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Is the Tata AIA Smart Sampoorna Raksha Supreme Plan the perfect blend of protection and investment, or just another overhyped ULIP?
Is the Tata AIA Smart Sampoorna Raksha Supreme Plan a smart move for long-term wealth creation, or a costly commitment in disguise?
Is Tata AIA’s Smart Sampoorna Raksha Supreme Plan truly supreme when it comes to value and returns, or is it all marketing and little substance?
In this review, let’s explore the answer by diving deep into its features, benefits, and drawbacks, along with detailed illustrations to help you make an informed decision.
Table of Contents
What is the Tata AIA Smart Sampoorna Raksha Supreme?
What are the features of the Tata AIA Smart Sampoorna Raksha Supreme?
Who is eligible for the Tata AIA Smart Sampoorna Raksha Supreme?
What are the benefits of the Tata AIA Smart Sampoorna Raksha Supreme?
What are the plan options in the Tata AIA Smart Sampoorna Raksha Supreme?
What are the investment strategies and Fund options in the Tata AIA Smart Sampoorna Raksha Supreme?
What are the charges in the Tata AIA Smart Sampoorna Raksha Supreme?
Grace Period, Discontinuance & Paid-up and Revival for Tata AIA Smart Sampoorna Raksha Supreme
Free look period for Tata AIA Smart Sampoorna Raksha Supreme
Surrendering Tata AIA Smart Sampoorna Raksha Supreme
What are the advantages of the Tata AIA Smart Sampoorna Raksha Supreme?
What are the disadvantages of the Tata AIA Smart Sampoorna Raksha Supreme?
Research Methodology of Tata AIA Smart Sampoorna Raksha Supreme
Benefit Illustration – IRR Analysis of Tata AIA Smart Sampoorna Raksha Supreme
Tata AIA Smart Sampoorna Raksha Supreme Vs. Other Investments
Tata AIA Smart Sampoorna Raksha Supreme Vs. Pure-term + PPF / ELSS
Final Verdict on Tata AIA Smart Sampoorna Raksha Supreme
What is the Tata AIA Smart Sampoorna Raksha Supreme?
Tata AIA Smart Sampoorna Raksha Supreme Plan is a Unit Linked, Non-Participating Individual Life Insurance Plan. This plan ensures a life cover for you in addition to comprehensive financial protection for your loved ones.
What are the features of the Tata AIA Smart Sampoorna Raksha Supreme?
- Provides a high sum assured to protect your loved ones against life’s uncertainties.
- Offers flexible premium payment options, including the choice of whole life coverage.
- Customizable to align perfectly with your long-term financial goals.
- Access to a wide range of investment options across debt and equity-oriented funds.
- Create an additional income stream through strategic partial withdrawals.
- Enjoy added value with the return of mortality charges and 2X premium allocation benefits.
- Exclusive “Smart Lady Benefit” designed specifically for female policyholders.
Who is eligible for the Tata AIA Smart Sampoorna Raksha Supreme?
| Criteria | Values |
| Minimum Entry Age (Age last birthday) | 18 Years |
| Maximum Entry Age (Age last birthday) | 65 Years |
| Minimum Maturity Age (Age last birthday) | 38 Years |
| Maximum Maturity Age (Age last birthday) | Limited Pay – 100 Years |
| Regular Pay – 100 Years | |
| Policy Term | Limited Pay – 20 to 82 years |
| Regular Pay – 20 to 82 years | |
| Minimum Premium Paying Term | Limited Pay – 5 years |
| Regular Pay – 20 years | |
| Maximum Premium Paying Term | Limited Pay – (Policy Term – 1) years |
| Regular Pay – Equal to Policy Term | |
| Minimum Premium | For Classic and Optima |
| Single Pay: ₹ 20,000 p.a. | |
| Limited Pay 5-6 years: ₹ 20,000 p.a. | |
| Limited Pay 7-9 years: ₹ 18,000 p.a. | |
| Other Premium Payment Terms: ₹ 15,000 p.a. | |
| Top-up Premium: ₹ 1,000 per top-up | |
| Maximum Premium | As per the Board Approved Underwriting Policy (BAUP) |
| Increase /Decrease in Premium | Not Allowed |
| Minimum Basic Sum Assured | For ages up to 49: |
| For Single Pay – 1.25 times the Single Premium | |
| For Regular / Limited Pay – 7 times Annualised Premium, | |
| For ages 50 & above: | |
| For Single Pay –1.10 times the Single Premium | |
| For Regular / Limited Pay – 5 times Annualised Premium | |
| Maximum Basic Sum Assured | Till 85 years of age: No limits. Post attained 85 years: Lower of Applicable Sum Assured Multiple or 10 times Annualised Premium / 1.25 times Single Premium |
| Pay Mode | Single, Annual, Semi-Annual, Quarterly, Monthly |
What are the benefits of the Tata AIA Smart Sampoorna Raksha Supreme?
1. Maturity Benefit
On survival to the end of the policy term, you will receive the Total Fund Value, including the Top-Up Premium Fund Value, valued at the applicable NAV on the date of Maturity.
2. Death Benefit
In case of the death of the life insured during the Tata AIA Smart Sampoorna Raksha Supreme Plan policy term and while the policy is in force, the Nominee will get the Highest of
- the Basic Sum Assured net of all “Deductible Partial Withdrawals”, if any, from the Premium Fund Value, or
- the Premium Fund Value of this Policy or
- 105% of the total Premiums paid up to the date of death net of all “Deductible Partial Withdrawals”, if any.
In addition, if the policyholder has a Top-up Premium Fund Value, the Highest of the following is payable
- the approved Top-up Sum Assured(s) or
- Top-up Premium Fund Value
What are the plan options in the Tata AIA Smart Sampoorna Raksha Supreme?
Classic option
Under this option, the mortality charge and premium allocation charge are added to your fund, giving a boost to your fund value
Optima option
This option comes with ZERO premium allocation and ZERO policy admin charge, thus simplifying the charge structure and leading to a high fund value.
What are the investment strategies and Fund options in the Tata AIA Smart Sampoorna Raksha Supreme?
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 Tata AIA Smart Sampoorna Raksha Supreme 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 | 80-100% | – | 0-20% |
| 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 Tata AIA Smart Sampoorna Raksha Supreme Plan 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/Annualised 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 in the Tata AIA Smart Sampoorna Raksha Supreme?
A) Premium Allocation Charge
Optima- Not applicable
Classic option
Single pay – 3% of Single Premium
Limited / Regular pay
| Policy Year | % of Annualised Premium |
| 1 | 12% |
| 2 | 6% |
| 3 | 4% |
| 4 | 2% |
| 5 onwards | Nil |
B) Policy Administration Charge
Optima – Not Applicable
Classic option
From the 5th policy year onwards, 0.41% of Annualised Premium for Regular/Limited pay and 0.075% of Single Premium shall be charged at the beginning of each policy month.
The charge will increase each policy year by 5% on a compounded basis only till the 18th policy year (and constant thereafter)
C) Fund Management Charge
| 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 | 25 | 35 | 40 | 45 |
| Mortality charge per 1000 Sum at risk p.a. | 0.787 | 1.016 | 2.179 | 6.348 |
E) Discontinuance charges
The discontinuance charge depends on the year of discontinuance, the 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 Redirection Charge
There is no fund redirection charge applicable under the product.
Inference from the charges:
The Tata AIA Smart Sampoorna Raksha Supreme plan carries several charges, which are not common in 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 Sampoorna Raksha Supreme
For Regular / Limited pay policies
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 Sampoorna Raksha Supreme Plan Policy.
Discontinuance & Paid-up
Discontinuance of payment of premium during the 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 policy shall terminate.
Discontinuance of payment of premium post the 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 Sampoorna Raksha Supreme Plan Policy.
Revival
You will have a Revival Period of three years from the Date of Discontinuance to revive your Tata AIA Smart Sampoorna Raksha Supreme Plan policy.
Free look period for Tata AIA Smart Sampoorna Raksha Supreme
If you disagree with the terms of the 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 Sampoorna Raksha Supreme
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 the 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 policyholder.
What are the advantages of the Tata AIA Smart Sampoorna Raksha Supreme?
- Enjoy the flexibility of partial withdrawals to generate a second income. Choose from three options:
-
- Systematic Withdrawal Plan (SWP)
- Chosen Rate Withdrawal Plan
- Index-Based Withdrawal Plan
-
- Boost your investment by paying additional amounts through Top-up Premiums.
- Option to receive your maturity benefit either as a lump sum or through regular payouts over a five-year Settlement Period.
- Further personalize your policy by adding riders to enhance protection.
- Benefit from flexibility in fund management with options for fund switching and premium redirection.
- Choose a premium payment option that suits you—Single Pay, Limited Pay, or Regular Pay, with frequencies of annual, half-yearly, quarterly, or monthly.
- The plan also allows adjustments to key elements such as premium amount, payment mode, sum assured, policy term, and premium paying term, giving you greater control as your needs evolve.
What are the disadvantages of the Tata AIA Smart Sampoorna Raksha Supreme?
- Loan facility is not available under this plan.
- The policy includes a lock-in period of five years, restricting early access to funds.
- During the settlement period, the investment risk remains with the policyholder.
- Although the plan offers a variety of fund options, many funds are similar in nature, which may lead to confusion while making investment choices.
Research Methodology of Tata AIA Smart Sampoorna Raksha Supreme
The primary goal of market-linked investments is to generate superior long-term returns. To evaluate the return potential of the Tata AIA Smart Sampoorna Raksha Supreme Plan, let’s examine a case study from the official policy brochure.
This analysis includes an Internal Rate of Return (IRR) calculation to assess the plan’s effectiveness and compare it with other investment options.
Benefit Illustration – IRR Analysis of Tata AIA Smart Sampoorna Raksha Supreme
Consider a 35-year-old male who purchases the Tata AIA Smart Sampoorna Raksha Supreme Plan with a sum assured of ₹1 crore. The policy term is 50 years, with a premium paying term of 15 years and an annualized premium of ₹2.58 Lakh. He opts for the Classic Option.
| Male | 35 years |
| Sum Assured | ₹ 1,00,00,000 |
| Policy Term | 50 years |
| Premium Paying Term | 15 years |
| Annualised Premium | ₹ 2,58,714 |
If he pays all premiums on time and holds the policy till maturity, he will receive the fund value as the maturity benefit. The illustration provides two hypothetical return scenarios based on assumed annual returns of 4% and 8%. These are not guaranteed returns and only serve as examples.
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -2,58,714 | 1,00,00,000 | -2,58,714 | 1,00,00,000 |
| 36 | 2 | -2,58,714 | 1,00,00,000 | -2,58,714 | 1,00,00,000 |
| 37 | 3 | -2,58,714 | 1,00,00,000 | -2,58,714 | 1,00,00,000 |
| 38 | 4 | -2,58,714 | 1,00,00,000 | -2,58,714 | 1,00,00,000 |
| 39 | 5 | -2,58,714 | 1,00,00,000 | -2,58,714 | 1,00,00,000 |
| 40 | 6 | -2,58,714 | 1,00,00,000 | -2,58,714 | 1,00,00,000 |
| 41 | 7 | -2,58,714 | 1,00,00,000 | -2,58,714 | 1,00,00,000 |
| 42 | 8 | -2,58,714 | 1,00,00,000 | -2,58,714 | 1,00,00,000 |
| 43 | 9 | -2,58,714 | 1,00,00,000 | -2,58,714 | 1,00,00,000 |
| 44 | 10 | -2,58,714 | 1,00,00,000 | -2,58,714 | 1,00,00,000 |
| 45 | 11 | -2,58,714 | 1,00,00,000 | -2,58,714 | 1,00,00,000 |
| 46 | 12 | -2,58,714 | 1,00,00,000 | -2,58,714 | 1,00,00,000 |
| 47 | 13 | -2,58,714 | 1,00,00,000 | -2,58,714 | 1,00,00,000 |
| 48 | 14 | -2,58,714 | 1,00,00,000 | -2,58,714 | 1,00,00,000 |
| 49 | 15 | -2,58,714 | 1,00,00,000 | -2,58,714 | 1,00,00,000 |
| 50 | 16 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 51 | 17 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 52 | 18 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 53 | 19 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 54 | 20 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 55 | 21 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 56 | 22 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 57 | 23 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 58 | 24 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 59 | 25 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 60 | 26 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 61 | 27 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 62 | 28 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 63 | 29 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 64 | 30 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 65 | 31 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 66 | 32 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 67 | 33 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 68 | 34 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 69 | 35 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 70 | 36 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 71 | 37 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 72 | 38 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 73 | 39 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 74 | 40 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 75 | 41 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 76 | 42 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 77 | 43 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 78 | 44 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 79 | 45 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 80 | 46 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 81 | 47 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 82 | 48 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 83 | 49 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 84 | 50 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 85 | 1,09,39,762 | 6,21,73,202 | |||
| IRR | 2.43% | 6.57% | |||
At 4% annual return, the fund value at maturity is ₹1.09 crore, resulting in an IRR of 2.43% as per the Tata AIA Smart Sampoorna Raksha Supreme Plan maturity calculator.
At 8% annual return, the fund value grows to ₹6.21 crore, translating to an IRR of 6.57% as per the Tata AIA Smart Sampoorna Raksha Supreme Plan maturity calculator.
Despite the long 50-year investment horizon, the returns are underwhelming, especially when accounting for inflation. The maturity amount is unlikely to be sufficient to meet the inflated cost of future goals.
Moreover, the capital remains locked in for decades, reducing liquidity and flexibility, critical elements in any robust financial plan.
Given the low effective returns, long lock-in, and limited flexibility, the Tata AIA Smart Sampoorna Raksha Supreme Plan does not appear to be a favourable investment option for long-term wealth creation.
Note: As per the amendment in the Finance Act, 2021, if you have paid a premium of over Rs 2.5 lakh for any of the years during the tenure of the ULIP, then the amount received (including the bonus) at the time of maturity will be taxable.
In the illustration, the maturity value is taxable, as the annualised premium is higher than the threshold. The taxation will further bring down your return.
Tata AIA Smart Sampoorna Raksha Supreme Vs. Other Investments
From the return analysis, it becomes clear that the Tata AIA Smart Sampoorna Raksha Supreme Plan offers lower returns compared to even conservative debt instruments, making it an unfavourable choice for investors aiming to build long-term wealth.
To put this into perspective, let’s compare it with a more efficient strategy where insurance and investment are treated separately rather than combined into a single bundled product.
Tata AIA Smart Sampoorna Raksha Supreme Vs. Pure-term + PPF / ELSS
Consider a pure-term life insurance policy with a sum assured of ₹1 crore. The annual premium for this policy is ₹25,200, with a policy term of 30 years and a premium payment term of 15 years.
If we begin with the same annual premium of ₹2.58 lakhs (as in the Tata AIA plan), allocating ₹25,200 towards life insurance leaves ₹2.33 lakhs available for investment.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 1,00,00,000 |
| Policy Term | 30 years |
| Premium Paying Term | 15 years |
| Annualised Premium | ₹ 25,200 |
| Investment | ₹ 2,33,514 |
| Term Insurance + PPF | Term insurance + ELSS | ||||
| Age | Year | Term Insurance premium + PPF | Death benefit | Term Insurance premium + ELSS | Death benefit |
| 35 | 1 | -2,58,714 | 1,00,00,000 | -2,58,714 | 1,00,00,000 |
| 36 | 2 | -2,58,714 | 1,00,00,000 | -2,58,714 | 1,00,00,000 |
| 37 | 3 | -2,58,714 | 1,00,00,000 | -2,58,714 | 1,00,00,000 |
| 38 | 4 | -2,58,714 | 1,00,00,000 | -2,58,714 | 1,00,00,000 |
| 39 | 5 | -2,58,714 | 1,00,00,000 | -2,58,714 | 1,00,00,000 |
| 40 | 6 | -2,58,714 | 1,00,00,000 | -2,58,714 | 1,00,00,000 |
| 41 | 7 | -2,58,714 | 1,00,00,000 | -2,58,714 | 1,00,00,000 |
| 42 | 8 | -2,58,714 | 1,00,00,000 | -2,58,714 | 1,00,00,000 |
| 43 | 9 | -2,58,714 | 1,00,00,000 | -2,58,714 | 1,00,00,000 |
| 44 | 10 | -2,58,714 | 1,00,00,000 | -2,58,714 | 1,00,00,000 |
| 45 | 11 | -2,58,714 | 1,00,00,000 | -2,58,714 | 1,00,00,000 |
| 46 | 12 | -2,58,714 | 1,00,00,000 | -2,58,714 | 1,00,00,000 |
| 47 | 13 | -2,58,714 | 1,00,00,000 | -2,58,714 | 1,00,00,000 |
| 48 | 14 | -2,58,714 | 1,00,00,000 | -2,58,714 | 1,00,00,000 |
| 49 | 15 | -2,58,714 | 1,00,00,000 | -2,58,714 | 1,00,00,000 |
| 50 | 16 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 51 | 17 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 52 | 18 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 53 | 19 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 54 | 20 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 55 | 21 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 56 | 22 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 57 | 23 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 58 | 24 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 59 | 25 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 60 | 26 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 61 | 27 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 62 | 28 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 63 | 29 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 64 | 30 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 65 | 31 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 66 | 32 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 67 | 33 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 68 | 34 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 69 | 35 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 70 | 36 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 71 | 37 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 72 | 38 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 73 | 39 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 74 | 40 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 75 | 41 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 76 | 42 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 77 | 43 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 78 | 44 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 79 | 45 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 80 | 46 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 81 | 47 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 82 | 48 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 83 | 49 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 84 | 50 | 0 | 1,00,00,000 | 0 | 1,00,00,000 |
| 85 | 6,98,64,479 | 45,08,99,087 | |||
| IRR | 6.85% | 11.42% | |||
For a conservative investor, this amount could be directed into a Public Provident Fund (PPF). Although the annual contribution limit for PPF is ₹1.5 lakhs, for illustration purposes, we assume the entire ₹2.33 lakhs is invested each year.
Over time, this would accumulate to a maturity value of ₹6.98 crores, delivering a tax-free internal rate of return (IRR) of 6.85%.
Alternatively, an investor with a higher risk appetite could choose to invest the ₹2.33 lakhs annually in an Equity-Linked Savings Scheme (ELSS) fund. While ELSS returns are subject to capital gains tax, the fund still generates significant long-term value.
At the end of the investment horizon, the pre-tax maturity value would be ₹51.47 crores, and after adjusting for taxes, the post-tax maturity value stands at ₹45.08 crores. This results in an impressive post-tax IRR of 11.42%.
| ELSS Tax Calculation | |
| Maturity value after 50 years | 51,47,94,999 |
| Purchase price | 35,02,710 |
| Long-Term Capital Gains | 51,12,92,289 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 51,11,67,289 |
| Tax paid on LTCG | 6,38,95,911 |
| Maturity value after tax | 45,08,99,087 |
Clearly, separating insurance and investment not only improves flexibility but also enhances returns and tax efficiency.
In comparison, the Tata AIA Smart Sampoorna Raksha Supreme Plan ties up your money for decades and delivers relatively modest returns, making it an unsuitable option for those looking to grow their wealth effectively over the long term.
Final Verdict on Tata AIA Smart Sampoorna Raksha Supreme
Tata AIA Smart Sampoorna Raksha Supreme is a Unit Linked Insurance Plan (ULIP) that comes with two variants.
Under the Classic option, the plan refunds premium allocation and policy administration charges, whereas the Optima option eliminates these charges from the outset.
Although the plan offers exposure to market-linked returns, the actual performance is more in line with traditional debt instruments.
This makes it less suitable for investors aiming to achieve substantial long-term financial goals.
Over the policy term, the various charges gradually erode the overall returns, and it also has a high agent commission. When you consider the rising cost of future goals due to inflation, the returns generated by this plan may prove inadequate.
As a result, Tata AIA Smart Sampoorna Raksha Supreme does not effectively support long-term wealth creation and goal achievement.
To meet your financial goals more efficiently, your equity investment portfolio should include products with the potential to deliver higher returns.
A better approach is to secure adequate life insurance through a pure-term plan and invest separately in market-linked instruments based on your risk tolerance, financial goals, and investment horizon.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
If you’re unsure how to proceed, it’s advisable to consult a certified financial planner. A professional can help you design a customised financial roadmap that takes into account your unique needs and objectives.
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