Facebook TwitterLinkedInYoutubewhatsapp Start Planning for your Financial goals
Schedule Your Free Consultation
  • Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Holistic investment planners, financial planning Chennai, Private wealth management Chennai

Holistic investment planners, financial planning Chennai, Private wealth management Chennai

Financial Planning chennai India, Private wealth management chennai India, Investment Advisory India, Systematic Investment Plan, Mutual Fund SIP, Mutual Fund ELSS, Tax Saving scheme

  • Home
  • About Us
    • Who we are & What we do
    • Services
      • Financial Road Map
      • Retirement Roadmap
      • Asset Allocation Plan
      • Webinar
      • Money Management
      • Wealth Management
    • In the Media
    • Testimonials
    • What Makes Us Different
    • How we can help you
    • Specialties
    • Honors and Awards
    • Vision & Mission
  • Resources
    • Blog
    • Articles
    • Podcast
  • Ideal Client
  • Contact Us

TATA AIA Fortune Guarantee Plus: Review (2023) – Should you buy it?

by Holistic 2 Comments | Filed Under: Investments

Listen to this article


TATA AIA Fortune Guarantee Plus is a traditional endowment plan. It claims to provide financial protection to your family by providing a guaranteed regular income for the long term.

But how guaranteed are these payouts?

Will the regular payout can help you to manage your financial situation after your retirement?

Here, let’s do in-depth research on TATA AIA Fortune Guarantee Plus and discover whether it is a fortune to buy this plan or not.

Table of Content:

1.) What is TATA AIA Fortune Guarantee Plus?

2.) Features of TATA AIA Fortune Guarantee Plus

3.) Eligibility of TATA AIA Fortune Guarantee Plus

4.) TATA AIA Fortune Guarantee Plus: Premium Paying Term and Policy Term

5.) Benefits of TATA AIA Fortune Guarantee Plus

6.) Additional Benefits of TATA AIA Fortune Guarantee Plus

7.) How to cancel/surrender the TATA AIA Fortune Guarantee Plus?

8.) Advantages of TATA AIA Fortune Guarantee Plus

9.) Disadvantages of TATA AIA Fortune Guarantee Plus

10.) Research Methodology

11.) IRR of TATA AIA Fortune Guarantee Plus

12.) Final Verdict on TATA AIA Fortune Guarantee Plus

What is TATA AIA Fortune Guarantee Plus?

TATA AIA Fortune Guarantee Plus is an individual, non-participating and non-linked savings plan.

TATA AIA Fortune Guarantee Plus plan says that it can protect your future financially through the guaranteed pay-out option. This guaranteed income plan offers you both life protection and savings features. 

The TATA AIA Fortune Guarantee Plus gives the option to choose between a single premium option and a regular premium option.

Now let us see the features of TATA AIA Fortune Guarantee Plus.

Features of TATA AIA Fortune Guarantee Plus:

  • Flexibility to choose between regular income or regular income with inbuilt critical illness benefits.
  • Flexibility to receive the guaranteed benefit from 20 to 45 years.
  • Return of premium at the end of the income period.
  • Option to receive the guaranteed income annually or monthly.
  • Option to choose single life option under single premium payment option.
  • Option to choose your premium payment term.
  • Option to choose additional riders.
  • Tax benefit.

Eligibility of TATA AIA Fortune Guarantee Plus:

Plan Options:

Option-1

Regular Income

Option-2

Regular Income with an inbuilt Critical Illness Benefit

Here Option-1 is available on POS.

Plan Parameters Minimum Maximum
Age at Entry Other than POS: 60 years (for all options)
Option 1: 1 year
Option 2: 18 years
For POS:
Option 1: 1 year
Option 2: Not Available
Age at Maturity Other than POS: Other than POS:
Option 1: 18 year Option 1: 77 year
Option 2: 23 years Option 2: 70 years
For POS: For POS:
Option 1: 18 year Option 1: 65 year
Option 2: Not Available Option 2: Not Available
Basic Sum Assured Single pay: Other than PoS: No Limit
Single Life –  50,000
Joint Life –  6,250 for First death
 and  50,000 for Second death For PoS: Corresponding to a maximum Death Benefit of R 25 lakhs
Regular/Limited pay:  24,000 Death Benefit Multiple
Premium Single Pay –  5,000 Other than PoS: subject to the Board Approved Underwriting Policy (BAUP)
Limited Pay /Regular Pay –  24,000 p.a. For PoS: Corresponding to a maximum Death Benefit of R 25 lakhs
Premium Payment Mode Single / Annual / Half-yearly / Quarterly / Monthly
Income Mode Annual and Monthly
Coverage Single Life (for Single/Limited/Regular Pay)
Joint life (for Single pay only)

TATA AIA Fortune Guarantee Plus: Premium Paying Term and Policy Term:

  Premium Paying term  Policy Term Income Period
Option 1 – Regular Income      20, 25, 30, 35, 40 & 45 years                        Policy term + Income period range 25 – 50 years
Single pay 1 year 5 years
Regular pay 5 to 12 years Same as PPT
Limited pay 5 06 – 10 years
6 07 – 11 years
7 08 – 12 years
8 09 – 13 years
9 10 – 14 years
10 11 – 15 years
11 12 – 16 years
12 13 – 17 years
       
Option  2 – Regular Income with an inbuilt Critical Illness benefit      
Regular pay 5 & 10 years Same as PPT 30 years for 5 pay        25 years for 10 pay

Benefits of TATA AIA Fortune Guarantee Plus:

Maturity Benefit:

1.) Guaranteed Annual Income:

Once the completion of the Premium Payment Term, the policyholder will receive the Guaranteed Annual Income till the end of the income period. The policyholder has the option to choose the Income Frequency.

2.) Return of Premium Benefit:

After the completion of all the premiums, the Return of the Premium will be paid to the policyholder at the end of the policy term.

The option to receive the commuted value of the future Guaranteed Annual Income plus the Return of Premium Benefit in the form of a lump sum, discounted at 7.50% per year, is available to the policyholder or the nominee/legal heir(s) of the life insured(s), as applicable, at any time during the Income Period.

Death Benefit:

If the policyholder passes away, unfortunately, then the nominee or the legal heir of the policyholder will get the highest of the following as life assured.

  • 1.25 X Single Premium or 10 X Annualized Premium (excluding the discount)
  • 105% of the total premium paid
  • Basic Sum Assured

Critical Illness Benefit:

This benefit is available only for Regular Income with an inbuilt Critical Illness option.

Following a diagnosis of any of the covered Major Critical Illnesses on the life of the Insured, it shall be payable beginning at the end of the policy year (for yearly income frequency).


The coverage will remain in effect and all upcoming premiums will not be required.

The insured person must have never before had the diagnosis in their lifetime.

The plan includes coverage for 40 diseases.

You can read the TATA AIA Fortune Guarantee Plus brochure here for more details.

Additional Benefits of TATA AIA Fortune Guarantee Plus:

Grace Period:

  • For monthly mode, it is 15 days.
  • For yearly, half-yearly, and quarterly modes, it is 30 days.

Revival:

If the policy is not surrendered after the grace period, then the policy can be revived within the 5 years of the first unpaid premium before maturity.

How to cancel/surrender the TATA AIA Fortune Guarantee Plus?

Cancelling/Surrendering during the free look period:

If the policyholder is not satisfied with the features of TATA AIA fortune Guarantee Plus, then the policyholder can cancel the policy by proving the written statement to the company.

The policyholder will get a refund of the premium after deducting the charges.

The free look period is 15 days if the policy is purchased directly. It will be extended up to 30 days if the policy is purchased through distance mode.

Cancelling/Surrendering after the freelook period:

During the policy term, based on the premium-paying term as described below, the policy shall accrue a surrender value.

1.) For Single Premium Option:

The Surrender Benefit is payable any time during the policy term.

2.) For Regular Premium Option:

The policy can be surrendered after the completion of the two premium terms.

The higher the Guaranteed Surrender Value (GSV) or Special Surrender Value shall be the surrender value payable.

Guaranteed Surrender Value = GSV Factor * Total Premiums Paid

Advantages of TATA AIA Fortune Guarantee Plus:

  • You can maintain a consistent cash flow in this plan.
  • The policy is further improved by the available riders.
  • At the end of the income period, the premium is returned.
  • Single, regular or limited pay premium terms that are flexible.
  • Tax benefits according to the relevant tax laws.
  • Choice of Income Period between 20 and 45 Years
  • In terms of IRR, this plan offers an advantage over other annuity / yearly pay-out programs that are offered on the market.

Disadvantages of TATA AIA Fortune Guarantee Plus:

  • For loans and surrenders, the lock-in period is two years.
  • The policy has a 90-day waiting period.
  • The pay-out for each year is a fixed one. The rate of inflation is not considered.

Research Methodology:

Now, we have seen all the necessary details that we need to know about TATA AIA Fortune Guarantee Plus.

Now let’s see whether this plan can help us to create long-term wealth or not by calculating the IRR of TATA AIA Fortune Guarantee Plus.

Then let us compare TATA AIA Fortune Guarantee Plus with other investments to see which gives us a better return in the long term.

IRR of TATA AIA Fortune Guarantee Plus:

Case: I

Entry Age: 35 Years Annualized Premium: 1,00,000
Gender: Male Basic Sum Assured: 12,00,000
Premium Paying Term: 10 Years Premium Frequency: Annual
Policy Term: 10 Years Plan Option: Regular Income
Income Term: 25 Years (From 11th  Year to 35th  Year) The Policy Maturity date is at the end of the Policy Term Income Mode: Annual

Now, let us calculate the IRR by using the online calculator provided by TATA AIA Fortune Guarantee Plus.

Case 1

Age

Year Annualized Premium/

Maturity Benefit

Death Benefit

36

1 1,00,000

12,00,000

37

2 -1,00,000

12,00,000

…

… …

…

45

10 -1,00,000

12,00,000

46

11 95,120

47

12

95,120

… … …

69

34

95,120

70

35

10,95,120

IRR

6.58%

As you can see in the above illustration, at the end of the policy term, we can get an IRR of 6.58% in case-I. After 35 years, we can get Rs. 10,95,120 as a maturity benefit and Rs. 12,00,000 as a death benefit.

Case-II

Entry Age: 35 Years Annualized Premium: 1,00,000
Gender: Male Basic Sum Assured: 12,00,000
Premium Paying Term: 10 Years Premium Frequency: Annual
Policy Term: 10 Years Plan Option: Regular Income with an inbuilt Critical Illness benefit
Income Term: 25 Years (From 11th  Year to 35th  Year) The Policy Maturity date is at the end of the Policy Term Income Mode: Annual
Scenario I: No Critical Illness till Maturity

Case 2

Age Year Annualized Premium/

Maturity Benefit

Death Benefit

36

1 1,00,000 12,00,000
37 2 -1,00,000

12,00,000

…

… … …
45 10 -1,00,000

12,00,000

46

11 96,760
47 12

96,760

…

… …
69 34

96,760

70

35 10,96,760
IRR

6.67%

In case-II, we get an IRR of 6.67% at the end of the policy term. After 35 years, we get Rs. 10,96,760 as maturity benefit and Rs. 12,00,000 as a death benefit.

Case Scenario IRR (Internal Rate of Return) Maturity Benefit Death Benefit
Case-I 6.58% Rs. 10 lacs Rs. 12 lacs
Case-II 6.53% Rs. 10 lacs Rs. 12 lacs

As you can see, in TATA AIA Fortune Guarantee Plus, we get an investment return that is equal to bank FDs and it may not give you the adequate purchasing power and an inflation-beating return for the long term.

TATA AIA Fortune Guarantee Plus vs. Other Investments:

As an alternative to TATA AIA Fortune Guarantee Plus, you can invest the money in various investments that can give you a better investment return.

For a risk-free investment, you can choose PPF or RBI bonds for the long term.

Since PPF has matured at 15 years, you can invest your money in PPF for 15 years with a 7.10% interest rate and then you can reinvest the money in RBI Bonds or a 70:30 ratio in equity and debt.

Or 

You can choose Mutual Funds.

For instance, let’s take ELSS.

Overall Contribution: Rs. 1,00,000

Term Insurance:

Sum Assured: Rs. 12,00,000

Annual Premium: Rs. 5,500

Tenure: 10 years

ELSS Contribution: Rs. 94,500

Assumed Rate of Return: 12% with investment risk

Then,

Term Insurance + ELSS

Age

Year Term Insurance Premium  + ELSS

Death Benefit

36

1 1,00,000 12,00,000

37

2 -1,00,000

12,00,000

…

… … …
45 10 -1,00,000

12,00,000

46

11 96,760
47 12

96,760

…

… …
69 34

96,760

70

35 46,20,860
IRR

8.84%

After 10 years, we can get Rs. 17,76,122 as a post-tax return.

You can reinvest the money for the remaining 25 years at a return  of 8% in hybrid funds or on a combination of equity mutual funds and debt mutual funds at 30:70 ratio and can withdraw Rs. 96,760 per annum.

If then, at the end of the 35 years, you can Rs. 45,24,100 as investment return.

Case Scenario IRR (Internal Rate of Return) Maturity Benefit Death Benefit
Case-I 6.58% Rs. 10 lacs Rs. 12 lacs
Case-II 6.53% Rs. 10 lacs Rs. 12 lacs
ELSS + Hybrid Funds (Post-tax) 8.84% Rs. 45 lacs Rs. 12 lacs

Here as a result, compared to TATA AIA Fortune Guarantee Plus, we get a better investment return in other investments for the long term.

Final Verdict on TATA AIA Fortune Guarantee Plus:

After our detailed analysis, we can see that ELSS can give you a better return compared to TATA AIA Fortune Guarantee Plus. So, the TATA AIA Fortune Guarantee Plus did not give us a good long-term return

Shortly, you can get a better return on PPF, RBI Bonds, and Mutual Funds. As for term insurance, you can choose pure term insurance that can give you high life coverage at a low cost.

If you have any comments or questions, write them in the comment box below.

Or are you interested in creating a Comprehensive Financial Plan for your financial goals?

Skip the queue by registering for your 30 Minute FREE Financial Plan Consultation. Click the ‘Book Now’ button below. 

Reader Interactions

Previous article: TATA AIA Fortune Maxima: ULIP Review (2023)-Is it Good or Bad?
Next article: LIC Jeevan Shiromani-Review (2023): Is it Good or Bad?

Comments

  1. Navdeep says

    August 29, 2022 at 7:21 pm

    Is the return tax free that we get annually

    Reply
    • Holistic says

      September 9, 2022 at 1:41 pm

      Yes.

      Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Client Login

Recent Posts

  • Mastering Islamic Finance: The Ultimate Guide to Sharia Investment
  • Smart Financial Planning Tips for Beginners – A Complete Guide
  • SIP Investment Mistakes! How to Overcome Them?
  • What is Flexi Cap Mutual Fund:
    Explained
  • Explained: What is ELSS Mutual Fund?
Jey S
Jey S
24. September, 2021.
I have been using Holistic Investment Planners for the last three years. Mr. Srinivasavaradhan answered all my questions and doubts very patiently during the first free consultation. I was able to clearly define my short-, medium- and long-term goals once I signed up for the comprehensive plan and got their investment plan suggestion to achieve my goals. They are very polite and highly professional whenever I contact them for any queries or make investments. They never pressurize you to invest on their recommended financial products. I would have been lost money by investing directly without their help since I do not have time and knowledge about different financial products. Risk planning is also done as part of financial planning. Truly, they are holistic planners when it comes to your financial planning. They help you to define your life goals, understand your financial resources and establish a plan to invest towards reaching those goals. They do review your plan as you progress to make sure that you are on correct path to achieve those goals. Kudos to the team and keep up the good work!!! I am happy that I found holistic investment planners for my financial planning and management.
aksaswadkar
aksaswadkar
24. September, 2021.
I was about to retire and really not understanding how to invest money to have financial freedom and fulfilling my goals. Was desperately searching on internet way out and fortunately came across Holistic Investment Planners. I read number of articles on their website and realized that this is the agency which I want and engaged their services for my retirement planning. It is an excellent experience to be associated with Holistic. Right from day one our interaction was fantastic and they gave me such a wonderful plan that I had never imagined. I am fortunate enough to be in the client list of Holistic. I have recommended Holistic to my friends as well.
Lionel Faber
Lionel Faber
16. September, 2021.
I've been availing their services for the past year. They are highly knowledgeable in the field and are very patient with all doubts and queries. Personalized financial planning is provided keeping your short term, medium term and long term goals in mind. They do not pressurize you to purchase schemes of their choice. They provide their input and suggestions and leave the decision up to you which shows their honesty and high principle.
Sridhar
Sridhar
8. September, 2021.
Financial planning brings peace in life. Holistic Investment have supported in arriving financial plan based on future goals. My investments are regular since then. They are professionals in their business, will recommend others.
Nitesh Agrawal
Nitesh Agrawal
6. September, 2021.
I have been using Holistic Investment Planners from last one year. The journey has been fantastic. Being a finance person myself I always thought we can look after and plan own finances also. However, due to lack of time and deciplain the things are not always as desired. After joining with Holistic Investment for the first time Icame to know the Financial goals and quantified them. Some dreams were unrealistic based on the earnings and savings so had a reality check. Also got the information and deciplain of investing on regular and more rewarding securities. I definetly suggest to use Holistic Investment Planners. They are professionals, available and hear youor full story before presenting plans. They are flexile in the sense if there are some urgent deviations required, they help to plan the same. For all professionals/individuals I would suggest using professional help of Holistic Investment Planners for best results in long term investment and financial goals achivements. Last advise will be to start early in your life. It really pays well to start in the beginning itself else the dreams needs to adjust :)
Swetha Vasanth
Swetha Vasanth
6. September, 2021.
This is my first year service with the Holistic Team and I would say that they are very much helpful in creating a financial plan and follow ups during the year. I would definitely suggest them if anyone who is willing to proceed with their savings professionally.
Joseph Mathias
Joseph Mathias
6. September, 2021.
I came to know about Holistic Investment Planners online while searching for different investment ideas. Once I contacted them the journey was very smooth. Mr. Ramalingam explained all the aspects of Financial planning in detail and it opened my mind. I realized how important it is to have a Financial planning. Mr. Rajan suggested all the requirements as per my goals and made a Investment plan keeping in mind of my goals. I started my Investment journey with them. I wish I had done it some years back then it would have been in a different level. Review meetings were held every six month to check the implementation of the plan and check the results as per the requirements and to check if any changes required. Overall it was a good experience with Holistic Investment team and would like to continue in the years to come.
Srinvas Kannan
Srinvas Kannan
30. July, 2021.
I came across Holistic investment planners almost 5-6 years back, but I did not have the trust since I had met a few of them who did not sound promising. Then I started investing through a financial advisor of my friend. After 4 years of investing the returns were very low. I was disappointed and started looking for financial advisors when I came across Holistic investment. I had a detailed discussion about my goals and the way they would approach achieving my goal before deciding to switch my investments to them. After a thorough analysis of my then existing portfolios, they suggested new ones and we zeroed-in on 6 schemes/funds where our investment would be split. I am glad I made the decision of switching over and taking Holistic planner's advise, my returns are handsome and I only wish I could have taken their help/advise 5 years back itself. Neverthless, I would like to recommend their services for investment and financial advise if someone is serious about their investments.
Shivaram Andiappan Selvaraj
Shivaram Andiappan Selvaraj
3. July, 2021.
I got a free first time consultation. I got my doubts resolved. They also gave additional advises for investment planning which was also useful.
Nellai B
Nellai B
26. June, 2021.
I have been associated with them for the past three years. They are very professional and polite in answering all our questions. I have complete trust in their suggestions. I strongly recommend for anyone. I am looking forward to have strong and successful association with them.
Google rating score: 4.4 of 5,
based on 61 reviews

Footer

  • Articles
  • Gallery
  • Ideal Client
  • Jobs(Full Time)
  • Podcast
  • Services
  • Testimonials

Connect With Us

Holisticinvestment.in
10/15, Second Cross Street,
Seethammal Extn.,
Teynampet,
Chennai – 600 018,
INDIA.

Copyright © 2022. Holisticinvestment.in | All rights reserved.    Cared with ❤ by T-Square Cloud

×