Purchased Tata AIA Life Insurance Smart Sampoorna Raksha

[keerthirahul]

Friends,

My father suggested this and made me purchase

Tata AIA Life Insurance Smart Sampoorna Raksha​

Unit-linked, Non-participating, Individual Life Insurance Plan for Savings and Protection

Key Benefits​

• Choose from range of funds from equity oriented to fixed income focused, based on your risk appetite
• Safeguard your financial goals through Death Benefit in case of unfortunate death during the policy term
• Refund of 2X Premium Allocation Charges in policy years 10, 11,12 and 13
• Refund of 2X Mortality Charges from 11th policy year onwards.
• Flexibility to pay Regular premium or Limited premium of 5, 10 and 12 years
• Tax benefit1 as per applicable tax laws

The coverage I took is for 89 laks, and the premium is approx 2,30,000 per annum for a 5-year plan. My dad is hell-bent that this is the one and only best thing I have ever done in my life. Made the 1st year payment on Tuesday.

My friends are saying ULIP is a crime, and no one should venture into it. Can someone please tell me if I made a blunder??

 

[soum_bhowmik]

Hi @keerthirahul ,

Firstly, it's crucial not to mix insurance and investment. A life insurance plan should not be considered an investment vehicle. If you decide to surrender your policy, you could lose at least 35% to 50% of your investments. Check your policy document's surrender section for details. In reality, when you surrender a life insurance policy, you lose, and the insurance company gains profits.

Refer to this article titled "Top life insurance cos raise concerns over proposed change in policy surrender values" for more insight: Link

In such cases, many people consider terminating their policies. ULIP plans involve investing in mutual funds, so why not invest directly in mutual funds? ULIP plans don't offer significant benefits; if you compare them with any 5 or 4-star rated mutual fund scheme, you'll likely get better returns with the latter.

My suggestion is to thoroughly study and understand both options before deciding. It's your hard-earned money, so invest wisely.

If you're comfortable with my suggestion after a 15 or 30-day review/look out period and have aligned it with your investment study, then go ahead and cancel your policy. You can cancel within the review/look out period, i.e., 15 or 30 days. After that, you risk losing a substantial amount of money in terms of surrender value.

 

[zacobite]

Friends,

My father suggested this and made me purchase

Tata AIA Life Insurance Smart Sampoorna Raksha​

Unit-linked, Non-participating, Individual Life Insurance Plan for Savings and Protection

Key Benefits​

• Choose from range of funds from equity oriented to fixed income focused, based on your risk appetite
• Safeguard your financial goals through Death Benefit in case of unfortunate death during the policy term
• Refund of 2X Premium Allocation Charges in policy years 10, 11,12 and 13
• Refund of 2X Mortality Charges from 11th policy year onwards.
• Flexibility to pay Regular premium or Limited premium of 5, 10 and 12 years
• Tax benefit1 as per applicable tax laws

The coverage I took is for 89 laks, and the premium is approx 2,30,000 per annum for a 5-year plan. My dad is hell-bent that this is the one and only best thing I have ever done in my life. Made the 1st year payment on Tuesday.

My friends are saying ULIP is a crime, and no one should venture into it. Can someone please tell me if I made a blunder??

Its fine... Insurance + investment is also ok.. dont stop.. continue to pay full term... You won't lose money.. Free look is available for 30 days.. but i wd continue as the returns will also be tax free..

 

[ShavirB]

Friends,

My father suggested this and made me purchase

Tata AIA Life Insurance Smart Sampoorna Raksha​

Unit-linked, Non-participating, Individual Life Insurance Plan for Savings and Protection

Key Benefits​

• Choose from range of funds from equity oriented to fixed income focused, based on your risk appetite
• Safeguard your financial goals through Death Benefit in case of unfortunate death during the policy term
• Refund of 2X Premium Allocation Charges in policy years 10, 11,12 and 13
• Refund of 2X Mortality Charges from 11th policy year onwards.
• Flexibility to pay Regular premium or Limited premium of 5, 10 and 12 years
• Tax benefit1 as per applicable tax laws

The coverage I took is for 89 laks, and the premium is approx 2,30,000 per annum for a 5-year plan. My dad is hell-bent that this is the one and only best thing I have ever done in my life. Made the 1st year payment on Tuesday.

My friends are saying ULIP is a crime, and no one should venture into it. Can someone please tell me if I made a blunder??

Please understand that a blanket statement saying "ULIP is a Crime" is NOT true at all. All the Insurances serve a specific purpose, it is why they're sold and bought.

The policy mentioned is neither the Worst Policy, not the Best Policy - It has a specific purpose of giving you Insurance + Equity Investment (sort of..) Returns...

Iin case you decide to abandon, I'd recommend doing it in the Free Look Period (generally 15 days from 1st payment) to minimise the damage

 

[keerthirahul]

Thank you friends for your valuable suggestions.

 

[abhimarda]

Friends,

My father suggested this and made me purchase

Tata AIA Life Insurance Smart Sampoorna Raksha​

Unit-linked, Non-participating, Individual Life Insurance Plan for Savings and Protection

Key Benefits​

• Choose from range of funds from equity oriented to fixed income focused, based on your risk appetite
• Safeguard your financial goals through Death Benefit in case of unfortunate death during the policy term
• Refund of 2X Premium Allocation Charges in policy years 10, 11,12 and 13
• Refund of 2X Mortality Charges from 11th policy year onwards.
• Flexibility to pay Regular premium or Limited premium of 5, 10 and 12 years
• Tax benefit1 as per applicable tax laws

The coverage I took is for 89 laks, and the premium is approx 2,30,000 per annum for a 5-year plan. My dad is hell-bent that this is the one and only best thing I have ever done in my life. Made the 1st year payment on Tuesday.

My friends are saying ULIP is a crime, and no one should venture into it. Can someone please tell me if I made a blunder??

Mostly the IRR of such kind of "investments" is in range of 4-6% and they are bad even on post tax basis. If you take a plain term plan along with investment in MF through SIP in large cap fund you would be much better off in terms of costing and returns.

 

[prometheus]

Friends,

My father suggested this and made me purchase

Tata AIA Life Insurance Smart Sampoorna Raksha​

Unit-linked, Non-participating, Individual Life Insurance Plan for Savings and Protection

Key Benefits​

• Choose from range of funds from equity oriented to fixed income focused, based on your risk appetite
• Safeguard your financial goals through Death Benefit in case of unfortunate death during the policy term
• Refund of 2X Premium Allocation Charges in policy years 10, 11,12 and 13
• Refund of 2X Mortality Charges from 11th policy year onwards.
• Flexibility to pay Regular premium or Limited premium of 5, 10 and 12 years
• Tax benefit1 as per applicable tax laws

The coverage I took is for 89 laks, and the premium is approx 2,30,000 per annum for a 5-year plan. My dad is hell-bent that this is the one and only best thing I have ever done in my life. Made the 1st year payment on Tuesday.

My friends are saying ULIP is a crime, and no one should venture into it. Can someone please tell me if I made a blunder??

@keerthirahul Since you've already made the payment, I would suggest to continue with the plan now since it is for 5 years out of which 1 is already paid off.

You shouldn't worry much, just to be more realistic it is advisable to calculate the XIRR for such a policy.

Moving forward, you can invest a small amount in a higher-risk MF, that shall compensate for the low XIRR that you'll generate via this policy. Do not surrender, as you won't be getting 100% of the premiums paid anyway.

 

[amitaries17]

Friends,

My father suggested this and made me purchase

Tata AIA Life Insurance Smart Sampoorna Raksha​

Unit-linked, Non-participating, Individual Life Insurance Plan for Savings and Protection

Key Benefits​

• Choose from range of funds from equity oriented to fixed income focused, based on your risk appetite
• Safeguard your financial goals through Death Benefit in case of unfortunate death during the policy term
• Refund of 2X Premium Allocation Charges in policy years 10, 11,12 and 13
• Refund of 2X Mortality Charges from 11th policy year onwards.
• Flexibility to pay Regular premium or Limited premium of 5, 10 and 12 years
• Tax benefit1 as per applicable tax laws

The coverage I took is for 89 laks, and the premium is approx 2,30,000 per annum for a 5-year plan. My dad is hell-bent that this is the one and only best thing I have ever done in my life. Made the 1st year payment on Tuesday.

My friends are saying ULIP is a crime, and no one should venture into it. Can someone please tell me if I made a blunder

Investment in ULIP plan will always give you the best return in long run. Don't worry, you may see a rise NAV in long run. Keep monitor you find value quarterly.

 

[Prabin]

Friends,

My father suggested this and made me purchase

Tata AIA Life Insurance Smart Sampoorna Raksha​

Unit-linked, Non-participating, Individual Life Insurance Plan for Savings and Protection

Key Benefits​

• Choose from range of funds from equity oriented to fixed income focused, based on your risk appetite
• Safeguard your financial goals through Death Benefit in case of unfortunate death during the policy term
• Refund of 2X Premium Allocation Charges in policy years 10, 11,12 and 13
• Refund of 2X Mortality Charges from 11th policy year onwards.
• Flexibility to pay Regular premium or Limited premium of 5, 10 and 12 years
• Tax benefit1 as per applicable tax laws

The coverage I took is for 89 laks, and the premium is approx 2,30,000 per annum for a 5-year plan. My dad is hell-bent that this is the one and only best thing I have ever done in my life. Made the 1st year payment on Tuesday.

My friends are saying ULIP is a crime, and no one should venture into it. Can someone please tell me if I made a blunder??

I am an insurance advisor and associated with multiple life insurance companies. I have taken the same plan for my self and sum assured is 1 crore. One difference is that I have chosen 12 PPT instead of 5 PPT but the interesting thing here is that I won't pay from my pocket after 5 year because it provides partial withdrawal option after 5 year and I would withdraw the renewal amount and deposit the same while renewing. So my premium is also less and policy continues itself.

It's a very good plan and I suggest everyone. So be assured that you have not done anything wrong . One more thing I can do is I will withdraw all money leaving 2 annualised premium in my account and I can use the money in SIP or other things if I want. In this way, my investment would be very less and my policy continues with very less amount .