The Tata AIA Life Insurance Monthly Insurance Plan is a participating, non-linked, endowment assurance policy that helps policyholders invest a small sum of money every month for their preferred policy term and receive a large corpus at maturity. In addition, policyholders are also protected by a life cover that can help secure their life and the lives of their loved ones.
Policyholders can decide on a monthly premium that’s feasible for them. Premiums for the Tata AIA Life Insurance Monthly Insurance Plan start from Rs.2,000. This policy also guarantees accrued yearly additions and bonuses (Compound Reversionary Bonus and Terminal Bonus) to further enhance the corpus at maturity.
This plan also guarantees a Sum Assured, which will be paid to the policyholder at maturity. Policyholders are given the added option to improve the life cover with additional riders, and can also take a loan against the policy and avail tax benefits as per the prevailing tax laws.
Insurance providers usually set eligibility criteria which need to be met by policyholders in order to avail the protection accorded by the plan. For the Tata AIA Life Insurance Monthly Insurance Plan, individuals must fulfil the following criteria:
|Parameters||Criteria for eligibility|
|Minimum age at entry||30 days|
|Maximum age at entry||50 years|
|Minimum age at maturity||18 years|
|Maximum age at maturity||70 years|
|Plan options to choose from||Sum Assured will vary based on Investment Returns of 4% or 8% p.a.|
Under the Tata AIA Life Insurance Monthly Insurance Plan, the guaranteed Sum Assured will be based on the length of the policy term and total premiums paid by the policyholder. The minimum and maximum premiums for this plan are:
|Minimum Sum Assured||Rs.1,14,282|
|Maximum Sum Assured||Depends on the maximum premium that a policyholder can pay.|
The premium is a sum of money that the policyholder needs to pay to the insurer to keep the policy active. For the Tata AIA Life Insurance Monthly Insurance Plan, policyholders need to pay premiums on a monthly basis.
|Minimum term of the policy||15 years|
|Maximum term of the policy||20 years|
|Premium Payment Term (PPT)||7 years PPT for policy term of 15 years 10 years PPT for policy term of 20 years|
|Premium Payment Mode||Monthly premium payment only|
|Minimum Premium Amount||Rs.2,000|
|Maximum Premium Amount||The maximum premium amount will vary based on the board’s Approved Underwriting Policy.|
*Premiums vary based on age, location, plan term, prevailing taxes/GST and other factors
The Tata AIA Life Insurance Monthly Insurance Plan provides policyholders and nominees with many benefits. While some of these benefits are guaranteed at the time of enrolment, some benefits are subject to how well Tata AIA Life Insurance performs during the year. Given below are the benefits that are provided to policyholders under this plan:
|Survival Benefit||Accrued yearly additions are paid to the policyholder at the beginning of the last policy year. Provided that all due policy premiums have been paid, a Guaranteed Yearly Addition, which equals one month’s premium (excluding any extra premium), will be accrued at the start of each policy year, from the very first year.|
|Death Benefit||The death benefit payable to the nominee will be the higher of:
|Maturity Benefit||The insurer will pay the sum of the benefits listed below:
|Bonuses||The policyholder is entitled to the following bonuses:
Policyholders are given the option to enhance/customise their policy with the following rider:
A few other features that may help you make an informed decision are listed below:
|Free-look period||For this policy, the free-look period is 15 days, or 30 days in case the policy is purchased through distance marketing, during which you can return the policy, if you are unsatisfied with the terms and conditions.|
|Surrender value||The policyholder can surrender the policy any time during the policy term. The Surrender Value payable will be the higher of the Guaranteed Surrender Value or the Special Surrender Value.|
|Grace period||From the last premium pay-by date, policyholders are given a grace period of 15 days. During the grace period, the policy will be running with full risk cover.|
|Revival||If the policyholder defaults on due payments, even beyond the Grace Period, he/she can revive the policy within two years since the date of the first due premium.|
|Loan||Policyholders can take a loan against this policy provided it acquires a Surrender Value. The loan can be applied for an amount that’s within 65% of the Surrender Value.|
|Nomination||Nomination is permitted as per Section 39 of the Insurance Act, 1938.|
|Assignment||Assignment is allowed as per Section 38 of the Insurance Act, 1938.|
|Advance Premium||Premiums can be collected in advance, provided it is collected within the same financial year.|
Under this plan, all premiums paid will be eligible for tax benefits under Section 80 (C) of the Income Tax Act, 1961. Tax laws are subject to change without prior notice, so ensure you consult with a tax consultant from time to time.
Customers can also access a host of other benefits, such as:
A joint venture between the Tata Sons Ltd. and AIA Group Ltd., Tata AIA Life Insurance is currently one of the top insurance providers in India. At the end of FY 2016, the Claim Settlement Ratio reported by the company was 96.8%. Tata AIA Life is also the proud recipient of the Golden Peacock Award for Risk Management in 2016. The wide range of insurance offerings by Tata AIA Life Insurance serve the varying needs of all customers.
The wide range of benefits offered by the Tata AIA Life Insurance Monthly Insurance Plan, such as the Guaranteed Sum Assured at maturity, loan against the policy, tax benefits, bonus, maturity benefits, etc., make this policy ideal for anyone wanting to protect themselves and their loved ones against future uncertainties.
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