• Tata Aia Money Back Plus Plan

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    Life Insurance
    • Reduce taxable income by up to Rs. 1,50,000 deduction under section 80C**
    • Convenient payment options - annual, half-yearly, quarterly or monthly premium payments
    • Do more with plans that offer pure protection, retirement planning and investment options

    The need for money can arise at any moment in life. The lack of money on such occasions can leave us miserable, which is why it is important to plan for such events. The Money Back Plus Plan from Tata AIA Life Insurance is one plan which offers financial protection at various stages, ensuring that the need for money doesn’t play spoilsport, especially during important events like the wedding of one’s child, graduation, medical emergencies, etc. This is a non-linked scheme which provides money back assurance, paying a sum at periodic intervals. In addition to the payouts, it also protects the life of a policyholder. One can choose to customise this plan based on their current needs/future expectations, with it necessary to pay premiums for only half the policy term.

    Eligibility – Who is the Tata AIA Life Insurance Money Back Plus Plan for?

    An individual looking to purchase this plan should keep the following points in mind:

    Parameters Criteria for eligibility
    Minimum age at entry 2 years
    Maximum age at entry 51 years
    Minimum age at maturity 18 years
    Maximum age at maturity 75 years

    Note that the aforementioned ages are as of the last birthday of an individual.

    Sum Assured and Premium Range – What you get and what it costs

    Sum assured – It is important for one to know the amount they are eligible to receive under certain conditions. The sum assured is the money which a policyholder/nominee is entitled to receive based on the current situation. One should choose a sum assured which matches his/her future expectations, for failure to do this could leave the family/policyholder in a lurch. The table below highlights the sum assured options under this plan:

    Minimum Sum Assured Rs.2 lakh
    Maximum Sum Assured No upper limit

    Premium* - Each policyholder pays a certain amount as premium. The premium decides the sum assured one can get, with higher the premium, higher the sum assured offered. The Money Back Plus Plan is an extremely smart option, for a policyholder can save money on premiums. Premiums should be paid only for half the policy term, with the various aspects related to the premium highlighted below:

    Minimum term of the policy 16 years
    Maximum term of the policy 24 years
    Premium Payment Term (PPT)
    • 8 years
    • 10 years
    • 12 years
    Premium Payment Modes
    • Monthly
    • Half-yearly
    • Yearly
    Plan options available
      Option 1 Option 2 Option 3
    Term of policy (years) 16 20 24
    PPT (years) 8 10 12
    Minimum Single Premium Amount NA
    Maximum Single Premium Amount NA
    Minimum Monthly Premium Amount** Option 1 - Rs.2,457 Option 2 - Rs.2,074 Option 3 – Rs.1,829
    Maximum Monthly Premium Amount** Based on sum assured chosen
    Minimum Half-yearly Premium Amount** Option 1 – Rs.14,188 Option 2 – Rs.11,978 Option 3 – Rs.10,563
    Maximum Half-yearly Premium Amount** Based on sum assured chosen
    Minimum Yearly Premium Amount** Option 1 – Rs.27,820 Option 2 – Rs.23,486 Option 3 – Rs.20,712
    Maximum Yearly Premium Amount** Based on sum assured chosen

    *The premium charged by Tata AIA depends on the age of the policyholder and the sum assured chosen by him/her. These are subject to change at the sole discretion of the insurer.

    ** The premium rates mentioned are for the minimum entry age and the minimum sum assured. These rates are subject to change as per the entry age of the policyholder.

    Plan Coverage – What the Tata AIA Life Insurance Money Back Plus Plan covers

    The Money Back Plus policy offers a four tier cover, as highlighted in the table:

    Survival Benefit A policyholder is entitled to a survival benefit at regular periods during the policy. The insurer pays an amount equivalent to 20% of the sum insured thrice during the policy term. The frequency of payouts depends on the plan option chosen and is shown below:
    Plan option Years in which survival benefit is paid
    Option 1 4th, 8th, and 12th
    Option 2 5th, 10th, and 15th
    Option 3 6th, 12th, and 18th
    Maturity Benefit On survival of the policyholder until the maturity term, he/she will be paid a maturity benefit. This amount depends on the plan option chosen, and is shown below:
    Plan option Maturity Benefit
    Option 1 50% of sum assured
    Option 2 60% of sum assured
    Option 3 70% of sum assured
    In addition to the maturity benefit, the insurer will also pay the bonus component, including the terminal bonus and compound reversionary bonus.
    Death Benefit If the policyholder passes away during the policy term, the insurer will pay his/her nominee a death benefit. This amount includes the sum assured on death plus any bonus accrued during the policy term. The death sum assured is the highest among the following:
    • 10 x annualised premium
    • Sum assured opted at time of policy inception
    Accidental Death Benefit If the demise of the policyholder occurs due to an accident, the insurer will pay an accidental death benefit. In this case, an amount equivalent to the base sum assured will be paid to the nominee.

    Riders/Add-on plans – Additional coverage under the Tata AIA Life Insurance Money Back Plus Plan

     

    The Money Back Plus Plan does not come with a rider option.

    Exclusions – What the Tata AIA Life Insurance Money Back Plus Plan does not cover

    Like any insurance plan, even the Money Back Plus policy has a suicide exclusion. Under this, the nominee is eligible to receive an amount equivalent to the premiums paid by a policyholder if the policyholder commits suicide within a year of buying the policy. If the suicide is committed within a year of reviving a policy, the insurer will pay an amount which is the higher of the surrender value or the total premiums paid.

    In addition to the suicide exclusion this plan also has certain exclusions related to the accidental death benefit. These are highlighted below:

    • If death occurs due to a criminal act.
    • If policyholder is a member of the armed forces and demise occurs during participation in armed activities.
    • If death occurs due to an act of self-injury/self-destruction.
    • If accident occurs due to participation in professional sports like racing, diving, etc.
    • If accident occurs under the influence of alcohol/drugs.
    • Any incident related to nuclear contamination.
    • An aviation accident, unless the policyholder is a passenger on a recognised carrier.

    Other Key Features

    Grace period Policyholders are provided a grace period within which they can pay the premium amount. This period depends on the premium payment mode chosen by them and is 30 days for the yearly/half-yearly mode. In case of monthly payments, a 15 day grace period is provided.
    Free look period A 15 day free look period is provided within which a policyholder can choose to return a policy. This period is extended to 30 days if the policy was purchased through distance marketing modes.
    Revival A policy lapses if the premium hasn’t been paid even after the grace period. It is possible to revive such policies by paying all outstanding dues within two years of first missed payment. Revival is subject to approval by the company, with it possible for the insurer to ask for medical check-ups before approving the request.
    Surrender A policyholder can choose to surrender a policy, subject to having paid the premium for a minimum of one year.
    Loan It is possible to take a loan through this policy, subject to the policy having acquired a surrender value. The maximum loan amount offered is 65% of the surrender value. Tata AIA charges an interest on this loan, with it currently being 11%.

    Tax Benefits – How you can save with the Tata AIA Life Insurance Money Back Plus Plan

    Policyholders are entitled to tax benefits under the Income Tax Act. While the premium paid can be claimed as deduction under Section 80C of the act, the amount received as a benefit is eligible for savings under Section 10(10D) of the act. It should be noted that the quantum of deductions permitted depends on the current tax slabs, with this subject to change as per government regulations.

    Why you should buy the Tata AIA Life Insurance Money Back Plus Plan

    The Money Back Plus scheme offered by Tata AIA offers a range of features and benefits to not just policyholders, but also their loved ones. The plan accords life cover, ensuring that the demise of a loved one doesn’t leave a financial void. The money back feature makes it truly intriguing, with the policy offering a certain portion of the sum assured at regular intervals, thereby helping one meet any financial contingency.

    The plan, despite being non-linked, offers benefits which exceed the sum assured chosen, doubling up as a decent investment option.

    A collaboration between Tata Sons and AIA, the insurer has a presence in 18 nations across the globe. In addition to this, being a Tata brand it believes in customer satisfaction, with a host of products on offer. Most individuals look at the claim settlement ratio before buying a plan, for a high ratio indicates the insurer’s intention to settle claims. Tata AIA Life has one of the highest claim settlement ratios in the country, with it being 96.80% as of 2015-2016. In addition to this, it also had a perfect score for grievances solved, with the grievances solved ratio for this period being 100%.

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