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We often find idle money sitting in our savings accounts — from monthly salary credits, business income, bonuses, gifts, or even a lump-sum gain from a successful deal. But can investing such funds in the Ageas Federal Wealthsurance Growth Insurance Plan SP II generate better returns?
Is the Ageas Federal Wealthsurance Growth Insurance Plan SP II the smart way to build long-term wealth, or just another complex ULIP in disguise?
Can this ULIP truly balance protection and growth, or are the returns not worth the risk?
Is Ageas Federal Wealthsurance Growth Insurance Plan SP II the key to your financial goals, or could mutual funds offer a simpler path?
In this review, let’s take a closer look at the plan’s features, benefits, and drawbacks to find out.
Table of Contents
What is the Ageas Federal Wealthsurance Growth Insurance Plan SP II?
What are the features of the Ageas Federal Wealthsurance Growth Insurance Plan SP II?
Who is eligible for the Ageas Federal Wealthsurance Growth Insurance Plan SP II?
What are the benefits of the Ageas Federal Wealthsurance Growth Insurance Plan SP II?
What are the charges in the Ageas Federal Wealthsurance Growth Insurance Plan SP II?
Free Look Period for the Ageas Federal Wealthsurance Growth Insurance Plan SP II
Surrendering the Ageas Federal Wealthsurance Growth Insurance Plan SP II
What are the advantages of the Ageas Federal Wealthsurance Growth Insurance Plan SP II?
What are the disadvantages of the Ageas Federal Wealthsurance Growth Insurance Plan SP II?
Research Methodology of Ageas Federal Wealthsurance Growth Insurance Plan SP II
Benefit Illustration – IRR Analysis of Ageas Federal Wealthsurance Growth Insurance Plan SP II
Ageas Federal Wealthsurance Growth Insurance Plan SP II Vs. Other Investments
Ageas Federal Wealthsurance Growth Insurance Plan SP II Vs. Pure-term + Equity Mutual Fund
Final Verdict on Ageas Federal Wealthsurance Growth Insurance Plan SP II
What is the Ageas Federal Wealthsurance Growth Insurance Plan SP II?
Ageas Federal Wealthsurance Growth Insurance Plan SP II is a Single Premium, Non-participating, Unit Linked, Individual Life Insurance Plan. The plan offers multiple options and choices that enable you to personalise it as per individual needs and priorities.
The life insurance aspect of the plan ensures financial security for loved ones all through the journey.
What are the features of the Ageas Federal Wealthsurance Growth Insurance Plan SP II?
- One-time investment: Offers convenience and a hassle-free single premium investment option.
- Choice of 9 funds: Provides flexibility to invest across 9 fund options based on your risk appetite.
- Loyalty additions: Rewards long-term commitment by enhancing your fund value through loyalty additions.
- Flexible life cover: Allows you to increase or decrease your life cover in line with your changing financial needs.
- Tax benefits: Premiums paid and benefits received may be eligible for tax benefits as per prevailing tax laws.
Who is eligible for the Ageas Federal Wealthsurance Growth Insurance Plan SP II?
| Criteria | Minimum/ Maximum | Wealthsurance SP II |
| Age at entry | Minimum | 1 month completed |
| Maximum | 70 years | |
| Maturity age | Minimum | 18 years |
| Maximum | 76 years | |
| Policy term | Fixed options | 6 years / 10 years/ 15 years/ 20 years/ 25 years |
| Premium paying term | Fixed option | Single premium |
| Premium | Minimum | Rs 50,000 |
| Maximum | No Limit (subject to Board-approved underwriting policy) | |
| Death Sum Assured | Age at maturity up to 48 years:1.25 times or 10 times the Single premium | |
| Age at maturity greater than 48 years:1.25 times Single Premium |
What are the benefits of the Ageas Federal Wealthsurance Growth Insurance Plan SP II?
Maturity Benefit
On survival of the Life Assured till the date of Maturity, Fund Value, including Loyalty Additions, shall be paid on the date of Maturity, provided the Ageas Federal Wealthsurance Growth Insurance Plan SP II policy is in force.
Loyalty Additions
Loyalty additions will be 3% of the average fund value in the last 36 months preceding the loyalty addition date.
It will be credited at the end of the 6th policy year, 10th policy year and every 5 years thereafter, subject to the Ageas Federal Wealthsurance Growth Insurance Plan SP II policy being in force.
Death benefit
In case of death of the Life Assured during the Ageas Federal Wealthsurance Growth Insurance Plan SP II policy term, provided the policy is in force, the below Death Benefit will be paid to the claimant: Higher of
- Death Sum Assured, or
- the Fund Value or
- 105% of the Single Premium Paid
What are the investment strategies and fund options in the Ageas Federal Wealthsurance Growth Insurance Plan SP II?
Wealthsurance SP II 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) |
Systematic 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% |
What are the charges in the Ageas Federal Wealthsurance Growth Insurance Plan SP II?
Premium Allocation charge
Premium allocation charges are deducted from the premium paid, and the balance is proportionately invested in the funds that you opt for.
| Premium Allocation Charge | % of Single Premium |
| Year 1 | 0.50% p.a. |
Policy Administration charge
Policy administration charges are deducted monthly by cancelling units from your investment account at the beginning of each policy month.
| Policy year | First 5 years | Year 6 onwards till the end of the policy term |
| Premium administration charge as % of single premium | 0.10% p.m. | 0.05% p.m. |
Mortality Charge
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 Management Charge
| 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% |
Switching Charge
There are currently no charges for switching between funds.
Partial Withdrawal Charge
There are currently no charges for partial withdrawals
Discontinuance charge
The discontinuance charge will be decided based on the Ageas Federal Wealthsurance Growth Insurance Plan SP II 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: These charges reduce your investable amount, thereby having a direct impact on your final corpus.
Free Look Period for the Ageas Federal Wealthsurance Growth Insurance Plan SP II
In case you do not agree to any of the Ageas Federal Wealthsurance Growth Insurance Plan SP II 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).
Surrendering the Ageas Federal Wealthsurance Growth Insurance Plan SP II
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 Wealthsurance Growth Insurance Plan SP II 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.
What are the advantages of the Ageas Federal Wealthsurance Growth Insurance Plan SP II?
- Partial withdrawals: Permitted only after the completion of the lock-in period.
- Settlement option: You can choose to receive the maturity proceeds in instalments through the settlement option.
- Flexible death cover: Alteration of the Death Sum Assured is allowed as per your changing needs.
- Fund switching: You can switch between funds to realign your portfolio based on market conditions.
- Single premium convenience: A one-time payment ensures a simple and hassle-free investment experience.
What are the disadvantages of the Ageas Federal Wealthsurance Growth Insurance Plan SP II?
- No top-up option: The Ageas Federal Wealthsurance Growth Insurance Plan SP II policy does not allow additional top-up premiums after the initial investment.
- Restricted liquidity: Access to your funds is locked for the first five policy years.
- No loan facility: The plan does not offer the option to avail policy loans.
- Low life cover: The sum assured provided under the plan is relatively insufficient.
Research Methodology of Ageas Federal Wealthsurance Growth Insurance Plan SP II
The Ageas Federal Wealthsurance Growth Insurance Plan SP II allows you to invest your surplus funds in market-linked instruments and receive the fund value at the end of the Ageas Federal Wealthsurance Growth Insurance Plan SP II policy term.
To assess its performance, let’s analyse the Internal Rate of Return (IRR) to understand how effective the plan truly is when compared with other market-linked investment options.
Benefit Illustration – IRR Analysis of Ageas Federal Wealthsurance Growth Insurance Plan SP II
A 30-year-old male invests a single premium of ₹2,50,000 in this plan for a policy term of 15 years, with a sum assured of ₹25,00,000 (10 times the premium). At maturity, he receives the fund value, which depends on the market’s performance.
The following assumed return rates of 4% and 8% are purely illustrative — not guaranteed, and they don’t represent upper or lower limits of actual returns.
| Male | 30 years |
| Sum Assured | ₹ 25,00,000 |
| Policy Term | 15 years |
| Premium Paying Term | Single Premium |
| Single Premium | ₹ 2,50,000 |
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Single premium / Maturity benefit | Death benefit | Single premium / Maturity benefit | Death benefit |
| 30 | 1 | -2,50,000 | 25,00,000 | -2,50,000 | 25,00,000 |
| 31 | 2 | 0 | 25,00,000 | 0 | 25,00,000 |
| 32 | 3 | 0 | 25,00,000 | 0 | 25,00,000 |
| 33 | 4 | 0 | 25,00,000 | 0 | 25,00,000 |
| 34 | 5 | 0 | 25,00,000 | 0 | 25,00,000 |
| 35 | 6 | 0 | 25,00,000 | 0 | 25,00,000 |
| 36 | 7 | 0 | 25,00,000 | 0 | 25,00,000 |
| 37 | 8 | 0 | 25,00,000 | 0 | 25,00,000 |
| 38 | 9 | 0 | 25,00,000 | 0 | 25,00,000 |
| 39 | 10 | 0 | 25,00,000 | 0 | 25,00,000 |
| 40 | 11 | 0 | 25,00,000 | 0 | 25,00,000 |
| 41 | 12 | 0 | 25,00,000 | 0 | 25,00,000 |
| 42 | 13 | 0 | 25,00,000 | 0 | 25,00,000 |
| 43 | 14 | 0 | 25,00,000 | 0 | 25,00,000 |
| 44 | 15 | 0 | 25,00,000 | 0 | 25,00,000 |
| 45 | 2,60,871 | 4,70,800 | |||
| IRR | 0.28% | 4.31% | |||
At 4% assumed return: The fund value is ₹2.60 lakh, resulting in an IRR of just 0.28% as per the Ageas Federal Wealthsurance Growth Insurance Plan SP II maturity calculator— almost negligible. Even a regular savings account would yield better returns.
At 8% assumed return: The fund value stands at ₹4.70 lakh, giving an IRR of 4.31% as per the Ageas Federal Wealthsurance Growth Insurance Plan SP II maturity calculator — still lower than what most traditional debt instruments offer.
The IRR analysis clearly highlights that the Ageas Federal Wealthsurance Growth Insurance Plan SP II fails to generate meaningful real returns. Such limited growth can significantly hinder long-term wealth accumulation.
In essence, the plan lacks the alpha generation one would expect from a market-linked investment. If you’re looking to invest a lump sum, there are far more efficient alternatives available that offer superior returns, greater flexibility, and better liquidity.
Ageas Federal Wealthsurance Growth Insurance Plan SP II Vs. Other Investments
Investing in other market-linked products offers two major advantages — lower fees and greater transparency, both of which contribute to better overall returns.
Let’s compare the Ageas Federal Wealthsurance Growth Insurance Plan SP II with an alternative approach using the same assumptions from the benefit illustration.
Ageas Federal Wealthsurance Growth Insurance Plan SP II Vs. Pure-term + Equity Mutual Fund
A pure-term life insurance policy providing a ₹25 lakh life cover for 15 years can be purchased for a single premium of ₹48,300. This leaves a balance of ₹2.01 lakh available for investment.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 25,00,000 |
| Policy Term | 15 years |
| Premium Paying Term | Single Premium |
| Single Premium | ₹ 48,300 |
| Investment | ₹ 2,01,700 |
Depending on one’s risk appetite, this amount can be invested in either debt or equity products. For illustration, let’s consider an equity mutual fund investment.
| Term insurance + Equity Mutual Fund | |||
| Age | Year | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 30 | 1 | -2,50,000 | 25,00,000 |
| 31 | 2 | 0 | 25,00,000 |
| 32 | 3 | 0 | 25,00,000 |
| 33 | 4 | 0 | 25,00,000 |
| 34 | 5 | 0 | 25,00,000 |
| 35 | 6 | 0 | 25,00,000 |
| 36 | 7 | 0 | 25,00,000 |
| 37 | 8 | 0 | 25,00,000 |
| 38 | 9 | 0 | 25,00,000 |
| 39 | 10 | 0 | 25,00,000 |
| 40 | 11 | 0 | 25,00,000 |
| 41 | 12 | 0 | 25,00,000 |
| 42 | 13 | 0 | 25,00,000 |
| 43 | 14 | 0 | 25,00,000 |
| 44 | 15 | 0 | 25,00,000 |
| 45 | 10,06,853 | ||
| IRR | 9.73% | ||
The equity mutual fund grows to ₹11.04 lakh at the end of 15 years (before capital gains tax). After accounting for capital gains tax, the post-tax value stands at ₹10.06 lakh, resulting in an IRR of 9.73%.
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 15 years | 11,04,018 |
| Purchase price | 2,01,700 |
| Long-Term Capital Gains | 9,02,318 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 7,77,318 |
| Tax paid on LTCG | 97,165 |
| Maturity value after tax | 10,06,853 |
This comparison clearly shows that separating insurance and investment delivers superior returns and greater flexibility.
In contrast, the Ageas Federal Wealthsurance Growth Insurance Plan SP II ties your funds into lower returns and restricted liquidity. To overcome these limitations, a combination of a pure-term plan for protection and mutual funds for wealth creation is a far more efficient and rewarding strategy.
Final Verdict on Ageas Federal Wealthsurance Growth Insurance Plan SP II
The Ageas Federal Wealthsurance Growth Insurance Plan SP II is a single-premium ULIP, designed to attract investors looking to park their lump-sum surplus in market-linked instruments.
At first glance, it may appear convenient and growth-oriented. However, the high charges and insufficient life cover significantly reduce its overall value and it also has a high agent commission.
The plan’s returns are underwhelming, making it ineffective in fulfilling long-term family protection or wealth-building goals. Despite its name, “Wealthsurance Growth Insurance”, it delivers neither true insurance protection nor meaningful investment growth.
A pure term life insurance policy remains the most efficient solution for protection — affordable, flexible, and offering adequate coverage.
For wealth creation, investors are better off building a diversified portfolio across suitable asset classes instead of locking their funds into hybrid insurance-cum-investment products like ULIPs.
Avoid choosing ULIPs merely to participate in market returns. There are better market-linked investment options that offer transparency, liquidity, and higher potential returns.
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By selecting the right combination of products — ideally with guidance from a qualified financial advisor — you can work towards your financial goals with greater confidence and efficiency.
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