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  • Tata Aia Smart Growth Plus Plan

    Life Insurance
    • Premiums as low as Rs.17/day for sum assured of Rs.1 crore*
    • Claim up to Rs. 1,50,000 deduction under section 80C**
    • Choose between annual and monthly premium payment options

    Saving is something most of believe in, with it ingrained in our mind right from childhood. Our savings as children might’ve been restricted to piggy banks, but with age we learn how important it becomes to save a sizeable amount, for emergencies can be right around the corner. The Smart Growth Plus Plan from Tata AIA is designed to help us save, ensuring that we are ready for whatever life has to offer. This non-linked scheme doubles as a great insurance cover, offering an additional profit endowment feature as well. Purchasing this plan not only helps create a corpus, but also provides a source of income after retirement, ensuring that lack of money doesn’t derail our plans.

    Eligibility – Who is the Tata AIA Life Insurance Smart Growth Plus Plan for?

    Tata AIA has a few basic criteria which anyone looking to purchase the Smart Growth Plus plan must keep in mind. These are highlighted below:

    Parameters Criteria for eligibility
    Minimum age at entry Option 1 – 30 days Option 2 – 18 years
    Maximum age at entry 50 years (for both options)
    Maximum age at maturity 65 years
    Plan type Non-linked, participating endowment assurance scheme
    Plan options to choose from Option 1 – Endowment Option 2 – Endowment plus Accidental Death Benefit

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

    Sum Assured – This is the amount a policyholder/nominee is guaranteed to receive, either on maturity of the policy or demise of policyholder. In essence, this is the financial protection offered under the plan. It is possible to choose a sum assured based on individual requirements, subject to this amount meeting the minimum requirements set by the insurer. The premium pays a key role in deciding the sum assured, with an increase in premium required for higher sum assured.

    Minimum Sum Assured Rs.1.5 lakh
    Maximum Sum Assured No upper limit

    Premium* - In order to avail the protection and benefits offered under this plan, a policyholder is expected to pay a certain amount at regular, predefined intervals. This amount is termed the premium, with it deciding the extent of monetary cover the policyholder is entitled to. The different aspects related to the premium in this plan are showcased below:

    Minimum term of the policy 10 years
    Maximum term of the policy 30 years
    Premium Payment Mode
    • Monthly
    • Half-yearly
    • Yearly
    Premium Payment Term Equal to policy term
    Minimum Single Premium Amount NA
    Maximum Single Premium Amount NA
    Minimum Monthly Premium Amount** Rs.833
    Maximum Monthly Premium Amount** Based on sum assured chosen
    Minimum Half-yearly Premium Amount** Rs.5,000
    Maximum Half-yearly Premium Amount** Based on sum assured chosen
    Minimum Yearly Premium Amount** Rs.10,000
    Maximum Yearly Premium Amount** Based on sum assured chosen

    *The premium amount can change based on the entry age of policyholder, policy term, payment mode, etc. It is imperative that a policyholder check this amount before purchasing a policy.

    **Based on the minimum annual premium requirement. This can change based on the entry age, plan option chosen, policy term, etc.

    Plan Coverage – What the Tata AIA Life Insurance Smart Growth Plus Plan covers

    The Smart Growth Plus scheme covers different contingencies, with this providing a death benefit if the policyholder passes away during the policy term. In case of survival till the end of policy period, a maturity benefit is provided. The table below highlights these benefits.

    Death Benefit On demise of policyholder during the policy period, his/her nominee is entitled to receive a death benefit, subject to the policy being in force (all premiums paid). This benefit depends on the option chosen: Option 1:
    • The insurer will pay the nominee the death sum assured plus all bonuses earned during the policy period. The minimum payable sum is 1.05 times all the premiums paid.
    Option 2:
    • In this case, an additional sum will be paid over and above the sum assured paid under Option 1. This amount includes the accident sum assured chosen at the time of purchasing the policy.
    Maturity Benefit The policyholder will receive an amount equivalent to the sum assured plus all bonuses earned during the policy period.

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

    There is no rider option under this plan. However, Tata AIA offers an inbuilt accidental death benefit cover under Option 2 of this scheme, which negates the need for an accidental death rider.

    Exclusions – What the Tata AIA Life Insurance Smart Growth Plus Plan does not cover  

     

    There is one exclusion common to both plan options, suicide. Under this exclusion, Tata AIA will pay the nominee a sum equivalent to all the premiums paid until death, subject to suicide being committed within 1 year of policy commencement date.

    If the policyholder were to commit suicide within a year of reviving a policy, the nominee will be paid the higher of the surrender value (if applicable) or a sum equal to the premiums paid.

    Tata AIA does not consider the mental state of a policyholder under such circumstances, with no change in the amount payable even if the policyholder committed suicide due to insanity.

    Under Option 2 of the plan, there are additional exclusions related to the accidental death benefit accorded. Under these exclusions the insurer will not pay any benefit to the nominee if death is a result of the following:

    • Any incident which occurs under the influence of drugs/alcohol.
    • If the policyholder was assaulted/murdered.
    • If a policyholder participated in combat under the armed forces.
    • If the policyholder attempts to injure himself/herself intentionally.
    • Participation in activities like racing, scuba diving, hunting, etc.
    • Due to nuclear contamination.
    • If accident occurs due to participation in aviation activities, unless the policyholder is a passenger on a recognised airline.

    Other Key Features

    Grace period Tata AIA provides a grace period within which a policyholder can pay the premium. This period is 30 days if the premium is paid on a yearly or half-yearly basis. If the premium is paid every month, the grace period is 15 days.
    Free look period The free look period depends on the mode of purchase of policy. It is 30 days if policy is purchased through any distance marketing mode. A 15 day period is provided if the policy is purchased through any other mode
    Revival Revival of a policy is subject to approval by the insurer. A policyholder can apply for revival within two years of the first missed premium date. He/she will be expected to pay all the premiums due, in addition to any interest applicable. He/she could be asked to provide proof of health for the revival request to be considered.
    Surrender value The policy acquires a surrender value if the policyholder has paid the premium for a minimum of 1 full year.
    Loan A policyholder can take a loan under this plan, subject to the policy having acquired a surrender value. The maximum loan amount offered is equivalent to 65% of the surrender value. He/she will have to pay an interest on this loan, with the current rate being 11%.
    Bonuses There are two bonus components under this plan:
    • Compound Reversionary Bonus – The policy earns this bonus after five years, with it credited on the anniversary of the policy.
    • Terminal Bonus – This bonus is payable in cases where the policy has been active for a minimum of 10 years.
    Discount on premium Policyholders who opt for high sum assured are eligible for discounts on the premium.
    Guaranteed Addition Guaranteed additions will be added to the policy each year, for the first five years of the policy. This is equal to 5.5% of the sum assured (annually).

    Tax Benefits – How you can save with the Tata AIA Life Insurance Smart Growth Plus Plan

    Section 80C of the Income Tax Act provides tax incentives on the premium paid towards this policy. Currently, a policyholder can claim a maximum deduction of Rs.1.5 lakh for the financial year^. The amount received as a maturity benefit/death benefit is also eligible for tax savings, this time under Section 10(10D) of the act.

    ^This slab is subject to change. The value mentioned here is applicable for the FY 2017-18.

    Why you should buy the Tata AIA Life Insurance Smart Growth Plus Plan

    The Smart Growth Plus plan offered by Tata AIA is a great option for people looking to save money for the future. The scheme offers decent returns on investment (in the form of bonuses), with the life cover giving peace of mind to all stakeholders, including the policyholder and his/her family. Affordable premiums ensure that one can pay based on his/her needs, with an option to customise the plan accordingly.

    In terms of the insurer, AIA is one of the largest insurers in the world, with it being the foremost in the Asia Pacific region, with a presence in 18 markets here. Tata, is regarded as one of the best brands in India, having earned this reputation over a number of years. Tata AIA is a JV between these two organisations, with both bringing in a level of expertise and professionalism under one brand.

    The insurer has a pan-India presence, having an excellent track record, both in terms of claim settlement and grievances solved. While the claim settlement ratio for 2015-16 stood at 96.8%, the grievances solved ratio was 100% during the same period. A policyholder can be rest assured that there will be minimal hassles when it comes time to make a claim.