The Maha Guarantee scheme from Tata AIG is an endowment policy that guarantees a fixed percentage of returns along with the sum assured at the time of maturity. The guaranteed returns are bifurcated as guaranteed additions (2.5-5% of the basic sum assured) accumulated each year and guaranteed maturity addition (10-50% of the basic sum assured) added to the maturity amount at the end of the policy term.

Unique Feature

In the unfortunate event of death of the policyholder, the nominee is entitled to receive double the amount of insurance cover plus vested guaranteed additions. This feature is not unique to this scheme, but definitely is a selling point.

For Existing Customers

Stay invested as premature withdrawal /surrender of policy will result in loss of certain percentage of premiums already paid. The reason to stay invested is the death benefit of twice the amount of insurance cover available to the nominee.

For Those Looking to Invest

The scheme is recommended for those seeking an attractive insurance cover for their nominee. The double-death benefit is indeed an impressive feature. However, those looking for investment gains can easily give it a skip and rather invest in a Public Provident Fund or a simple bank term deposit for better returns.

The double-death cover feature is impressive, but the kind of returns generated on maturity disappoint on the investment aspect of the scheme. Investors can instead buy a pure term plan like Tata AIG Life Raksha for insurance cover and earn returns through investments in equity mutual funds, bank deposits, PPF etc.