Tata AIA Life Insurance Updates Long-term Savings Plan with Premium Offset Feature

Tata AIA Life Insurance has introduced a “Premium Offset” option in its Fortune Guarantee Supreme long-term savings plan. Under this structure, policyholders pay premiums for the first 6 years of a 12-year policy term. The income generated by the plan is then used to fund the remaining six premium payments. 

The insurer said the change is intended to reduce the burden of long-term premium commitments, which can be affected by rising living costs and tax obligations. 

Guaranteed Income Feature Included 

The updated plan also includes a feature called “Power of 6”, which provides a guaranteed internal rate of return (IRR) of up to 6%, subject to policy terms and conditions. The feature offers regular income payments and assured benefits, alongside life insurance cover. 

The plan is for long-term financial objectives, including retirement planning, education funding, and income security over an extended period. 

Product Structure and Benefits 

Fortune Guarantee Supreme is an individual, non-linked, non-participating savings plan. Benefits are fixed and are not linked to market performance. The policy includes life cover in addition to savings benefits. 

Premiums paid and benefits received may qualify for tax treatment under Sections 80C and 10(10D) of the Income Tax Act, subject to prevailing regulations and eligibility conditions. 

Company Statement 

In a statement, Sujeet Kothare, Chief of Products, Marketing, Corporate Communications and Business Mid Office at Tata AIA Life Insurance, said some consumers find long-term saving commitments difficult to maintain.  

He said the premium offset option is intended to make saving more predictable by using policy income to cover part of the premium obligation. 

Read More: LIC, SBI Life and Other Life Insurers Record ₹3.11 Lakh Crore New Business Premium from April to December 2025! 

Conclusion 

The addition of Premium Offset and the Power of 6 option broadens the features available under the Fortune Guarantee Supreme plan. The updated structure combines fixed benefits, life cover, and tax treatment within a long-term policy framework, with a reduced period of direct premium payments for policyholders. 

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