Life Insurance Tata AIA Life Insurance Diamond Savings Plan

Tata AIA Diamond Savings Policy

Tata AIA Life Diamond Savings Plan

Tata AIA Diamond Savings plan is a participating, non-linked, individual life insurance savings plan that protects your dreams at various stages of your life. It is a limited-pay insurance plan that safeguards your loved ones while still addressing future needs. Your medium- and long-term objectives, such as retirement planning and funding for your children’s education, will be achieved by investing in this plan.

Eligibility Criteria

Minimum Entry Age	0 To 3 Years
Maximum Entry Age	55 To 60 Years
Basic Sum Assured	11 X Annualized Premium
Policy Term	15/20/18/25 Years
Premium Payment Term	5/6/8/12 Years

Prominent Attributes Of Tata AIA Diamond Savings Plan

It would be easier for you to receive proper coverage and maximum advantages if you are aware of the Tata AIA Diamond Savings Plan’s major features. Some of them are discussed below!

Guaranteed Income:

After the term for premium payments has ended, people can expect assured returns with the Diamond Savings plan. The insured individual can receive this assured income in the form of an Assured Benefit commencing from the beginning of the following policy year after the term of premium payments until maturity or until the death of the life insured (whichever is earlier).

Grace Period:

In the event that you are unable to pay your premium by the due date, a grace period of 15 days for monthly payments and 30 days for all other payments will be provided. Your policy is deemed to be in effect at this time, providing risk coverage in accordance with its terms and conditions.

Lapse:

The policy will expire as of the due date of the first unpaid premium if the first two full years’ premiums are not paid during the grace period and no benefits will be given. During the policy term and within five years following the first unpaid premium’s due date, lapsed insurance may be reinstated.

Revival:

If a premium is past due after the grace period and the policy hasn’t been surrendered, you may revive it within five years of the first unpaid premium’s due date and before the policy’s maturity date, provided that the company’s board has authorized the company’s underwriting policy.

Free Look Period:

If the terms and conditions or features of the policy do not satisfy you, you have the right to cancel the policy and receive a full refund of all premiums paid without interest by sending a written notice of cancellation to the company. Within 15 days of the date you received the policy paper, you must sign the notice and send it directly to the company. If the policy is obtained by distance marketing, as opposed to in-person, the aforementioned 15-day term will be increased to 30 days.

Loan Facility:

In the Tata AIA Life Insurance Diamond Savings plan, a policy loan is accessible as long as the policy accrues surrender value. You may submit an application for a policy loan for that sum up to 80% of the surrender value.

Assignment & Nomination:

As per Sections 38 and 39 of the Insurance Act 1938, nominations and assignments are allowed under the plan and can be amended from time to time.

Why Should You Go For Tata AIA Diamond Savings Plan?

In addition to its main characteristics, the Tata AIA Diamond Savings plan offers a number of advantages that people can make use of.

Death Benefit:

The insurer will pay an amount promised on death, a vested compound reversionary bonus, and a terminal bonus if the insured individual passes away during the policy period. The sum will be at least 105% of all premiums paid during the policy period as of the death date. The highest of the following will be the amount assured upon death.

11 times the annualized premium

Sum assured on maturity

The absolute amount assured to be paid on death

Survival Benefit:

Individuals will also get a guaranteed income under the Tata AIA Diamond Savings Plan, starting at the end of the 9th or 13th year, at 20% or 25% as the assured benefit for the policy duration of 18 or 25 years, respectively. To receive this reward, you had to timely pay all of the premiums. You may continue to receive these benefits until maturity or until the insured person’s passing (whichever is earlier).

Surrender Benefit:

The policy may be surrendered at any time throughout the policy term, but only if at least the first two full years’ premiums have been paid will the policy get a surrender value. Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV), whichever is greater, is the Surrender Value payable.

Maturity Benefit:

If your insurance is active and there are no outstanding premiums when it matures, you will also get maturity benefits on your Tata AIA Diamond Savings plan. See examples of such benefits below.

Sum Assured on Maturity which is equal to the last Guaranteed Income installment payable on maturity

Vested Compound Reversionary Bonus, if any, expressed as a percentage of the Assured Benefit

Terminal Bonus, if any, expressed as a percentage of the Assured Benefit

Large Scale Discount:

Individuals who choose to pay a substantial premium amount toward the policy are also offered a significant reduction on the promised benefit by Tata AIA Life Insurance Company. The table below contains discounts (in percentages), which you can view.

Premium Amount (INR)	Discounts
0 – 49,999	0.0%
50,000 – 99,999	2.0%
Above 1,00,000	4.0%

Reduced Paid-Up:

The Tata AIA Diamond Savings Plan will automatically convert into a Reduced Paid-Up Policy if you have paid the full premiums for at least two years and the ensuing payments are still owed (without surrendering the policy). However, this policy may be reinstated within two years following the first unpaid premium’s due date.

Optional Riders:

The plan comes with the following optional riders that provide you further freedom to alter your product. Only at the beginning of the policy can the aforementioned riders be attached.

Tata AIA Life Insurance Accidental Death and Dismemberment (Long Scale) (ADDL) Rider

Tata AIA Life Insurance Waiver of Premium Plus (WOPP) Rider

Tax Benefits:

Depending on how Section 80C of the Income Tax Act of 1961 is amended from time to time, premiums paid under this plan may qualify for tax benefits. Additionally, according to Section 10(10D) of the aforementioned act, life insurance proceeds benefit from tax advantages.

How Does Tata AIA Diamond Savings Plan Work?

Mr. Singh, a 35-year-old Senior Executive, wants to have a second source of income to help pay for his family’s bills and to start saving for retirement. He chooses the Tata AIA Life Insurance Diamond Savings Plan and makes the following selections:

Policy Term: 25 Years

Premium Payment Term: 12 Years

Annual Premium: Rs. 1 Lakh

Assured Benefit: Rs. 3,52,225

If Mr. Singh dies in the 3rd policy year

In case Mr. Singh, unfortunately, dies in the 3rd policy year, the nominee will get the following benefits:

Death Benefits	@8%	@4%
Sum Assured On Death	Rs. 11,00,000	Rs. 11,00,000
Compound Reversionary Bonus	Rs. 25,087	Rs. 1,763
Total Death Benefit	Rs. 11,25,087	Rs. 11,01,763

If Mr. Singh survives the policy term

In case Mr. Singh survives the policy term, he will receive the Regular Income starting at the end of year 13 until policy maturity and a lump sum payment at that time.

	@8%	@4%
Last Income Installment	Rs. 88,056	Rs. 88,056
Compound Reversionary Bonus (If Any)	Rs. 4,80,169	Rs. 22,687
Terminal Bonus (If Any)	Rs. 18,56,226	Rs. 5,91,738
Total Maturity Benefit	Rs. 24,24,451	Rs. 7,02,482

What’s Not Included Under Tata AIA Diamond Savings Plan?

If the insured person commits suicide within 12 months of the date the policy risk under the plan began, or the date the plan was revived, the nominee or beneficiary will receive at least 80% of all premiums paid up until the date of the insured person’s death, or the surrender value available on the date of death (whichever is higher).