TATA AIA Fortune Maxima is a ULIP that gives a market-oriented return.
It claims to be a solution to increase your wealth.
But, is it worth having the policy in your investment portfolio?
Will it help you to increase your wealth?
Or
Will it bring more risk to your investment portfolio?
What are the good or bad aspects of the 11 different funds and also the fund performance of TATA AIA Fortune Maxima?
Do the pros(advantages) of TATA AIA Fortune Maxima ULIP outweigh the cons(disadvantages)?
Let’s discover the answer here.
Here is a brief review on TATA AIA Fortune Maxima ULIP. This article can help you to make the right investment decision.
Table of Content:
1.) What is TATA AIA Fortune Maxima Plan?
2.) Features of TATA AIA Fortune Maxima Analysis
3.) Review of Benefits – TATA AIA Fortune Maxima
4.) Eligibility of TATA AIA Fortune Maxima Analysis
5.) What are the investment avenues of TATA AIA Fortune Maxima? An analysis with illustration
6.) Review of Other Benefits – TATA AIA Fortune Maxima
7.) Review of Charges – TATA AIA Fortune Maxima
8.) Discontinuance Policy of TATA AIA Fortune Maxima: Review
9.) Surrendering/Cancelling the TATA AIA Fortune Maxima during the free look period Analysis
10.) How to surrender TATA AIA Fortune Maxima after the free look period? An Analysis
11.) Advantages of TATA AIA Fortune Maxima Analysis
12.) Disadvantages of TATA AIA Fortune Maxima Analysis
13.) Research Methodology on TATA AIA Fortune Maxima Analysis
14.) IRR (Internal Rate of Return i.e. Interest Rate) Analysis of TATA AIA Fortune Maxima-Explanation with an illustration
15.)TATA AIA Fortune Maxima vs Other Investment options
- TATA AIA Fortune Maxima vs. PPF + Pure Term Insurance:
- TATA AIA Fortune Maxima vs. ELSS + Pure Term Insurance: Review
- TATA AIA Fortune Maxima vs TATA AIA Fortune Pro – Review
- TATA AIA Fortune Maxima vs Other Investment Products – Review Conclusion
16.) Final Verdict on TATA AIA Fortune Maxima: Good or Bad?
1.)What is TATA AIA Fortune Maxima Plan?
TATA AIA Fortune Maxima is a non-participant ULIP plan that claims to help investors to create the wealth to achieve their financial goals. It is a whole-life individual plan that offers both wealth creation and life-long coverage to its customers.
But will it increase your wealth? Let’s discover here.
2.)Features of TATA AIA Fortune Maxima: Analysis
- It is a ULIP plan.
- Option to pay your premium as lumpsum or limited period.
- Loyalty Additions regularly to Increase Investments.
- Option to choose between 11 funds to invest.
- Option to customize your plan with 3 additional unit deduction riders.
- Select between Enhanced Systematic Money Allocation and a Regular Transfer Investment Portfolio Strategy.
- Tax benefits under Sections 80C and 10 (10D) of the Income Tax Act of 1961.
3.)Review of Benefits – TATA AIA Fortune Maxima
Maturity Benefit:
If the policyholder survives throughout the policy term, then the policyholder will get the fund value as of the date of maturity.
Death Benefit:
If the policyholder passes away, unfortunately, then the nominee or the legal heir of the policyholder will get the death benefit as the highest of the following.
- Basic Sum Assured excluding the partial withdrawal if any
- The fund value as of the date of the death of the policyholder.
- 105% of the total premium paid.
In addition to this, the highest of the following:
- The authorized Top-up Sum Assured or
- Policy’s Top-up Premium Fund Value or
- 105% of the total Top-up premium paid.
Loyalty Additions:
For the regular premium payment option, 0.20% loyalty extra units will be credited from the 11th policy term onwards.
For a lumpsum premium payment option, the loyalty extra units at the rate of 0.35% will be deposited from the 6th policy term onwards.
4.)Eligibility of TATA AIA Fortune Maxima: Analysis
| Minimum Issue Age | 0 years (30 days) |
| Maximum Issue Age | 60 years |
| Policy Term | 100 minus Issue age |
| Premium Paying Term | Single Pay |
| Limited Pay –7/8/9/10/12/15 and 20 years | |
| Pay Mode | Single, Annual, Semi-Annual, Quarterly, Monthly |
| Minimum Premium | Single Pay – 1,00,000 Limited Pay – 50,000 per annum |
| Maximum Premium | Single Pay – 5,00,000 Limited Pay – 5,00,000 per annum |
| Minimum/Maximum Basic Sum Assured | For Single Pay – 1.25 times the Single Premium |
| For Limited Pay – Higher of (10*AP) OR (0.5*Policy Term*AP) |
5.)What are the investment avenues of TATA AIA Fortune Maxima? An analysis with Illustration
TATA AIA Fortune Maxima gives the option to choose between 11 funds to invest or the following “Portfolio Strategy”!
Enhanced Systematic Money Allocation & Regular Transfer (Enhanced SMART)
11 Funds options: analysis with illustration
| Fund Name | Risk Profile | Asset Allocation | ||
| Equity | Debt | Money Market | ||
| Multi Cap Fund | High | 60-100% | 0-40% | 0-40% |
| India Consumption Fund | High | 60-100% | 0-40% | 0-40% |
| Top 50 Fund | High | 60-100% | – | 0-40% |
| Top 200 fund | High | 60-100% | – | 0-40% |
| Super Select Equity Fund | High | 60-100% | 0-40% | 0-40% |
| Large Cap Equity Fund | High | 80-100% | – | 0-20% |
| Whole Life Mid Cap Equity Fund | High | 60-100% | – | 0-40% |
| Whole Life Aggressive Growth Fund | Medium to High | 50-80% | 20-50% | 0-30% |
| Whole Life Stable Growth Fund | Low to Medium | 30-50% | 50-70% | 0-20% |
| Whole Life Income Fund | Low | – | 60-100% | 0-40% |
| Whole Life Short-Term Fixed Income Fund (ULIF 013 04/01/07 WLF 110) | Low | – | 60-100% | 0-40% |
| Govt Sec | Money market | |||
| Discontinued policy fund | 60-100% | 0-40% | ||
From the above illustration, Some of the funds with high-risk profiles in TATA AIA Fortune Maxima are,
TATA AIA Fortune Maxima high-risk profiles funds:
The Top 200 fund, Top 50 fund, whole Life Mid-Cap Equity Fund, India Consumption Fund, Multi Cap Fund, Super Select Equity Fund, and Large Cap Equity Fund.
Medium to high-risk fund of TATA AIA Fortune Maxima -Whole Life Aggressive Growth Fund
Low to medium & low-risk funds – Whole Life Stable Growth Fund, Whole Life Income Fund, Whole Life Short-Term Fixed Income Fund.
Enhanced SMART option: Aanalysis with illustration
Under the Enhanced SMART option, the policyholder has the option to choose two funds: debt oriented fund and an equity-oriented fund.
Here the premium you paid will be transferred into debt oriented fund and then it will be systematically transferred into the equity fund that the policyholder chooses.
| Debt oriented funds | Equity oriented funds |
| Whole Life Income Fund | Multi Cap Fund |
| Whole Life Short-Term Fixed Income Fund (ULIF 013 04/01/07 WLF 110) | India Consumption Fund |
| Top 50 Fund | |
| Top 200 fund | |
| Super Select Equity Fund | |
| Large Cap Equity Fund | |
| Whole Life Mid Cap Equity Fund |
6.)Review of Other Benefits – TATA AIA Fortune Maxima:
The Flexibility of Partial Withdrawals: Analysis
There are 4 partial withdrawals allowed per year. The policyholder can withdraw Rs. 5000 per year.
The flexibility of Top-ups: Analysis
Each top-up premium has 5 years lock-in period. It is not allowed during the last 5 years of the policy term. The policyholder can top up their premium 5 times per year. The minimum top-up premium amount in TATA AIA Fortune Maxima is Rs. 5000.
Top-up Sum Assured: Analysis
The policyholder can top up their sum assured when they top up their premium.
Top-up Sum Assured = 1.25 * Top-up premium
The flexibility of Premium Mode: Analysis
The policyholder can pay their premium on yearly, half-yearly, quarterly, and monthly modes.
Monthly Premium = 0.0833 of Annualised Premium,
Quarterly Premium = 0.25 of Annualised Premium,
Semi-annual premium = 0.50 of Annualised Premium
The flexibility of Additional Coverage: Analysis
The policyholder has the option to choose the optional riders.
- Tata AIA Life Insurance Waiver of Premium (Linked) Rider
- Tata AIA Life Insurance Waiver of Premium Plus (Linked) Rider
- Tata AIA Life Insurance Accidental Death and Dismemberment (Long Scale) (ADDL) Linked Rider
If the policyholder pays their premium as lumpsum then they have an additional option to choose from.
Tata AIA Life Insurance Accidental Death and Dismemberment (Long Scale) (ADDL) Linked Rider.
7.)Review of Charges – TATA AIA Fortune Maxima:
Premium Allocation Charge: Analysis with illustration
| Premium Allocation Charge as a % of Annualised Premium | |
| Premium Payment Term | % of Annualised Premium |
| 1 | 6.00% |
| 2 | 6.00% |
| 3 to 5 | 5.50% |
| 6 to 7 | 4.50% |
| 8 to 10 | 3.50% |
| 11 year onwards | 2.00% |
| Single pay | 3% of Single Premium |
| Top-up premium | 1.5% of top-up premium |
Policy Administration Charge: Analysis with illustration
For the regular premium term, 0.75% p.a. will be deducted throughout the policy term.
For the lumpsum premium option, 0.90% p.a. will be deducted throughout the policy term.
Fund Management Charge: Analysis with illustration
| Sr.No | Fund Name | Fund Management Charge per annum |
| 1 | Multi Cap Fund | 1.20% |
| 2 | India Consumption Fund | 1.20% |
| 3 | Top 50 Fund | 1.20% |
| 4 | Top 200 fund | 1.20% |
| 5 | Super Select Equity Fund | 1.20% |
| 6 | Large Cap Equity Fund | 1.20% |
| 7 | Whole Life Mid Cap Equity Fund | 1.20% |
| 8 | Whole Life Aggressive Growth Fund | 1.10% |
| 9 | Whole Life Stable Growth Fund | 1.00% |
| 10 | Whole Life Income Fund | 0.80% |
| 11 | Whole Life Short-Term Fixed Income Fund (ULIF 013 04/01/07 WLF 110) | 0.65% |
| 12 | Discontinued policy fund | 0.50% |
Mortality Charge: Analysis with illustration
Mortality charge = Sum at Risk (SAR) multiplied by the appropriate Mortality Rate for the month, calculated using the Life Assured’s age achieved.
| Sample Age | Mortality Charges per 1000 Sum at Risk (Rs) (per annum) |
| 25 | 1.494 |
| 35 | 1.07 |
| 45 | 1.911 |
| 55 | 5.567 |
8.)Discontinuance Charge: Analysis with illustration
For regular premium charge:
| Policy year | Maximum Discontinuance Charges for the policies having annualized premium up to 50,000/- | Maximum Discontinuance Charges for the policies having annualized premium above 50,000/ |
| 1 | Lower of 20% of Annualised Premium or Regular Premium Fund Value subject to a maximum of 3000 | Lower of 6% of Annualised Premium or Regular Premium Fund Value subject to a maximum of 6000 |
| 2 | Lower of 15% of Annualised Premium or Regular Premium Fund Value subject to a maximum of 2000 | Lower of 4% of Annualised Premium or Regular Premium Fund Value subject to a maximum of 5000 |
| 3 | Lower of 10% of Annualised Premium or Regular Premium Fund Value subject to a maximum of 1500 | Lower of 3% of Annualised Premium or Regular Premium Fund Value subject to a maximum of 4000 |
| 4 | Lower of 5% of Annualised Premium or Regular Premium Fund Value subject to a maximum of 1000 | Lower of 2% of Annualised Premium or Regular Premium Fund Value subject maximum of 2000 |
| 5 and onwards | Nil | Nil |
For lumpsum premium payment: Analysis with illustration
| Policy year | Maximum Discontinuance Charges for the policies having Single Premium up to R 3,00,000/- | Maximum Discontinuance Charges for the policies having Single Premium above R 3,00,000/- |
| 1 | Lower of 2% of Single Premium or Single Premium Fund Value subject to a maximum of 3000/- | Lower of 1% of Single Premium or Single Premium Fund Value subject to a maximum of 6000/ |
| 2 | Lower of 1.5% of Single Premium or Single Premium Fund Value subject to a maximum of 2000/- | Lower of 0.70% of Single Premium or Single Premium Fund Value subject to a maximum of 5000/- |
| 3 | Lower of 1% of Single Premium or Single Premium Fund Value subject to a maximum of 1500/- | Lower of 0.50% of Single Premium or Single Premium Fund Value subject to a maximum of 4000/ |
| 4 | Lower of 0.5% of Single Premium or Single Premium Fund Value subject to a maximum of 1000/- | Lower of 0.35% of Single Premium or Single Premium Fund Value subject to a maximum of 2000/ |
| 5 and onwards | Nil | Nil |
Partial Withdrawal Charge:
There is no partial withdrawal charge.
Fund Switching Charge:
There are 12 switching charges free per policy term after that the policyholder needs to pay Rs. 100 per switch.
Premium Re-direction Charge:
There is no Premium Re-direction Charge.
Insight on Charges:
Though some charges like fund management charges are reasonable, some charges like mortality charges and switching charges are unreasonable. And compare to other ULIP plans, they are quite expensive. So, even if you manage to get 8% of investment return, you still lose more than you earned here.
Discontinuance Policy of TATA AIA Fortune Maxima : Review
During the lock-in period: Analysis
a. For lumpsum payment option:
The policyholder has the option to surrender the policy anytime during the lock-in period. However, the fund value will be credited to the Discontinued Policy Fund after deducting the charges.
The policy will continue in the discontinued policy fund till the end of the lock-in period.
b. Regular Premium Payment Option:
If the policyholder fails to pay the premium within the grace period, then the fund value will be moved to the discontinued policy fund until the revival period of three years.
After the lock-in period: Analysis
a. For lumpsum payment option:
The policyholder can surrender the policy anytime and get the fund value as on the date of surrender.
b. Regular Premium Payment Option:
If the policy is terminated owing to non-payment of premiums after the lock-in period after the grace period has expired, the policy will be changed into a reduced paid-up policy with the paid-up sum insured.
“Reduced paid-up sum assured = Basic Sum Assured * (total number of premiums paid / original number of premiums payable)”
9.)Surrendering/Cancelling the TATA AIA Fortune Maxima during the free look period: Analysis
If the policyholder is not satisfied with the terms and conditions of the TATA AIA Fortune Maxima policy then they can return the policy by giving the written statement within 15 days from the date of the TATA AIA policy purchased.
It will be extended up to 30 days if the policy is purchased through distance mode.
You can read the TATA AIA Fortune Maxima brochure here for more details
10.)How to surrender TATA AIA Fortune Maxima after the free look period? An Analysis
For lumpsum payment option:
The policy can be surrendered anytime.
Regular Premium Payment Option:
a. Before the lock-in period:
The fund value after deducting the charges will be paid after the lock-in period of 5 years.
b. After the lock-in period:
The fund value as of the date of complete withdrawal shall be paid to the policyholder.
11.)Advantages of TATA AIA Fortune Maxima:Analysis
- You have the option to choose from 11 funds.
- Top-up premiums increase the value of your investment.
- The addition of loyalty will increase the fund’s worth.
- When the premium-paying period has expired, there is an extended life cover (up to 100 years).
- There are no fees for partial withdrawals or premium redirection.
- The SMART method safeguards the entire investment from market volatility.
12.)Disadvantages of TATA AIA Fortune Maxima: Analysis
- No liquidity during the lock-in period of 5 years.
- The policyholder will not be able to wholly or partially surrender or withdraw funds invested in linked insurance products until the end of the fifth year.
- The loan option is not available.
- The premium will be invested in funds after deducting the charges.
13.)Research Methodology on TATA AIA Fortune Maxima: Analysis
We have seen all the necessary details that we need to know about TATA AIA Fortune Maxima.
But still, this information does not give clarity to deciding whether to purchase this plan or not.
So, now let’s dig out more information by calculating the IRR of TATA AIA Fortune Maxima by using the online calculator provided by TATA AIA and comparing it to other investments, whether it gives us a better return or not.
14.)IRR(Internal Rate of Return i.e. Interest Rate) Analysis of TATA AIA Fortune Maxima-Explanation with an illustration:
| Age(Year) | Policy Term(Year) | Premium Paying Term(Year) | Annual Regular Premium (₹) | Premium Multiple Chosen | Guaranteed Benefits | Higher Rate Illustration (8%) | Lower Rate Illustration (4%) | |
| Non-Guaranteed Benefits | Non-Guaranteed Benefits | |||||||
| Basic Sum Assured (₹) | Total Maturity Benefit(₹) | Net Yield**@8% | Total Maturity Benefits*(₹) | |||||
| 35 | 65 | Single | 100,000 | 1.25 | 125,000 | 58,63,362 | 6.76% | 4,03,034 |
| 35 | 65 | 7 | 100,000 | 17.5 | 1,750,000 | 3,39,93,464 | 6.77% | 23,82,834 |
| 35 | 65 | 10 | 100,000 | 17.5 | 1,750,000 | 4,58,12,843 | 6.79% | 44,12,1256 |
| 35 | 65 | 15 | 100,000 | 17.5 | 1,750,000 | 6,10,63,271 | 6.81% | 65,80,821 |
Now, let’s calculate the IRR of TATA AIA Fortune Maxima for its worst-case scenario and the best-case scenario.
Annual Premium: Rs. 1,00,000
Premium Term: 15
Policy Term: 65
Here, let’s take the assumed gross return as 4% in the worst-case scenario.
| At 4% p.a | |||
| Age | Year | Annualized premium/Maturity Benefit | Death Benefit |
| 36 | 1 | -1,00,000 | 17,50,000 |
| 37 | 2 | -1,00,000 | 17,50,000 |
| 38 | 3 | -1,00,000 | 17,50,000 |
| … | … | … | … |
| 50 | 15 | -1,00,000 | 17,50,000 |
| 51 | 16 | 0 | |
| 52 | 17 | 0 | |
| … | … | … | |
| 100 | 65 | 0 | |
| 65,80,821 | |||
| IRR | 2.57% | ||
In the above illustration the IRR of TATA AIA Fortune Maxima for 4% p.a is calculated at 2.57%.
As you can see in the above illustration, at the end of the policy term, we get an IRR of 2.57%. And the policyholder will get Rs. 65,80,821 as maturity benefit and Rs. 17,50,000, if the policyholder passes away, unfortunately.
Now, let’s calculate the IRR for the best-case scenario.
In the best-case scenario of TATA AIA Fortune Maxima, let’s take the assumed gross return as 8%.
Then,
| At 8% p.a | |||
| Age | Year | Annualized premium/Maturity Benefit | Death Benefit |
| 36 | 1 | -1,00,000 | 17,50,000 |
| 37 | 2 | -1,00,000 | 17,50,000 |
| 38 | 3 | -1,00,000 | 17,50,000 |
| … | … | … | … |
| 50 | 15 | -1,00,000 | 17,50,000 |
| 51 | 16 | 0 | |
| 52 | 17 | 0 | |
| … | … | … | |
| 100 | 65 | 0 | |
| 6,10,63,271 | |||
| IRR | 6.53% | ||
As you can see in the above illustration, at the end of the policy term, the policyholder will get Rs. 6,10,63,271 as a maturity benefit and the IRR is calculated at 6.53% in the best-case scenario.
| Investment Options | IRR (Internal Rate of Return) | Maturity Benefit | Death Benefit |
| Worst case scenario | 2.57% | Rs. 65 lacs | Rs. 17.5 lacs |
| Best case scenario | 6.53% | Rs. 6.10 cr | Rs. 17.5 lacs |
In the above illustration, we have calculated & compared the best and worst case IRR of TATA AIA Fortune Maxima.
Here, this policy may seem like giving you a better investment return. But, after calculating the IRR, it gives us a clear picture of what we will get as an investment return.
If we look into it, then you may notice that the IRR in the worst-case scenario is lower than the savings bank account.
And for a long-term investment, it does not help you to create wealth and the power to beat inflation.
In the best-case scenario, we get an IRR that we can get from Bank FDs.
Also, for a long-term investment, it only gives you purchasing power, not the inflation-beating return.
Now, let’s see the IRR of other investments.
Let’s take PPF as a risk-free investment.
15.)TATA AIA Fortune Maxima vs Other Investment options
-
TATA AIA Fortune Maxima vs. PPF + Pure Term Insurance:
Overall contribution: Rs. 1,00,000
Pure term insurance contribution:
Annual Premium: Rs. 8,500
Sum Assured: Rs. 75,50,000
Tenure: 15 years
PPF Contribution: Rs. 91,500
Interest rate: 7.10% without investment risk
Then,
| Term Insurance + PPF | |||
| Age | Year | Term Insurance Premium + PPF | Death Benefit |
| 36 | 1 | -1,00,000 | 17,50,000 |
| 37 | 2 | -1,00,000 | 17,50,000 |
| 38 | 3 | -1,00,000 | 17,50,000 |
| … | … | … | … |
| 50 | 15 | -1,00,000 | 17,50,000 |
| 51 | 16 | 0 | |
| 52 | 17 | 0 | |
| … | … | … | |
| 100 | 65 | 0 | |
| 10,60,89,196 | |||
| IRR | 7.53% | ||
In the above illustration, the IRR is calculated at 7.53% for Term Insurance + PPF.
As you can see, at the end of the maturity period (15 years for PPF), we get Rs. 28,81,607 as a maturity benefit.
If you want, here you can reinvest this amount as a 70:30 ratio in equity and debt for the next 50 years with a 7.80% assumed interest rate.
| weight | Returns | |
| Equity | 30% | 12% |
| Debt | 70% | 6% |
| Weighted average returns | 7.80% |
If we reinvest this amount for the next 50 years, then we will get an IRR of 7.53% after 65 years and Rs. 10,60,89,196 as investment return.
| Investment Options | IRR (Internal Rate of Return) | Maturity Benefit | Death Benefit |
| TATA AIA Worst-case scenario | 2.57% | Rs. 65 lacs | Rs. 17.5 lacs |
| TATA AIA Best case scenario | 6.53% | Rs. 6.10 cr | Rs. 17.5 lacs |
| PPF | 7.53% | Rs. 10 cr | Rs. 17.5 lacs |
(We have compared the IRR of TATA AIA Fortune Maxima in the best & worst-case scenarios with the IRR of PPF in the above illustration.)
This way, we can get an inflation-beating return without taking any investment risk.
Now, let’s calculate the IRR for ELSS, a risk-oriented investment plan.
-
TATA AIA Fortune Maxima vs. ELSS + Pure Term Insurance: Review
Overall contribution: Rs. 1,00,000
Pure term insurance contribution:
Annual Premium: Rs. 8,500
Sum Assured: Rs. 75,50,000
Tenure: 15 years
ELSS Contribution: Rs. 91,500
Assumed Interest rate: 12% with investment risk
Then,
| Term Insurance + ELSS | |||
| Age | Year | Term Insurance Premium + ELSS | Death Benefit |
| 36 | 1 | -1,00,000 | 17,50,000 |
| 37 | 2 | -1,00,000 | 17,50,000 |
| 38 | 3 | -1,00,000 | 17,50,000 |
| … | … | … | … |
| 50 | 15 | -1,00,000 | 17,50,000 |
| 51 | 16 | 0 | |
| 52 | 17 | 0 | |
| … | … | … | |
| 100 | 65 | 0 | |
| 15,32,86,474 | |||
| IRR | 8.20% | ||
In the above illustration, we have calculated the IRR for Term Insurance + ELSS and the result is 8.20%.
Here, after 15 years, we get Rs. 35,85,632 as a post-tax return.
Now, here we can reinvest this amount as a 30:70 ratio in equity and debt for the next 50 years.
So, after 65 years, we can get an IRR of 8.20% in ELSS+ Term investment and Rs. 15,32,86,474 as investment return.
| Investment Options | IRR (Internal Rate of Return) | Maturity Benefit | Death Benefit |
| TATA AIA Worst-case scenario | 2.57% | Rs. 65 lacs | Rs. 17.5 lacs |
| TATA AIA Best case scenario | 6.53% | Rs. 6.10 cr | Rs. 17.5 lacs |
| ELSS + Term | 8.20% | Rs. 15 cr | Rs. 17.5 lacs |
In the above illustration, we have compared the Worst case and best-case scenario IRR of TATA AIA Fortune Maxima with the IRR of ELSS + Term Insurance.
As you can see, compared to TATA AIA, ELSS gives us a better investment return even after taking investment risk.
Also, the return we get from ELSS gives us an inflation-beating return along with additional corpus to invest in the long term.
-
TATA AIA Fortune Maxima vs TATA AIA Fortune Pro – Review
Both ‘Fortune Maxima’ & ‘Fortune Pro’ are Unit Linked Insurance Plans.
There is no minimum age eligibility in the ‘Fortune Pro’ plan.
Please refer to our reviews below for a better understanding of this plan.
Tata AIA Life Insurance Fortune Pro Review—Should You Buy This ULIP?
Tata AIA Life Insurance Fortune Pro Review—Should You Buy This ULIP?/ Youtube Review/
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TATA AIA Fortune Maxima vs Other Investment Products – Review Conclusion
After a brief and thorough analysis of all the other alternative investment plans for TATA AIA Fortune Maxima
As we discussed earlier,
It has been proved through illustration that the worst-case IRR of TATA AIA Fortune Maxima is lower than the savings account.
In the best case, we receive an IRR comparable to that of bank FDs.
Even after taking on investment risk, ELSS offers us a higher investment return than TATA AIA. We can obtain an inflation-beating return in PPF as well without assuming any investment risk.
So it is better to go with Term Insurance + PPF or ELSS than TATA AIA Fortune Maxima.
16.)Final Verdict on TATA AIA Fortune Maxima: Good or Bad?
After calculating the IRR, it gives us a clear picture to make the right investment decision.
Though the TATA AIA Fortune Maxima does not provide the wealth-creating return it claims.
Compare to other investments, it does not give us an inflation-beating return or purchasing power. Also, it is quite expensive compared to other ULIP plans.
Have you ever thought about why insurance agents pressure you into buying this plan? Just for their high agent commission. As simple as that!
So, it is better to choose an individual investment and a separate term insurance plan.
If you want you can choose risk-free investment plans such as PPF and RBI Bonds for long-term investments. If you want to take risks, you can choose mutual funds to get a better return.
As for life protection, you can choose pure-term insurance that can give you high life coverage at a low cost.
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