Ageas Federal Wealth Gain Insurance Plan
Is the Ageas Federal Wealth Gain Insurance Plan truly a gateway to long-term wealth — or just another ULIP with limited growth potential?
Does Ageas Federal Wealth Gain Insurance Plan truly live up to its name — or is the ‘gain’ more illusion than reality?
Can the Ageas Federal Wealth Gain Plan strike the right balance between protection and performance — or does it lean too heavily on market risks?
Let’s explore its features, benefits, and drawbacks to find out.
What is the Ageas Federal Wealth Gain Insurance Plan?
What are the features of the Ageas Federal Wealth Gain Insurance Plan?
Who is eligible for the Ageas Federal Wealth Gain Insurance Plan?
What are the benefits of the Ageas Federal Wealth Gain Insurance Plan?
What are the investment strategies and fund options in the Ageas Federal Wealth Gain Insurance Plan?
What are the charges of the Ageas Federal Wealth Gain Insurance Plan?
Grace Period, Discontinuance and Revival of the Ageas Federal Wealth Gain Insurance Plan
Free Look Period for the Ageas Federal Wealth Gain Insurance Plan
Surrendering the Ageas Federal Wealth Gain Insurance Plan
What are the advantages of the Ageas Federal Wealth Gain Insurance Plan?
What are the disadvantages of the Ageas Federal Wealth Gain Insurance Plan?
Research Methodology of Ageas Federal Wealth Gain Insurance Plan
Benefit Illustration – IRR Analysis of Ageas Federal Wealth Gain Insurance Plan
Ageas Federal Wealth Gain Insurance Plan Vs. Other Investments
Ageas Federal Wealth Gain Insurance Plan Vs. Pure-Term + PPF/Equity Mutual Fund
Final Verdict on Ageas Federal Wealth Gain Insurance Plan
Ageas Federal Wealth Gain Insurance Plan is a Unit-Linked, Non-Participating, Individual Life Insurance Plan. It offers you a life cover and helps build wealth over the long term to ensure that you and your family fulfil all your aspirations.
Plus, it comes with a waiver of premium on disability cover that ensures financial security for your dreams.
| Criteria | Maximum | Minimum |
| Age at entry | 5 years | 60 years (as on last birthday) |
| Age at maturity of plan | 18 years | 74 years (as on last birthday) |
| Policy Term (PT) | 10 / 15 / 20 years | |
| Premium Payment Term (PPT) | For ages below 50 years: 5 / 10 / 15/ 20 years | |
| For age 50 years and above: 10 / 15/ 20 years | ||
| Premium Payment Frequency (PPF) | Monthly and annually | |
| Premium Amount | Monthly – Rs. 2,500 Yearly – Rs. 30,000 | Monthly – Rs. 50,000 – 83,000 Yearly – Rs. 6,00,000 – 10,00,000 |
Maturity benefit is equal to the fund value, including total guaranteed loyalty additions in your investment account on the date of maturity, provided the Ageas Federal Wealth Gain Insurance Plan policy is in force.
In case of the death of the insured person during the policy term, provided the Ageas Federal Wealth Gain Insurance Plan policy is in force, the Death Benefit will be paid to the beneficiary. The Death Benefit payable shall be the higher of:
Death Sum Assured is the higher of
Guaranteed loyalty additions will be added to the fund value at the end of the 10th policy year and every 5 years thereafter. This is 1% of the average fund value in your investment account, in the last 36 months preceding the guaranteed loyalty addition date.
The Ageas Federal Wealth Gain Insurance Plan offers two ways in which you may manage your investments:
You may leave it entirely to the company to manage your investment strategy from time to time by simply indicating how much investment risk you are prepared to take. We give you a choice of three risk levels: Cautious, Moderate and Aggressive.
Systematic Allocator Glide Path
| 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% |
You may decide to invest in the various options 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.
You can choose from the tabled fund options and specify the investment percentage allocation to each of your chosen funds:
| 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 | Bond Fund | 0 | 20-100% | 0-80% | Moderate |
| 5 | Income Fund | 0 | 25-100% | 0-75% | Low |
| 6 | Pure Fund | 80-100% | 0 | 0-20% | High |
| 7 | Aggressive Asset Allocator Fund | 50-100% | 0-50% | 0-50% | High |
| 8 | Moderate Asset Allocator Fund | 0-50% | 50-100% | 0-50% | High (Moderately high – compared to Aggressive Asset Allocator) |
| 9 | Cautious Asset Allocator Fund | 0-25% | 75-100% | 0-25% | Moderate |
The premium allocation charge is deducted from the premium paid, and the balance is invested in the investment options chosen by the Ageas Federal Wealth Gain Insurance Plan policyholder.
| Policy Year | Charge (Per annum) |
| 1 | 3% |
| 2 to 5 | 1.50% |
| 6+ | 1% |
Policy administration charge as a percentage of annual premium is 3.5% p.a. throughout the Ageas Federal Wealth Gain Insurance Plan policy term. The charge will be subject to a maximum of ₹ 500 per month.
At the beginning of each policy month, we will calculate the mortality charges for the Ageas Federal Wealth Gain Insurance Plan policy.
The mortality charge is 1/12th of the mortality rates for the age as on the last birthday, at the time of deduction of the mortality charge, multiplied by the sum at risk divided by one thousand.
The sum at risk, if any, is the amount by which the death benefit exceeds the fund value.
Fund management charges are 1.35% p.a. for all the investment funds available
The discontinuance charge will be decided based on the Ageas Federal Wealth Gain Insurance Plan policy year in which the policy is discontinued and the premium amount. There is no discontinuance charge after the 5th policy year.
Inference from the charges: The charges under this plan are considerably higher compared to other market-linked investment options. These high costs reduce your effective investable amount, directly impacting the growth of your corpus over time.
The grace period for payment of the premium shall be 15 days, where the Ageas Federal Wealth Gain Insurance Plan policyholder pays the premium on a monthly basis and 30 days in all other cases.
Discontinuing premiums within five policy years: 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 be paid to the policyholder at the end of the revival period or lock-in period, whichever is later.
Discontinuing premiums after completion of 5 policy years: 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”.
If the Ageas Federal Wealth Gain Insurance Plan Policyholder revive the policy by payment of due premiums without any interest or fee within the revival period, the policy shall be revived, restoring the insurance benefits.
In case you do not agree to any of the 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 within 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.
If you surrender the Ageas Federal Wealth Gain Insurance 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.
On such payment, the policy will terminate and all rights, benefits and interests under the policy will stand extinguished.
Under the Ageas Federal Wealth Gain Insurance Plan, you pay premiums either for a limited period or throughout the policy term and receive the fund value at maturity.
To assess its effectiveness, let’s evaluate the plan in percentage terms, making it easier to compare with other investment options. Below is an IRR (Internal Rate of Return) analysis based on the benefit illustration from the policy brochure.
A 35-year-old male invests in the Ageas Federal Wealth Gain Plan with a sum assured of ₹10 lakhs, a policy term of 20 years, and a premium payment term of 10 years, paying 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 |
At the end of the policy term, the accumulated fund value plus guaranteed additions are payable.
The brochure projects return at 4% and 8% annual growth rates. However, these are not guaranteed and only serve as indicative examples — the actual maturity benefit depends on fund performance.
| 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 | -1,00,000 | 10,00,000 | -1,00,000 | 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 | 0 | 10,00,000 | 0 | 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 | 0 | 10,00,000 | 0 | 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 | 13,30,782 | 10,00,000 | 24,46,906 | 10,00,000 | |
| IRR | 1.85% | 5.85% | |||
At 4% return: Estimated fund value = ₹13.30 lakhs, IRR: 1.85% as per the Ageas Federal Wealth Gain Insurance Plan maturity calculator
At 8% return: Estimated fund value = ₹24.46 lakhs, IRR: 5.85% as per the Ageas Federal Wealth Gain Insurance Plan maturity calculator
These returns are unimpressive for a long-term investment. For a market-linked product, such low IRRs offer limited wealth creation potential.
Moreover, the sum assured is inadequate to meet a family’s future financial goals, making it insufficient as a life insurance cover.
In summary, the Ageas Federal Wealth Gain Insurance Plan fails to deliver on both fronts — it neither provides competitive returns nor offers adequate protection, rendering it ineffective as a comprehensive financial solution.
The IRR analysis shows that the returns from the Ageas Federal Wealth Gain Insurance Plan fail to outpace inflation.
Over time, inflation erodes the real value of money and increases the cost of financial goals — meaning the plan’s returns may not be sufficient to keep up. Let’s explore two alternative scenarios using the same parameters from the earlier illustration.
For life cover, a pure-term policy offering a sum assured of ₹10 lakhs costs around ₹7,500 per year for a 20-year term with a 10-year premium payment period.
In comparison, the Ageas Federal Wealth Gain Plan requires an annual premium of ₹1,00,000. By choosing a term plan instead, you save ₹92,500 each year, which can be invested separately for wealth creation.
| 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 |
You can then select investment options based on your risk appetite. Here, we have shown two scenarios.
| 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 | -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 | -1,00,000 | 10,00,000 | -1,00,000 | 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 | -97,500 | 10,00,000 | -1,00,000 | 10,00,000 |
| 45 | 11 | -500 | 10,00,000 | 0 | 10,00,000 |
| 46 | 12 | -500 | 10,00,000 | 0 | 10,00,000 |
| 47 | 13 | -500 | 10,00,000 | 0 | 10,00,000 |
| 48 | 14 | -500 | 10,00,000 | 0 | 10,00,000 |
| 49 | 15 | -500 | 10,00,000 | 0 | 10,00,000 |
| 50 | 16 | 0 | 10,00,000 | 0 | 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 | 27,29,733 | 10,00,000 | 50,72,011 | 10,00,000 | |
| IRR | 6.58% | 10.74% | |||
Risk-Averse Investor – PPF (Public Provident Fund)
To align with PPF’s 15-year minimum investment, contributions are adjusted in the final years.
Estimated maturity value: ₹27.29 lakhs
IRR: 6.58%
Even as a debt instrument, PPF generates a higher return than the 8% projection under the Wealth Gain Plan, underscoring its efficiency for conservative investors.
Risk-Tolerant Investor – Equity Mutual Fund
Assuming a 10-year investment period and long-term capital gains tax applied:
Pre-tax maturity value: ₹56.46 lakhs
Post-tax maturity value: ₹50.72 lakhs
Post-tax IRR: 10.74%
These returns comfortably beat inflation and provide a strong wealth-building potential over the long term.
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 20 years | 56,46,584 |
| Purchase price | 9,25,000 |
| Long-Term Capital Gains | 47,21,584 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 45,96,584 |
| Tax paid on LTCG | 5,74,573 |
| Maturity value after tax | 50,72,011 |
This comparison clearly demonstrates that separating insurance and investment offers superior financial outcomes. A pure-term policy ensures affordable protection, while dedicated investments in PPF or equity mutual funds help achieve meaningful growth.
The Ageas Federal Wealth Gain Insurance Plan, on the other hand, falls short of delivering an adequate corpus for your goals, making it less effective than a term insurance plus focused investment strategy.
The Ageas Federal Wealth Gain Insurance Plan may sound promising by name, suggesting that it will help you achieve “Wealth Gain.” However, while the plan offers market-linked investment opportunities, a deeper analysis shows that its returns are lower compared to other market-linked options.
The performance does not adequately justify the risks involved, primarily because of the high charges associated with the plan and it also has a high agent commission.
Furthermore, the sum assured offered is often insufficient to meet a family’s essential financial needs, which can hinder long-term financial security.
Even with the inclusion of guaranteed additions, the final fund value may not keep up with inflation, making it difficult to meet future financial goals. As a result, the plan is not well-suited for long-term wealth creation.
Combining life insurance and investment within a single product is rarely an effective strategy. A better approach is to opt for a pure-term life insurance policy, which offers comprehensive protection for your family at a much lower cost.
The investment component should be handled separately through a diversified portfolio of equity, debt, and other asset classes to efficiently pursue your financial goals.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
For personalised advice, consider consulting a Certified Financial Planner (CFP). Their expertise can help you choose the right mix of insurance and investment products aligned with your financial objectives and risk profile.
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