Tata AIA Life presents a comprehensive health and life protection solution, Tata AIA Life Insurance Suraksha Kosh, a non participating unit linked endowment Insurance plan that provides, not just life but adequate protection for one’s financial goals against the “Risk of living post a major illness or surgery” . It is a plan with inbuilt critical illness, surgical and accidental benefits and is available in various combinations.

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 Protect Premium: This is the most comprehensive option that caters to multiple needs and offers highest protection by providing all the four benefits – Death Benefit, Surgical Benefit, Accidental Death and Dismemberment (Long Scale) (ADDL) Benefit and Critical Illness (Lump sum) Benefit
•  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:

• Maturity Benefit: On survival to end of policy term, you will receive you total fund value including Top-up premium paid, if any valued at applicable unit price.
• Death Benefit: In case of an unfortunate event during the course of the policy term, nominee will receive  higher of the Basic Sum Assured plus Regular Premium Fund Value or 105 percent  of the total Regular Premium  paid plus Higher of Top-up-Sum assured plus Top-up-Premium Fund Value or 105 percent of the total Top-up Premium paid.
• Critical Illness Benefit: If the Insured is diagnosed with any  one of the  12 specific Critical Illness covered like Cancer, Stroke, Heart Attack, Coronary Bypass surgery, Chronic Renal Failure, Major Organ Transplant (like Heart, Lung, Liver, Kidney or Pancreas or Bone Marrow Transplant),Aorta Surgery, Benign Brain Tumor, Heart Valve Surgery, Paralysis, Parkinson’s Disease and Total Blindness, a lump sum benefit equal to the chosen  Basic Sum Assured or Rs 20,00,000 whichever is lower is payable after the insured survives  for a period  of 30 days post the diagnosis of the event.
• Surgical Benefit: Upon performance of any of the 948 listed surgeries on you, you will receive an amount equivalent to the percentage of Surgical Benefit Basic Sum Assured or Rs 3,50,000 whichever is lower depending on the grade of the surgery, as applicable. This benefit can be claimed multiple times subject to maximum payment of Rs. 20,00,000 during the entire policy term with a waiting period of 90 days between any 2 surgeries related or unrelated to previous surgery(s) is applicable.
• Accidental Death and  Dismemberment Benefit (Long Scale)(ADDL):  On Accidental Death  of Insured, the nominee receives the Accidental Death and Dismemberment Benefit Sum Assured in addition to the Basic Sum Assured. This benefit can be claimed multiple times in case of dismemberment subject to maximum of 100% of Benefit Sum Assured. In case of certain accidental death or dismemberments, nominee will receive twice the Accidental Death and Dismemberment Benefit as per the schedule. The total benefit payable (including the Basic Sum Assured) on accidental death shall not exceed three times the Basic Sum Assured under the policy.

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.