Language

Call us

/content/dam/tataaialifeinsurancecompanylimited/navigations/new-call-us/Close.png

starFOR EXISTING POLICY

Have query on premium, payout or any servicing need?

Dedicated NRI Helpdesk:

Call Icon +91 22 6251 9966

Monday - Saturday | 10 am - 7 pm IST
Call charges apply

Plus IconFOR NEW POLICY

Want to buy a new policy online?

For Indian Residents

Call Icon +91 22 6984 9300

Give missed call for a call back:

Call Icon +91 11 6615 8748

Monday - Sunday | 8 am - 11 pm IST

Exclusively for NRIs

Initiate Internet Call

Data charges may apply

Give missed call for a call back:

call +91 11 4473 0242

Available All Days | 24 x 7

Back Arrow Icon
Close Button
Back Arrow Icon
Close Button

Need assistance in choosing the right insurance plan? Get a call from our Expert.

Need assistance in choosing the right insurance plan?Get a call from our Expert.

+91 dropdown arrow

Select Plan dropdown arrow
  • Term plans
  • Saving plans
  • Wealth plans
  • Retirement plans
  • I don't know/I need help

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in. T&C apply.

Wealth Insurance: The Complete Guide

29-07-2022 |

Life insurance is the best financial tool to secure your family's future in your absence. Insurance providers have enhanced the benefits of life insurance by introducing varied, comprehensive benefits. It can help you save money and invest in the long - term to increase your wealth. There are different types of comprehensive life insurance plans.

 

A wealth-building insurance plan is a popular life insurance plan that provides life insurance and wealth creation benefits. Here is a detail about what it means, how it works and its features and benefits.

 

What is a Wealth Insurance Plan?
 

Wealth insurance is a comprehensive life insurance plan that provides life insurance and market-linked returns. It is popularly referred to as the Unit Linked Insurance Plan(ULIP Plan). The life insurance will provide the sum assured to your nominee in the event of your unexpected demise. In addition, the insurer will provide market-linked returns based on your investment in the financial securities at maturity.

 

How Does the Wealth Building Insurance Plan Work?
 

Before you invest in a life wealth insurance plan, it is important to know how it works.One portion of the premium you pay for wealth insurance will be used to provide life coverage. And the other portion will be invested in the financial securities market. At the end of the policy tenure, you will receive the market-linked returns as a maturity benefit.

 

Wealth Insurance Plan Benefits
 


Wealth insurance plans are becoming increasingly popular due to their benefits. Here is a detail about it for your understanding.

  • Dual benefits - Wealth insurance plans combine the benefits of life insurance and wealth creation options. Therefore, if you are the sole earning member in your family and looking for options to secure your family while also investing in financial securities to increase wealth in the long term, wealth insurance plans are ideal.

  • Flexibility - One of the most important benefits of wealth insurance is its flexibility. Insurance providers offer different types of fund options to help you invest in it based on your risk appetite.

    For example, there are equity, debt and hybrid fund options for the high-risk, low-risk and medium-risk takers. Therefore, you can decide on your risk profile, considering your income and future financial commitments and invest in the right fund option. Our Tata AIA Life Insurance Company provides 11 different fund options. It is decided based on companies prevalent if varied sectors to diversify the portfolio.

    In addition to choosing the right fund option, you can switch between them if the market conditions are not favourable.

    For example, suppose you have invested in the equity fund option, and the investment value is decreasing due to an economic downturn. In that case, you can always switch to a debt fund to secure your investment.

  • Long-term investment benefit - You can invest in the wealth insurance plan for the long term. When you invest in financial securities long-term, even a slight decrease in the investment value will get corrected during the long policy tenure. Therefore, the longer you invest, the greater the benefits. Also, the ULIP plan has a five-year lock-in period. Partial withdrawal is applicable after this period.

  • Online usability - Insurers provide online life insurance policy options that can help you view the features, compare the benefits and help you choose the right option. We at Tata AIA life insurance company also provide an online premium calculator that helps you decide on the affordable premium based on your life insurance, wealth savings requirement and policy tenure. You can maintain your account online, monitor the fund value and switch between the options as and when required.

  • Tax* benefits - The premium you pay and the payout benefits related to the wealth life insurance plan qualify for a tax* deduction and exemption subject to the prevailing tax* rules and conditions. With the expert advice of fund managers, you can derive maximum benefits.


What are the Advantages of a Wealth Insurance Plan?

Investing in a wealth insurance plan has varied advantages if you utilise the features appropriately. Here are a few advantages that you need to know.

  • Riders# - You can utilise the add-on life insurance riders# to enhance the financial benefit apart from the life cover and the market-linked returns to manage specific scenarios such as getting affected due to a critical illness, total and permanent disability, etc.,

  • Secure investment platform - As the wealth insurance plan offers flexible features, it is considered a safe investment platform for earning higher returns. Also, you can rely completely on the efforts of your fund managers to choose the fund option and make the necessary switches based on your financial requirements.

  • Cost-effective - Compared to purchasing life insurance and investing in financial securities separately, it is considered cost-efficient in the long term if you make the necessary decisions timely.


What are the Charges Associated With a Wealth Insurance Plan?

Certain charges are associated with a wealth insurance plan considering its wide-ranging benefits.

  • Premium allocation charges - Initial expenses related to policy allocation.

  • Policy administration charges - Charges relating to the policy's administrative costs.

  • Fund management charges - Charges relating to managing your fund options.

  • Mortality charges - It is based on the life insurance cover on your wealth insurance plan.

  • Switching charges - There are a certain number of free switches available. After that number, the switching will cost a minimum charge.

Apart from these charges, there are also partial withdrawal and policy surrender charges.



Conclusion

Investing in wealth insurance plans helps you secure your family in the event of your unexpected demise while increasing wealth in the long term through market-linked returns. In addition, you can choose to invest in the fund options based on your risk appetite and switch between them in case of economic downturns affecting market conditions.

Insurers provide a secure platform to help you invest in the online facility to purchase and manage wealth insurance throughout the policy tenure. So decide on your risk profile, consider your long-term commitments and choose the fund options for your wealth insurance plans to invest smartly! 

L&C/Advt/2022/Jul/1689

Get complete protection at affordable cost & tax benefits

+91 dropdown arrow
  • +93 Afghanistan

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in.


 

Looking to buy a new insurance plan?

Our experts are happy to help you!

+91

Select plan
  • Term plans
  • Saving plans
  • Retirement plans
  • Wealth plans
  • I don't know/I need help

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in

People Like You Also Read

How to Calculate the Term Plan Premium Amount?
Read More
5 Differences You Must Know Between Savings and Investments
Read More
Get Protection, Investment & Savings With Combo Insurance Plans | Tata AIA Blog
Read More
Are You An Ant or Grasshopper? Money Savings Lesson
Read More
4 Reasons Why Combining Protection with Savings Work
Read More
Investing in a Savings Plan? Here are 5 Critical Things to Consider
Read More
Goal Oriented Savings: Achieve Your Goals with Timely Savings
Read More
How To Inculcate the Value Of Saving In Your Children?
Read More
Importance of Savings: The Complete Guide
Read More
A Detailed Guide to Guaranteed Income Savings Plans in India
Read More

People Like You Also Read

How to Calculate the Term Plan Premium Amount?
Read More
5 Differences You Must Know Between Savings and Investments
Read More
Get Protection, Investment & Savings With Combo Insurance Plans | Tata AIA Blog
Read More
Are You An Ant or Grasshopper? Money Savings Lesson
Read More
4 Reasons Why Combining Protection with Savings Work
Read More
Investing in a Savings Plan? Here are 5 Critical Things to Consider
Read More
Goal Oriented Savings: Achieve Your Goals with Timely Savings
Read More
How To Inculcate the Value Of Saving In Your Children?
Read More
Importance of Savings: The Complete Guide
Read More
A Detailed Guide to Guaranteed Income Savings Plans in India
Read More
Website Logo Image Icon

Tata AIA Life Insurance

A joint venture between Tata Sons Pvt. Ltd. and AIA Group Ltd. (AIA),  Tata AIA Life Insurance  is one of the leading life insurance providers in India. We post everything you need to know about life insurance, tax savings and a variety of lateral topics such as savings and investments in this space. You can access and read a host of different blogs, articles and pages at the Tata AIA Life Insurance Knowledge Center or get in touch with us with any queries or questions!

View all posts by Tata AIA Life Insurance

Frequently Asked Questions

Is purchasing wealth insurance profitable?

Yes, purchasing a wealth insurance is profitable. You can enhance the benefits if you choose the right fund option, invest more, switch between the fund options whenever necessary and choose a longer policy term. 

Who should invest in wealth insurance?

The sole earning members of a family who need to secure their family in the event of their unexpected death and desire to increase their wealth through market-linked returns in the long term should invest in wealth insurance. It is cost-effective, flexible and profitable.

Disclaimers

  • Insurance cover is available under the product.

  • The products are underwritten by Tata AIA Life Insurance Company Ltd.

  • The plans are not a guaranteed issuance plan, and it will be subject to Company’s underwriting and acceptance.

  • For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale.

  • This blog is for information and illustrative purposes only and does not purport to any financial or investment services and do not offer or form part of any offer or recommendation. The information is not and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.

  • Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company.

  • Every effort is made to ensure that all information contained in this blog is accurate at the date of publication, however, the Tata AIA Life shall not have any liability for any damages of any kind (including but not limited to errors and omissions) whatsoever relating to this material.

  • #Riders are not mandatory and are available for a nominal extra cost. For more details on the benefits, premiums and exclusions under the riders please refer to the Rider Brochure or contact our Insurance Advisor or visit our nearest branch office.

  • *Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfilment of conditions stipulated therein. Income Tax laws are subject to change from time to time. Tata AIA Life Insurance Company Ltd. does not assume responsibility on tax implications mentioned anywhere in this document. Please consult your own tax consultant to know the tax benefits available to you.

    • IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER

    • THE LINKED INSURANCE PRODUCT DO NOT OFFER ANY LIQUIDITY DURING THE FIRST FIVE YEARS OF THE CONTRACT. THE POLICY HOLDER WILL NOT BE ABLE TO SURRENDER/WITHDRAW THE MONIES INVESTED IN LINKED INSURANCE PRODUCTS COMPLETELY OR PARTIALLY TILL THE END OF THE FIFTH YEAR.

    • Past performance is not indicative of future performance.

    • All investments made by the Company are subject to market risks. The Company does not guarantee any assured returns. The investment income and price may go down as well as up depending on several factors influencing the market.

    • Please make your own independent decision after consulting your financial or other professional advisor.