Shall I cancel my Tata MahaLife GOLD policy?

POSTED BY Sachin ON May 5, 2012 11:37 am COMMENTS (29)

Hello Manish,
I purchased Tata Mahalife Gold last year which has a face value of 10,00,000/- and I have payed 1 premium which is 87.5k
I need to pay this for 15 years.
After having read your book’s 2nd chapter, I think going for a pure term insurance+PPF is a better option.
I checked with Tata Aig and they say that I will lose my whole first premium amount if I cancel it now.
Even if I cancel it after three years, I will still lose 1 premium amount and also 60% of the 2 premiums.
So in essence, If I pay 3 lakhs in three years, I will still lose 2.4 lakhs . So cancelling it now is a better option I feel.
Whats your opinion?

Please guide me . This is the first tremor I have felt after reading your book. Just done with 2nd chapter. Kindly help. Should I cancel this policy?


29 replies on this article “Shall I cancel my Tata MahaLife GOLD policy?”

  1. swati says:

    I hv paid 2 premium for tata aia mahagold….total 193000/- if I want to surrender it how many amount can I get back?

    1. Hi swati

      The best answer you can get only from the agent you invested through or just contact the company. The thing is your case is a bit personalised and other than company, no one can give accurate information


  2. Deiva says:

    I have this same policy in my portfolio for almost three and half years paying monthly premium of 5070 Rs. When I approach the TATA AIA for the surrender of the policy, the discouraging and appalling reply is that I will get only 77000 Rs or else I have to continue paying for the policy.
    As Mr. ashalanshu rightly quoted “to amputate a finger today or an arm tomorrow” better to close the policy

  3. ashalanshu says:

    Dear Jaya, w’d you like to amputate a finger today or an arm tomorrow? Choice rests with you.



  4. jaya says:

    I have taken the same policy and paid premium for 3 yrs. when I wanted to cancel the policy the firm said only 30% of the total premium that I paid will be refunded. It’s shocking. What shall I do any suggestions.

    1. Karan says:

      Jaya, I have gone through the policy document,there is no lock in Period. You can surrender your policy any time. You can check the document here ::
      Search for Key Word ‘Free Look Period’.

  5. Dear Sachin, ignoring the call is a good idea sirji. 🙂



  6. Sachin says:

    Hi ashal
    my no. is registered with dnd. And it is almost one year now since I have not paid. The premium. My police has lapsed. still I get SMS. And calls asking me. To revive the policy. can I file a case. for mental harassment

  7. Dear Sudeep, had you paid 1 Prem. or 2? As you mentioned 2011 was purchase year, the 2nd prem. was due in 2012 itself. If you have not paid already this 2nd prem. your policy is already in lapsed condition. Please convey your displeasure in strong words through a mail to customer care of TATA AIG for the phone calls. Still if the matter continues, file your wife’s phone no. in DND registry. How to register in DND, please contact your mobile operator.



  8. Sudeep Banerjee says:

    I am also sailing on the same boat.. I purchased Tata Mahalife Gold in 2011, Policy No. C 284457741 FV 10,65,000/- and have payed 1 premium of 99,999/- later came to know that the premium was only 97911/-. When i checked for the refund of excess money they confirmed the money will not be refunded but will be adjusted with next premium..

    I contacted the ARUP CHATTERJEE, Head NET AMBIT a reputed agency through whom I brought the policy, but they refused to help me on this issue. Very unprofessional and reluctant person. He and his team committed all wrong returns where we got trapped.. They started ignoring my calls and does not respond to emials as well

    Finally I decided to close this policy so when i checked with Tata Aig..they confirmed the premium paid will be forfeited and the excess amount paid will not be refunded.. I lost faith in this company so thought of going ahead and cancell the policy asap.

    Offlate they have started bothering my wife (PROPOSER) so much requesting to pay 2nd premium. I just want to know we have mailed them to cancell it but still nothing has been done yet and regularly disturbing us. How do we close this once for all?


  9. shelly sagar says:

    Thank you very much Mr. Ramesh and Mr. Sachin for your prompt response.

  10. Sachin says:

    Stop paying premiums; Policy will get lapsed.
    If you want to terminate the policy officially, check with customer care and ask them how much refund you would get.


  11. shelly sagar says:

    This is really great.. thank you, you all.
    I was in dilemma of continue or not to continue with this stupid scheme or not.. Nevertheless, seems it is a better to accept our mistake and correct it, rather remain as a fool and continue with the policy,
    Dear all, please guide me.. How to discontinue this policy, I have tried to contact my smart broker who sold me this policy, but he is no more with this firm.

    thanks a Ton..

    1. Ramesh says:

      Call Tata’s customer care number. Ask them for the procedure.

  12. Sachin says:

    You may check and compare rates at and buy from any of the online book stores.


  13. says:

    Hi Biraja,

    You can buy this book on any of the online book stores. or

    compare rates at


  14. Biraja says:

    Hi Ashal
    Many thanks! for your excellent comment on this firum. I am also on the same boat.
    I already paid 7 installements for this policy (10K * 7) and I was told to get 6K per month after 6th year, but this company has declared a dividend of 2.6% last year which is same as 2630/- for my policy. Moreover, when I caclulate myself, this stupid policy is giving only 3-4% return after 15 years.. Ohh.. My God!! how ffol we are??

    I am really offset with TATA-AIG/AIA now and decided to withdraw this policy.
    I would advice to all the investor to do the same thing even if you are losing your whole money. Please stop paying to this policy. Invest in good mutual fund or at least PPF to neutralise this lose.

    Sachin, please give me the link for the book ‘‘Jaago Investor’.

    I am totally agree for ‘term plan+PPF’ or ‘Term Plan + Mutual Fund’

    By the way, I have written two emails to TATA – AIG customer care, but didn’t receive any reply from them since a week. .. I feel I am fully cheated by TATA.

  15. ajit1972 says:

    I also have 2 policies numbered C300533840 and C300533852 in the name of my kids which I had taken in the year 2004. I am only getting a paltry ~24000 per year and that too after 6 years of policy. Shocking this is that I will pay 16 lakhs premium but the policy is only for 11.5 lakhs which I will get back and that I too I don’t know when.

    I have no shamed in admitting that I was fooled by the adviser and trusted Tata name but this has turned out to be the biggest fraud that I have suffered in my life. What should I do now? Should I surrender or continue to pay for another 7 years?

    1. Dear Ajit, please check for the surrender value & check can you digest the loss?



    2. Sachin says:

      I have opted to lapse my policy!

  16. TATA AIG LIFE says:

    Dear Sir,

    We understand that you are holding Tata AIG Life Mahalife Gold policy. You can access the key features of the product by clicking

    We will, however, be glad to speak to you to share with you the benefits that you can avail from the Mahalife Gold policy.

    We would request you to kindly share your policy number or your contact details with us at

    Yours sincerely,

    Grievance Redressal Cell
    Tata AIG Life Insurance Company.

  17. Sachin says:

    Thanks Man! I second your opinion.

    What do you say Manish?

    Keeping this policy won’t help in creating any wealth I believe. This was taken in haste without any due diligence. 🙁 I regret having this done.

    All I will be getting from the 16th year onwards is 50k/annum ;(

    All I want to know is the benefit if I continue with this policy. Kindly guide me.

    1. Dear Sachindia, sample this – You decide to stop this policy & go for a term plan of your choice. I assume balance Prem. for investment purpose is 75K at least. In 2Y you still have 1.5L Rs. in your hand & I’m not counting any earning on these 1.5L Rs.

      So go ahead & cancel the policy but before that purchase a term plan of at least 12-15 times of your yly income.



      1. Sachin says:

        Thanks a lot Ashal !

        Thanks Manish for publishing the book ‘Jaago Investor’

  18. If it is canceling, it should be done as early as possible. Paying 3 years premium and then getting some money in return after all penalty is not logical. Its better to forgo one premium in instead of continuing it for 3 years and surrendering it after 3 years.

    My opinion. – Just 2 cents.

    1. ravirattihalli says:

      Hi All

      I have been paying TATA AIG Mahalife Gold premium since 7 years and when I wanted to surrender policy I was shocked to know that the first premium would be retained by the company and nearly 70% of the remaining premiums will be paid to me!

      The agent never told me this before but I feel that I should have gone through the huge manual (the policy booklet) before signing, doesn’t matter if it had taken a few weeks to decifer what each thing meant!

      No wonder the company is doing good with such policies!

      Ravi Rattihalli

      1. Dear Ravi, do it now. Better late than never.



        1. ravirattihalli says:

          Thanks Ashal

          I will cancel it immediatelly, doesn’t matter what loss I incur now.
          It will still be far less that what I will lose if I hold the policy for few more years!

          Ravi Rattihalli

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