Tata AIA Life Insurance Freedom Plan is a non - linked participating endowment plan which enables the policyholder to gain guaranteed additions in order to enhance and boost his/her savings. The policy offers a flexible premium payment mode which is shorter when compared to the policy term. The policy can be bought under monthly, half-yearly, or yearly premium payment option. With this policy, the policyholder can decide when he/she would like to retire since the policy also offers bonuses. The policyholder can choose to attach an add-on/rider to this plan in order to strengthen the cover. Additionally, the family of the policyholder is protected with a life cover throughout the policy term. In the event of the policyholder’s unfortunate death during the policy term, the family will be entitled to a lump sum assured death benefit.
The policy entitles the policyholder to gain additional benefits of guaranteed addition and bonuses along with the sum assured. The benefits of this policy can help the policyholder plan for an early retirement. The premium for this policy is calculated based on the customer’s expected sum assured amount and frequency of premium payments.
Customers who are looking for retirement solutions that can increase their savings while keeping them protected with a life cover should consider this plan for various benefits and reasons. Tata AIA Life Insurance Freedom Plan is a retirement solution that is designed to boost the savings along with the security of a minimum sum assured. Tata AIA Life Insurance Company offers this plan based on the applicant’s age, income, and various other factors. Few of the important eligibility criteria are mentioned below:
|Minimum age at entry||25 years|
|Maximum age at entry||50 years|
|Maximum age at maturity||70 years|
|Plan options to choose from||Based on the policyholder's age on maturity
|Minimum sum assured||Rs.2,00,000|
|Maximum sum assured||Based on underwriting limit (in multiples of Rs.1,000)|
|Minimum term of the policy||10 years|
|Maximum term of the policy||30 years|
|Premium payment mode||Monthly, half-yearly, or yearly|
|Minimum premium amount||Based on the sum assured and payment mode|
|Maximum premium amount||Based on the sum assured (subject to underwriting limit)|
The age is based on the last birthday of the policyholder.
*Premiums may vary depending upon factors like age, location, term of the plan and prevailing taxes/GST.
Tata AIA Life Insurance Freedom Plan allows the policyholders to build a nest-egg for their retirement that is enhanced with bonuses, regular addition, and optional rider. The policyholder should consider the following plan coverage in order to make an informed decision while buying the policy:
|Death Benefits||In the unfortunate event of death of the life insured during the policy term, the sum assured on death and accrued guaranteed additions till death along with vested compound reversionary bonus and terminal bonus (if any), will be given to the nominee. If the death benefit is subject to the last policy year, the accrued guaranteed additions will not be payable since it is paid at the beginning of the last policy year. The death benefits are subject to a minimum of 105% of total premiums paid. The sum assured on death shall be the higher of any of the following factors:
|Maturity Benefits||If the policyholder survives till the end of the policy term, he/she will be entitled to the guaranteed sum assured along with the vested compound reversionary bonus and terminal bonus, if any.|
|Bonuses||The plan offers Compound Reversionary Bonus (CRB) and Terminal Bonuses, if any. The CRB will accrue every year from the 1st policy year onwards. Accrued CRB is payable on either the death of the policyholder, maturity or surrender. CRB is credited on each of the policy anniversary. Terminal bonus is calculated based on the basic sum assured and payable on death of the policyholder, maturity or on surrender (subject to the terms and conditions).|
|Discount on Large Sum Assured||The policy offers discount for large sum assured. If the policyholder opts for a premium amount that is higher than Rs.4,99,000, he/she will be eligible for a discount on the premium amount.|
The plan offers the flexibility of availing additional coverage through the attachment of an add-on/rider. Under this base plan, the Tata AIA Life Insurance Accidental Death and Dismemberment Rider (Long Scale) (ADDL) rider can be added at the inception of the base policy. Customers are advised to contact the insurer in order to get more information on the rider and to check the availability of other riders.
While buying the plan, the customer needs to consider and understand the exclusion factors in order to make an effective policy buying decision. The Tata AIA Life Insurance Freedom Plan comes with certain exclusions that are listed below:
Suicide - If the policyholder encounters death due to suicide, whether sane or insane, within 12 months from the date of policy inception date, the nominee will be entitled to the total premium paid, provided the Policy is in force. In case of suicide within 12 months from the date of revival, the nominee shall be entitled to the higher of total premium paid or the acquired surrender value as on the date of death.
Other Key Features – Free-look Period, Surrender Values, Grace Period, etc.
|Free-look Period||If the policyholder is not happy with any of the terms or conditions of this policy, he/she is provided with a 15 days and 30 days (for policies sold through distance marketing) free-look period to cancel the policy. Once the policy is returned/cancelled within the free-look period, the policyholder will receive the refund for the premiums paid after the deduction of medical examination fee and stamp duty, if any. The policyholder is required to submit the original policy document along with a written statement of objection to be eligible for the refund. If the plan is bought through a distance marketing channel, the policyholder will have 30 days to cancel the policy.|
|Surrender Values||The policy acquires surrender value after the payment of full premium for the first policy year. Once the surrender value is acquired, the policyholder can choose to surrender the policy in order to stop future premiums towards the policy and also to be eligible for the the assured surrender value. The surrender value payable is higher of the Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV).|
|Grace Period||Under this plan, the policyholder is provided a 15 days grace period for monthly premiums and 30 days grace period for all other premiums to make the payment for the due premiums. If the policyholder fails to pay the premium payment within the grace period, the policy will be marked as lapsed and have no further value except as may be provided under the Non-Forfeiture Section.|
|Nomination||The nominee details can be changed anytime during policy term. Whether the details of the nominee needs any change or the nominee itself, the policyholder is required to contact the insurer to carry out the amendments to the nominee/beneficiary details.|
|Policy loan||Once the policy acquires the surrender value, the policyholder can avail a loan on the policy. A maximum of 65% of the surrender value is available as the loan amount under this policy.|
The Tata AIA Life Insurance Freedom Plan offers tax benefits to the policyholder through Section 80C and 10(10D) of the Income Tax Act, 1961. The premium paid can be claimed for tax deduction while the benefits earned as death benefit or maturity benefit is eligible for tax exemption. The tax rules are subject to change from time to time. Customers are advised to consult a qualified tax advisor before buying the policy.
The policy enables the customers to plan their retirement with a lump sum amount that is paid on maturity. Moreover, the guaranteed regular additions and bonuses boost the savings while keeping the policyholder protected with a life cover.
Tata AIA Life Insurance Company is an Indian general insurance company, and a joint venture company between Tata Sons Ltd. and AIA Group Ltd. (AIA). Tata AIA Life Insurance Company has presence as the largest pan-Asian life insurance company in the world. The company offers a wide range of general insurance products including insurance for automobile, home, personal accident, travel, energy, marine, property, and various other specialized financial lines. The policies can bought from various distribution channels such as agents, brokers, banks, and direct channels like telemarketing, digital marketing, etc.
The Tata AIA Life Insurance Freedom Plan is retirement solution plan that offers various types of benefits to the policyholder. The plan helps the customer in planning their retirements while keeping the increasing cost of living in mind. The policyholder is benefited with a lump sum amount on maturity that also includes guaranteed regular additions and bonuses. Though the premium payment term is shorted than the policy term, the policyholder’s family is protected from financial uncertainties through a life cover for the entire policy term. The purchase of this policy enables the policyholder for tax benefits as well.