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.
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.
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.
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.
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.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jan 22, 2026, 2:10 PM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
