Tata AIA Smart Sampoorna Rakshak
Can the Tata AIA Smart Sampoorna Rakshak secure your family’s financial future with protection and growth?
Can the Tata AIA Smart Sampoorna Rakshak could combine life insurance with wealth creation?
Can the Tata AIA Smart Sampoorna Rakshak plan offer lifelong protection and the potential for wealth accumulation?In this review, we’ll explore the plan’s features, benefits, drawbacks, and evaluate potential returns through IRR analysis. Let’s determine if this plan is right for you.
What is the Tata AIA Smart Sampoorna Rakshak?
What are the features of Tata AIA Smart Sampoorna Rakshak?
Who is eligible for the Tata AIA Smart Sampoorna Rakshak?
What are the benefits of the Tata AIA Smart Sampoorna Rakshak?
What are the Investment Strategies and Fund options of the Tata AIA Smart Sampoorna Rakshak?
What are the charges under the Tata AIA Sampoorna Rakshak?
Grace Period, Discontinuance & paid-up and Revival for Tata AIA Smart Sampoorna Rakshak
Free look period for Tata AIA Smart Sampoorna Rakshak
Surrendering Tata AIA Smart Sampoorna Rakshak
What are the advantages of the Tata AIA Smart Sampoorna Rakshak?
What are the disadvantages of the Tata AIA Smart Sampoorna Rakshak?
Research Methodology of Tata AIA Smart Sampoorna Rakshak
Benefit Illustration – IRR Analysis of Tata AIA Smart Sampoorna Rakshak
Tata AIA Smart Sampoorna Rakshak Vs. Other Investments
Tata AIA Smart Sampoorna Rakshak Vs. Pure Term + PPF / ELSS
Final Verdict on Tata AIA Smart Sampoorna Rakshak
Tata AIA Life Insurance Smart Sampoorna Raksha is a Unit-linked, Non-participating, Individual Life Insurance Plan. Tata AIA Smart Sampoorna Rakshak is a protection and savings-oriented Unit Linked Insurance Plan that makes your money grow steadily over time with a choice of multiple funds and also provides adequate life cover to your loved ones.
| Minimum | Maximum | |
| Entry Age | 18 years | 60 years |
| Maturity Age | 48 years | 100 years |
| Policy term | 30 years | 40 years |
| Premium paying term | Limited pay: 5/10/12 years Regular pay: equal to the policy term | |
| Premium payment frequency | Annual, Half-yearly, Quarterly and Monthly | |
| Minimum Annualised Premium | Limited Pay 5 years: ₹ 60,000 Others: ₹ 18,000 Top-up Premium: ₹ 5,000 per Top-up | |
| Basic Sum assured | 10 times the annualised premium | No limit |
On survival to the end of the Tata AIA Smart Sampoorna Rakshak policy term, you will receive the Total Fund Value including Top-Up Premium Fund Value valued at applicable NAV on the date of Maturity.
In case of death of the life insured during the Tata AIA Smart Sampoorna Rakshak policy term and while the policy is in force, the Nominee/legal heir will get the Highest of
In addition to this: The highest of
Refund of 2X Mortality Charges: Starting from the 11th policy year, at the end of each Tata AIA Smart Sampoorna Rakshak policy month, 2 times the mortality charge (excluding underwriting extra and taxes) deducted in the 120th month prior shall be added to the Fund Value in the form of addition of units.
Refund of 2X Premium Allocation Charges: At the end of the 10th, 11th 12th and 13th policy years, 2 times the total Premium Allocation Charges (excluding taxes) deducted 10 years prior (i.e. over the policy years 1,2 3 and 4 respectively) shall be added to the Fund Value in the form of addition of units.
You can choose from the 21 investment fund options with the option to use the Enhanced Systematic Money Allocation & Regular Transfer (Enhanced SMART) portfolio strategy.
Your allocable Regular Premium and Top-ups (if any) are invested in one or more investment funds as per your chosen asset allocation.
| 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 | Whole Life Aggressive Growth Fund | Medium to High | 50-80% | 20-50% | 0-30% |
| 12 | Whole Life Stable Growth Fund | Low to Medium | 30-50% | 50-70% | 0-20% |
| 13 | Whole Life Income Fund | Low | – | 60-100% | 0-40% |
| 14 | Whole Life Short-Term Fixed Income Fund | Low | – | 60-100% | 0-40% |
| 15 | Flexi Growth Fund | High | 70-100% | 0-10% | 0-30% |
| 16 | Constant Maturity Fund | Medium | – | 80-100% | 0-20% |
| 17 | Target Maturity Fund | Medium | – | 80-100% | 0-20% |
| 18 | Small cap Discovery Fund | High | 70-100% | 0-10% | 0-30% |
| 19 | Business Cycle Fund | High | 70-100% | 0-30% | 0-30% |
| 20 | Rising India Fund | High | 70-100% | 0-30% | 0-30% |
| 21 | Mid-cap Momentum Index Fund | High | 0-80% | – | 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.
The Tata AIA Smart Sampoorna Rakshak 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:
| Debt oriented funds | Equity oriented funds |
| Whole Life Income Fund | Large Cap Equity Fund |
| Whole Life Short-Term Fixed Income Fund | Whole Life Mid-Cap Equity Fund |
| Constant Maturity Fund | Multi Cap Fund |
| Target Maturity Fund | India Consumption Fund |
| Top 50 Fund | |
| Top 200 fund | |
| Super Select Equity Fund | |
| Emerging opportunities Fund | |
| Sustainable Equity Fund | |
| Flexi Growth Fund | |
| Small cap Discovery Fund | |
| Business Cycle Fund | |
| Rising India Fund | |
| Mid-cap Momentum Index Fund |
Here, the entire annual allocable premium is parked in the selected debt-oriented fund before being systematically transferred into the Tata AIA Smart Sampoorna Rakshak policyholder’s preferred equity fund It allows you to enter the volatile equity market in a structured manner.
Premium Allocation Charge as below will be deducted from the Regular Premium. The net Regular Premium after the deduction of charges is invested in Funds as per your choice.
| Policy Year | % of Annualised Premium |
| 1 | 12% |
| 2 | 6% |
| 3 | 5% |
| 4 | 3% |
| 5th year onwards | Nil |
A Policy Administration Charge of 0.41% of the Annualised premium from the 5th policy year will be deducted by cancelling Units at the NAV from the Fund Value of the policy at the beginning of each Tata AIA Smart Sampoorna Rakshak policy month.
This charge may be increased by up to a maximum of 5% p.a. compounded annually subject to a maximum of Rs.500 per month
| Sr. No | Fund Name | Fund Management Charge p.a. |
| 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 | 0.65% |
| 12 | Emerging opportunities Funds | 1.20% |
| 13 | Sustainable Equity Fund | 1.20% |
| 14 | Dynamic Advantage Fund | 1.35% |
| 15 | Flexi Growth Fund | 1.20% |
| 16 | Constant Maturity Fund | 0.80% |
| 17 | Target Maturity Fund | 0.80% |
| 18 | Small cap Discovery Fund | 1.20% |
| 19 | Business Cycle Fund | 1.20% |
| 20 | Rising India Fund | 1.20% |
| 21 | Mid-cap Momentum Index Fund | 1.20% |
| Discontinued policy fund | 0.50% |
The Mortality Charge of the Basic Policy will be deducted by cancelling Units at the current NAV, from the Regular Premium Fund value of the Policy on each Tata AIA Smart Sampoorna Rakshak Policy Month Anniversary.
| Age | 25 | 35 | 45 | 55 |
| Mortality charge per 1000 Sum at risk p.a. | 0.787 | 1.016 | 2.179 | 6.348 |
The discontinuance charge depends on the year of discontinuance, premium amount & premium paying term. There is no discontinuance charge after the 5th policy year onwards.
There are no partial withdrawal charges under the Tata AIA Smart Sampoorna Rakshak Plan
There are 12 (twelve) free switches per policy year. Thereafter a charge of ₹ 100 per switch will be applicable
There is no fund re-direction charge applicable under this Tata AIA Smart Sampoorna Rakshak plan
Inference from the charges:
The charges mentioned above are relatively high compared to other market-linked investments. Premium allocation charges, policy administration fees, and discontinuance charges act as overhead costs for investors, ultimately reducing your long-term returns.
A Grace Period of 30 days (15 days for monthly mode) from the due date of the first unpaid premium will be allowed in the Tata AIA Smart Sampoorna Rakshak Policy.
For Regular / Limited pay policies
Discontinuance of payment of premium during first five policy years (Lock-in Period) – Upon the expiry of the grace period, the Fund Value, by the creation of units will be credited into the Discontinued Policy Fund after deducting applicable Discontinuance Charges.
The risk cover under the Plan will stop and no further charges will be levied other than the Fund Management Charge. The Tata AIA Smart Sampoorna Rakshak Policyholder is not permitted to exercise Switches or Partial Withdrawals during this time.
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 with the paid-up sum assured 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 Policy.
You will have a Revival Period of three years from the Date of Discontinuance to revive your Tata AIA Smart Sampoorna Rakshak policy.
If you disagree with the terms of the Tata AIA Smart Sampoorna Rakshak policy, you can return the policy within 30 days beginning from the date of receipt of the policy document, whether received electronically or otherwise.
Within the lock-in period of Policy (5 years) – The “Discontinued Policy Fund,” which is kept by the Company, will be credited with the fund value less any applicable discontinuance charges as of the date of discontinuance.
The ‘Proceeds of the Discontinued Policy’, or the fund value as of the date of discontinuance plus all income collected after deducting fund management fees, shall be paid to the policyholder after 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 Sampoorna Rakshak policyholder.
Market-linked products come with significant risks, making it crucial to assess potential returns before investing.
Calculating these returns allows for comparison with other investments, enabling informed decisions. Let’s determine the Internal Rate of Return (IRR) using figures from the policy brochure.
Consider a 35-year-old male who chooses the Tata AIA Smart Sampoorna Rakshak Plan with a sum assured of ₹10 lakhs. The policy term is 40 years, with a premium payment term of 10 years and an annual premium of ₹50,000.
| Male | 35 years |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 40 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 50,000 |
At the end of the term, he receives the fund value. Illustrations suggest two assumed future investment returns: 8% p.a. and 4% p.a. These rates are not guaranteed and do not reflect the maximum or minimum potential returns.
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -50,000 | 10,00,000 | -50,000 | 10,00,000 |
| 36 | 2 | -50,000 | 10,00,000 | -50,000 | 10,00,000 |
| 37 | 3 | -50,000 | 10,00,000 | -50,000 | 10,00,000 |
| 38 | 4 | -50,000 | 10,00,000 | -50,000 | 10,00,000 |
| 39 | 5 | -50,000 | 10,00,000 | -50,000 | 10,00,000 |
| 40 | 6 | -50,000 | 10,00,000 | -50,000 | 10,00,000 |
| 41 | 7 | -50,000 | 10,00,000 | -50,000 | 10,00,000 |
| 42 | 8 | -50,000 | 10,00,000 | -50,000 | 10,00,000 |
| 43 | 9 | -50,000 | 10,00,000 | -50,000 | 10,00,000 |
| 44 | 10 | -50,000 | 10,00,000 | -50,000 | 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 | 21 | 0 | 10,00,000 | 0 | 10,00,000 |
| 56 | 22 | 0 | 10,00,000 | 0 | 10,00,000 |
| 57 | 23 | 0 | 10,00,000 | 0 | 10,00,000 |
| 58 | 24 | 0 | 10,00,000 | 0 | 10,00,000 |
| 59 | 25 | 0 | 10,00,000 | 0 | 10,00,000 |
| 60 | 26 | 0 | 10,00,000 | 0 | 10,00,000 |
| 61 | 27 | 0 | 10,00,000 | 0 | 10,00,000 |
| 62 | 28 | 0 | 10,00,000 | 0 | 10,00,000 |
| 63 | 29 | 0 | 10,00,000 | 0 | 10,00,000 |
| 64 | 30 | 0 | 10,00,000 | 0 | 10,00,000 |
| 65 | 31 | 0 | 10,00,000 | 0 | 10,00,000 |
| 66 | 32 | 0 | 10,00,000 | 0 | 10,00,000 |
| 67 | 33 | 0 | 10,00,000 | 0 | 10,00,000 |
| 68 | 34 | 0 | 10,00,000 | 0 | 10,00,000 |
| 69 | 35 | 0 | 10,00,000 | 0 | 10,00,000 |
| 70 | 36 | 0 | 10,00,000 | 0 | 10,00,000 |
| 71 | 37 | 0 | 10,00,000 | 0 | 10,00,000 |
| 72 | 38 | 0 | 10,00,000 | 0 | 10,00,000 |
| 73 | 39 | 0 | 10,00,000 | 0 | 10,00,000 |
| 74 | 40 | 0 | 10,00,000 | 0 | 10,00,000 |
| 75 | 9,03,428 | 40,22,575 | |||
| IRR | 1.68% | 6.01% | |||
With a 4% return, the fund value is ₹9.03 lakhs, yielding an IRR of 1.68%, which essentially offers no value addition. At an 8% return, the fund value reaches ₹40.22 lakhs, yielding an IRR of 6.01% as per the Tata AIA Smart Sampoorna Rakshak Plan maturity calculator.
While Tata AIA Smart Sampoorna Rakshak is a market-linked product, its returns are comparable to those of a debt instrument.
The risk and returns are not proportionate, impacting your investment decision. This imbalance between risk and return is a significant drawback of the Tata AIA Smart Sampoorna Rakshak.
Alpha generation is a key factor in any market-linked investment, but it’s notably absent in Tata AIA Smart Sampoorna Rakshak. Additionally, the life cover provided is insufficient.
To better understand its performance, let’s compare the Tata AIA Smart Sampoorna Rakshak with other investments using the same criteria. Rather than combining life cover with market returns, separating them can lead to better overall returns.
For life insurance, a pure term life insurance policy with a sum assured of ₹10 lakhs costs ₹11,800 annually. The policy term is 35 years, with a 10-year premium payment period.
After paying the premium from the ₹50,000, you’re left with ₹38,200 for investment, which can be allocated according to your risk tolerance.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 35 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 11,800 |
| Investment | ₹ 38,200 |
Low-risk investors might opt for debt instruments like PPF, while high-risk investors could choose equity instruments like ELSS funds. Here, we consider both scenarios.
| Term Insurance + PPF | Term insurance + ELSS | ||||
| Age | Year | Term Insurance premium + PPF | Death benefit | Term Insurance premium + ELSS | Death benefit |
| 35 | 1 | -50,000 | 10,00,000 | -50,000 | 10,00,000 |
| 36 | 2 | -50,000 | 10,00,000 | -50,000 | 10,00,000 |
| 37 | 3 | -50,000 | 10,00,000 | -50,000 | 10,00,000 |
| 38 | 4 | -50,000 | 10,00,000 | -50,000 | 10,00,000 |
| 39 | 5 | -50,000 | 10,00,000 | -50,000 | 10,00,000 |
| 40 | 6 | -50,000 | 10,00,000 | -50,000 | 10,00,000 |
| 41 | 7 | -50,000 | 10,00,000 | -50,000 | 10,00,000 |
| 42 | 8 | -50,000 | 10,00,000 | -50,000 | 10,00,000 |
| 43 | 9 | -50,000 | 10,00,000 | -50,000 | 10,00,000 |
| 44 | 10 | -47,500 | 10,00,000 | -50,000 | 10,00,000 |
| 45 | 11 | -500 | 10,00,000 | 0 | 10,00,000 |
| 46 | 12 | -500 | 10,00,000 | 0 | 10,00,000 |
| 47 | 13 | -500 | 10,00,000 | 0 | 10,00,000 |
| 48 | 14 | -500 | 10,00,000 | 0 | 10,00,000 |
| 49 | 15 | -500 | 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 | 21 | 0 | 10,00,000 | 0 | 10,00,000 |
| 56 | 22 | 0 | 10,00,000 | 0 | 10,00,000 |
| 57 | 23 | 0 | 10,00,000 | 0 | 10,00,000 |
| 58 | 24 | 0 | 10,00,000 | 0 | 10,00,000 |
| 59 | 25 | 0 | 10,00,000 | 0 | 10,00,000 |
| 60 | 26 | 0 | 10,00,000 | 0 | 10,00,000 |
| 61 | 27 | 0 | 10,00,000 | 0 | 10,00,000 |
| 62 | 28 | 0 | 10,00,000 | 0 | 10,00,000 |
| 63 | 29 | 0 | 10,00,000 | 0 | 10,00,000 |
| 64 | 30 | 0 | 10,00,000 | 0 | 10,00,000 |
| 65 | 31 | 0 | 10,00,000 | 0 | 10,00,000 |
| 66 | 32 | 0 | 10,00,000 | 0 | 10,00,000 |
| 67 | 33 | 0 | 10,00,000 | 0 | 10,00,000 |
| 68 | 34 | 0 | 10,00,000 | 0 | 10,00,000 |
| 69 | 35 | 0 | 10,00,000 | 0 | 10,00,000 |
| 70 | 36 | 0 | 10,00,000 | 0 | 10,00,000 |
| 71 | 37 | 0 | 10,00,000 | 0 | 10,00,000 |
| 72 | 38 | 0 | 10,00,000 | 0 | 10,00,000 |
| 73 | 39 | 0 | 10,00,000 | 0 | 10,00,000 |
| 74 | 40 | 0 | 10,00,000 | 0 | 10,00,000 |
| 75 | 44,42,343 | 1,97,45,679 | |||
| IRR | 6.30% | 10.78% | |||
A PPF account requires a minimum contribution of ₹500 for 15 years. Given the 10-year premium payment term, adjustments were made in the final year’s contribution. The PPF’s final maturity value is ₹44.42 lakhs, with an IRR of 6.30%.
For the ELSS fund, the pre-tax maturity value is ₹2.24 crores. After accounting for capital gains tax, the final maturity amount is ₹1.97 crores, yielding a post-tax IRR of 10.78%.
| ELSS Tax Calculation | |
| Maturity Value after 40 years | 2,24,94,062 |
| Purchase price | 3,82,000 |
| Long-Term Capital Gains | 2,21,12,062 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 2,19,87,062 |
| Tax paid on LTCG | 27,48,383 |
| Maturity value after tax | 1,97,45,679 |
Despite being a debt instrument, the PPF offers higher returns than the 8% scenario of Tata AIA Smart Sampoorna Rakshak.
The ELSS fund, also a market-linked product, provides a superior risk-adjusted return. Additionally, it offers the flexibility to withdraw funds as needed, without restrictions.
The liquidity and inflation-beating returns of these alternatives are significant advantages compared to Tata AIA Smart Sampoorna Rakshak.
Market-related investments are typically intended for long-term goals, providing investors with the opportunity to take on higher risk.
However, while the Tata AIA Smart Sampoorna Rakshak is classified as a high-risk investment, its potential returns do not justify the level of risk involved. This could impede your wealth accumulation efforts.
Inflation can increase the cost of your goals over time, potentially leading to a shortfall in the funds needed for your future objectives and also it has a high agent commission.
Additionally, the sum assured by this plan is insufficient, making it likely that investing in Tata AIA Smart Sampoorna Rakshak could derail your financial plans.
A better alternative for securing your family’s future is a pure-term life insurance policy. These policies offer high coverage at affordable premiums, providing essential support in times of uncertainty.
To achieve your long-term goals, it’s crucial to develop a solid investment strategy that can effectively navigate the financial landscape.
When it comes to financial advice, do Quora, Facebook, and Twitter have the last word?
Before making any financial decisions, carefully evaluate the product. If you need clarification, consult a Certified Financial Planner who can help you create a personalized financial plan based on your time horizon, risk tolerance, and life goals.
Listen to this article For many Indian families, buying a house is more than a…
Listen to this article Small-cap mutual funds are once again attracting investor attention. After a…
Listen to this article Quick Summary What Works What Doesn't Strong inception-to-date CAGR of 16.8%…
Listen to this article Gold crossed ₹1,56,800 per 10 grams today. The government just hiked…
Listen to this article Quick Summary What Works What Doesn't No exit load, no performance…
Listen to this article Alternative Investment Funds (AIFs) have rapidly become one of the most…