TATA AIG Invest Assure II Plan Review

 

TATA AIG Invest Assure II Plan Review

Let us today review TATA AIG Invest Assure II Plan.

Well, this is the insurance cum investment product (BEWARE…!!!). Here you can get the life insurance cover along with option to invest in different fund options. Thus, you can get the life insurance cover and at the same time invest in the markets and grow your money.

This is what they claim.

The term of policy is 15, 20 and 30 years and there is no penalty on surrender after 6 years of policy.

Here are the various charges under this policy.

(i) Premium allocation charge - deducted as a percentage of regular
Equity Government Money market premium, and varies with policy term and issue age.

(ii) Mortality charge - deducted from regular premium account
Fixed Income every month, towards life insurance cover available under policy.

(iii) Policy administration charge - deducted from regular premium
account on a monthly basis, and subject to a maximum of 5% p. a.

(iv) Fund management charge - varies between 0.90% to 1.75% for
equities above five funds.

(v) Surrender or partial withdrawal charge - calculated as
in G'Secs percentage of fund value of the withdrawn amount in case of full surrender or partial withdrawal.

(vi) Fund switching charge - of Rs.250 per switch, applicable for
every additional switch the first four 'charge-free' switches, and subject to a revised maximum Rs.500.

(vii) Premium redirection charge - of Rs.1000 applicable for every
premium re-direction, after the first 2 'charge-free' premium redirections, subject to a revised maximum of Rs.2000.
(viii) Premium holiday charge - of 3% of regular premium applicable
Each of the above funds will at all times be substantially invested in for the revival period in case the policy holder is unable to pay the regular premium within the grace period.

Thus, the policy is associated with lots of charges. In my opinion, you should go for Term Insurance + Equity Diversified Mutual Funds.

Term insurance will take care of your life insurance needs while the equity mutual funds will take care of your investment needs. So go for them. No need to buy this plan.