Suraksha Kosh will not only provide against accident & health related risks during your lifetime, but also provide life cover in case of an unfortunate event, with the additional advantage of a savings component on the popular unit linked platform.
How does the plan work?
The plan offers a choice of four inbuilt benefit options for the prospective customers to ensure the protection of their financial goals.
• Health Premium: This plan has Critical Illness (Lump sum) Benefit along with the Death Benefit and Surgical Benefit.
• Health Plus Protect: In addition to Death Benefit and Surgical Benefit, this option also offers Accidental Death and Dismemberment (Long Scale) (ADDL) Benefit.
• Health Plus: Other than Death Benefit this option offers Surgical Benefit also.
As per chosen option, the policy enjoys the following benefits under Suraksha Kosh:
Funds and its Strategies
Suraksha Kosh offers the customers the opportunity to choose from a wide range of eight investment funds such as Large Cap Equity Fund, Whole Life Mid cap Equity Fund, Whole Life Aggressive Growth Fund, Whole Life Stable Growth Fund, Whole Life Income Fund and Whole Life Short-term Fixed Income Fund as per their risk profiles.
In addition, they can also benefit from Tata AIA Life’s portfolio strategies – Enhanced SMART (Systematic Money Allocation & Regular Transfer) to optimize ones returns through rupee cost averaging or Enhanced AAA (Automatic Asset Allocation) to benefit from age appropriate allocation of assets.
Should we go for it?
Since, the product has to cover multiple needs and comprehensive and inbuilt health and accidental benefits, it seems to be good product and having multiple features as explained above. But on the flip side, there are others such as ICICI Prudential Life Insurance which has a similar product ‘ICICI Pru Health Saver’ which gives hospitalization benefit as well. Whereas HDFC Life and Kotak Life Insurance are among few other life insurers who offer similar Ulips but benefits have to be bought in the form of a rider unlike in Tata AIA where the benefits are in-built. Also, HDFC’s ‘SL ProGrowth Super II’ doesn’t give surgical benefits. Some also offer waiver of premium and hospital cash.
The premium of Tata AIA’s ‘Suraksha Kosh’ is Rs 25,000 for a 40-year term. This product will pay a sum assured (SA) of Rs 10 lakh each for death benefit, critical illness and accidental benefit. Additionally, it also offers to pay a sum assured of Rs 3.5 lakh for surgical benefits. In total, it covers an individual for Rs 33.5 lakh, provided you pay the stipulated premium every year for 40 continuous years.
One can save as much as up to Rs 10,000, if the benefits are bought separately from specialists. Taking a similar example mentioned above, one has to pay Rs 3,540 towards a life cover (for SA of Rs 30 lakh), Rs 3,052 for accidental benefit (for SA of Rs 25 lakh), Rs 2,809 for critical illness (for SA of Rs 10 lakh) and Rs 800 for surgical benefits (for SA of Rs 3 lakh).
In total, one pays Rs 10,000 approximately for the same benefits with an equivalent or more sum assured/cover.
This plan is expensive and its benefits are in-built in the product and are not sold separately as riders. In other words, these are savings and wealth creating plans built on protection products.
However, Suraksha Kosh offers a wide range of flexible policy term from 15 to 40 years and is available to individuals from the age 18 to 50 years with maximum maturity age of 65. Premiums paid under this plan are eligible for tax benefits under Section 80C, 80 D and 10(10D) of the Income Tax Act, 1961
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