ageas federal platinum wealth builder plan
Is the Ageas Federal Platinum Wealth Builder Plan truly a wealth-building gem — or just another ULIP polished with marketing shine?
Does the Ageas Federal Platinum Wealth Builder Plan truly justify its premium tag — or are there better ULIPs offering more transparency and growth?
Is the Ageas Federal Platinum Wealth Builder Plan a smart long-term wealth strategy — or a complex product disguised as a simple investment?
In this review, let’s explore its features and take a closer look at its advantages and disadvantages.
What is the Ageas Federal Platinum Wealth Builder Plan?
What are the features of the Ageas Federal Platinum Wealth Builder Plan?
Who is eligible for the Ageas Federal Platinum Wealth Builder Plan?
What are the benefits of the Ageas Federal Platinum Wealth Builder Plan?
What are the charges in the Ageas Federal Platinum Wealth Builder Plan?
Grace Period, Discontinuance and Revival of the Ageas Federal Platinum Wealth Builder Plan
Free Look Period for the Ageas Federal Platinum Wealth Builder Plan?
Surrendering the Ageas Federal Platinum Wealth Builder Plan
What are the advantages of the Ageas Federal Platinum Wealth Builder Plan?
What are the disadvantages of the Ageas Federal Platinum Wealth Builder Plan?
Research Methodology of Ageas Federal Platinum Wealth Builder
Benefit Illustration – IRR Analysis of Ageas Federal Platinum Wealth Builder
Ageas Federal Platinum Wealth Builder Vs. Other Investments
Ageas Federal Platinum Wealth Builder Vs. Pure-term + PPF/Equity Mutual Fund
Final Verdict on the Ageas Federal Platinum Wealth Builder Plan
Ageas Federal Platinum Wealth Builder Plan is a Unit-Linked, Non-Participating, Individual Life Insurance Plan. It ensures your dreams are fulfilled irrespective of eventualities. It offers life cover as well as guaranteed payouts to fulfil all your dreams.
| Criteria | Minimum/ Maximum | Platinum Wealth Builder |
| Age at entry | Minimum | Base plan: 0 years (91 days) Spouse Cover (if opted): 18 years (for both lives) |
| Maximum | 60 years | |
| Maturity age | Minimum | 18 years |
| Maximum | 75 years | |
| Policy term | Minimum | 12 years |
| Maximum | 25 years | |
| Premium paying term | 6/8/10/12/15 years | |
| Premium | Minimum | Yearly: Rs. 2,40,000 Half Yearly: Rs. 1,20,000 Monthly: Rs. 20,000 |
| Maximum | No Limit (subject to Board-approved underwriting policy) | |
| Premium Payment Mode | Yearly / Half-Yearly/ Monthly | |
| Death Sum Assured | Minimum | Life Assured: Rs. 24,00,000 Second Life (if Spouse Cover is chosen): Rs. 2,40,000 |
| Maximum | Life Assured: No limit, Subject to Board-approved underwriting policy Second Life (if Spouse Cover is chosen): 5 times the Annualised Premium |
On survival of the life assured till the date of Maturity, Fund Value (inclusive of Wealth Boosters, Loyalty Additions and Return of Charges) shall be payable on the date of Maturity, provided the Ageas Federal Platinum Wealth Builder Plan policy is in force till that date.
Wealth Boosters
Wealth Boosters of 2.0% of the instalment premium shall be added to your fund at the time of allocation of premium from the 6th policy year till the end of the premium paying term, provided all premiums due till date are paid within the corresponding policy year.
Loyalty Additions
Loyalty Additions of 8.0% of annualised premium shall be added to your fund at the end of every 3 years starting from the end of the 9th policy year till the end of the Ageas Federal Platinum Wealth Builder Plan policy term, provided all premiums due till date are paid and the policy is in force.
Return of Charges
On survival of the Life Assured till the date of Maturity and provided all due premiums are paid till date, sum of all premium allocation charge and mortality charge with respect to Life Assured (inclusive of any extra mortality charge), deducted during the policy term (excluding Goods and Service Tax (GST) and cess, as applicable) shall be added to the Fund Value at maturity.
On the death of Life Assured during the Ageas Federal Platinum Wealth Builder Plan policy term, the following Death Benefit shall be payable, provided all premiums due till date are paid: Death Benefit shall be the higher of:
The plan offers two investment strategies.
You may decide to invest in any of the funds (except the discontinued policy fund) and change them from time to time, as per your wish.
This option is suitable only if you know precisely where you wish to invest and you have the time & inclination to manage your investments from time to time.
The plan offers nine unit-linked funds. You may choose one or more unit-linked funds based on your risk profile. Unit-linked funds invest in equity and/or debt as per their investment objectives.
| Asset Class | |||||
| S.no | Fund Name | Equities and Equity-linked instruments | Fixed Income Investments | Money Market Investments | Risk Profile |
| 1 | Equity Growth Fund | 50-100% | 0 | 0-50% | High |
| 2 | Midcap Fund | Large cap – 0-50% Mid cap – 50-100% | 0 | 0-50% | High |
| 3 | Multicap Fund | 50-100% | 0 | 0-50% | Moderate to High |
| 4 | Momentum Growth Fund | 90-100% | 0 | 0-10% | High |
| 5 | India Sector Leaders Fund | 90-100% | 0 | 0-10% | High |
| 6 | Pure Fund | 80-100% | 0 | 0-20% | High |
| 7 | Bond Fund II | 0 | 50-100% | 0-50% | Moderate |
| 8 | Aggressive Asset Allocator Fund | 50-100% | 0-50% | 0-50% | High |
| 9 | Moderate Asset Allocator Fund | 0-50% | 50-100% | 0-50% | High (Moderately high – compared to Aggressive Asset Allocator) |
You have the option to choose the Systematic Allocator at the inception of the plan or switch to this option on any policy anniversary.
Under this programmed investment solution, the fund mix becomes more conservative as the investment goal approaches.
The funds are invested in the Equity Growth Fund and Bond Fund II based on the residual time to maturity of the plan.
This strategy moves the fund allocation towards Bond Fund II as the plan approaches the maturity date. By reducing exposure to the Equity Growth Fund, the risk of a sudden drop in the equity market affecting the accumulated value diminishes.
| Balance / Residual time to maturity of the plan (in years) | Proportion allocated to Equity Growth Fund | Proportion allocated to Bond Fund II |
| 1 | 5% | 95% |
| 2 | 10% | 90% |
| 3 | 15% | 85% |
| 4 | 20% | 80% |
| 5 | 25% | 75% |
| 6 | 30% | 70% |
| 7 | 35% | 65% |
| 8 | 45% | 55% |
| 9 | 50% | 50% |
| 10 | 55% | 45% |
| 11 | 60% | 40% |
| 12 | 65% | 35% |
| 13 | 70% | 30% |
| 14 | 75% | 25% |
| 15 & above | 80% | 20% |
Premiums are allocated to the funds after deducting the Premium Allocation Charge. Premium allocation charge as a percentage of instalment premiums is as below:
| Premium Allocation Charge as % of Instalment Premium | Year 1 – 5 | Year 6+ |
| 5.00% | Nil |
Policy Administration charges are Nil.
The mortality rate is determined as per the age (in years) and gender of the Life Assured at the beginning of the month for which the mortality charge is being calculated.
| Fund Name | Fund Management Charge (p.a.) |
| Equity Growth Fund | 1.35% |
| Midcap Fund | 1.35% |
| Multicap Fund | 1.35% |
| Momentum Growth Fund | 1.35% |
| India Sector Leaders Fund | 1.35% |
| Pure Fund | 1.35% |
| Bond Fund II | 1.25% |
| Aggressive Asset Allocator Fund | 1.35% |
| Moderate Asset Allocator Fund | 1.35% |
| Discontinued policy fund | 0.50% |
There are currently no charges for switching between funds.
There are currently no charges for partial withdrawals
The discontinuance charge will be decided based on the policy year in which the Ageas Federal Platinum Wealth Builder Plan policy is discontinued and the premium amount. There is no discontinuance charge after the 5th policy year.
Inference from the charges: These charges apply throughout the Ageas Federal Platinum Wealth Builder Plan policy term. Each time you pay a premium, a portion is deducted toward these charges, reducing the actual amount invested and directly affecting your final corpus.
Although some charges are refunded at maturity, the potential compounding benefit on those deducted amounts is lost.
The grace period for payment of the premium shall be 15 days, where the Ageas Federal Platinum Wealth Builder Plan policyholder pays the premium on a monthly basis and 30 days in all other cases.
Discontinuing premiums within five years of the policy commencement date: the fund value after deducting the applicable discontinuance charges shall be credited to the discontinued policy fund, and the risk cover and rider cover, if any, shall cease
Discontinuing premiums after five years from the policy commencement date: the policy shall be converted into a reduced paid-up policy with the paid-up sum assured, i.e. original sum assured multiplied by a ratio of “total period for which premiums have already been paid” to the “maximum period for which premiums were originally payable”
Revival period is the period of three consecutive complete years from the date of the first unpaid premium during which period you are entitled to revive the policy, which was discontinued due to the non-payment of premium.
In case you do not agree to any of the Ageas Federal Platinum Wealth Builder Plan policy terms and conditions, or otherwise and have not made any claim, you have the option to return the policy within a free look period of 30 days beginning from the date of receipt of the policy document (whether received electronically or otherwise).
If you surrender the policy during the lock-in period, the unit fund value after deducting applicable discontinuance charges shall be credited to the discontinued policy fund, and risk cover and rider cover, if any, shall cease.
The proceeds of the discontinued policy fund shall become payable at the end of the lock-in period
In case you surrender the Ageas Federal Platinum Wealth Builder Plan policy after the lock-in period, the surrender value shall be at least equal to the unit fund value as on the date of surrender.
The primary goal of market-linked investments is to generate better long-term returns.
To evaluate the potential of the Ageas Federal Platinum Wealth Builder Plan, let’s examine a case study presented in the policy brochure, supported by an Internal Rate of Return (IRR) analysis.
This will help assess the plan’s effectiveness and compare it with alternative investment options.
Consider a 35-year-old male purchasing the Ageas Federal Platinum Wealth Builder Plan with a sum assured of ₹50 Lakhs. The policy term is 20 years, with a premium payment term of 10 years and an annual premium of ₹5 Lakh.
| Male | 35 years |
| Sum Assured | ₹ 50,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 5,00,000 |
At the end of the Ageas Federal Platinum Wealth Builder Plan policy term, the fund value — inclusive of wealth boosters, loyalty additions, and return of charges — becomes payable, provided all premiums are paid regularly.
According to the brochure, the projected fund values are based on assumed returns of 4% and 8%, which are not guaranteed and may vary depending on market performance and policy charges.
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 36 | 2 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 37 | 3 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 38 | 4 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 39 | 5 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 40 | 6 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 41 | 7 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 42 | 8 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 43 | 9 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 44 | 10 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 45 | 11 | 0 | 50,00,000 | 0 | 50,00,000 |
| 46 | 12 | 0 | 50,00,000 | 0 | 50,00,000 |
| 47 | 13 | 0 | 50,00,000 | 0 | 50,00,000 |
| 48 | 14 | 0 | 50,00,000 | 0 | 50,00,000 |
| 49 | 15 | 0 | 50,00,000 | 0 | 50,00,000 |
| 50 | 16 | 0 | 50,00,000 | 0 | 50,00,000 |
| 51 | 17 | 0 | 50,00,000 | 0 | 50,00,000 |
| 52 | 18 | 0 | 50,00,000 | 0 | 50,00,000 |
| 53 | 19 | 0 | 50,00,000 | 0 | 50,00,000 |
| 54 | 20 | 0 | 50,00,000 | 0 | 50,00,000 |
| 55 | 73,20,290 | 1,30,42,564 | |||
| IRR | 2.47% | 6.28% | |||
At a 4% return, the estimated fund value is ₹73.20 Lakhs, resulting in an IRR of 2.47% as per the Ageas Federal Platinum Wealth Builder Plan maturity calculator, which is lower than typical savings account rates.
At an 8% return, the projected fund value is ₹1.30 Crores, translating to an IRR of 6.28% as per the Ageas Federal Platinum Wealth Builder Plan maturity calculator, which is comparable to or even lower than long-term bank fixed deposit returns.
Despite being a 20-year investment, the plan’s returns may struggle to outpace inflation, making it unsuitable for achieving long-term financial goals where inflation-adjusted growth is crucial.
The relatively low returns from the Ageas Federal Platinum Wealth Builder Plan make it unsuitable for long-term financial goals.
The same premium amount can be utilised more efficiently by separating insurance and investment components to achieve better returns and greater flexibility. Let’s revisit the same scenario with a more efficient approach.
A pure-term life insurance policy offering a sum assured of ₹50 Lakhs costs an annual premium of ₹10,800 for a 20-year policy term with a 10-year premium payment period.
This leaves ₹4,89,200 per year available for investment, which can be allocated based on your risk tolerance.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 50,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 10,800 |
| Investment | ₹ 4,89,200 |
Investment Options:
Low-risk investors can choose debt instruments such as the Public Provident Fund (PPF).
High-risk investors may prefer equity instruments, like Equity Mutual Funds.
For comparison, let’s assume investments in both a PPF and an equity mutual fund.
| Term Insurance + PPF | Term insurance + Equity Mutual Fund | ||||
| Age | Year | Term Insurance premium + PPF | Death benefit | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 35 | 1 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 36 | 2 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 37 | 3 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 38 | 4 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 39 | 5 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 40 | 6 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 41 | 7 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 42 | 8 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 43 | 9 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 44 | 10 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 45 | 11 | 0 | 50,00,000 | 0 | 50,00,000 |
| 46 | 12 | 0 | 50,00,000 | 0 | 50,00,000 |
| 47 | 13 | 0 | 50,00,000 | 0 | 50,00,000 |
| 48 | 14 | 0 | 50,00,000 | 0 | 50,00,000 |
| 49 | 15 | 0 | 50,00,000 | 0 | 50,00,000 |
| 50 | 16 | 0 | 50,00,000 | 0 | 50,00,000 |
| 51 | 17 | 0 | 50,00,000 | 0 | 50,00,000 |
| 52 | 18 | 0 | 50,00,000 | 0 | 50,00,000 |
| 53 | 19 | 0 | 50,00,000 | 0 | 50,00,000 |
| 54 | 20 | 0 | 50,00,000 | 0 | 50,00,000 |
| 55 | 1,44,40,751 | 2,67,57,074 | |||
| IRR | 6.95% | 11.10% | |||
The PPF account requires a minimum annual contribution of ₹500 for 15 years. Although the investment period differs slightly from the 10-year premium payment term, the variation is negligible for illustration.
Even considering the annual contribution limit of ₹1.5 Lakhs, the excess amount is negligible, as it is for illustrative purposes.
The final maturity value of the PPF stands at ₹1.44 Crores, with an IRR of 6.95%, nearly matching the 8% assumed return in the ULIP. However, as a debt instrument, PPF offers safer and more stable returns.
The Equity Mutual Fund investment, on the other hand, grows to a pre-tax maturity value of ₹2.98 Crores. After accounting for capital gains tax, the post-tax maturity value stands at ₹2.67 Crores, yielding a post-tax IRR of 11.10%.
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 20 years | 2,98,62,799 |
| Purchase price | 48,92,000 |
| Long-Term Capital Gains | 2,49,70,799 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 2,48,45,799 |
| Tax paid on LTCG | 31,05,725 |
| Maturity value after tax | 2,67,57,074 |
These figures clearly highlight that a combination of term insurance and mutual fund investment can deliver substantially higher returns compared to the Ageas Federal Platinum Wealth Builder Plan.
This approach not only enhances wealth accumulation but also ensures greater control, flexibility, and transparency over your investments.
The Ageas Federal Platinum Wealth Builder Plan is a traditional Unit-Linked Insurance Plan (ULIP) that combines market participation with life coverage. However, investors who are willing to take on market risk typically expect inflation-beating, long-term returns.
Unfortunately, this plan falls short of that expectation. It fails to generate alpha, indicating that the risk–return trade-off is not in the investor’s favour and it also has a high agent commission.
The primary reason for the subdued returns lies in the plan’s high charges. Although some of these charges are refunded at maturity, the time value of money is lost, diminishing overall growth potential.
While it is marketed as a wealth-building solution, a deeper evaluation reveals that its modest returns, inadequate life cover, and restricted liquidity make it unsuitable for serious wealth creation.
To ensure financial security, it’s far more efficient to opt for a pure-term life insurance policy, which offers substantial coverage at an affordable premium.
The remaining funds can then be strategically invested in a well-diversified portfolio aligned with your goals, time horizon, and risk profile.
In conclusion, true wealth creation stems from a disciplined and diversified investment strategy, not from bundled insurance–investment products.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
For a personalised and goal-oriented plan, consider seeking the advice of a Certified Financial Planner (CFP) who can help design an investment roadmap tailored to your financial objectives.
Listen to this article When stock markets tumble, what do direct retail investors do—hold, buy…
Listen to this article Table of Contents What Is a ULIP Insurance Plan? The Flaw…
Listen to this article Feeling uneasy seeing your equity funds in the red lately? You’re…
Listen to this article We often find idle money sitting in our savings accounts —…
Everyone dreams of financial freedom—but how many actually achieve it? The difference lies not in…
Listen to this article Have you ever met someone who earns a handsome salary yet…