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POSTED BY ON October 14, 2010 1:04 pm COMMENTS (2)
Putting a question on behalf of a reader Saurabh .
Dear Manish,
Hi,
A latest plan has been launched by TATA AIG with the name of Plus Supreme.
The agent is selling by claiming the following:
1. The minimum one time deposit shall be Rs.48,000
2. The lock in shall be 5 years
3. And the Guaranteed Return of Double the amount paid in 5 years which is if I invest 50,000, after 5 years I’ll get Rs.1,10,000 for sure.
Can you please give me your advise, on what ever he is claiming is true and should I go for this?
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On searching, I found the plan name as Tata InvestAssure Plus Supreme.
The min. single premium is Rs.48,000. But they will charge 5% as premium allocation charge + 0.75% as policy admin charge in first year + mortality charges.
The policy term is 20 years to 30 years. Guaranted return from company is 5% of fund value ON maturity and NOT if you withdraw your money in between.
So, if the policy min. term is 20 years and you surrender your policy after 5 years, you’re NOT eligible for guaranteed amount viz. 5% of fund value.
That agent is adding some lines himself like double the amount etc.
I’ve seen after confirming from product official brochure.
Hope it will help you to take decision.
InvestmentKit.com
Saurabh
1) point is correct , as per company website http://www.tata-aig-life.com/Individual/Adult/adultInvestAssurePlusSupreme.htm
2) Is right because now as per IRDA new rules , lock in period in ULIPs is 5 yrs
3) this point is simple to understand , this is totally bullshit . money doubling in 5 yrs is same as getting 15% CAGR return , which can never be guaranteed by anyone because Bank FD is at 6-7% , anything above the safest return can not be guaranteed . Note that I am not saying that money doubling is not possible , it might happen depending on markets ,but its not GUARANTEED .
Dont deal with the agent as he is not selling things in right way .
Manish