Tata AIA Life Insurance Fortune Maxima Plan

Introduction/Overview

Tata AIA Life Insurance Fortune Maxima is a non-participating Unit Linked Whole Life Insurance plan which covers the insured for the entire life and also provides wealth maximization by investing in the capital markets where returns are high.

Key Features

• It is a linked whole life plan with limited, regular or single pay premium option
• The premium can be invested in any of the 6 funds available namely: Large Cap Equity Fund, Whole Life Mid Cap Equity Fund, Whole Life Aggressive Growth Fund, Whole Life Stable Growth Fund, Whole Life Income Fund or Whole Life Short Term Fixed Income Fund.

Benefits

• The insured will get the total Fund Value on Maturity and on death, highest of the basic SA net of any partial withdrawals already made from the Fund Value/Fund Value/105% of the premiums paid/10 times the annual premium (for limited pay policies)  will be paid along with the higher of top-up SA/ top-up Fund Value/105% of total top-up premiums paid (if any)
• Loyalty Additions are paid to the tune of 0.2% of the units form 11^th policy year in case of regular premium payment option and 0.35% of the units from the 6^th policy year for single pay polices.
• Income tax benefit on the premium paid as per Section 80C and on claims under Section 10(10D) of the Income Tax Act.

Product Specification:

Details About Premium

Illustration for a 35 year old male paying Rs.1 lakh as premium:

Policy Details

Grace Period: 15 days grace period is allowed for payment of premium under monthly mode and 30 days for other modes. If policyholder fails to make payment within the grace period, the policy lapses.

Policy Termination or Surrender Benefit: Policyholder is allowed to surrender the policy after 5 completed years. If surrendered before 5 years, the fund value net of discontinuation charge will be credited to the Discontinued Policy Fund where it will earn a minimum of 4% p.a. growth. After completion of 5 years, the fund value in the Discontinued Policy fund as on that date will be paid to the policyholder. If surrendered after 5 completed policy years, the entire Fund value on the date of surrender is paid without any charges.

Free Look Period: If you would not be pleased with the coverage, and terms and conditions of the policy, you have the option of canceling the policy within 15 days of receipt of the policy documents, provided there has been no claim.

Inclusions

• The policy provides for top-up premiums whereby the Fund Value and the corresponding Sum Assured can be increased through investing additional premium.   
• 4 free partial withdrawals are allowed every year which should be a minimum of Rs.5000 and after withdrawal the fund value should be maintained at a minimum of one annual premium for regular plans and 6% of the single premium for single pay plans.
• Premium redirection is available.
• 12 free switches are allowed per policy year.

Additional Features or Riders

• There is an inbuilt Enhanced Systematic Money Allocation and Regular Transfer (Enhanced SMART) option, which if chosen, transfers the units systematically from debt fund to equity fund from the next policy month so that the customer can avail benefits of rupee-cost averaging.
• Riders are available for customizing the policy. The following riders are allowed under the limited pay option but for single pay only the third rider is available:

1. Tata AIA Life Insurance Waiver of Premium (Linked) Rider
2. Tata AIA Life Insurance Waiver of Premium Plus (Linked) Rider
3. Tata AIA Life Insurance Accidental Death and Dismemberment (long scale) Linked Rider

Exclusions

The benefit paid in case of suicide within 12 months of policy inception is the fund value as on that date.

Documents Required

Policyholder has to fill up an ‘Application form/ proposal form’ with accurate medical history along with the address proof and other KYC documents. Medical examination may be required in some cases, based on the sum assured and the age of the person.