 years 147% 151% 155% 157% 159%
16 to 20 years 146% 150% 154% 156% 158%
21 to 25 years 145% 149% 153% 155% 157%
26 to 30 years 144% 149% 152% 154% 156%
31 to 35 years 144% 147% 151% 153% 155%
36 to 40 years 142% 146% 150% 152% 154%
41 to 45 years 141% 145% 150% 151% 153%
46 to 50 years 140% 144% 148% 150% 152%
51 to 55 years 139% 142% 146% 150% 150%
 
  • Death Benefit – If the insured dies during plan term and the policy is in-force, Sum Assured on Death is paid. The Sum Assured on Death under the plan would be higher of the following:
    • Maturity Sum Assured 
    • Basic Sum Assured 
    • 105% of total premiums paid till death 
  • Bonus – The plan does not earn bonuses as it is a non-participating plan. 
  • Loan –Loans are available under the plan up to a maximum of 65% of the acquired Surrender Value as on the date of loan. 
  • Tax benefit – Premiums paid under the plan would be exempt from tax under Section 80C up to a limit of Rs.1.5 lakhs. The death benefit or the maturity benefit received and the Survival benefit received would also be tax exempt under Section 10(10D) of the Income Tax Act.


Eligibility Criteria of TATA AIA Life Insurance Fortune Guarantee Plan

The plan can be bought only by Resident Indians. The other eligibility criteria of the plan includes:
  Minimum Maximum
Entry age (Last Birthday) 8 years 55 years
Maturity Age (Last Birthday) NA 65 years
Plan tenure 10 years
Premium payable Rs.50,000 No limit
Premium Paying Term (PPT) 5 years
Sum Assured 10 times the annual premium
Premium payment mode Monthly, quarterly, half-yearlyand annually



Additional Benefits of TATA AIA Life Insurance Fortune Guarantee Plan

  • Riders –The TATA AIA Life Insurance Accidental Death and Dismemberment (Long Scale) Rider is available under the policy for enhanced benefits. 
  • Grace Period – A grace period of 30 days is allowed for payment of premium after the due date for all modes except monthly mode where the allowed period is 15 days. The life cover under the policy would continue during the grace period.
  • Free Look Period – A cooling off period or a free look period of 15 days (30 days for distance marketing channels) is granted to the policyholder after the policy issuance to review the policy terms and conditions. If found unsatisfactory, the plan can be cancelled within this period and the premium paid would be refunded after deducting the relevant mortality charge, service tax, cess and stamp duty paid.


Exclusions in TATA AIA Life Insurance Fortune Guarantee Plan

  • If the insured commits suicide within a year of policy issuance, the premiums paid would be refunded and the policy would become void.
  • If suicide is committed within a year of policy revival, higher of the premiums paid till death or the Surrender Value acquired would be paid provided the policy is in force


Non-Payment of premium in TATA AIA Life Insurance Fortune Guarantee Plan

Premiums have to be paid for at least two full years otherwise the policy lapses and no benefit is payable. After this compulsory period, the policyholder can surrender the policy or make it paid-up if the premiums are not paid. 

Making the policy Paid-up

If at least two full years’ premium has been paid, the policy would become a paid-up policy if future premiums are not paid. The facility of loan cannot be availed in a paid-up policy. The benefits payable under the plan would be reduced and called Paid-up Benefits which are calculated as follows:
  • Death Benefit – The death benefit would be reduced and calculated as follows:
    {Sum Assured on Death *(number of premiums paid/total number of premiums payable)} subject to a minimum of 105% of all premiums paid till death
  • Maturity Benefit – The maturity benefit would be the Maturity Sum Assured.


Surrendering the policy

Surrender is allowed only after the policy becomes paid-up, i.e. after two full year’s premiums have been paid. On surrendering the policy, higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV) would be paid.
  • GSV would depend on the policy year in which the plan is surrendered and is expressed as follows:
    (Total premiums paid* GSV Factor of premiums)
  • The SSV factors would be declared by the company based on its performance and would be calculated as follows:
    SSV Factor *Maturity Sum Assured


Revival

Revival is allowed within 2 years from the date of the first unpaid premium. The policyholder would be required to pay the outstanding premium and any interest charged by the insurer to revive his policy.



 
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