Tata AIA Life Insurance Fortune Pro Plan

Tata AIA Life is a leading provider of innovative insurance and wealth management solutions. The Tata AIA Life Insurance Fortune Pro is a unique life insurance plan that offers upto 6 types of investment options along with a whole range of benefits that enable you to maximise your savings.

The Fortune Pro is a linked unit non participating life plan that allows for a greater control over your financial future. It enables you to secure a financially sound future to be able to meet various long term goals such as purchasing a home or leaving behind a legacy for your children.

Eligibility conditions

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

Criteria

Minimum

Maximum

Eligible age for purchase

0 years or 30 days

59 years as at last birthday

Age of maturity of policy

18 years as at last birthday

75 years as at last birthday

Term of Policy

15 years

40 years

Key Features

Parameters

Details

Type of plan

Non participating Unit-linked insurance plan

Basis of plan

Individual

Term of the policy

15 years minimum, 40 years maximum

Validity of Policy

Policy will continue to remain in effect provided all premiums have been paid

Coverage

Death benefit: Higher of the regular or the single premium fund value or 10 times the value of the annualised premium in addition with higher of the top up sum assured or 105% of the total premiums of top up

 

Maturity benefit: If policyholder survives to end of the policy term they receive total fund value which will be valued at the applicable NAV

 

Loyalty additions: for regular pay, 0.20% of the units available in each fund is credited on every policy anniversary starting from the 11th policy anniversary. For single pay, 0.35% is credited at every policy anniversary starting from the anniversary of the 6th year of the policy

Free look

Free look period is 15 days. Free look period will be 30 days if policy is bought through distance marketing

Assignment and Nomination

Assignment and Nomination is allowed under section 38 and 39 of the Insurance act of 1938 and is subject to amendment

Riders

Riders are available to further customize the product. They are Accidental Death and Dismemberment, Waiver of Premium and Waiver of Premium Plus.

Benefits and Advantages of Tata AIA Life Insurance Fortune Pro

This plan from Tata AIA Life utilizes either 6 investment funds or a portfolio known as enhanced SMART in order to aid in the growth of wealth and savings. It can be availed by anyone interested in securing their future financially. Life protection cover throughout the policy term is an added benefit. The key advantages in opting for this plan can be mentioned in the following points -

  1. The plan offers the flexibility in choosing how to pay premiums. It can be in the form of a single payment or can be chosen to be paid out in either a limited form or a regular form.
  2. Loyalty additions will be credited at every policy anniversary and credited starting from 6th policy anniversary in case of the single pay option.
  3. The policy enjoys the applicable income tax benefits.
  4. The investment fund options have a range of risk exposures that allow you to choose the right mix to maximise the growth of your funds.

The key benefits under this policy is explained below -

  1. Maturity Benefit – If the policyholder survives the entire term of the policy then at the date of maturity they would receive the total fund value at the applicable NAV.
  2. Death Benefit – Death benefit will be paid out to the nominee in case of death of the policyholder. The death benefit will be the higher of either the regular/single premium fund value of the policy or 105% of the regular or single premiums paid. This benefit will be paid out in addition with the higher of either the top up premium fund value or 105% of the total premiums paid as top up.
  3. Loyalty additions – The policy provides loyalty additions credited at regular intervals. If the policy is regular or limited pay, the loyalty additions are 0.20% of the units in each fund. These additions will be made starting from the 11th policy year and continues to the end of the policy term. If the policy is single pay, the loyalty additions are 0.35% of the units in each fund. These additions will be made starting from the 6th policy year and continues to the end of the policy term. All loyalty additions will be credited after the applicable charges have been levied.
  4. Tax Benefit - The investments made as payment of premiums for this policy are tax deductible as per Section 80C and the received benefits are also eligible for tax deductions under the prevailing income tax laws.

Investment of Funds under Tata AIA Life Insurance Fortune Pro

This unit-linked plan from Tata AIA Life comes with 6 investment fund options that offers risk exposure from low to high. The premiums paid will be accordingly invested in the chosen funds. The policy also offers a portfolio strategy called enhanced S.M.A.R.T (Systematic money allocation & regular transfer). The details of the investment funds are mentioned below

Name of Fund

Allocation of Assets

Minimum

Maximum

Risk

Whole Life Mid Cap Equity Fund

Equities and equity linked instrument

60%

100%

High

 

Money Market instruments

0%

40%

 

Large Cap Equity Fund

Equities and equity linked instruments

80%

100%

High

 

Money Market instruments

0%

20%

 

Whole Life Aggressive Growth Fund

Equities and equity linked instruments

50%

80%

Medium to high

 

Money Market instruments

0%

30%

 
 

Debt Instruments

20%

50%

 

Whole Life Stable Growth Fund

Equities and equity linked instruments

30.00%

50.00%

Low to medium

 

Money Market instruments

0%

20%

 
 

Debt Instruments

50%

70%

 

Whole Life Short-Term Fixed Income Fund

Debt instruments of less than 3 years in duration

60%

100%

Low

 

Money Market instruments

0%

40%

 

Whole Life Income Fund

Debt instruments

60%

100%

Low

 

Money Market instruments

0%

40%

 

Fortune Pro also has a portfolio strategy known as enhanced systematic money allocation and regular transfer or otherwise called enhanced SMART. This strategy is available only for Single Pay option policies and allows the policyholder to invest in the equities market in a structured manner reducing the volatility that these funds are exposed to. The funds will be invested in either debt oriented funds or equity oriented funds. It is free of charge and can be opted only at the time of commencement of the policy.

Charges in Tata AIA Life Insurance Fortune Pro

Being an insurance plan that invests funds into various assets to generate wealth on the investment made, the policy entails certain charges on particular assets of managing the funds. The applicable charges on this policy are as follows -

Charges

Particulars

Premium Allocation Charge

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

Policy Administration Charge

Single pay option – 0.90% p.a of the single premium throughout the term of the policy

Regular/Annualised pay – 0.75% of annualised premium throughout the term of the policy

Fund Management Charge

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

whole life income fund – 0.80% p.a

Whole life stable growth fund – 1% p.a

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

Whole life mid cap fund – 1.20% p.a

Mortality Charge

This charge is calculated as Sum at Risk * Mortality rate for the month calculated by the age of the policyholder. It is deducted at every policy month anniversary for both single and regular premium pay options.

Discontinuance Charge

For both single or regular premium pay policy, the charge for the first year is a maximum of RS 6000, year 2 is maximum of RS 5000, year 3 is maximum of RS 4000, Year 4 is RS 2000 and is nil from year 5 onwards

Partial Withdrawal Charge

No charges for partial withdrawals

Fund Switching Charge

12 free switches per policy year, RS 100 for every switch thereafter.

Premium Redirection Charge

No premium redirection charge

Riders

This policy offers riders that further customize the product and provide additional coverage. The charges of the riders are deducted from the basic plan and are available only during the time of purchase of the policy. The details of the riders are mentioned below:

Riders

Particulars

Accidental death and Dismemberment Linked Rider

Nominee receives sum assured in case of death by accident. They receive a percentage of the sum assured if policyholder undergoes severe dismemberment. The rider is available only for policies with a premium paying term of 7 years and above. For 7 year term the rider sum is 50% of the basic sum assured, 100% for any other paying term.

Waiver of Premium Linked Rider

This rider is to waive any premiums to be paid if policyholder is rendered totally and permanently disabled before they attain 65 years of age. This rider reaches maturity when policyholder attains 65 years of age. Entry for this rider is between the ages of 18 to 59 as at last birthday.

Waiver of Premium Plus Linked Rider

This rider is to waive any premiums to be paid if policyholder is rendered totally and permanently disabled before they attain 65 years of age. This rider reaches maturity when policyholder attains 65 years of age. Entry for this rider is between the ages of 18 to 57 as at last birthday.

Premium Payment for Tata AIA Life Insurance Fortune Pro

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, Maximum RS 5,00,000

Regular/limited pay – RS 50,000 p.a, Maximum RS 5,00,000 p.a

Premium Paying Term

Single Pay, Limited Pay (5,7 or 10 years), Regular Pay (15 or 20 years)

Premium Paying Mode

Monthly, every 3 months, half yearly or yearly and single pay options

Premium Top Up

Minimum amount is RS 5000 which could be paid anytime before last 5 years of policy term

Premium Discontinuation Scenario for Tata AIA Life Insurance Fortune Pro

If policyholder discontinues payment of premiums before or after 5 years from policy commencement, he/she can either revive the policy within 2 years by paying the due premiums or withdraw the policy. The funds will incur a discontinuation charge. Upon full withdrawal of the policy within the first five years or the lock in period, the fund value at the date of withdrawal will be shifted to a Discontinued Policy Fund II and the interest rate applicable on this fund is 4% per annum. The funds shall be paid out at the end of the lock-in period of five years. If the policy withdrawal happens after 5 policy years, the fund value will be paid out immediately.

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GST of 18% is applicable on life insurance effective from the 1st of July, 2017

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