Faq- Invest Assure Futurev1
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DTDD- FAQ’s
InvestAssure Future
Frequently Asked Questions
110L057V01
IN THIS POLICY, THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER. .
Approval Number: L&C/Advt/2008/Jan/797
ULIP Training Program
DTDD- FAQ’s
InvestAssure Future
Q1. What is the Future Capital Guarantee Pension fund? Ans. The Future Capital Guarantee Pension fund is one of the unique funds offered by InvestAssure Flexi. This fund is also available for InvestAssure Future (Called Future Capital Guarantee Pension fund). The feature of this fund is that all the premiums invested in this fund is guaranteed upon maturity. This is the ideal feature to pitch to a customer who wants an element of guarantee in a ULIP. Q2. Is the Capital Guarantee applicable on Surrender or Death? Ans. No, the Capital Guarantee is applicable on Maturity only. Q3. Can I switch into the Future Capital Guarantee Pension fund? Ans. Switching to the Future Capital Guarantee Pension fund from another fund is not possible. However, you can switch out of the fund with a proportionate reduction in the Capital Guarantee. Q4. Is the Future Capital Guarantee Pension fund available for all policy terms? Ans. The Future Capital Guarantee Pension fund is only available for PREMIUM PAYMENTS TERMS OF 15 years or more for a Regular Premium and available for all policy terms for Single Premium . Q.5. Are there any new funds introduced for InvestAssure Future? Ans. Although all the funds are new for these new products (Since each would have a fresh NAV), the newer fund introduced is the Future Capital Guarantee Pension fund. Q6. When do the Surrender charges stop being levied on the InvestAssure Future? Ans. There are no surrender charges from the 7th policy anniversary onwards for Regular premium and no Surrender charges for Single Premium . Q7. What is guaranteed bonus? When do I start getting the guaranteed bonus? Ans. The guaranteed bonus is a loyalty bonus that is available for investing in InvestAssure Future for a period of atleast 10 years. Depending on the premium payment term, there is a percentage of the fund value that is added to the amount paid on maturity. Although the Bonus itself in not guaranteed unless you pay for a minimum of 10 years, once 10 annual premiums are paid, a specific percentage of the fund value will be paid on maturity or on death before maturity. Q8. My policy term is 15 years and I’ve paid for 9 years. Will I get the guaranteed bonus? Ans. No, the guaranteed bonus is payable only if you have paid premiums for atleast 10 years.
Q9. I’ve paid premiums for 10 years, My policy term is 15 years. I want to surrender the policy in the 11th year. Will I get the guaranteed bonus? Approval Number: L&C/Advt/2008/Jan/797
<< Website >>
ULIP Training Program
DTDD- FAQ’s
InvestAssure Future
Ans. As the name suggests, the guaranteed bonus is payable on maturity or on death before maturity. It is not payable in case of surrender before the policy term. Q10. What is the maximum age at which I can offer an InvestAssure Flexi or an InvestAssure Future? Ans. The maximum issue age for InvestAssure Flexi is 65 years and InvestAssure Future is 70 years for the single premium option and 65 years for the regular premium variant. Q11. What is the minimum sum assured for InvestAssure Future? Ans. There is no life cover offered with InvestAssure Future. This is beneficial, since the plan is a pension plan and there will be no mortality charges for the same. In case of an unfortunate death, the fund value and the guaranteed bonus as on date will be paid to the nominee. Q12. What’s new in InvestAssure Future? What will help me sell more? Ans. InvestAssure Future is a Unit Linked Pension plan. It has been designed to help harness the power of the market to create as large a corpus as possible during the working life of an individual, so that he can have a comfortable retired life. The advantage that this plan offers is two fold- first of all, it does not have a life cover, so nothing gets cut out from the premium that you pay towards mortality charges and secondly, only upto 1/3 can be commuted and the balance has to be used to purchase an annuity. This will pay pension to the customer after retirement. Since the plan helps to target a segment where very few people pay much attention, i.e. retirement planning, it will be easier to position the same as the ideal retirement solution. Q13. What are the options available as far as the maturity value is concerned for InvestAssure Future? Can I take the entire maturity value as a lumpsum? Ans. In InvestAssure Future, you can commute only 1/3 of the maturity value as a lumpsum, which can be used to make urgent payments (paying off a loan, etc). The balance has to be used to purchase an annuity, which will start paying annual pensions to the customer. The advantage is that the customer will get money when he needs it the most, ensuring an independent retired life. It is a well known fact that lumpsum amounts tend to get spent, which will leave nothing for expenses in the retired life. The customer has an open market option as far as the annuity is concerned. It is not mandatory for the customer to purchase an annuity with Tata AIG Life. Q14. Does the Future Capital Guarantee Pension fund guarantee the amount or the NAV? Ans. The Premiums paid towards the Future Capital Guarantee Pension fund is guaranteed. Q15. Are there any premium redirection charges applicable? If yes, after how many premium redirections will the charge be imposed? Ans. There are no charges for redirection of future premiums. However, premium redirection towards the Future Capital Guarantee Pension fund is not allowed.
Approval Number: L&C/Advt/2008/Jan/797
ULIP Training Program
DTDD- FAQ’s
InvestAssure Future
Q16. If I switch from the Future Capital Guarantee Pension fund, to what extent will the Guarantee be reduced? Ans. Let’s take an example- The total premium paid is Rs. 50,000 , the fund value as on date is Rs. 80,000 and the customer switches Rs. 30,000 to another fund. The capital guarantee will be reduced proportionately, which means, of 30k have been switched then 30000/80000= 37.5%; the capital guarantee will be 100%-37.5%= 62.5% which means the guarantee will be equal to 50000*62.5% which is Rs. 31,250.
Q17. For how many days will the NAV of Rs. 10 be available for this product? Ans. Let’s take an example- If we get first 10 policies issued before 3 pm on 10th January 2008, and the investment is done in Large cap equity fund, then for these first 10 policies the unit will be allocated at the end of the day @ Rs 10 . From the second day onwards the NAV will change as per the market fluctuations. The Rs. 10 NAV is applicable only for the Future Capital Guarantee Pension fund, Future Equity Fund, Future Income Fund, Future Growth Fund, Future Balanced Fund, Large Cap Equity Fund. Q18. Are there any partial withdrawals allowed? If yes, what are the charges? Ans. There are no partial withdrawals allowed in this plan, as it is a pension plan. Q19. What is the fund composition for InvestAssure Future? Ans. The fund composition for InvestAssure Future is as follows: Name of the Fund Future Equity Pension Fund Future Income Pension Fund
Future Capital Guarantee *** Pension Fund
Fund Objective The primary investment objective of the Fund is to generate long – term capital appreciation from a portfolio that is invested predominantly in equity and equity linked securities. The primary investment objective of the Fund is to generate income through investing in a range of debt and money market instruments of various maturities with a view to maximizing the optimal balance between yield, safety and liquidity. The Fund will have no investments in equity or equity linked instruments at any point in time. The key objective of the fund is to protect the capital by investing in high quality fixed income securities and at the same time provide access to the upside potential of equities by investing a maximum of 15% in equities and equity linked instruments.
Future Growth Pension Fund
The primary investment objective of the Fund is to provide reasonable returns with medium risk.
Future Balanced Pension Fund
The primary investment objective of the fund is to provide reasonable returns with low to medium risk.
Fund Allocation Equities- 80% to100% Money Market Up to 40%
Govt/ Corporate Bonds- Upto 100%; Money Market Instruments- Upto 40%
Govt/ Corporate Bonds- Upto 85%; Equities- upto 15% , Money Market Instruments- Upto 40%
Equities- 20-40%; Govt/ Corporate Bonds60-80%; Money Market Instruments- upto 40% Equities- 0-20%; Govt/ Corporate Bonds80-100%; Money Market Instruments- upto 40%
*** In case of Regular Premium, Future Capital Guarantee Pension Fund will be offered for premium payment term >=15 years. In case of Single Premium this guarantee is available for all Policy terms.
Approval Number: L&C/Advt/2008/Jan/797
ULIP Training Program
DTDD- FAQ’s
InvestAssure Future
Compliance This product is underwritten by Tata AIG Life Insurance Company Ltd. For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale. Tax benefits are as per the Income Tax Act, 1961 and are subject to amendments made therein from time to time Investments are subject to market risks. Past performance is not indicative of future returns. Tata AIG Life Insurance Company Ltd. is only the name of the insurance company and InvestAssure II (i.e. the ULIP product name) is only the name of the ULIP contract and does not in any way indicate the quality of the contracts, its future prospects and returns. Service Tax is payable on life insurance premiums as per Section 65 (105) (zx) of Finance Act, 1994 as amended by Finance Act (No.2), 2004 at the applicable rates as per circular No. F. No. B2/8/2004 – TRU (Tax Research Unit) dated September 17, 2004 issued by Government of India, Ministry of Finance and subsequent directions issued by authorities from time to time. The service tax component payable by the policyholder at applicable rates will be stated in the premium notice and the premium receipt for the information of the policyholder. The company reserves the right to recover from the Policyholder any related insurance levies and duties as imposed by the government, by premium adjustment or other forms, as we deem appropriate .For Basic policy, service tax is levied on mortality charge and will be deducted through unit cancellation from the relevant funds. . Extra amount is payable for service tax on rider premium ULIP Products are different from Traditional Life Insurance Products and are subject to risk factors. Premium Paid in ULIP is subject to Investment Risk associated with Capital Market and the NAV of the units may go up or down based on the performance of the fund and factors influencing capital markets and the insured is responsible for his decision. Tata AIG Life Insurance Company Ltd. Is only the name of the Insurance Company and InvestAssure Future is only the name of the ULIP Contract and does not in any way indicate the quality of the contract, its future prospects and returns.
Tata AIG Life Insurance Company Ltd. (Reg. No. 110) Peninsula Towers, 6th Floor, Peninsula Corporate Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400 013 Insurance is the subject matter of the solicitation
Approval Number: L&C/Advt/2008/Jan/797
ULIP Training Program
InvestAssure Future
Frequently Asked Questions
110L057V01
IN THIS POLICY, THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER. .
Approval Number: L&C/Advt/2008/Jan/797
ULIP Training Program
DTDD- FAQ’s
InvestAssure Future
Q1. What is the Future Capital Guarantee Pension fund? Ans. The Future Capital Guarantee Pension fund is one of the unique funds offered by InvestAssure Flexi. This fund is also available for InvestAssure Future (Called Future Capital Guarantee Pension fund). The feature of this fund is that all the premiums invested in this fund is guaranteed upon maturity. This is the ideal feature to pitch to a customer who wants an element of guarantee in a ULIP. Q2. Is the Capital Guarantee applicable on Surrender or Death? Ans. No, the Capital Guarantee is applicable on Maturity only. Q3. Can I switch into the Future Capital Guarantee Pension fund? Ans. Switching to the Future Capital Guarantee Pension fund from another fund is not possible. However, you can switch out of the fund with a proportionate reduction in the Capital Guarantee. Q4. Is the Future Capital Guarantee Pension fund available for all policy terms? Ans. The Future Capital Guarantee Pension fund is only available for PREMIUM PAYMENTS TERMS OF 15 years or more for a Regular Premium and available for all policy terms for Single Premium . Q.5. Are there any new funds introduced for InvestAssure Future? Ans. Although all the funds are new for these new products (Since each would have a fresh NAV), the newer fund introduced is the Future Capital Guarantee Pension fund. Q6. When do the Surrender charges stop being levied on the InvestAssure Future? Ans. There are no surrender charges from the 7th policy anniversary onwards for Regular premium and no Surrender charges for Single Premium . Q7. What is guaranteed bonus? When do I start getting the guaranteed bonus? Ans. The guaranteed bonus is a loyalty bonus that is available for investing in InvestAssure Future for a period of atleast 10 years. Depending on the premium payment term, there is a percentage of the fund value that is added to the amount paid on maturity. Although the Bonus itself in not guaranteed unless you pay for a minimum of 10 years, once 10 annual premiums are paid, a specific percentage of the fund value will be paid on maturity or on death before maturity. Q8. My policy term is 15 years and I’ve paid for 9 years. Will I get the guaranteed bonus? Ans. No, the guaranteed bonus is payable only if you have paid premiums for atleast 10 years.
Q9. I’ve paid premiums for 10 years, My policy term is 15 years. I want to surrender the policy in the 11th year. Will I get the guaranteed bonus? Approval Number: L&C/Advt/2008/Jan/797
<< Website >>
ULIP Training Program
DTDD- FAQ’s
InvestAssure Future
Ans. As the name suggests, the guaranteed bonus is payable on maturity or on death before maturity. It is not payable in case of surrender before the policy term. Q10. What is the maximum age at which I can offer an InvestAssure Flexi or an InvestAssure Future? Ans. The maximum issue age for InvestAssure Flexi is 65 years and InvestAssure Future is 70 years for the single premium option and 65 years for the regular premium variant. Q11. What is the minimum sum assured for InvestAssure Future? Ans. There is no life cover offered with InvestAssure Future. This is beneficial, since the plan is a pension plan and there will be no mortality charges for the same. In case of an unfortunate death, the fund value and the guaranteed bonus as on date will be paid to the nominee. Q12. What’s new in InvestAssure Future? What will help me sell more? Ans. InvestAssure Future is a Unit Linked Pension plan. It has been designed to help harness the power of the market to create as large a corpus as possible during the working life of an individual, so that he can have a comfortable retired life. The advantage that this plan offers is two fold- first of all, it does not have a life cover, so nothing gets cut out from the premium that you pay towards mortality charges and secondly, only upto 1/3 can be commuted and the balance has to be used to purchase an annuity. This will pay pension to the customer after retirement. Since the plan helps to target a segment where very few people pay much attention, i.e. retirement planning, it will be easier to position the same as the ideal retirement solution. Q13. What are the options available as far as the maturity value is concerned for InvestAssure Future? Can I take the entire maturity value as a lumpsum? Ans. In InvestAssure Future, you can commute only 1/3 of the maturity value as a lumpsum, which can be used to make urgent payments (paying off a loan, etc). The balance has to be used to purchase an annuity, which will start paying annual pensions to the customer. The advantage is that the customer will get money when he needs it the most, ensuring an independent retired life. It is a well known fact that lumpsum amounts tend to get spent, which will leave nothing for expenses in the retired life. The customer has an open market option as far as the annuity is concerned. It is not mandatory for the customer to purchase an annuity with Tata AIG Life. Q14. Does the Future Capital Guarantee Pension fund guarantee the amount or the NAV? Ans. The Premiums paid towards the Future Capital Guarantee Pension fund is guaranteed. Q15. Are there any premium redirection charges applicable? If yes, after how many premium redirections will the charge be imposed? Ans. There are no charges for redirection of future premiums. However, premium redirection towards the Future Capital Guarantee Pension fund is not allowed.
Approval Number: L&C/Advt/2008/Jan/797
ULIP Training Program
DTDD- FAQ’s
InvestAssure Future
Q16. If I switch from the Future Capital Guarantee Pension fund, to what extent will the Guarantee be reduced? Ans. Let’s take an example- The total premium paid is Rs. 50,000 , the fund value as on date is Rs. 80,000 and the customer switches Rs. 30,000 to another fund. The capital guarantee will be reduced proportionately, which means, of 30k have been switched then 30000/80000= 37.5%; the capital guarantee will be 100%-37.5%= 62.5% which means the guarantee will be equal to 50000*62.5% which is Rs. 31,250.
Q17. For how many days will the NAV of Rs. 10 be available for this product? Ans. Let’s take an example- If we get first 10 policies issued before 3 pm on 10th January 2008, and the investment is done in Large cap equity fund, then for these first 10 policies the unit will be allocated at the end of the day @ Rs 10 . From the second day onwards the NAV will change as per the market fluctuations. The Rs. 10 NAV is applicable only for the Future Capital Guarantee Pension fund, Future Equity Fund, Future Income Fund, Future Growth Fund, Future Balanced Fund, Large Cap Equity Fund. Q18. Are there any partial withdrawals allowed? If yes, what are the charges? Ans. There are no partial withdrawals allowed in this plan, as it is a pension plan. Q19. What is the fund composition for InvestAssure Future? Ans. The fund composition for InvestAssure Future is as follows: Name of the Fund Future Equity Pension Fund Future Income Pension Fund
Future Capital Guarantee *** Pension Fund
Fund Objective The primary investment objective of the Fund is to generate long – term capital appreciation from a portfolio that is invested predominantly in equity and equity linked securities. The primary investment objective of the Fund is to generate income through investing in a range of debt and money market instruments of various maturities with a view to maximizing the optimal balance between yield, safety and liquidity. The Fund will have no investments in equity or equity linked instruments at any point in time. The key objective of the fund is to protect the capital by investing in high quality fixed income securities and at the same time provide access to the upside potential of equities by investing a maximum of 15% in equities and equity linked instruments.
Future Growth Pension Fund
The primary investment objective of the Fund is to provide reasonable returns with medium risk.
Future Balanced Pension Fund
The primary investment objective of the fund is to provide reasonable returns with low to medium risk.
Fund Allocation Equities- 80% to100% Money Market Up to 40%
Govt/ Corporate Bonds- Upto 100%; Money Market Instruments- Upto 40%
Govt/ Corporate Bonds- Upto 85%; Equities- upto 15% , Money Market Instruments- Upto 40%
Equities- 20-40%; Govt/ Corporate Bonds60-80%; Money Market Instruments- upto 40% Equities- 0-20%; Govt/ Corporate Bonds80-100%; Money Market Instruments- upto 40%
*** In case of Regular Premium, Future Capital Guarantee Pension Fund will be offered for premium payment term >=15 years. In case of Single Premium this guarantee is available for all Policy terms.
Approval Number: L&C/Advt/2008/Jan/797
ULIP Training Program
DTDD- FAQ’s
InvestAssure Future
Compliance This product is underwritten by Tata AIG Life Insurance Company Ltd. For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale. Tax benefits are as per the Income Tax Act, 1961 and are subject to amendments made therein from time to time Investments are subject to market risks. Past performance is not indicative of future returns. Tata AIG Life Insurance Company Ltd. is only the name of the insurance company and InvestAssure II (i.e. the ULIP product name) is only the name of the ULIP contract and does not in any way indicate the quality of the contracts, its future prospects and returns. Service Tax is payable on life insurance premiums as per Section 65 (105) (zx) of Finance Act, 1994 as amended by Finance Act (No.2), 2004 at the applicable rates as per circular No. F. No. B2/8/2004 – TRU (Tax Research Unit) dated September 17, 2004 issued by Government of India, Ministry of Finance and subsequent directions issued by authorities from time to time. The service tax component payable by the policyholder at applicable rates will be stated in the premium notice and the premium receipt for the information of the policyholder. The company reserves the right to recover from the Policyholder any related insurance levies and duties as imposed by the government, by premium adjustment or other forms, as we deem appropriate .For Basic policy, service tax is levied on mortality charge and will be deducted through unit cancellation from the relevant funds. . Extra amount is payable for service tax on rider premium ULIP Products are different from Traditional Life Insurance Products and are subject to risk factors. Premium Paid in ULIP is subject to Investment Risk associated with Capital Market and the NAV of the units may go up or down based on the performance of the fund and factors influencing capital markets and the insured is responsible for his decision. Tata AIG Life Insurance Company Ltd. Is only the name of the Insurance Company and InvestAssure Future is only the name of the ULIP Contract and does not in any way indicate the quality of the contract, its future prospects and returns.
Tata AIG Life Insurance Company Ltd. (Reg. No. 110) Peninsula Towers, 6th Floor, Peninsula Corporate Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400 013 Insurance is the subject matter of the solicitation
Approval Number: L&C/Advt/2008/Jan/797
ULIP Training Program
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