Tata AIA Fortune Plan

Tata AIA Fortune is a unit-linked, individual, life insurance, and savings plan that protects your loved ones while also causing your money to expand consistently over time. Your investment in this plan can assist you in achieving your medium- to long-term objectives, including wealth growth, retirement planning, and the education of your children. The plan has two variants: Tata AIA Fortune Maxima and Tata AIA Fortune Pro.

Eligibility Criteria

Parameters	Tata AIA Fortune Maxima	Tata AIA Fortune Pro
Minimum Entry Age	0 Years (30 Days)	0 Years (30 Days)
Maximum Entry Age	60 Years	59 Years
Maximum Maturity Age	100 Years	75 Years
Policy Term	100 Minus Issue Age	15 To 40 Years
Premium Paying Term	7/8/9/10/12/15/20 Years	Single Pay Limited Pay – 5 /7/10 years Regular/Limited Pay – 15 & 20 Years

Key Features Of Tata AIA Fortune Plan

Tata AIA Fortune Maxima and Tata AIA Fortune Pro share a common set of features as discussed below:

Partial Withdrawals

This plan permits you to withdraw from your fund in the event that you require cash for any emergency or other reason. After five policy anniversaries from the date of issuance of your policy, provided the policy is in force, withdrawals from regular/single premium funds are permitted.

Flexibility Of Top-Ups

If the policy is still in effect, you have the option to pay a “Top-Up Premium” in addition to the regular premium. As long as all due premiums have been paid, top-up premiums may be paid at any time, with the exception of the final five years of the policy’s term and subject to underwriting. In a policy year, you can top off your insurance up to four times.

Additional Coverage

The following optional riders provide you further freedom to alter your product. If these riders are chosen, units from the basic plan will be canceled in order to pay the associated fees. Only at the beginning of the policy can riders be added, and they can only be made available if the minimum premium multiple is selected.

Tata AIA Life Insurance Waiver of Premium (Linked) Rider
Tata AIA Life Insurance Waiver of Premium Plus (Linked) Rider
Tata AIA Life Insurance Accidental Death and Dismemberment (Long Scale) (ADDL) Linked Rider

Free Look Period

After the policy is issued, the policyholder is given a 15-day (or 30-day) “cooling off” or “free look” time to evaluate the terms and conditions of the insurance. The plan may be terminated within this time frame if it is deemed unsatisfactory, and the premium paid will be repaid after the applicable mortality fee, service tax, cess, and stamp duty have been deducted.

Grace Period

For premium payments made annually, half-yearly, and quarterly, a grace period of 30 days is permitted, whereas a grace period of 15 days is permitted for payments made monthly.

Premium Redirection

Once per insurance year, future premiums may be changed to be put in a different fund. Then, future premiums would be invested in accordance with the updated, redirected allocation.

Benefits Offered By Tata AIA Fortune Plan

You should choose the Tata AIA Fortune plan because it offers the following benefits to the policyholder:

Maturity Benefit

The whole fund value, after the relevant NAV values have been allocated, would be paid to the policyholder if they live until the policy’s maturity date.

Death Benefit

In the tragic event that the policyholder passes away while the policy is still in force, the designated beneficiary will receive the death benefit, which is equal to the greater of the fund value of the policy for regular or single premiums or 105% of those amounts. The death benefit will be increased by the greater of the top-up premium fund value or 105% of all top-up premium payments, and it will be distributed to the nominee.

Loyalty Additions

The policy offers regular credits for loyalty additions that are subject to appropriate fees. For a regular pay policy, the loyalty additions are 0.20% and are credited from the policy’s eleventh year to its conclusion. The loyalty additions for a single-pay policy are 0.35% annually. From the sixth policy year and to the completion of the policy period, these additions are made.

Flexible Premium Paying Mode

According to your convenience, you can choose to pay your premiums annually, semi-annually, quarterly, monthly, or even just once.

Monthly Premium = 0.0833 of Annualised Premium,
Quarterly Premium = 0.25 of Annualised Premium, and
Semi-Annual Premium = 0.50 of Annualised Premium subject to minimum premium conditions for each mode.

Tax Benefits

This policy also has tax advantages. According to the relevant tax laws, the premiums paid and the returns received are eligible for tax benefits.

Charges Applicable Under Tata AIA Fortune Plan

This insurance policy offers an investment opportunity in addition to life insurance. The policy levies fees for the services it provides. The following fees are associated with this policy:

Premium Allocation Charges: The premium allocation fee for the Single Premium Pay option is 3% of the single premium, and for Regular Pay, the fee is 6% of the annualized premium for the first two payment terms, 5.5% for terms 3 to 5, 4.5% for terms 6 to 7, 3.5% for terms 8 to 10, and 2% from the 11th year on.

Policy Administration Charge: The yearly policy administration fee for this insurance is 0.75% of the annualized premium for the regular pay option and 0.90% of the single premium for single pay option policies. Both sorts of fees are assessed during the course of the insurance.

Fund Management Charge: Each fund will be assessed a fund management charge on each valuation date at 1/365 of the yearly rates listed below, applied to the total values of the investment funds listed below.

Fund Name	Fund Management Charge
Multi Cap Fund	1.20%
India Consumption Fund	1.20%
Top 50 Fund	1.20%
Top 200 Fund	1.20%
Super Select Equity Fund	1.20%
Large Cap Equity Fund	1.20%
Whole Life Mid-Cap Equity Fund	1.20%
Whole Life Aggressive Growth Fund	1.10%
Whole Life Stable Growth Fund	1.00%
Whole Life Income Fund	0.80%
Whole Life Short-Term Fixed Income Fund	0.65%

Mortality Charge: This fee is deducted each month starting on the policy’s start date and is calculated using the formula: Sum at Risk * Mortality Rate for the Month divided by the Policyholder’s Age.

Discontinuance Charge: By notifying the company, the policyholder may stop paying premiums at any moment throughout the policy’s term. However, the complete fund value, net of discontinuation charges as of the date of discontinuance, shall be placed in the “Discontinued Policy Fund” when the request for discontinuance from the policy is made within the lock-in period of 5 years from the policy’s inception. Only after the lock-in period is over will the policyholder receive the “Proceeds of the Discontinued Policy,” which are the fund value as of the date of discontinuance plus all income earned after deducting fund management fees, subject to a minimum guarantee of interest @ 4% p.a. or as prescribed by IRDAI from time to time.

Fund Switching Charge: The policy offers 12 free switches each year after which there is an Rs. 100 fee for each additional switch.

Working Of Tata AIA Fortune Plan

Let’s understand the functioning of the Tata AIA Fortune Maxima and Tata AIA Fortune Pro plan with the help of some examples!

Tata AIA Fortune Maxima:

Mr. Madan Lal, a 35 years old healthy male, chooses the plan with 65 years policy term. Other details of the plan are as follows:

Annualized Regular Premium: Rs. 1 Lakh

Mode Of Payment: Annual & Single

He will receive the following benefits:

Premium Paying Term (Years)	Premium Multiple Chosen	Guaranteed Benefits	Higher Rate Illustration (8%)	Lower Rate Illustration (4%)
			Non-Guaranteed Benefits
		Basic Sum Assured	Total Maturity Benefit	Total Maturity Benefit
Single	1.25	Rs. 1,25,000	Rs. 58,63,362	Rs. 4,03,034
7	17.5	Rs. 1,750,000	Rs. 3,39,93,464	Rs. 23,82,834
10	17.5	Rs. 1,750,000	Rs. 4,58,12,843	Rs. 44,12,1256
15	17.5	Rs. 1,750,000	Rs. 6,10,63,271	Rs. 65,80,821

Tata AIA Fortune Pro Plan:

Let’s Assume Mr. Mukesh Yadav, a 35-year-old healthy male chooses the plan with a policy term of 20 years. The annual regular premium for the plan is Rs. 1 lakh.

Let’s take a look at the benefits he will receive!

Premium Payment Term (Years)	Premium Multiple Chosen	Guaranteed Benefits	Higher Rate Illustration (8%)	Lower Rate Illustration (4%)
			Non-Guaranteed Benefits	Guaranteed Benefits
		Basic Sum Assured	Total Maturity Benefit	Total Maturity Benefit
Single	1.25	Rs. 1,25,000	Rs. 3,35,903	Rs. 150,865
5	10	Rs. 1,000,000	Rs. 1,500,070	Rs. 736,791
7	10	Rs. 1,000,000	Rs. 2,006,535	Rs. 1,039,580
10	10	Rs. 1,000,000	Rs. 2,652,101	Rs. 1,454,388

Exclusions Under Tata AIA Fortune Plan

The nominee or beneficiary of the policyholder shall be entitled to fund value/policy account value, as available on the date of intimation of death, in the event of death by suicide within 12 months of the date of start of the policy or from the date of revival of the policy. Along with the death benefit, any charges other than fund management charges that are recovered after the date of death must be reimbursed to the nominee or beneficiary.