Every person has different dreams and requirements at different stages of life. Planning early and wisely can help you in fulfilling all of those without putting a financial strain. With the guaranteed payouts of Tata AIA Life Insurance, you can realize your and your family’s dreams without thinking twice.
The Tata AIA Life Insurance is an individual non-participating savings insurance that protects the future of your loved ones. It comes with two options
- Either receive a cash bonus if declared payout on each policy anniversary following the second policy anniversary to take care of your financial commitments or,
- Accumulate the bonus if declared at a company at a declared interest rate or accumulating a greater amount for a stress-free life.
Tata AIA Life Insurance Value Income Plan Details
The Tata AIA Life Insurance offers the flexibility to choose the payout of the plan, and opt for life cover till the age of 100 under extended life cover. You can also choose any of the additional covers to increase protection. The plan lets you opt for different policy terms to suit your requirements and pay the premium annually, half-yearly, quarterly, or monthly. One of the biggest advantages of the policy is that you can enjoy tax redemptions and can also take a loan against it.
Key Features of Tata AIA Life Insurance Value Income Plan
The following are the key benefits of the Tata AIA Life Insurance-
- Freedom to Choose
You can choose either of the following options:- Endowment
- Endowment with life cover that can exceed up to 100 years
- Early Income Benefit
Receive early cash payout from the 2nd policy anniversary till maturity. - Flexible Payout
You can choose between taking a cash bonus or accumulating the amount till maturity for a lump sum payout. - Bonuses
You can receive a cash bonus or Accumulated cash bonuses if any. - Insurance Coverage
You can increase the insurance coverage with extended life cover to 100 years. - Add-on Riders
Add-on riders are available to enhance the cover and protection provided by the insurance. - Liquidity
In case of financial needs, you can apply for a loan against your policy. - Flexible Payments
Pay your premiums on an annual, half-yearly, quarterly or even monthly.
Eligibility Conditions & Restrictions in Tata AIA Life Insurance Value Income Plan
| Parameters | Details |
| Minimum Entry Age | 30 days |
| Maximum Entry Age | Premium payment term of 5 years: 55 yearsPremium payment term of 6 years: 58 yearsPremium payment term of 7 years: 62 yearsPremium payment term of 8 to 15 years: 65 years |
| Minimum Maturity Age | 18 years |
| Maximum Maturity Age | 80 years |
| Policy Term | 10 to 40 years(Calculation of Minimum policy term = Premium Paying Term + 5 years) |
| Plan Option | Two plan options are available:(a) Endowment(b) Endowment with Extended Life Cover (ELC) till the age of 100 |
| Loan Facility | Available |
Benefits Under The Tata AIA Life Insurance Plan:
- Death Benefit:If the insured person dies accidentally during the policy term, the company would pay
- the Sum assured on death
- Accumulated cash bonus (if declared) if opted, and
- Terminal bonus ( if declared)
- Interim bonus (if declared)
The total benefit available is subject to 105% of the total premiums paid till the date of death. In the event of a death claim, an Interim bonus is applicable.
- Maturity Benefit:
If the policy is in force and all the premiums are cleared, then on the maturity of the plan, the company provides-- Guaranteed Maturity Benefit
- Accumulated Cash (if declared)
- Terminal Bonus (if declared)
- Survival Benefit:
The survival benefit offers two benefits:- Cash Bonus (if opted and declared)
If the policy is in force and all the premiums are paid on time, the company offers a cash bonus. During the inception of the policy, the insured person is provided with the offer to receive cash benefits on the policy anniversary or his/her birthday following the second year of the policy. - Extended Life Cover (if opted)
If the insured person reaches 100 years of age, the company pays a basic sum assured upon the life. After the payment, the policy terminates and no more benefits are available under the policy. No bonuses are available under the ELC period.
- Cash Bonus (if opted and declared)
- Surrender Benefit:
The policy can be terminated at any point of the policy term, provided the policyholder pays the premium for two full years at least. The surrender value is higher than the Guaranteed Surrender Value or the Special Surrender Value.
Sample Benefit Calculation of Tata AIA Life Insurance Value Income Plan:
To understand the Tata AIA Life Insurance Value Income Plan, let us take a look at these examples
- Sumeeth Nair is a 36-year-old software analyst working in an MNC. He buys the Tata AIA Life Insurance Value Income Plan, with plan option: Endowment with extended life cover till Age 100. His 30-year-old wife, Reshma Nair is the nominee. The details of the policy are as follows:
- Sum Assured: INR 9,52,381
- Term of the Policy: 20 years
- Premium Payment Term: 10 years
- Annual Premium: INR 1,11,238
- Bonus Option: Cash Bonus
| Policy Year | Guaranteed Benefits: Sum Assured on Death | Non Guaranteed Benefits: Cash Bonus and Terminal Bonus at 8% | Total Death Benefit at 8% |
| 5th | INR 12,23,618 | INR 26,667 | INR 12,23,618 |
| 11th | INR 12,23,618 | INR 26,667+INR 3,04,762 | INR 15,28,380 |
| 15th | INR 12,23,618 | INR 26,667+INR 2,66,667 | INR 14,90,285 |
| 20th | INR 12,23,618 | INR 26,667+INR 4,38,095 | INR 16,61,713 |
When the policy matures, a life cover which is equal to the Basic Sum Assured will be payable.
- Vivek Mukherjee is a 40-year-old school teacher. He buys the Tata AIA Life Insurance Value Income Plan, with a plan option: Endowment. His wife is the nominee. The details of the policy are as follows:
- Sum Assured: INR 9,52,381
- Term of the Policy: 20 years
- Premium Payment Term: 10 years
- Annual Premium: INR 1 lakh
- Bonus Option: Accumulated Cash Bonus
| Policy Year | Guaranteed Benefits: Sum Assured on Death | Non Guaranteed Benefits: Accumulated Cash Bonus and Terminal Bonus at 8% | Total Death Benefit at 8% |
| 5th | INR 11,00,000 | INR 1,14,085 | INR 12,14,085 |
| 11th | INR 11,00,000 | INR 3,27,686+INR 3,04,762 | INR 17,32,448 |
| 15th | INR 11,00,000 | INR 5,04,856+INR 3,52,381 | INR 19,57,237 |
| 20th | INR 11,00,000 | INR 7,75,028+INR 4,95,238 | INR 23,70,266 |
Sample Illustration of premium amount & sum assured inTata AIA Life Insurance Value Income Plan
Additional Features and Benefits of Tata AIA Life Insurance Value Income Plan
- Flexible premium paymentWith Tata AIA Life Insurance Value Income Plan, you get the flexibility to choose your premium payments time, i.e., annually, half-yearly, quarterly, or monthly.Annual Premium RateMultiply Annual Premium Rate by 1 (i.e. No loading)Half-yearly Premium RateMultiply Annual Premium Rate by 0.51Quarterly Premium PaymentMultiple Annual Premium Rate by 0.26Monthly Premium PaymentMultiple Annual Premium Rate by 0.0883
- Availability of RidersThe policy further gives you the option to include the following Add-ons to the plan to increase the coverage-
- Tata AIA Life Insurance Accidental Death and Dismemberment (ADDL) Rider
This rider ensures the payment of an amount equal to riders sum assured to the nominee in case of accidental death of the policyholder. The benefits will also be doubled under certain kinds of dismemberments or accidental deaths. If the policyholder suffers from a major dismemberment like loss of limb, severe burn, or kind, a certain percentage of the rider amount insured will be paid. The rider can only be attached at the inception of the policy. - Tata AIA Life Insurance Waiver of Premium Plus (WOPP) RiderThis rider offers a full waiver of the due premium payments under the total policy term if the policyholder dies accidentally or becomes completely disabled. It is only applicable to policyholders under 70 years of age. The following rider can be attached only during the inception of the policy and will be applicable after the base policy completes the 5th anniversary.
- Tata AIA Life Insurance Accidental Death and Dismemberment (ADDL) Rider
- Liquidity through LoansSince the loan acquires Surrender Value, therefore the policyholder can apply for a loan, provided the loan amount is within the extent of 80% of the Surrender Value and the policy must be assigned to Tata AIA Life.
Terms and Conditions of Tata AIA Life Insurance Value Income Plan
- Free Look Period- The policyholder gets a 15 day free look period from the day of inception of the policy and a period of 30 days in case of access through electronic or distance mode. Within this period, if he/she wants to cancel the policy by stating any objection, it is possible. The policyholder will receive a refund of the amount without the interest after deduction of proportionate risk premium, stamp duty, and medical examination cost along with applicable taxes and cesses or levies if any.
- Change in Basic Sum Assured-It is not possible once the policy is activated.
- Policy Loan- The policyholder might apply for a loan but it must be within the extent of 80% of the Surrender Value and assigned to Tata AIA Life.
- Tax Benefits- Tax exemptions are available as per the prevailing Income Tax Laws, subject to the fulfilment of conditions stipulated therein. However, Tata AIA Life does not ensure it anywhere.
- Assignment-Assignment is allowed as per provisions of Section 38 of the Insurance Act 1938 as amended from time to time.
- Nomination-Nomination is allowed as per provisions of Section 39 of the Insurance Act 1938 as amended from time to time.
- Advance Premium-Payment of premium in advance is possible as long as it is done within the same financial year.
- Non-Disclosure and Misstatement-Any non-disclosure or misstatement shall be dealt with according to the provisions of Section 45 of the Insurance Act 1938 as amended from time to time.
Exclusions Under The Tata AIA Life Insurance Value Income Plan
If the policyholder dies by suicide within 12 months from the inception of the policy or revival of the policy, the nominee or beneficiary of the policy will receive 80% of the total premiums paid till the date of death or the surrender value available as on the date of death, whichever is higher, provided the policy active.
Conclusion
You want to secure your children and loved ones’ future without a doubt. Planning early and investing in the right policy helps in achieving the milestone, without putting a financial strain. Tata AIA Life Insurance Value Income Plan promises a guaranteed payout from time to time and takes care of your financial commitments. Choose this plan and enjou=y the double benefits of a life insurance cover and guaranteed returns.