Tata AIA Smart Income Plus Plan
We have various needs in different stages of life that we dream of fulfilling. But they do not always remain successful as money often poses a problem for us. For that, we need to start thinking very early so that we can build a financial corpus to meet our dreams. The most convenient way of building capital is to invest in a savings plan, and when it comes to a savings plan, Tata AIA Life Insurance Company is worth mentioning as it has come up with a bunch of savings plans.
Among them, Tata AIA Smart Income Plus is the most promising one as it helps to meet tomorrow’s requirements along with protecting your loved ones and dreams. It is a Non-Linked, Non-Participating, Individual Life Insurance limited pay income plus Savings Plan that ensures you guaranteed returns for the money invested. Investment in this plan helps you fulfill your medium to long term goals, such as your Child’s Education/Marriage/Business start-up and Retirement planning. To know more about this plan, have a look at the following mentions.
|Plan options||Option I: Regular Income, Option II: Endowment|
|Age at entry|
Premium Payment Term 7 years – 3 years
Premium Payment Term 10 and 12 years – 0 (30 days)
Maximum – 50 years
|Age at maturity|
Minimum – 18 years
For Policy Term 15 years: 65 years
For Policy Term 21 years: 71 years
For Policy Term 25 years: 75 years
|Policy term||15, 21, and 25 years|
|Premium payment term|
For Policy Term 15 years – 7 years
For Policy Term 21 years – 10 years
For Policy Term 25 years – 12 years
|Basic sum assured||11 times Annualised Premium|
|Premium amount (In multiples of Rs. 1000)|
Option I – Rs. 18,000
Option II – Rs. 36,000
Maximum: No upper limit, subject to board approved underwriting policy.
|Premium payment mode||Yearly, half-yearly, quarterly, and monthly.|
What Benefits Tata AIA Smart Income Plus Offers?
This plan has come up with a sack full of benefits and facilities that promise to keep you and your family financially protected and to help you complete your aims. The following details will give you a clear idea about these benefits. Have a look.
Option I: Regular Income – Provided the Policy is in force and all due premiums have been paid, Guaranteed Payouts (GP) as a percentage of the Annualised Premium (AP) shall be payable annually. The Income shall commence from the end of policy year 9/12/14 for premium paying terms 7/10/12 years respectively and will be payable till maturity as mentioned in the table below. The GP factors vary by the chosen premium paying term and are independent of age and gender:
|Policy Term/Premium Payment Term||15/7 years||21/10 years||25/12 years|
|Guaranteed Payouts as % of the AP||120%||140%||160%|
Option II: Endowment – Provided the Policy is in force and all due premiums have been paid, a Guaranteed Payout (GP) determined as a multiple of the Annualised Premium will be paid at the end of the Policy year preceding the year of Maturity.
Option I: Regular Income – Provided the Policy is in force and all due premiums have been paid, an amount equal to the Guaranteed Maturity Payout (GMP) will be paid as a lump sum at Maturity. The last installment of GP will be paid along with the above Maturity Benefit. The GMP will be equal to GMP multiplied by Annualised Premium.
Option II: Endowment – Provided the policy is in force and all due premiums have been paid, the Minimum Guaranteed Sum Assured on Maturity, which is equal to the Guaranteed Maturity Payout (GMP) will be paid at Maturity. The benefit amount shall equal the Guaranteed Payout paid under Option II.
Large Premium Boost:
An additional benefit will be payable on payment of a higher premium. The Large Premium Boost will be applicable as mentioned in the table below and payable along with GMP or GP:
|For Regular Income|
|Annualized premium||Large Premium Boost (As a % of GMP)|
|Rs. 18000 to Rs. 49,999||0%|
|Rs. 50,000 to Rs. 99,999||5%|
|Rs. 100,000 to Rs. 1,99,999||20%|
|Rs. 2,00,000 and above||30%|
|For Endowment Plan|
|Annualized premium||Large Premium Boost (As a % of GP)|
|Rs. 36,000 to Rs. 74,999||0%|
|Rs. 75,000 to Rs. 99,999||1%|
|Rs. 1,00,000 to Rs. 1,99,999||2%|
|Rs. 2,00,000 and above||3%|
For Option I & Option II: On the death of the Life Assured during the policy term, provided the policy is in force as of the date of death; the Sum Assured on Death shall be payable irrespective of the Survival Benefits already paid. “Sum Assured on death” shall be the highest of the following:
- 11 times Annualised Premium
- 105% of the Total Premiums paid up to the date of death
- Minimum Guaranteed Sum Assured on Maturity
- Absolute amount assured to be paid on death.
If you are unable to pay your Premium on time, starting from the premium pay-to-date, a Grace Period of 15 days for monthly mode and 30 days for all other modes will be offered.
Tax Exemption Benefit:
Premiums paid under this plan are eligible for tax benefits under Section 80C of the Income Tax Act, 1961, and are subject to modifications made thereto from time to time. Moreover, life insurance proceeds enjoy tax benefits as per Section 10(10D) of the said Act.
Key Highlights of Tata AIA Smart Income Plus
Apart from the above benefits and facilities, this policy has presented a bunch of special advantages and features that have made the plan unique and popular among consumers. To know more about these specifications, have a look at the following mentions.
Flexible Premium Payment Modes:
You have an option to pay the premiums either Annually, Half-yearly, Quarterly, and Monthly modes. Loading on premiums will be applicable as mentioned in the table below:
Flexibility of Additional Coverage:
You have further flexibility to customize your product by adding the following optional riders. The rider can be attached only at policy inception.
- Tata AIA Life Insurance Accidental Death and Dismemberment (Long Scale) (ADDL) Rider – This rider ensures the protection of your family by paying your nominee an amount equal to the rider sum assured in case of accidental death. In case of severe dismemberment like loss of limbs or bodily functions or severe burns due to an accident, it will pay a percentage of the rider sum assured as per the ADDL benefit chart. The benefits will be doubled in case of certain accidental death or dismemberments.
- Tata AIA Life Insurance Waiver of Premium Plus (WOPP) Rider – This rider provides for the waiver of all future premiums of the basic policy which fall due in case of death or while the proposer is totally and permanently disabled (provided that the death occurs/disability commences before the proposer reaches 70 years or the end of premium payment term of the basic plan, whichever is earlier).
Surrender Benefit (For both Option I & Option II):
The Policy can be surrendered at any time during the term of the Policy, provided at least two full years’ Premiums have been paid The Surrender Value payable is higher of the Guaranteed Surrender Value or Special Surrender Value.
- Guaranteed Surrender Value (GSV) = [All the Premiums Paid (Excluding the underwriting extra premiums and modal loading) x GSV factor)] – Survival Benefit paid, if any.
- Special Surrender Value (SSV) = Special Surrender Value Factor x [(Number of Premiums paid) / (Number of Premiums Payable during the entire policy term) x (Survival + Maturity Benefits) – Survival Benefit paid if any].
The Policy will be converted into a Reduced Paid-Up Policy by default, provided the policy has acquired a surrender value and subsequent premiums remain unpaid. In case of Reduced Paid-up policies, the benefit shall be payable as under:
- Death Benefit for both Option I & Option II: On the death of the life assured during the policy term, Sum Assured on death x (Number of premiums paid) / (Number of premiums payable, during the entire policy term) will be payable. This total amount will be a minimum of 105% of the Total Premiums paid up to the date of death.
- Survival Benefit: The reduced Survival Benefits shall continue to be payable as mentioned below:
Guaranteed Payouts x (Number of Premiums Paid / Number of Premiums Payable during the entire policy term).
- Maturity benefit: Guaranteed Maturity Payout x (Number of Premiums Paid / Number of Premiums Payable during the entire policy term) The reduced Guaranteed Maturity Payout will be paid as a lump sum at Maturity.
Policyholder may revive the policy within five after the due date of the first unpaid premium and before the date of maturity subject to the Underwriting & Revival rules of the Company. However, the Company would require: a) A written application from you for revival; b) a Current health certificate of Insured and other evidence of insurability satisfactory to the Company and c) Payment of all overdue premiums with interest.
Policy Loan Facility:
Policy Loan is available in Tata AIA Life Insurance Smart Income Plus, provided that the policy acquires Surrender Value. You may apply for a Policy Loan for such an amount within the extent of 65% of the Surrender Value.
What Are The Exclusions of Tata AIA Smart Income Plus?
- Anything that does not satisfy the terms and conditions of the policy as well as of the company will fall under the category of exclusions.
- If there is any kind of breach of law with criminal intent, that will be permanently excluded from the policy.
- In case of death due to suicide by the Life Assured, whether sane or insane, within 12 months from the date of commencement of risk under the policy or from the date of revival of the policy, as applicable, the nominee or beneficiary of the policyholder shall be entitled to at least 80% of the total premiums paid till the date of death or the surrender value available as on the date of death whichever is higher, provided the policy is in force.
How Does Tata AIA Smart Income Plus Work?
Mr. Gautam, a 36-year-old businessman bought Tata AIA Smart Income Plus for himself. Let us find out what benefits he will reap from the given credentials.
|Premium payment frequency||Annual|
|Pay premiums for||7 years|
|Policy term||15 years|
|Annual premium of||Rs. 50,000|
|Premium price including taxes||Rs. 52,250|
|Life cover||Rs. 5,50,000|
|Guaranteed benefit||Rs. 4,88,250|
|Guaranteed Maturity Payout /Lumpsum Amount of||Rs. 68,250|
Frequently Asked Questions
It refers to the absolute amount of benefit which is guaranteed to become payable on maturity of the policy. The minimum Guaranteed Sum Assured on Maturity is equal to Guaranteed Maturity Payout (GMP) for Option II and the Guaranteed Maturity Payout (GMP) plus the final Guaranteed Payout (GP) in the case of Option I.
The GP factors will vary by the chosen premium payment term, age, and gender as mentioned in the table below:
For male lives:
|Age band/PPT||7 years||10 years||12 years|
|Minimum age – 10 years||5.57||10.28||14.92|
|11 to 15 years||5.58||10.39||15.03|
|16 to 20 years||5.57||10.38||15.02|
|21 to 25 years||5.56||10.37||15.02|
|26 to 30 years||5.55||10.36||15.01|
|31 to 35 years||5.53||10.36||15.00|
|36 to 40 years||5.49||10.35||14.97|
|41 to 45 years||5.41||10.32||14.81|
|46 to 50 years||5.26||10.23||14.80|
For female lives:
|Age band/PPT||7 years||10 years||12 years|
|Minimum age – 10 years||5.52||10.20||14.78|
|11 to 15 years||5.59||10.40||15.04|
|16 to 20 years||5.57||10.39||15.03|
|21 to 25 years||5.56||10.38||15.02|
|26 to 30 years||5.55||10.37||15.02|
|31 to 35 years||5.54||10.36||15.01|
|36 to 40 years||5.51||10.36||15.00|
|41 to 45 years||5.46||10.35||14.92|
|46 to 50 years||5.36||10.29||14.71|
At any time during the term of the policy, if the premiums remain unpaid at the end of the Grace Period and the policy has not acquired a Surrender Value; the policy shall lapse and no further benefits shall be paid. The policy may, however, be revived within five years from the due date of the first unpaid premium.
If you are not satisfied with the terms & conditions/features of the policy, you have the right to return the policy within 15 days from the date of receipt of the policy document. The said period of 15 days shall stand extended to 30 days if the policy is sourced through distance marketing mode.