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Is the Tata AIA Smart Fortune Plus the key to unlocking your wealth-building potential, or does it fall short compared to other ULIPs?
Is the Tata AIA Smart Fortune Plus your pathway to financial independence, or does it come with compromises you can’t afford?
Does this ULIP offer the balance you need between risk and reward, or are there more reliable investment options out there?
In this review, we take a deep dive into the plan’s features, benefits, drawbacks, and investment strategies to help you decide whether it aligns with your financial goals.
Table of Contents
What is the Tata AIA Smart Fortune Plus?
What are the features of the Tata AIA Smart Fortune Plus?
Who is eligible for the Tata AIA Smart Fortune Plus?
What are the benefits of the Tata AIA Smart Fortune Plus?
What are the investment strategies and Fund options in the Tata AIA Smart Fortune Plus?
What are the charges for the Tata AIA Smart Fortune Plus?
Grace Period, Discontinuance & Paid-up and Revival for Tata AIA Smart Fortune Plus
Free look period for Tata AIA Smart Fortune Plus
Surrendering Tata AIA Smart Fortune Plus
What are the advantages of the Tata AIA Smart Fortune Plus?
What are the disadvantages of the Tata AIA Smart Fortune Plus?
Research Methodology of Tata AIA Smart Fortune Plus
Benefit Illustration – IRR Analysis of Tata AIA Smart Fortune Plus
Tata AIA Smart Fortune Plus Vs. Other Investments
Tata AIA Smart Fortune Plus Vs. Pure-term + PPF / ELSS
Final Verdict on Tata AIA Smart Fortune Plus
What is the Tata AIA Smart Fortune Plus?
Tata AIA Smart Fortune Plus is a Non-Participating, Unit Linked, Individual Life Insurance Savings Plan. It ensures a lump sum payment upon the plan’s maturity.
Additionally, in the event of any unforeseen circumstance, it offers extra benefits to safeguard your family from financial difficulties in your absence.
What are the features of the Tata AIA Smart Fortune Plus?
- Secure your financial future and that of your family with market-linked growth potential.
- Enjoy the option of life cover that can extend throughout your lifetime.
- Choose from a diverse range of funds and investment strategies tailored to your goals.
- Customize your plan with features like Waiver of Premium, Continuity of Maturity Benefit, and Income Benefit to suit your unique needs.
- Benefit from additional unit allocations specially offered to female Tata AIA Smart Fortune Plus plan policyholders and for higher premium commitments.
- Enhance your fund value over time with Loyalty Additions and a Maturity Booster.
Who is eligible for the Tata AIA Smart Fortune Plus?
| Parameters / Plan options | Wealth Secure | Future Secure | Goal Secure | Family Secure |
| Minimum Entry Age | 30 days | 18 years | 30 years | 18 years |
| Maximum Entry Age | 65 years | 65 years | 65 years | 65 years |
| Minimum Maturity Age | 18 years | 24 years | 18 years | 24 years |
| Maximum Maturity Age | 100 years | 85 years | 85 years | 85 years |
| Minimum Policy term | 5 years for single pay | |||
| 6 years for Limited pay | ||||
| 10 years for Regular pay | ||||
| Maximum Policy term | Single pay: 100 – Entry ageRegular pay: 50 years | Single pay, Limited pay & Regular pay – 50 years | ||
| Premium paying term | Single Pay, Limited Pay – 5 to 20 years, | |||
| Regular Pay – 10 to 50 years | ||||
| For Future Secure and Family Secure option, Single Pay is not applicable | ||||
| Minimum premium | Single pay – ₹ 1000 | Single pay – NA | Single pay – ₹ 1000 | Single pay – NA |
| Limited / Regular pay – ₹ 1,200 | Limited / Regular pay – ₹ 6000 | Limited / Regular pay – ₹ 6000 | Limited / Regular pay – ₹ 6000 | |
| Maximum Premium | No Limit | |||
| Minimum Sum Assured | Premium paying term | For Age 49 and below | For age 50 and above | |
| Single pay | 1.25 times the single premium | 1.1 times the single premium | ||
| Regular pay | 7 times the annualised premium | 5 times the annualised premium | ||
| Limited pay | 7 times the annualised premium | 5 times the annualised premium | ||
| Maximum Sum Assured | Up to 30 Times, depending upon Policy Term, Premium Paying term and Age. | |||
| Minimum Top-up premium | ₹ 1,000 | |||
| Top-up Sum assured | Less than 50 years: 1.25 times & 50 years and above: 1.10 times | |||
| Premium Payment Mode | Single Pay/Yearly/ Half-yearly/Quarterly/Monthly | |||
What are the benefits of the Tata AIA Smart Fortune Plus?
1.Maturity Benefit
You shall get the Fund Value, including the Top-Up Premium Fund value, if any, valued at applicable NAV on the date of Maturity.
Wealth Secure and Goal Secure – if the Life Insured is alive on the Maturity Date, it shall be payable to him.
Future Secure and Family Secure – it shall be payable to the nominee (in case the Life Insured has died before maturity) OR to the Tata AIA Smart Fortune Plus plan policyholder (in case the Life Insured is alive as on the Maturity date).
2.Death benefit
Wealth Secure
In case of the death of the insured during the Tata AIA Smart Fortune Plus plan policy term and while the policy is in force, the nominee shall get the Highest of,
- The Basic Sum Assured Less partial withdrawals made during the two-year period immediately preceding the death of the life assured, or
- the Regular / Single Premium Fund Value of this Policy or
- 105% of the total Regular / Single Premiums received up to the date of death Less partial withdrawals made during the two-year period immediately preceding the death of the life-assured
In addition to this, the Highest of the following is also payable, provided the Policyholder has a Top-Up Premium Fund Value.
- The approved Top-Up Sum Assured(s) or
- Top-Up Premium Fund Value of this Policy or
Future Secure
In case of the death of the insured during the policy term while the policy is in force, the nominee shall get a lump sum benefit immediately on death, and the Tata AIA Smart Fortune Plus plan policy shall continue till the end of the policy term.
Additionally, the Company shall fund all future due premiums after the date of death of the Life Insured.
The lump sum benefit shall be the highest of,
- The Basic Sum Assured, or
- 105% of the total Regular/Single Premiums received up to the date of death
In addition to this, the approved Top-Up Sum Assured(s) is also payable, provided the Policyholder has a Top-Up Premium Fund Value.
Goal Secure
In case of the death of the insured during the Tata AIA Smart Fortune Plus plan policy term and while the policy is in force, the nominee shall get the highest of,
- The Sum of the Basic Sum Assured and the Regular / Single Premium Fund Value of this Policy, or
- 105% of the total Regular/Single Premiums received up to the date of death
In addition to this, the Sum of the approved Top-Up Sum Assured(s) and Top-Up Premium Fund Value of this Tata AIA Smart Fortune Plus plan Policy is also payable provided the Policyholder has a Top-Up Premium Fund Value.
Family Secure
In case of the death of the insured during the policy term while the policy is in force, the nominee shall get a lump sum benefit immediately on death, and the Tata AIA Smart Fortune Plus plan policy shall continue till the end of the policy term.
The nominee shall also get 1% of the Basic Sum Assured as guaranteed regular income per month till the end of the Policy Term, subject to a minimum period of 36 months and a maximum period of 120 months from the date of death of the life insured.
The lump sum benefit shall be The Highest of,
- The Basic Sum Assured, or
- 105% of the total Regular/Single Premiums received up to the date of death
In addition to this, the approved Top-Up Sum Assured(s) is also payable, provided the Tata AIA Smart Fortune Plus Plan Policyholder has a Top-Up Premium Fund Value.
What are the investment strategies and Fund options in the Tata AIA Smart Fortune Plus?
This product offers you the flexibility to invest in a manner that suits your investment risk profile and individual needs.
- You can choose from the 25 investment fund options OR
- Choose any one of the following portfolio strategies.Enhanced Systematic Money Allocation & Regular Transfer (Enhanced SMART)Life-stage based Portfolio Strategy
Fund options
The plan offers 25 investment funds ranging from 100% debt to 100% equity to suit your particular needs and risk appetite.
| S.no | Fund Name | Risk Profile | Asset Allocation | ||
| Equity | Debt | Money Market | |||
| 1 | Emerging opportunities Fund | High | 80-100% | 0-10% | 0-20% |
| 2 | Sustainable Equity Fund | High | 80-100% | 0-20% | 0-20% |
| 3 | Multi Cap Fund | High | 60-100% | 0-40% | 0-40% |
| 4 | India Consumption Fund | High | 60-100% | 0-40% | 0-40% |
| 5 | Top 50 Fund | High | 60-100% | – | 0-40% |
| 6 | Top 200 fund | High | 60-100% | – | 0-40% |
| 7 | Super Select Equity Fund | High | 60-100% | 0-40% | 0-40% |
| 8 | Large Cap Equity Fund | High | 80-100% | – | 0-20% |
| 9 | Whole Life Mid-Cap Equity Fund | High | 60-100% | – | 0-40% |
| 10 | Dynamic Advantage Plan | Medium | 20-80% | 20-80% | 0-20% |
| 11 | Flexi Growth Fund | High | 70-100% | 0-10% | 0-30% |
| 12 | Small Cap Discovery Fund | High | 70-100% | 0-10% | 0-30% |
| 13 | Whole Life Income Fund II | Low | – | 60-100% | 0-40% |
| 14 | Flexi Growth Fund II | High | 70-100% | 0-10% | 0-30% |
| 15 | Rising India Fund | High | 70-100% | 0-30% | 0-30% |
| 16 | Midcap Momentum Index Fund | High | NA | NA | NA |
| 17 | Whole Life Aggressive Growth Fund | Medium to High | 50-80% | 20-50% | 0-30% |
| 18 | Whole Life Short-term Fixed Income Fund | Low | – | 60-100% | 0-40% |
| 19 | Whole Life Stable Growth Fund | Low to Medium | 30-50% | 50-70% | 0-20% |
| 20 | Constant Maturity Fund | Medium | – | 80-100% | 0-20% |
| 21 | Target Maturity Fund | Medium | – | 80-100% | 0-20% |
| 22 | Business Cycle Fund | High | 70-100% | 0-30% | 0-30% |
| 23 | Whole Life Income Fund | Low | – | 60-100% | 0-40% |
| 24 | Nifty Alpha 50 Index Fund | High | 80-100% | – | 0-20% |
| 25 | Multicap Momentum Quality Index Fund | High | 80-100% | – | 0-20% |
| Govt Sec | Money market | ||||
| Discontinued policy fund | 60-100% | 0-40% | |||
Enhanced SMART option
This option is applicable till PPT only. An enhanced SMART strategy is not available with top-up premium funds. It is a systematic transfer plan. It allows you to enter the volatile equity market in a structured manner
The policyholder gets the choice between two funds—a debt-oriented fund and an equity-oriented fund—under the Enhanced SMART option. For the variety of available funding, please see the table below:
Life-Stage based Portfolio Strategy
Under this Strategy, your portfolio will be structured as per your age and risk profile selected by you (Conservative, Moderate, or Aggressive). The funds will automatically get shifted from riskier assets to safer assets progressively as you age.
The company will invest your Single Premium/Annualized Premium between the two funds, an equity fund, and a debt fund (as selected by you from our range of funds) in a predetermined proportion.
| Debt oriented funds | Equity oriented funds |
| Whole Life Income Fund II | Whole Life Mid-Cap Equity Fund |
| Whole Life Short-Term Fixed Income Fund | Large Cap Equity Fund |
| Whole Life Income Fund | Multi Cap Fund |
| Constant Maturity Fund | India Consumption Fund |
| Target Maturity Fund | Super Select Equity Fund |
| Top 50 Fund | |
| Top 200 fund | |
| Emerging opportunities Fund | |
| Sustainable Equity Fund | |
| Flexi Growth Fund | |
| Small cap Discovery Fund | |
| Rising India Fund | |
| Flexi Growth Fund II | |
| Business Cycle Fund | |
| Nifty Alpha 50 Index Fund | |
| Multicap Momentum Quality Index Fund |
| Age | Aggressive | Moderate | Conservative | |||
| Equity | Debt | Equity | Debt | Equity | Debt | |
| 01 to 30 | 90% | 10% | 70% | 30% | 50% | 50% |
| 31-40 | 80% | 20% | 60% | 40% | 50% | 50% |
| 41-50 | 70% | 30% | 50% | 50% | 30% | 70% |
| 51-60 | 55% | 45% | 35% | 65% | 15% | 85% |
| 61-70 | 40% | 60% | 20% | 80% | 0% | 100% |
| 70 & above | 25% | 75% | 5% | 95% | 0% | 100% |
What are the charges for the Tata AIA Smart Fortune Plus?
A).Premium Allocation charges
Single pay – 3% of Single Premium
Limited / Regular pay
| Premium Allocation Charge as a % of Annualised Premium | |||
| Policy Year | < 2,50,000 | >=2,50,000 and < 5,00,000 | >=5,00,000 and above |
| 1 | 6.00% | 6.00% | 5.50% |
| 2 | 6.00% | 5.50% | 5.00% |
| 3 | 5.50% | 5.00% | 4.50% |
| 4 to 5 | 4.50% | 5.00% | 4.50% |
| 6 to 7 | 4.50% | 4.00% | 3.50% |
| 8 to 10 | 3.50% | 3.00% | 2.50% |
| 11+ | 2.00% | 1.50% | 1.00% |
B).Policy Administration Charge
For Single Pay Option – 0.90% p.a. of Single Premium throughout the Tata AIA Smart Fortune Plus plan policy term
For Regular / Limited Pay Option – 0.75% p.a. of Annualised premium throughout the Tata AIA Smart Fortune Plus plan policy term
C).Fund Management Charges
| Sr. No | Funds | FMC per annum |
| 1 | Whole Life Mid Cap Equity Fund | 1.20% |
| 2 | Large Cap Equity Fund | 1.20% |
| 3 | Multi Cap Fund | 1.20% |
| 4 | India Consumption Fund | 1.20% |
| 5 | Super Select Equity Fund | 1.20% |
| 6 | Top 50 Fund | 1.20% |
| 7 | Top 200 fund | 1.20% |
| 8 | Emerging Opportunities Fund | 1.20% |
| 9 | Sustainable Equity Fund | 1.20% |
| 10 | Dynamic Advantage Fund | 1.20% |
| 11 | Flexi Growth Fund | 1.20% |
| 12 | Small Cap Discovery Fund | 1.20% |
| 13 | Rising India Fund | 1.20% |
| 14 | Flexi Growth Fund II | 1.35% |
| 15 | Whole Life Income Fund II | 1.35% |
| 16 | Midcap Momentum Index Fund | 1.20% |
| 17 | Whole Life Aggressive Growth Fund | 1.10% |
| 18 | Whole Life ST Fixed Income Fund | 0.65% |
| 19 | Whole Life Income Fund | 0.80% |
| 20 | Whole Life Stable Growth Fund | 1.00% |
| 21 | Constant Maturity Fund | 0.80% |
| 22 | Target Maturity Fund | 0.80% |
| 23 | Business Cycle Fund | 1.20% |
| 24 | Nifty Alpha 50 Index Fund | 1.35% |
| 25 | Multicap Momentum Quality Index Fund | 1.35% |
| Discontinued policy fund | 0.50% |
D).Mortality charge
Mortality charge = Sum at Risk (SAR) multiplied by the appropriate Mortality Rate for the month, based on the attained age of the insured.
| Age | 30 | 35 | 40 | 45 |
| Mortality charge per 1000 Sum at risk p.a. | 0.977 | 1.322 | 1.848 | 2.837 |
E).Discontinuance charges
The discontinuance charge depends on the year of discontinuance, premium amount & premium paying term. There is no discontinuance charge after the 5th policy year.
F).Partial Withdrawal Charge
There are no partial withdrawal charges under the Plan
G).Fund Switching Charge
There are no fund-switching charges.
H).Miscellaneous Charge
Nil
I).Premium Re-direction Charge
There is no fund re-direction charge applicable under the product.
Inference from the charges:
The Tata AIA Smart Fortune Plus Plan carries several charges that set it apart from other market-linked plans. Costs such as discontinuance charges, policy administration fees, and premium allocation charges can significantly reduce the overall returns on your investment.
Grace Period, Discontinuance & Paid-up and Revival for Tata AIA Smart Fortune Plus
Grace period
A Grace Period of 30 days (15 days for the monthly mode) from the due date of the first unpaid premium will be allowed in the Tata AIA Smart Fortune Plus plan Policy.
Discontinuance & Paid-up
For Regular / Limited pay policies
Discontinuance of payment of premium during first five policy years (Lock-in Period) – The fund value after deducting the applicable discontinuance charges shall be credited to the discontinued policy fund, and the risk cover and rider cover, if any, shall cease.
At the end of the lock-in period, the proceeds of the discontinuance fund shall be paid to the policyholder, and the Tata AIA Smart Fortune Plus plan policy shall terminate.
Discontinuance of payment of premium post first five policy years (i.e., after the expiry of the Lock in Period) – the policy shall be converted into a reduced paid-up policy. The policy shall continue to be in reduced paid-up status without rider cover, if any.
All charges as per the terms and conditions of the policy may be deducted during the revival period. However, the mortality charges shall be deducted based on the reduced paid-up sum assured only.
i.e., current sum assured multiplied by the total number of premiums paid to the original number of premiums payable as per the terms and conditions of the Tata AIA Smart Fortune Plus plan Policy.
Revival
You will have a Revival Period of three years from the Date of Discontinuance to revive your policy.
Free look period for Tata AIA Smart Fortune Plus
If you disagree with the terms of the Tata AIA Smart Fortune Plus plan policy, you can return the policy within 30 days from the date of receipt of the policy document, whether received electronically or otherwise.
Surrendering Tata AIA Smart Fortune Plus
Within the lock-in period of the Policy (5 years) – the Surrender Value, i.e. the total Fund Value less applicable discontinuance charges as on the date of discontinuance shall be credited to the ‘Discontinued Policy Fund’ as maintained by the Company.
The ‘Proceeds of the Discontinued Policy,’ i.e. the Fund Value as on the date of discontinuance plus entire income earned after deduction of the fund management charges shall be paid to the Policyholder after the completion of the lock-in period.
After the Lock-in Period (5 years) – the total fund value as of the date of complete withdrawal shall be paid to the Tata AIA Smart Fortune Plus plan policyholder.
What are the advantages of the Tata AIA Smart Fortune Plus?
- Enjoy the flexibility of partial withdrawals with multiple options, including a Systematic Withdrawal Plan (SWP), Chosen-Rate Withdrawal Plan, or Index-Based Withdrawal Plan to suit your cash flow needs.
- Boost your investment with the option to pay an additional Top-up Premium.
- Switch your investments between different funds at any time during the Tata AIA Smart Fortune Plus plan policy term without any charges.
- Use premium redirection to allocate future premiums to a different fund or combination of funds as per your evolving goals.
- At maturity, choose how you receive your benefits—either as a lump sum or through periodic payments over five years under the Settlement Option.
- Enhance your coverage with the flexibility to add riders for additional protection.
What are the disadvantages of the Tata AIA Smart Fortune Plus?
- Loan facility is not available under this plan.
- The Tata AIA Smart Fortune Plus plan policy comes with a lock-in period of five years.
- During the settlement period, the investment risk is borne by the policyholder.
- While the plan offers a wide range of fund options, many appear repetitive, which can create confusion when selecting the right fund.
Research Methodology of Tata AIA Smart Fortune Plus
The Tata AIA Smart Fortune Plus plan offers four different options that combine life insurance coverage with market-linked investment opportunities. The death benefit and other associated features vary depending on the option selected.
A part of the premium goes toward life cover, while the remaining amount is invested in market-linked funds. To assess the plan’s return potential, let’s consider an example based on the Tata AIA Smart Fortune Plus plan policy brochure:
Benefit Illustration – IRR Analysis of Tata AIA Smart Fortune Plus
A 35-year-old male opts for the Wealth Secure option under this 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 lakh.
| Male | 35 years |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 1,00,000 |
At maturity, the Tata AIA Smart Fortune Plus plan policyholder receives the fund value. The brochure provides illustrations at assumed return rates of 4% p.a. and 8% p.a., which are not guaranteed and do not reflect the plan’s actual return potential.
| 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 | 13,92,237 | 10,00,000 | 25,34,565 | 10,00,000 | |
| IRR | 2.15% | 6.09% | |||
At 4%, the fund value is estimated at ₹13.92 lakhs, translating to an IRR of just 2.15% as per the Tata AIA Smart Fortune Plus plan maturity calculator, offering minimal value over the invested amount. At 8%, the fund value rises to ₹25.34 lakhs, resulting in an IRR of 6.09% as per the Tata AIA Smart Fortune Plus plan maturity calculator.
Despite being a market-linked plan, the returns are closer to those of conservative debt instruments. For long-term goals, investments should ideally beat inflation—something this plan struggles to do, especially when considering its multiple charges.
Given the low return potential, Tata AIA Smart Fortune Plus may not be a suitable choice for investors seeking real wealth creation or inflation-beating growth. It’s a low-yielding product that is better avoided for inclusion in a well-diversified investment portfolio.
Tata AIA Smart Fortune Plus Vs. Other Investments
As discussed earlier, the Tata AIA Smart Fortune Plus Plan does not offer favourable returns for long-term investors. In this section, let’s explore an alternative strategy using other products that can deliver better risk-adjusted returns by separating insurance and investment.
Tata AIA Smart Fortune Plus Vs. Pure-term + PPF / ELSS
Assume an annual premium of ₹1 lakh. Instead of opting for a bundled insurance-investment product, we divide the amount:
A pure-term life insurance policy with a ₹10 lakh sum assured costs approximately ₹6,500 per year. This leaves ₹93,500 available for investment over the same policy term of 20 years, with a premium payment period of 10 years.
Depending on your risk appetite, this surplus can be directed towards either equity or debt-based instruments.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 6,500 |
| Investment | ₹ 93,500 |
| Term Insurance + PPF | Term insurance + ELSS | ||||
| Age | Year | Term Insurance premium + PPF | Death benefit | Term Insurance premium + ELSS | 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 | 27,59,254 | 10,00,000 | 51,26,675 | 10,00,000 | |
| IRR | 6.65% | 10.81% | |||
Debt Scenario – PPF Investment
Investing in a Public Provident Fund (PPF), which requires a minimum 15-year commitment (adjustments made for compliance), yields a maturity value of ₹27.59 lakhs. The IRR stands at 6.65%, which is higher than what Tata AIA Smart Fortune Plus offers, despite PPF being a debt instrument.
Equity Scenario – ELSS Investment
Investing in an Equity Linked Savings Scheme (ELSS) yields a pre-tax value of ₹57.07 lakhs. After accounting for the capital gains tax, the post-tax value is ₹51.26 lakhs, delivering an IRR of 10.81%.
| ELSS Tax Calculation | |
| Maturity value after 20 years | 57,07,628 |
| Purchase price | 9,35,000 |
| Long-Term Capital Gains | 47,72,628 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 46,47,628 |
| Tax paid on LTCG | 5,80,954 |
| Maturity value after tax | 51,26,675 |
This alternate strategy not only offers superior returns but also helps build a robust corpus to meet long-term financial goals.
When compared with the Tata AIA Smart Fortune Plus, which yields lower returns even as a market-linked product, this approach clearly emerges as the more efficient and rewarding option for wealth creation.
Final Verdict on Tata AIA Smart Fortune Plus
The Tata AIA Smart Fortune Plus Plan offers four plan options, each varying in terms of death benefits and associated features. All options allow for market participation and aim to provide the fund value at maturity, combining insurance and investment under a single plan.
However, a deeper analysis reveals that the plan falls short on both fronts.
The sum assured is often insufficient to meet a family’s basic financial needs, limiting the plan’s effectiveness as a life insurance solution.
On the investment side, the returns resemble those of a debt instrument—not what one would expect from a market-linked product and it also has a high agent commission.
The investment component fails to generate alpha, a key objective in equity-linked investments. As a result, the plan delivers neither meaningful protection nor wealth creation, making it an ineffective tool for long-term financial planning.
A more efficient strategy involves opting for a pure-term life insurance policy with adequate coverage. These policies come at affordable premiums, freeing up more capital for investment.
By investing this surplus into a diversified portfolio aligned with your risk profile, you stand a better chance of achieving your financial goals.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
For effective goal-based financial planning, it’s recommended to consult a Certified Financial Planner (CFP) who can design a personalized strategy tailored to your needs, time horizon, and risk appetite.
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