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.
|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!
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).
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.
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.
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.
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.
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
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).
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.
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%|
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.
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
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:
|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.
|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).
Frequently Asked Questions
The premiums for the Tata AIA Diamond Savings plan can be paid on an annual, half-yearly, quarterly, or monthly basis.
The minimum premium amount for the Tata AIA Diamond Savings plan is Rs. 18,000 per annum.
Yes. If the life insured is a minor, upon reaching the majority, the policy will immediately vest in the life insured.
You will need the following documents:
- Bank statement
- PAN card
- Adhaar card
- Income tax receipt
- Salary slip