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Knowledge Base Life Insurance Investment / Pension Tata AIG InvestAssure Flexi Supreme Review
Friday, 26 August 2011 16:32

Tata AIG InvestAssure Flexi Supreme Review

Written by  Yashish Dahiya
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Tata AIG InvestAssure Flexi Supreme Review 


Plan Name: InvestAssure Flexi Supreme

Insurer: Tata AIG Life Insurance Company Limited

Category: Unit Linked Insurance Plan

Objective: Financial protection of family and good return on investment


Tata AIG InvestAssure Flexi Supreme Plan is a Type I ULIP which means that under the death clause, you are entitled to either Sum Assured or Fund Value or 105% of premiums paid whichever is higher.

You can increase or decrease the basic Sum Assured as per your requirements.


There are also many investment options available with the plan. You can choose the required option and balance the risks associated with the equity and debt market. There are no charges for partial withdrawal and premium redirection.


Benefits of Tata AIG InvestAssure Flexi Supreme


Maturity: The fund value as on maturity date will be provided to you.


Settlement Option: Instead of lump sum amount on maturity, you can choose to receive the amount in installments over the next few years.


Riders: The riders pay additional amount on occurrence of an eventuality. The riders available with InvestAssure Flexi Supreme are Accidental death, Accidental death and dismemberment, Critical Illness, Payor benefit, surgical benefit, Family income benefit rider.


Eligibility for Tata AIG InvestAssure Flexi Supreme


Minimum Entry Age: 4 Years

Maximum Entry Age: 60 Years

Maximum Age at Maturity: 75 Years

Policy Term: 15-40 Years

Premium Paying Term: Policy Term

Minimum Premium: Rs 20,000 Annual Mode


Returns in Tata AIG InvestAssure Flexi Supreme


Any ULIP’s performance is directly dependent on the performance of the fund which in turn depends upon equity and debt market. If the market is rising, it will automatically reflect on your returns.


Tata AIG has seven funds available ranging from conservative to aggressive. If you have higher risk appetite and are for long term you can opt for aggressive fund. On the other hand, if you have limited investment period, you should go for conservative fund.


In a typical scenario, you will be able to get at least 10% return on investment. The investment risk is borne by the policyholder.


What charges does Tata AIG InvestAssure Flexi Supreme deduct and how much?


The premium amount paid by you is not invested directly. Initially, some charges are deducted and then units of the fund are bought. The rest of charges are deducted by cancellation of the units.


Premium Allocation Charges: These charges are deducted as percentage of premium. Insurer deducts these charges on account of expenses incurred by the company – medical examination, policy issuance, underwriting bills. Premium allocation charges vary from 3% to 1% of annual premium. There is no premium allocation charges 16th year onwards.


Fund Management Charge: Charge ranging from 0.65% to 1.20% is deducted from the units for fund management.


Policy Administration Charge: These are monthly deductions which start from first month and are for maintaining the policy- paperwork, work force etc.  The policy administration charge is dependent on the premium band.

 

Mortality Charge:These are charges deducted as a part of life cover provided and are recovered through cancellation of units.

 

Other Charges: There is charge for switches after the limited free number have been utilized.


Are there any tax benefits?


Under Section 80C you can avail tax benefit, yearly premium (not more than 1lac) will be deducted from taxable income.

Under Section 10(10D) death claim is completely tax free.

 

What else should I know about?


Top-Up premium: This is the additional premium which can be added above the usual premium to get more units if you think the particular fund is providing good returns. Top-Up can be made after 1st policy year and not in last 5 policy years. The minimum Top-Up in InvestAssure Flexi Supreme is Rs 5,000.

 

Switch: Switch is made to transfer the fund value from one fund to another. You can make twelve free switches per year.

 

Partial Withdrawal: If policyholder is above 18 years partial withdrawal can be made and the minimum amount is Rs 5,000 and fund value equal to one year annual premium shall always be maintained. Four partial withdrawals can be made per year and are free.

 

Grace period: InvestAssure Flexi Supreme can be renewed within 30 days from the premium due date. Additional 30 days are given after notice has been sent to revive or discontinue the policy.

 

What to do?


To Cancel Policy: InvestAssure Flexi Supreme plan can be cancelled within 15 days of receiving the policy contract. A written application can be submitted to any branch for the same. The premium will be paid back minus some charges like stamp duty, medical reports.

 

If you want to cancel policy after the initial period of 15 days, you can do it but the amount will be paid only after lock in period years. If you cancel policy within 5 years from inception, the amount will grow at interest rate of 3.5% compounded annually. After five years, if you cancel the policy, there will be no cancellation charges and amount will be paid immediately.

 

Compare Returns in Investment Plans!!

How much will you get?

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