Tata AIG MAHALIFE GOLD PLAN

POSTED BY shantibhusan78 ON January 20, 2012 11:44 pm COMMENTS (19)

Dear Manish
I am considering to buy TATA AIG MAHALIFE GOLD Plan for regular income and a life cover of Rs. 500000/-. Pls suggest whether I should go for it? My goal is to create Rs. 25 Lakh after 17 years and I can afford Rs. 5000/- PM towards this.
thanks
sbs

19 replies on this article “Tata AIG MAHALIFE GOLD PLAN”

  1. sripriya says:

    Hi,
    Please suggest me on jeevan saral policy

  2. Biraja says:

    Dear Shantibhusan
    Are you still opt for ‘Tata AIG MAHALIFE GOLD’ ? Just remember this is a very stupid plan and the agents confused us with the non-guaranteed income.

    So, please study the policy dicument from TATA AIA site before going for this policy not after taking the policy.

    1. soumyasurya says:

      According to my calculation it’s a profitable insurance cum investment plan. i insured my baby at tata aia mahalife gold. His age is just 1.9 year. My sum assure is 3 lakhs. my premium is rs 28025/-.term is for 15 years. (Premium 26550, riders 1047, service tax is 428)
      i pay to company total amount of (28025*14)+28450 = 392350+28450=420800
      1st year service tax is rs 853.
      According to company’s guaranteed and non guaranteed payment i shall be received payment from 7 th year….. 7th year to 10th year bonus will be averagely 3.1%. means my non guaranteed payment will be 9300 and from 11th year my guaranteed payment will be rs 15ooo/- and non guaranteed payment will be 18600/- ( 6.2%) total 33600. ”” Tata AIA Life posted a net profit of Rs 331.54 crore for FY 2012-2013, an increase of 27% over last fiscal, with a solvency ratio of 341%.”””” My earning is (9300*4)+( 18600*5)+ (15000*5)= 37200+93000+75000= 205200/-. Total invest is rs 420800/- and return is with in 15 years rs 205200. Total investment is Rs 420800 – 205200= Rs 215600/-
      This is for my baby’s plan. So I make a little plan, I think when my baby’s age will be nearly 17 or 18, I need more money for his education. My plan is ……
      On 7th year I receive….rs 9300.His age will be 7.9yrs. I rounded the amount of rs 10000/-and fixed it for 9 yrs in the bank And maturity will be rs 21793
      AMOUNT FIXED DEPOSIT YEAR PERCENTAGE MATURITY VALUE BABY’S YEAR
      10000 9 YRS 8.5% 21793/- 8.9 YRS
      10000 8 YRS 9% 20381/- 9.9 YRS
      10000 7 YRS 9% 18645/- 10.9 YRS
      10000 6 YRS 9% 17058/- 11.9 YRS
      34000 5 YRS 9% 53057/- 12.9 YRS
      34000 4 YRS 9% 48539/- 13.9 YRS
      34000 3 YRS 9% 44402/- 14.9 YRS
      34000 2 YRS 9% 40624/- 15.9 YRS
      34000 1 YRS 9 % 37165/- 16.9 YRS
      TOTAL = 342292/-
      THE AMOUNT RS 9300/- = 10000/-
      AND 33600 = 34000/- IT IS ROUNDED CALCULATION. TOTAL AMOUNT WILL BE 342292/- . I THINK IT WILL BE ATLEAST 3 LAKH RUPEES BECAUSE OF NON GURANTED PAYMENT.

  3. ranjan says:

    thanks i do agree,
    always take pure term insurance and don’t club moneyback aspect with this. for returns there are ULIP,Mutual Funds, FD/RD,etc.

  4. Manish says:

    Dear Ajarnath

    First of all try and calculate how much of life cover you need and then decide on what kind of plan would be suitable enough to meet that requirement. Insurance and Investments are two things which should be kept separate.

    You can use a HLV calculator to decide what kind of cover you would need.
    Or sample this
    Life Cover = Amount sufficient to cover present liabilities (Home Loan) + Child’s Education + annual maintenance/sustenance amount required for family taking their life span into account.

    As far as the amount for your kid’s UG education is concerned there are N number of ways in which you can plan for that.

    Regards

  5. ajanarth says:

    @Ramesh and @Ashal. thanks a lot for the timely response.

    Ashal,
    I need to get the exact cover information from my sister. As an example 9.24 L per year translated to a 1C coverage.

    If I can scale it to 2L per year premium, the cover I think will be roughly for 21L

    I need to decide whether to go Tata-AIG for either:
    1. life coverage for me or
    2. for our baby who is 1 year old now so as to plan for his UG education etc.

    Reviews I read so far mentioned going for child plan is better as it helps somewhat 3 generations. pls advice.

    Ramesh,
    Yes, I will plan to get some professional help soon. Can you tell me what a single premium term plan means?

    1. Ramesh says:

      1. Single premium plan means instead of paying every year for the entire term duration, you pay a lumpsum in one go, and get a term insurance. Eg. Say you need a cover of 1 crore for an offline plan (like from HDFC/Kotak) for a period of 30 years. You can either pay Rs. 18-20k per year for next 30 years, OR you can pay around 3.5 lakhs (actually, the company calculates the future value of all your premia, and accordingly gives you a discount) today, and you get an insurance cover of 1 crore. Then, you do not need to pay any more money for the rest of the term. [These numbers are only approximations, but you can expect near-about similar payments]. I do not remember any online term policy having a single premium feature, hence have gone with good offline companies.

      2. Also note the difference between single premium 3.5 lakhs Once versus 9.24L per year for 20-25-30 years giving you the same 1 crore coverage. That is actually the difference between term insurance and endowment (money-back) policy.

      3. Any endowment policy will be a debt plan, with significant amount of opacity, and overall low (less than inflation) returns over a long period of time.
      4. Who said, child plan helps 3 generations. In my opinion, it only helps the actual distributor, not the payee or the child. Think how much your own education costed you/your parents 10 years ago, and what are the current cost considerations (which you must have realised since you have a 1 year child). The difference is called Inflation (and which is not sufficiently denoted by official indices). Any debt plan will not be able to overcome that over 16-17 years (time for UG education roughly).
      5. Your financial planner should be able to provide you a comprehensive plan for insurance and wealth-management.

      Good luck
      Ramesh

      1. Muthu Krishnan V says:

        instead of paying single premium, would it not be benefical to put this amount in a FD and pay the interest accrued as annual premium. This way at the end of the term, a good percentage of the single premium would still remain in our hands?

        1. Ramesh says:

          Single premium has the advantage of extreme convenience.

          Yes, your FD system is ok. But you need to understand that single premium is actually, a debt instrument with built-in investment (by the company) and payments, all done by the company. That convenience has a price (but it is justified, and not much if you do the calculations).

          Also remember, this person is needs to pay an equivalent of 9L per year for 20 years or so to get the same cover.

    2. Dear Ajanarth. Sample this – Out of those 2L Rs. prem. amount if you opt to invest just 1.5L Rs. one time in a simple product like bank FD for 10Y @ 9.25% interest rate, even after paying income tax on this interest income, the balance interest can easily pay out year after year a prem. of around 9-10K Rs. for your sum assured of 1 Cr. Rs.

      You still have 50K Rs. in your hand & after that 2L Rs. every year at your disposal to invest elsewhere.

      Please do not invest in this Mahalife or any other similar thing.

      Regarding your basic query, Whose life should be covered? My simple take – if you are no more, does your family (your kid) require money or your kid is no more & you require money? Answer this plain question.

      Thanks

      Ashal

  6. ajanarth says:

    Dear Ashal,
    Since the topic is on T-AIG mahalife, I am using Manish’s thread to ask my request to you:

    I am 29 yrs, married, has a working spouse (also 29 yrs) with a 1 yr old toddler. Our net annual ctc is roughly at (24L+19L). Both me and my wife do not have any life insurance coverage.
    We are considering Tata AIG mahalife.
    Can you suggest we should go Tata-AIG for either:
    1. life coverage for me or
    2. for our baby who is 1 year old now

    Regarding our financials, we have recently purchased a property with about 50L loan (yet to get it approved and emi calculated). We do not have any investment so far in India, but parked all out savings in cash.

    Can you recommend an life insurance cover for our familly under Tata AIG?

    On a same note, a close family member is recommending this mahalife policy with a premium of roughly 2L per year. What we dont know is how to choose a cover for our case and what is an acceptable premium so that we are neither under/over insured.

    Your guidance will be extremely helpful
    Thanks.

    1. Ramesh says:

      I seriously think you should get a proper financial planner. You can easily afford it and you seriously Need it.

      Remember this thing, you are wasting your money in these so called mahalife or other policies.

      You can also look into single premium term plans also.

    2. Dear Ajanarth, how much sum assured ‘ll you be covered for in this Mahalife if you opt for your self or for your wife?

      Thanks

      Ashal

  7. Navneet Kumar Sharma says:

    Dear Manish,
    My age is 43 Years & 6 months, and my monthly income is INR 1.25 Lakh after TDS deduction. I want to take good insurance policy for my family to secure them financially even after my death. For the insured sum of INR 2 Crore, which term plan / insurance policy will be best for me.
    Is there any good insurance plan, to get facility of maturity amount as well as death coverage in case of death of policy holder. Please advise.
    Regards
    NKS

    1. Dear Navneet, can you put more lights on the last few lines of your query – you mean to say in case of death not only the sum assured but the prem. amount should also be returned to your family? Am I right in my understanding? Please clarify.

      Thanks

      Ashal

  8. Dear Shantibhushan, to compare mahalife gold, first calculate what ‘ll be the prem. for your 5L term cover from TATA AIG itself? It ‘ll be an annual prem. for calculation purpose, adjust it for mly prem. Now deduct it from that 5K prem. amount. the remaining amount ‘ll be your investment amount which ‘ll be invested in a simple product like PPF. Now with the help of exl. sheet, you can easily calculate the future value of your PPF for those 17Y for this mly invested amount.

    Thanks

    Ashal

    1. shantibhusan78@gmail.com says:

      Thank you very much for your much needed guidance.

  9. Dear shantibhushan, please do not opt this plan. Even a simple product like Term plan + PPF ‘ll outperform this policy. Please calculate on your own.

    Don’t you feel, after paying 60K yly prem. the cover of just 5L Rs. is next to nothing?

    Thanks

    Ashal

    1. shantibhusan78@gmail.com says:

      Thank You Ashal for your guidance. Can You kindly clarify more on the calculation how the term plan and PPF will give me a return like TATA AIG MAHALIFE GOLD plan. Can you suggest some good term plan. Thanks

      sbs

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