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  • Tata AIA Life Insurance Fortune Maxima Plan

    Tata Aia Life Insurance
     

    The Tata AIA Life Insurance Fortune Maxima is a linked unit non participating life plan that allows you to maximize your investments to meet future financial needs. This innovative plan helps you realize your long term goals, be it purchasing a house, building a retirement plan or saving up for your children's future. This plan provides investment options along with the added benefit of providing life cover.

    Eligibility conditions

    Below are the eligibility conditions for Tata AIA Life Insurance Fortune Maxima

    1. The eligible age to purchase this policy is 30 days of age or 0 years. The maximum age at which this policy can be purchased is 60 years as at last birthday.
    2. This policy has a maximum maturity age of 100 years.
    3. The term of the policy is 100 years minus the age at which the life insurance policy is purchased.
    4. The base sum assured under this policy is 1.25 times the value of the single premium in case of single pay and for limited pay the base sum assured is the higher value of 10 times the annualised premium or the value of 0.5* the term of the policy * the annualised premium.

    Key Features

    Parameters

    Details

    Type

    Non participating Unit-linked insurance plan

    Basis

    Individual

    Policy term

    100 years minus the age of policyholder at time of purchase

    Validity of Policy

    Policy remains valid when premium payment is up to date.

    Coverage

    Maturity benefit: At the time of maturity the policyholder will receive the total fund value after the applicable NAV values have been assigned

     

    Death benefit: If policyholder dies during while the policy is in effect the nominee will receive the higher of either the base sum assured or 105% of the single premiums paid. The benefit will also include any the higher value of top up assured sum or 105% of the total premiums paid as top up

     

    Loyalty additions: These additions are credited after deduction of applicable charges and are at the rate of 0.20% for policies with regular pay option starting from the 11th year of the policy and continues upto the end of the policy term. The loyalty additions are 0.35% for policies with single pay and begin to get credited from the 6th policy year onwards to the end of the policy term.

    Free look

    Free look period is 15 days and 30 days in case the policy has been acquired through distance marketing or any means of purchase but not in person

    Assignment and Nomination

    This policy allows for assignment and nomination under the applicable provisions of the Insurance act of 1938

    Riders

    This policy provides riders that allow for greater coverage and customization

    Benefits and Advantages of Tata AIA Life Insurance Fortune Maxima

    This plan from Tata AIA Life aims to boost one's savings. this is done through utilizing a mix of different investment funds with varying exposure to risk. It also has a portfolio strategy that is employed to curb the risks of the volatile markets and safeguard your funds. The key advantages in opting for this plan can be mentioned in the following points -

    • The plan provides loyalty additions at periodic intervals that boost your corpus.
    • The investment funds available are varied and offer a diverse channel to invest the funds.
    • The policy is eligible for tax benefits as per the applicable income tax laws
    • The plan offers flexible modes of paying premiums. The policyholder need only pay for a limited time and enjoy benefits such as life cover for the entire duration of the policy.

    The key benefits under this policy is explained below -

    1. Maturity Benefit – If the policyholder survives to the date of maturity of the policy then they would be entitled to receive the total fund value after the applicable NAV values have been assigned.
    2. Death Benefit – In the unfortunate event that the policyholder dies while the policy is in effect the nominated beneficiary receives the death benefit which is the higher of either the regular/single premium fund value of the policy or 105% of the regular or single premiums paid. The higher value of either the top up premium fund value or 105% of the total premiums paid as top up will also be added to the death benefit and paid out to the nominee.
    3. Loyalty additions – The policy provides loyalty additions subject to applicable charges that are credited at regular intervals. The loyalty additions are 0.20% for a regular pay policy and is credited starting from the 11th year of the policy to the end of the policy. For a single pay policy, the loyalty additions are 0.35% p.a. These additions are made from the 6th policy year onwards and continues to the end of the policy term.
    4. Tax Benefit - This policy offers tax benefits. The premiums paid and the returns received are eligible for tax benefits under the applicable tax laws.

    Investment of Funds under Tata AIA Life Insurance Fortune Maxima

    This plan from Tata AIA Life is a unit linked plan that allows the policyholder to choose from a range of investment funds, each with a varying degree of risk and exposure. The policyholder can choose the funds that best suit his/her need. There are 6 investment fund options along with a portfolio strategy knowns as enhanced Systematic money allocation & regular transfer or SMART. The details of the investment funds are mentioned below

    Fund Name

    Allocation of Assets

    Minimum

    Maximum

    Risk

    Large Cap Equity Fund

    Money Market instruments

    0%

    20%

    High

     

    Equities and equity linked instruments

    80%

    100%

     

    Whole Life Mid Cap Equity Fund

    Money Market instruments

    80%

    100%

    High

     

    Equities and equity linked instruments

    0%

    20%

     

    Whole Life Stable Growth Fund

    Debt Instruments

    50%

    70%

    Low to medium

     

    Money Market instruments

    0%

    20%

     
     

    Equities and equity linked instruments

    30%

    50%

     

    Whole Life Aggressive Growth Fund

    Debt Instruments

    20%

    50%

    Medium to high

     

    Money Market instruments

    0%

    30%

     
     

    Equities and equity linked instruments

    50%

    80%

     

    Whole Life Income Fund

    Money Market instruments

    0%

    40%

    Low

     

    Debt instruments

    60%

    100%

     

    Whole Life Short-Term Fixed Income Fund

    Money Market instruments

    0%

    40%

    Low

     

    Debt instruments of less than 3 years in duration

    60%

    100%

     

    Charges in Tata AIA Life Insurance Fortune Maxima

    This insurance plan provides not just life cover but also an investment avenue. The services performed by the policy attract certain charges. The applicable charges on this policy are as follows -

    Charges

    Particulars

    Premium Allocation Charge

    The premium allocation charge for Single Premium Pay option the charge is 3% of the Single premium and for Regular pay, the first 2 payment terms attract a charge of 6% of the annualised premium for the first 2 premium payment terms, term 3 to 5 has a charge of 5.5%, term 6 to 7 has a charge of 4.5%, term 8 to 10 is 3.5% and 2% from 11th year onwards.

    Policy Administration Charge

    This policy attracts a policy administration charge of 0.90% p.a of the single premium for a single pay option policy and 0.75% p.a of the annualised premium for regular pay option. Charges for both types are throughout the term of the policy.

    Fund Management Charge

    0.65% p.a for Whole life short term fixed income fund

    0.80% p.a for Whole life income fund

    1% p.a for Whole life stable growth fund

    1.10% p.a for Whole Life Aggressive growth fund
    1.20% p.a for Large Cap equity fund

    1.20% p.a for Whole life mid cap fund

    Mortality Charge

    This charge is deducted every month from date of commencement of the policy and is calculated using formula = Sum at Risk * Mortality rate for the month calculated by the age of the policyholder.

    Discontinuance Charge

    The policy attracts a discontinuance charge. If discontinued before the first year the charge is a maximum of RS 6000, a maximum of RS 4000 for the 2nd year, a maximum of RS 4000 for the third year, a maximum of RS 2000 for the 4th year and is nil starting from the 5th year

    Partial Withdrawal Charge

    Nil

    Fund Switching Charge

    The policy provides 12 free switches every year after which each switch attracts a charge of RS 100

    Premium Redirection Charge

    Nil

    Riders

    This plan offers additional coverage in the form of riders. one can opt for this only at the time of commencement of the policy and the riders offer a comprehensive cover package. The details of the riders are mentioned below:

    Riders

    Particulars

    Accidental death and Dismemberment Linked Rider

    This rider is available for those policies with a premium payment term of above 7 years. The entry age for this rider is 18 years to 60 years. The nominee will receive the rider sum assured in case of policyholder’s death due to an accident. They receive a percentage of the sum assured if policyholder undergoes severe dismemberment. The rider sum is 50% of the basic sum assured if the premium payment term is 7 years, 100% for any other paying term.

    Waiver of Premium Linked Rider

    This rider is to waive any future premiums to be paid on the basic policy if policyholder is rendered totally and permanently disabled before they attain 65 years of age. The rider reaches maturity when policyholder attains 65 years of age and entry for this rider is between the ages of 18 to 60 years.

    Waiver of Premium Plus Linked Rider

    This rider is to waive any future premiums to be paid on the basic policy if policyholder is rendered totally and permanently disabled before they attain 65 years of age upon which the rider reaches maturity. Entry for this rider is between the ages of 18 to 57 years.

    Premium Payment for Tata AIA Life Insurance Fortune Maxima

    The details of premium payment for this plan can be summarised in the table below -

    Premium Parameter

    Details

    Premiums

    Minimum premiums for Single Pay are RS 1,00,000, and regular pay is RS 50,000 p.a. The maximum premium for single pay is is RS 5,00,000 and Regular/limited pay is RS 5,00,000 p.a.

    Paying Term for premiums

    Premiums can be paid as single pay orlas limited pay for a term of or 8 or 9 or 10 or 15 or 20 years.

    Premium Paying Mode

    Annually, Semi annually, Quarterly or Monthly options

    Premium Top Up

    Top ups can be paid throughout policy term except last 5 years. Minimum top amount is RS 5000. Each Top up premium has a lock in period of 5 years.

    Premium Discontinuation Scenario for Tata AIA Life Insurance Fortune Maxima

    If policyholder discontinues payment of premiums before completion of 5 years can either choose to revive the policy within 2 years from the date when the policy was discontinued or completely withdraw the policy without receiving any risk cover. If the policyholder discontinues the premium payment after 5 years of the policy commencing then they can either revive the policy within 2 years from the date of discontinuation, completely withdraw the the policy without receiving any risk cover or convert the policy into a reduced paid up wherein the policy will continue but the base sum assured will decrease. If the policyholder wants to withdraw the policy before the lock in period of 5 years, the value of the funds will be moved to a separate account held by the company. this account known as Discontinued policy fund II will be credited with the funds and these funds will accrue an interest of 4% p.a. After the lock in period these funds will be credited to the policyholder. If the withdrawal happens after the lock in period, the total value of the funds as on date of withdrawal will be credited to the policyholder.

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