This plan combines the security of a life insurance plan and provides the opportunity to earn higher, market linked returns.

It is an easy investment policy option for those who are looking at investing lumpsum cash for long-term tenure of 15, 20, 25 and 30 years. The premium paid under this policy is eligible for tax deduction under Section 80C of the Income Tax Act, 1961.

InvestAssure Plus will provide the policyholder with the option of investing under the following five pure investment funds:

• Equity Fund;
  
• Income Fund;
  
• Short Term Fixed Income Fund;
  
• Aggressive Growth Fund;
  
• Stable Growth Fund.

The policyholder has the option to choose from different investment funds depending on the prevailing market conditions and the risk appetite.

According to Trevor Bull, managing director, Tata AIG Life, "The launch of this policy comes close on the heels of the new IRDA guidelines for unit-linked products and the addition of InvestAssure Plus to our exciting product suite will enable us to fulfill the new needs of our existing customers and meet the needs of fresh customer type."

The new policy allows policyholders the choice to switch between various fund types - debt, equity and balanced depending on market conditions. "Due to its low charge patterns InvestAssure plus will also give the opportunity for higher investment returns," says Joydeep Roy, chief distribution officer.

Apart from death and maturity benefits, the policy provides the flexibility of partial withdrawal from the third policy anniversary onwards. The policyholder also has an option to pay additional premiums as top-up premiums at any time with or without uplift on the prevailing sum assured.

If during the term of the contract, the total amount of top-up premiums paid is greater than 25 per cent of the single premium; then such excess amount of top-up premium will be used to provide additional sum assured subject to underwriting.