Ageas Federal Super Cash Supreme Plan: Good or Bad? An Insightful Review
Is the Ageas Federal Super Cash Supreme Plan your pathway to guaranteed wealth, or just another traditional savings plan?
Will the Ageas Federal Super Cash Supreme Plan secure your future, or are there smarter investment options out there?
Can the Ageas Federal Super Cash Supreme Plan deliver on its promise of guaranteed returns, or is it too good to be true?
This article explores the plan in detail, explaining its cash flow structure with a comprehensive illustration.
What is the Ageas Federal Super Cash Supreme?
What are the features of the Ageas Federal Super Cash Supreme?
Who is eligible for the Ageas Federal Super Cash Supreme?
What are the benefits of the Ageas Federal Super Cash Supreme?
2. Guaranteed Supreme Advantage
Grace Period, Discontinuance and Revival of the Ageas Federal Super Cash Supreme
Free Look Period for the Ageas Federal Super Cash Supreme
Surrendering the Ageas Federal Super Cash Supreme
What are the advantages of the Ageas Federal Super Cash Supreme?
What are the disadvantages of the Ageas Federal Super Cash Supreme?
Research Methodology of Ageas Federal Super Cash Supreme
Benefit Illustration – IRR Analysis of Ageas Federal Super Cash Supreme
Ageas Federal Super Cash Supreme Vs. Other Investments
Ageas Federal Super Cash Supreme Vs. Pure-term + Equity Mutual Fund
Final Verdict on Ageas Federal Super Cash Supreme
Ageas Federal Super Cash Supreme is a Non-linked, Participating, Individual Life Insurance Savings Plan. It not only provides guaranteed returns but also the flexibility to tailor your financial roadmap based on your specific needs.
If Uninterrupted Income Benefit (UIB) is not chosen
Death Benefit shall be the sum of:
The Death benefit shall be at least 105% of the Total Premiums Paid as on the date of death.
If Uninterrupted Income Benefit (UIB) is chosen
Death Benefit shall be the Higher of:
The Death benefit shall be at least 105% of the Total Premiums Paid as on the date of death.
All future premiums, if any, shall not be payable. On payment of Death Benefit, the Ageas Federal Super Cash Supreme Plan policy shall not terminate and shall continue to receive the following, same as an in-force policy: Survival Benefits (including Cash Bonus, as declared) and Maturity Benefit (including any Simple Reversionary Bonus, as declared and Terminal Bonus on Maturity if any)
Plan offers “Guaranteed Supreme Advantage” benefit during the first policy year. It consists of Supreme Cash and Supreme Advantage
Supreme Cash
Supreme cash shall be payable at the end of the month/half-year/year, depending on the income payout frequency opted. The Supreme Cash will be calculated as follows:
Supreme Cash = Supreme Cash rate x Goal Maturity Sum Assured (MSA)
Please note: The Supreme Cash is payable only if the deferment period 0 is chosen.
Supreme Addition
Supreme Addition will be vested at the end of the first policy year and shall be payable as a lump sum on Death or Maturity, whichever is earlier, as applicable. The Supreme Addition will be calculated as follows:
Supreme Addition = Supreme Addition Rate X Goal Maturity Sum Assured (MSA)
Please note: Supreme Addition shall be vested at the end of Policy Year 1, irrespective of the Deferment Period chosen. Shall be payable as mentioned above.
Supreme Cash
Shall be payable as mentioned above
Guaranteed Income(s)
Based on the chosen plan option, it varies
Super Income: Guaranteed Regular Income(s) shall be payable at the end of every year from the 1st policy year till maturity.
Super Booster: Guaranteed Booster(s) shall be payable at the end of every 5 years starting from the 5th policy year till maturity.
Cash Bonus
Cash Bonus, if declared, shall be payable every year throughout the Ageas Federal Super Cash Supreme Plan policy term, starting from the end of the policy year as per the chosen deferment period.
The payment of Cash Bonus(s) shall be payable at the end of the month/half-year/year, depending on the income payout frequency opted.
Maturity benefit is payable at the end of the Ageas Federal Super Cash Supreme Plan Policy Term, provided the policy is in force. Maturity Benefit shall be calculated as the sum of:
Grace Period
You will get a grace period of 15 days for the Monthly mode and 30 days in all other cases from the due date of the first unpaid Premium.
Discontinuance
Lapse: In case of non-payment of due Premiums for the first full policy year within the grace period, the Ageas Federal Super Cash Supreme Plan policy shall lapse, and no benefits are payable
Paid-up Value: After completion of the first policy year, provided one full year’s premium has been received, in case of non-payment of due Premiums within the Grace Period, the policy shall be made paid-up with reduced benefits.
Revival
A policy that has lapsed or acquired paid-up value may be revived within five consecutive complete years from the due date of the first unpaid Premium.
In case you do not agree to any of the Ageas Federal Super Cash Supreme 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).
Surrender Value shall become payable after completion of the first policy year, provided one full year’s premium has been received.
Surrender Value = Maximum (Guaranteed Surrender Value (GSV), Special Surrender Value (SSV))
The Ageas Federal Super Cash Supreme Plan offers periodic payouts along with maturity benefits and bonuses. Policyholders can allocate benefits between the Survival Benefit (Easy Cash Goal) and the Lump Sum Benefit (Wealth Accumulation Goal) in percentage terms.
To assess its effectiveness, let’s examine the Internal Rate of Return (IRR) using the benefit illustration from the Ageas Federal Super Cash Supreme Plan policy brochure.
Consider a 35-year-old male opting for the Ageas Federal Super Cash Supreme Plan with a sum assured of ₹10 lakhs. The Ageas Federal Super Cash Supreme Plan policy term is 20 years, with a premium payment term of 10 years and an annual premium of ₹1,00,000.
| Male | 35 years |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 1,00,000 |
Since the allocation to the Easy Cash Goal is nil, there are no annual payouts. Instead, under the Super Booster option, the Ageas Federal Super Cash Supreme Plan policyholder receives a Guaranteed Booster of ₹1,00,000 every 5 years, beginning at the end of the 5th year.
The final maturity benefit depends on the insurer’s bonus declaration.
The illustration considers two return scenarios: 8% p.a. and 4% p.a. (non-guaranteed and indicative only).
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 36 | 2 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 37 | 3 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 38 | 4 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 39 | 5 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 40 | 6 | 0 | 10,00,000 | 0 | 10,00,000 |
| 41 | 7 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 42 | 8 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 43 | 9 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 44 | 10 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 45 | 11 | 1,00,000 | 10,00,000 | 1,00,000 | 10,00,000 |
| 46 | 12 | 0 | 10,00,000 | 0 | 10,00,000 |
| 47 | 13 | 0 | 10,00,000 | 0 | 10,00,000 |
| 48 | 14 | 0 | 10,00,000 | 0 | 10,00,000 |
| 49 | 15 | 0 | 10,00,000 | 0 | 10,00,000 |
| 50 | 16 | 1,00,000 | 10,00,000 | 1,00,000 | 10,00,000 |
| 51 | 17 | 0 | 10,00,000 | 0 | 10,00,000 |
| 52 | 18 | 0 | 10,00,000 | 0 | 10,00,000 |
| 53 | 19 | 0 | 10,00,000 | 0 | 10,00,000 |
| 54 | 20 | 0 | 10,00,000 | 0 | 10,00,000 |
| 55 | 14,13,502 | 19,25,460 | |||
| IRR | 4.06% | 5.92% | |||
At 4% return: Maturity benefit is ₹14.13 lakhs, yielding an IRR of 4.06% as per the Ageas Federal Super Cash Supreme Plan maturity calculator, which barely adds value.
At 8% return: Maturity benefit is ₹19.25 lakhs, yielding an IRR of 5.92% as per the Ageas Federal Super Cash Supreme Plan maturity calculator, which is still lower than many debt instruments.
Key Drawbacks
The Ageas Federal Super Cash Supreme Plan falls short both as an investment and as an insurance cover. Given its low returns and limited flexibility, it is unsuitable for meeting long-term financial goals.
The Ageas Federal Super Cash Supreme Plan delivers low investment returns and offers inadequate life coverage because it combines insurance with investment. A more strategic approach—separating protection and investment—can generate far better outcomes.
A pure-term life insurance policy with a sum assured of ₹10 lakhs costs only ₹7,500 annually for a 20-year term with a 10-year premium payment period. This leaves ₹92,500 per year for 10 years available for investment.
Depending on one’s risk appetite, this amount can be deployed into suitable financial products.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 7,500 |
| Investment | ₹ 92,500 |
For illustration, let’s assume the balance is invested in an Equity Mutual Fund. To mirror the survival benefits offered by the Super Cash Supreme Plan, equivalent withdrawals are made during the Ageas Federal Super Cash Supreme Plan policy term.
At the end of 20 years, all remaining units are redeemed, with capital gains taxed only at final redemption (post LTCG exemption of ₹1.25 lakh per year).
| Term insurance + Equity Mutual Fund | |||
| Age | Year | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 35 | 1 | -1,00,000 | 10,00,000 |
| 36 | 2 | -1,00,000 | 10,00,000 |
| 37 | 3 | -1,00,000 | 10,00,000 |
| 38 | 4 | -1,00,000 | 10,00,000 |
| 39 | 5 | -1,00,000 | 10,00,000 |
| 40 | 6 | 0 | 10,00,000 |
| 41 | 7 | -1,00,000 | 10,00,000 |
| 42 | 8 | -1,00,000 | 10,00,000 |
| 43 | 9 | -1,00,000 | 10,00,000 |
| 44 | 10 | -1,00,000 | 10,00,000 |
| 45 | 11 | 1,00,000 | 10,00,000 |
| 46 | 12 | 0 | 10,00,000 |
| 47 | 13 | 0 | 10,00,000 |
| 48 | 14 | 0 | 10,00,000 |
| 49 | 15 | 0 | 10,00,000 |
| 50 | 16 | 1,00,000 | 10,00,000 |
| 51 | 17 | 0 | 10,00,000 |
| 52 | 18 | 0 | 10,00,000 |
| 53 | 19 | 0 | 10,00,000 |
| 54 | 20 | 0 | 10,00,000 |
| 55 | 41,67,107 | ||
| IRR | 10.74% | ||
The mutual fund route delivers a post-tax IRR of 10.74%, far exceeding the returns of the Ageas Federal Super Cash Supreme Plan.
It also offers greater flexibility, as withdrawals can be aligned with actual financial needs rather than preset policy conditions.
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 20 years | 46,12,409 |
| Purchase price | 9,25,000 |
| Long-Term Capital Gains | 36,87,409 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 35,62,409 |
| Tax paid on LTCG | 4,45,301 |
| Maturity value after tax | 41,67,107 |
The Ageas Federal Super Cash Supreme Plan falls short due to its low returns, lack of flexibility, and insufficient life cover. In contrast, a combination of pure-term insurance and mutual fund investment proves to be a superior, goal-oriented strategy for long-term financial planning.
The Ageas Federal Super Cash Supreme Plan combines regular income payouts, lump sum maturity benefits, and life coverage. It comes with two options:
Additionally, the policyholder must decide the allocation between income benefits (Easy Cash Goal) and lump sum maturity benefits (Wealth Accumulation Goal).
A higher share of regular income automatically reduces the share of the maturity benefit, meaning there’s always a trade-off between survival and maturity payouts and it also has a high agent commission.
While the plan provides flexibility in structuring cash flows, an analysis of the returns shows that they fall short when compared to other long-term investment avenues. In effect, this is just another money-back style policy with below-average returns and inadequate life cover.
A more effective strategy is to buy a pure-term life insurance plan, which offers substantial protection at a far lower cost. For wealth creation, building a diversified investment portfolio aligned with your goals, risk tolerance, and time horizon is far more rewarding.
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