With time, insurance has emerged to be one of the most important tools for savings and investment. In fact, for people living in remote areas, insurance is the most important mode of savings. The nature of their occupation makes them vulnerable to multiple financial risks. Also, in an unfortunate situation of the death of the breadwinner of the family, the other members of the family are left behind struggling to make ends meet. The plan under the category of Micro Insurance offered by TATA AIA Life is called TATA AIA Life Insurance Saat Saath and it can play a huge role in decreasing the effects of monetary loss in a family by providing ample financial cover to them in such situations. This product has been designed keeping in mind the financial insecurities of low income groups. It offers benefits like simple policy terms and exclusions, no medical examinations, and low premiums.
Following are the benefits of TATA AIA Life Micro Insurance Plan:
Following is the Micro Insurance plan offered by TATA AIA Life:
TATA AIA Life Insurance Saat Saath Plan: This is a non-participating, non-linked endowment Micro Insurance plan that provides the policyholder a return worth a certain pre-specified percentage of the total amount of premiums paid during maturity. Under this plan, the policyholder not only receives a life cover but also gets assured returns on maturity of the policy. Though the policyholder pays premium for 7 years, they get a life cover for 10 years. This plan also provides amazing returns at fixed rates for a higher sum assured on survival of the life insured till the end of the policy term.
The following are the benefits and features of TATA AIA Life Insurance Saat Saath Plan:
Table showing the TATA AIA Life Insurance Saat Saath Plan
|Plan Name||Minimum Entry Age||Maximum Entry Age||Maximum Maturity Age||Premium|
|TATA AIA Life Insurance Saat Saath Plan||18 years||50 years||10 years from the date of policy taken||Premium is decided on the basis of the age of the policyholder and the sum assured chosen by them.|
The policyholder can choose to pay their premium on a monthly, quarterly, semi-annual, or annual basis. Under the policy, the modal loading goes as follows:
|Monthly Premium Rate||Multiply the annual premium rate by 0.0883|
|Quarterly Premium Rate||Multiply annual premium rate by 0.26|
|Semi-annual Premium Rate||Multiply annual premium rate by 0.51|
|Annual Premium Rate||No loading|
TATA AIA Life Micro Insurance is a very significant plan for anybody belonging to the low income group in India. In the rural parts of the country, people depend on agriculture to earn their living. Such occupations are vulnerable to a lot of financial risks. A plan like TATA AIA Life Micro Insurance will help them minimize the effect of any financial loss that they incur due to a natural calamity or even an unfortunate situation like demise of the breadwinner of the family. The plan offered under the Micro Insurance category is also beneficial as the policyholder has to pay the premium for 7 years but they receive cover for an entire policy term, i.e., 10 years.
TATA AIA Life Insurance is a highly reputed brand that was formed due to the coming together of TATA Sons Ltd. and the AIA Group Ltd. (AIA). The company is known for delivering high quality insurance products that have been designed keeping in mind the various financial needs of the people in India. The group has earned a reputation of being one of the best in the business and has bagged several awards for being dedicated to the service of the citizens of India.
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