Tata AIA Sampoorna Raksha Plus Plan
Can the Tata AIA Sampoorna Raksha Plus Plan safeguard your loved ones with a trusted and reliable life insurance plan?
Can the Tata AIA Sampoorna Raksha Plus Plan ensure financial stability with a comprehensive protection plan?
Can the Tata AIA Sampoorna Raksha Plus Plan offer life cover and financial security for your loved ones?
Let’s explore this by reviewing the Tata AIA Sampoorna Raksha Plus plan. This article will analyse its features, advantages, disadvantages, and returns using an Internal Rate of Return (IRR) analysis.
What is the Tata AIA Sampoorna Raksha Plus?
What are the features of the Tata AIA Sampoorna Raksha Plus?
Who is eligible for the Tata AIA Sampoorna Raksha Plus?
What are the benefits of Tata AIA Sampoorna Raksha Plus?
Grace period, Reduced paid-up and Revival of Tata AIA Sampoorna Raksha Plus
Free Look Period of the Tata AIA Sampoorna Raksha Plus
Surrendering Tata AIA Sampoorna Raksha Plus
What are the advantages of the Tata AIA Sampoorna Raksha Plus?
What are the disadvantages of the Tata AIA Sampoorna Raksha Plus?
Research Methodology of Tata AIA Sampoorna Raksha Plus
Benefit Illustration – IRR Analysis of Tata AIA Sampoorna Raksha Plus
Tata AIA Sampoorna Raksha Plus Vs. Other investments
Tata AIA Sampoorna Raksha Plus Vs. Pure Term + ELSS
Final Verdict on Tata AIA Sampoorna Raksha Plus
Tata AIA Life Insurance Sampoorna Raksha Plus is a Non-Linked, Non-Participating, Individual Life Insurance, Savings Product. Tata AIA Life Insurance Sampoorna Raksha Plus not only protects you from the uncertainties of life but also gives you the return of premiums paid on survival till the maturity of the Policy.
| Plan parameters | Minimum | Maximum |
| Age at Entry | 18 years | For Regular Pay & Limited Pay 5 years: 70 For Limited Pay 10 years & 12 years: 65 |
| Age at Maturity | 28 years | 100 years |
| Policy Term | Premium paying term | Policy term |
| For Regular Pay & Limited Pay 5 years | 10 to 40, Subject to a maximum maturity age of 100 years | |
| For Limited Pay for 10 years & 12 years | 15 to 40, Subject to a maximum maturity age of 100 years | |
| Premium paying term | Limited pay – 5,10,12 Regular pay | |
| Basic sum assured | ₹ 50,00,000 | No limit |
| Annualised premium | Based on the minimum basic sum assured | Based on the maximum basic sum assured |
| Premium payment mode | Annual/ Half-yearly/ Quarterly/ Monthly | |
Option 1: “Sum Assured on Death” payable on Death
Upon the death of the insured during the term of the Tata AIA Life Insurance Sampoorna Raksha Plus policy, provided the policy is in force, the death benefit i.e., the Sum Assured on Death is payable immediately to the Nominee.
Option 2: “Sum Assured on Death” payable on Death & Monthly Income thereafter for 10 years
Upon the death of the insured during the term of the Tata AIA Life Insurance Sampoorna Raksha Plus policy, provided the policy is in force, the death benefit i.e., the Sum Assured on Death is payable immediately to the Nominee.
Along with the Sum Assured on Death, the Nominee shall also receive a monthly income equal to 1% of the Basic Sum Assured for 10 years starting from the next monthly anniversary following the date of death.
Under both the options, “Sum Assured on Death” shall be defined as the highest of the following:
On survival till the end of the Tata AIA Life Insurance Sampoorna Raksha Plus policy term, the Total Premiums Paid will be returned
There is no survival benefit
If you are unable to pay your Premium on time, starting from the premium due date, a grace period of 15 days for the monthly mode and 30 days for all other modes will be offered.
At any time during the Tata AIA Life Insurance Sampoorna Raksha Plus policy term, if the premiums are not paid within the grace period, the policy will lapse. This will only be true in the case of those limited Pay 5 & limited Pay 10/ 12/ regular pay policies for which premiums have only been paid for less than 2 years.
The Tata AIA Life Insurance Sampoorna Raksha Plus policy will be converted into a Reduced Paid-up policy by default, provided premiums for at least two (2) years are paid and subsequent premiums remain unpaid.
If a premium is in default beyond the Grace Period and subject to the Policy not having been surrendered, it may be revived within 5 years after the due date of the first unpaid premium and before the date of maturity.
If you are not satisfied with the terms and conditions, features of the policy, you have the right to cancel the policy within 15 days from the date of receipt of the policy document. The said period of 15 days shall stand extended to 30 days if the policy is sourced through distance marketing mode.
The Tata AIA Life Insurance Sampoorna Raksha Plus policy shall acquire a Guaranteed Surrender Value and a Special Surrender Value and may be surrendered at any time during the term of the policy, provided at least two (2) full years’ premiums have been paid.
The surrender value = Higher of Guaranteed Surrender Value and Special Surrender Value) where,
Guaranteed Surrender Value = Guaranteed Surrender Value Factor multiplied by Total Premiums Paid Special Surrender Value = Special Surrender Value Factor multiplied by Total Premiums Paid
The Tata AIA Sampoorna Raksha Plus plan provides life coverage throughout the policy term, with premiums payable either as limited pay or regular pay. If the Tata AIA Life Insurance Sampoorna Raksha Plus policyholder survives until the end of the term, the total premiums paid are refunded.
However, there is no additional value added to the maturity benefit. When we calculate the Internal Rate of Return (IRR) for this cash flow, it turns out to be zero.
For example, a 30-year-old male purchases the Tata AIA Sampoorna Raksha Plus with a sum assured of ₹1 crore. The policy term and premium payment term are both 30 years, with an annual premium of ₹16,500.
Over the course of the policy, a total of ₹4,95,000 is paid in premiums, which is then returned as the maturity benefit at the end of the term.
| Male | 30 years |
| Sum Assured | ₹ 1,00,00,000 |
| Policy Term | 30 years |
| Premium Paying Term | 30 years |
| Annualised Premium | ₹ 16,500 |
| Age | Year | Annualised premium / Maturity benefit | Death benefit |
| 30 | 1 | -16,500 | 1,00,00,000 |
| 31 | 2 | -16,500 | 1,00,00,000 |
| 32 | 3 | -16,500 | 1,00,00,000 |
| 33 | 4 | -16,500 | 1,00,00,000 |
| 34 | 5 | -16,500 | 1,00,00,000 |
| 35 | 6 | -16,500 | 1,00,00,000 |
| 36 | 7 | -16,500 | 1,00,00,000 |
| 37 | 8 | -16,500 | 1,00,00,000 |
| 38 | 9 | -16,500 | 1,00,00,000 |
| 39 | 10 | -16,500 | 1,00,00,000 |
| 40 | 11 | -16,500 | 1,00,00,000 |
| 41 | 12 | -16,500 | 1,00,00,000 |
| 42 | 13 | -16,500 | 1,00,00,000 |
| 43 | 14 | -16,500 | 1,00,00,000 |
| 44 | 15 | -16,500 | 1,00,00,000 |
| 45 | 16 | -16,500 | 1,00,00,000 |
| 46 | 17 | -16,500 | 1,00,00,000 |
| 47 | 18 | -16,500 | 1,00,00,000 |
| 48 | 19 | -16,500 | 1,00,00,000 |
| 49 | 20 | -16,500 | 1,00,00,000 |
| 50 | 21 | -16,500 | 1,00,00,000 |
| 51 | 22 | -16,500 | 1,00,00,000 |
| 52 | 23 | -16,500 | 1,00,00,000 |
| 53 | 24 | -16,500 | 1,00,00,000 |
| 54 | 25 | -16,500 | 1,00,00,000 |
| 55 | 26 | -16,500 | 1,00,00,000 |
| 56 | 27 | -16,500 | 1,00,00,000 |
| 57 | 28 | -16,500 | 1,00,00,000 |
| 58 | 29 | -16,500 | 1,00,00,000 |
| 59 | 30 | -16,500 | 1,00,00,000 |
| 60 | 4,95,000 | ||
| IRR | 0.00% |
Since there is no value addition, the return is effectively zero as per the Tata AIA Life Insurance Sampoorna Raksha Plus Plan maturity calculator. The return of premium, without accounting for the time value of money, results in no return on investment.
For life coverage, a pure-term insurance policy without a return of premium is the most suitable option. The premiums for these policies are lower compared to those with a return of premium.
The savings from choosing a pure-term life policy can then be invested separately. Let’s illustrate this with the following scenario.
Consider a pure-term life insurance policy with a sum assured of ₹1 crore, available for an annual premium of ₹12,700. The policy term and premium payment term are both 30 years. In comparison, a return of premium policy costs ₹16,800 annually.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 1,00,00,000 |
| Policy Term | 30 years |
| Premium Paying Term | 30 years |
| Annualised Premium | ₹ 12,700 |
| Investment | ₹ 3,800 |
By opting for the pure-term policy, you save ₹3,800 each year, which can be invested separately. The investment vehicle should be selected based on individual risk tolerance.
| Age | Year | Term Insurance premium + ELSS | Death benefit |
| 30 | 1 | -16,500 | 1,00,00,000 |
| 31 | 2 | -16,500 | 1,00,00,000 |
| 32 | 3 | -16,500 | 1,00,00,000 |
| 33 | 4 | -16,500 | 1,00,00,000 |
| 34 | 5 | -16,500 | 1,00,00,000 |
| 35 | 6 | -16,500 | 1,00,00,000 |
| 36 | 7 | -16,500 | 1,00,00,000 |
| 37 | 8 | -16,500 | 1,00,00,000 |
| 38 | 9 | -16,500 | 1,00,00,000 |
| 39 | 10 | -16,500 | 1,00,00,000 |
| 40 | 11 | -16,500 | 1,00,00,000 |
| 41 | 12 | -16,500 | 1,00,00,000 |
| 42 | 13 | -16,500 | 1,00,00,000 |
| 43 | 14 | -16,500 | 1,00,00,000 |
| 44 | 15 | -16,500 | 1,00,00,000 |
| 45 | 16 | -16,500 | 1,00,00,000 |
| 46 | 17 | -16,500 | 1,00,00,000 |
| 47 | 18 | -16,500 | 1,00,00,000 |
| 48 | 19 | -16,500 | 1,00,00,000 |
| 49 | 20 | -16,500 | 1,00,00,000 |
| 50 | 21 | -16,500 | 1,00,00,000 |
| 51 | 22 | -16,500 | 1,00,00,000 |
| 52 | 23 | -16,500 | 1,00,00,000 |
| 53 | 24 | -16,500 | 1,00,00,000 |
| 54 | 25 | -16,500 | 1,00,00,000 |
| 55 | 26 | -16,500 | 1,00,00,000 |
| 56 | 27 | -16,500 | 1,00,00,000 |
| 57 | 28 | -16,500 | 1,00,00,000 |
| 58 | 29 | -16,500 | 1,00,00,000 |
| 59 | 30 | -16,500 | 1,00,00,000 |
| 60 | 9,28,598 | ||
| IRR | 3.80% |
In this example, the surplus is invested in an ELSS fund. After 30 years, the post-tax value of the ELSS fund is ₹9.28 lakhs, down from a pre-tax value of ₹10.27 lakhs, with an IRR of 3.80%.
| ELSS Tax Calculation | |
| Maturity value after 30 years | 10,27,112 |
| Purchase price | 1,14,000 |
| Long-Term Capital Gains | 9,13,112 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 7,88,112 |
| Tax paid on LTCG | 98,514 |
| Maturity value after tax | 9,28,598 |
While the returns may not be exceptionally high, you still accumulate a substantial corpus over time. Compared to the Tata AIA Sampoorna Raksha Plus, this approach yields a higher final maturity amount, helping you achieve your life goals more effectively.
Selecting life insurance coverage with an adequate sum assured is a fundamental step in financial planning. It acts as a safety net, providing financial security to your family.
Choosing the right life insurance plan is crucial, and there are several options available in the market, such as Endowment plans, Money-back plans, ULIPs, and pure-term plans.
Participating policies or Linked policies don’t offer any significant advantage over pure-term policies. These plans are often expensive provide little value in terms of investment and also have a high agent commission.
For instance, the Tata AIA Sampoorna Raksha Plus has higher premiums, which are returned at the end of the policy term.
On the other hand, opting for a pure-term policy offers savings on premiums. The combination of affordable premiums and an adequate (high) sum assured provides a significant advantage over other life insurance policies.
To achieve your financial goals, it’s advisable to build a separate investment portfolio tailored to your risk tolerance.
Choosing the right insurance and investment products is a critical aspect of financial planning. It’s important to carefully assess any plan before making a decision.
If you have any questions about selecting the right product, consulting a Certified Financial Planner is recommended. Their expertise can help you choose the appropriate products based on your personal preferences and goals.
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