DTDD- FAQ’s InvestAssure Future

Frequently Asked Questions

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

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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.

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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 Fund Objective Fund Allocation

Future Equity The primary investment objective of the Fund is to generate long –
Equities- 80% to100%
Pension Fund term capital appreciation from a portfolio that is invested pre-
Money Market Up to 40%
dominantly in equity and equity linked securities.
Future Income
Pension Fund The primary investment objective of the Fund is to generate income
through investing in a range of debt and money market instruments
Govt/ Corporate Bonds- Upto 100%; Money
of various maturities with a view to maximizing the optimal balance
Market Instruments- Upto 40%
between yield, safety and liquidity. The Fund will have no
investments in equity or equity linked instruments at any point in
time.

Future Capital Govt/ Corporate Bonds- Upto 85%;

The key objective of the fund is to protect the capital by investing in
Guarantee Equities- upto 15% , Money Market
*** high quality fixed income securities and at the same time provide
Pension Fund Instruments- Upto 40%
access to the upside potential of equities by investing a maximum
of 15% in equities and equity linked instruments.
Future Growth The primary investment objective of the Fund is to provide Equities- 20-40%; Govt/ Corporate Bonds-
Pension Fund reasonable returns with medium risk. 60-80%; Money Market Instruments- upto
40%
Future Balanced The primary investment objective of the fund is to provide Equities- 0-20%; Govt/ Corporate Bonds-
Pension Fund reasonable returns with low to medium risk. 80-100%; 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.

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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