Tata AIA Guaranteed Return Insurance Plan
Tata AIA Guaranteed Return Insurance plan is a non-linked, individual, non-participating, life insurance, and savings plan. With the help of this plan, you can receive the advantages of life insurance coverage as well as a guaranteed and regular income that you can use as an investment to help you reach your medium- and long-term financial objectives.
Thus, the plan equips you with features for both life protection and saving. The regular guaranteed income can be paid as a lump sum, regular payments, or lifetime payment. The plan comes in three options: Option 1: Endowment; Option 2: Regular Income; Option 3: Whole Life Income. To know about the plan in detail, continue reading the page!
|Minimum Entry Age||0 Years|
|Maximum Entry Age||Non-PoS: 65 Years, For PoS: 60 Years|
|Minimum Age At Maturity||18 Years|
|Maximum Age At Maturity||Non-PoS: 85 Years, For PoS: 65 Years|
|Basic Sum Assured||Death Benefit Multiple X Annualised Premium|
Option 1 – Single Pay: 10 Years
Option 1 – Limited Pay: 10/11/12/13/14/15/16/17 To 40 Years
Option 1 – Regular Pay: 10 Or 12 Years
Option 2: 6/7/8/9/10/11/13 Years
Option 3: 5/5/6/7/8/9/10/11/12 Years
Focal Points Of Tata AIA Guaranteed Return Insurance Plan
Tata AIA Guaranteed Return Insurance plan has the following features:
You can take out a loan against the policy after it has attained a surrender value. The maximum loan amount that can be requested against the policy is 80% of the surrender value.
On policy loans, daily interest will be charged at a rate that the company will choose.
After the loan date and until the loan is repaid, interest must be paid on each anniversary of the policy. Unpaid interest will be charged at the same rate as the principal loan amount. The policyholder may pay back the principle and any accumulated interest on any portion of the loan at any time while the insurance is still in effect.
For yearly, semi-annual, and quarterly frequency payments, a grace period of 30 days is allowed; for monthly frequency premium payments, a grace period of 15 days is permitted. The policy will continue to be in effect throughout this time.
The policies will expire starting on the due date of the first unpaid premium if the entire premium for the first two policy years is still unpaid at the conclusion of their grace period. Any unpaid premium (without interest) for the policy year in which the event happened will be subtracted from the death claim payout if a death claim arises during the grace period.
The Tata AIA life guaranteed return insurance policy will expire from the due date of the first unpaid premium if you haven’t paid in full for at least two years throughout the grace period. In this case, no benefits will be paid out.
Your policy will change to a reduced paid-up policy if you have been paying your full premiums for at least two years and only your last premium is past due during the grace period.
Within five years following the initial unpaid premium’s due date, you can reinstate the policy. The coverage can be reinstated by paying all past-due premiums, plus interest and/or late fees. All benefits will be restored to their full worth after the policy is reactivated.
Free Look Period:
The Tata AIA life guaranteed return insurance plan can be returned or cancelled if the policyholder is not happy with the terms and conditions of the plan. After the charges are subtracted, the policyholder will receive their premium refund.
If the insurance is bought directly, the free look period lasts for 15 days. If it was acquired via distance learning, it will be extended by up to 30 days. If you want to cancel the policy, you must do it in writing within 15 days in the standard mode and 30 days in the distance mode. The paid premium will be reimbursed.
The insurance policy will acquire a surrender value as described below.
|Premium Payment Term||Surrender Value|
|Single Pay||Payable at any point during the policy term|
|Other Than Single Pay||Payable provided at least 2 full years’ premiums have been paid|
Why Should Invest In Tata AIA Guaranteed Return Insurance Plan?
The plan provides you with numerous benefits. Some of them are discussed below:
If the policy is still in effect and the life assured survives until the end of the policy term, the following benefits will be paid based on the selected plan option.
- Option 1: Endowment
Lumpsum Benefit = Guaranteed Maturity Benefit (GMB) + Guaranteed Addition (GA)
- Option 2: Regular Income
If the policy is in force, a Guaranteed Annual Income (GAI) specified as a percentage of one Annualised Premiums will start at the end of the year following maturity for a defined income period.
For example, Regular income for a 6-year insurance term begins at the end of the seventh year and concludes at the end of the eleventh year.
- Option 3: Whole Life Income
Beginning at the end of the year after maturity, a Guaranteed Annual Income (GAI), which is calculated as a percentage of Total Premiums Paid, will be paid until the death of the insured in the case of a single life insurance policy or until the second death in the case of a joint life insurance policy.
If the option is selected at the time of policy inception, the policyholder may get the GAI on a monthly basis. The policyholder or legal heir has the choice to commute after the policy term.
The Sum Assured on Death as described below shall be payable in the event of the death of the life assured within the policy term, providing the policy is in force.
|Option 1 & 2||Option 3|
Flexible Premium Payment Modes:
You have the option to select between paying your premiums annually, half-yearly, quarterly, or monthly with the Tata AIA life guaranteed return insurance plan.
The following optional riders can be added to your policy to increase your coverage by paying an additional rider premium on top of your standard policy premium.
- Tata AIA Life Insurance Accidental Death and Dismemberment Rider
- Tata AIA Life Insurance Waiver of Premium Plus Rider
- Tata AIA Life Insurance Non-Linked Comprehensive Protection Rider
- Tata AIA Life Insurance Non-Linked Comprehensive Health Rider
When the policyholder of a Tata AIA Life Guaranteed Return Insurance policy reaches the age of majority, the policy automatically vests in the life insured if it was originally issued when the policyholder was a minor.
Working Of Tata AIA Guaranteed Return Insurance Plan
Before you select the plan, it’s very important for you to understand its functioning for making a wise decision. Therefore, let’s study a simple example!
Mr. Bhardwaj, a 35 years old healthy male, chooses the Tata AIA Guaranteed Return Insurance plan with Option 1 – Endowment. Other details of the plan are as follows:
- Policy Term: 20 Years
- Premium Payment Term: 10 Years
- Premium Frequency: Annual
- Basic Sum Assured: Rs. 14,75,000
Therefore, Mr. Bhardwaj will receive the following benefits!
|Policy Year||Annual Premium||Cumulative Premium||Accrued Guaranteed Additions||Guaranteed Benefits|
|Maturity Benefit||Death Benefit|
|0||Rs. 1,00,00||Rs. 1,00,000||Rs. 63,500||Rs. 14,75,000|
|10||Rs. 1,00,000||Rs. 10,00,000||Rs. 6,35,000||Rs. 20,46,500|
|20||Rs. 12,70,000||Rs. 12,70,000||Rs. 26,81,500|
|Total Premiums Paid||Rs. 10,00,000||Total Guaranteed Benefit||Rs. 25,40,000|
Exclusions Of Tata AIA Guaranteed Return Insurance Plan
The nominee or beneficiary of the policyholder shall be entitled to at least 80% of the total premiums paid up to the date of death or the surrender value available as on the date of death, whichever is higher, provided the policy is in force, in the event of death by suicide within 12 months of the date of commencement of risk under the policy or from the date of revival of the policy, as applicable.
Frequently Asked Questions
Yes. Policies sourced through the PoS channel are subject to the waiting period. The company will return the total premiums paid and the policy will immediately expire if any of the life insureds pass away within the first 90 days on the day the risk began.
Yes. You will receive tax benefits as per the current tax legislation in the country.
Yes. They both are allowed as per Sections 38 and 39 of the Insurance Act 1938.
The minimum premium for the Tata AIA Guaranteed Return Insurance plan is Rs. 24,000 per annum. The maximum premium will be subject to a maximum sum assured on death of Rs. 25,00,000.