Tata AIA Smart Value Income Plan
An individual, non-linked, participating life insurance savings plan from Tata AIA Life Insurance called the Smart Value Income Plan that gives you life insurance and the choice of selecting and receiving a cash incentive (if declared). It offers adaptable plan alternatives that protect every stage of your life over the long term and in a systematic manner.
This savings plan offers you a choice between two savings plan options, the Cash Bonus Option and Accumulating Cash Bonus Option, that can help you achieve your goals. It also offers protection with a whole life cover of up to 100 years. With the Tata AIA Life Insurance Value Income Plan, you can comfortably meet your financial obligations while providing for the future of your loved ones.
Read on to know more about the Tata AIA Smart Value Income Plan’s eligibility criteria, key features and benefits, exclusions, premium calculation, and more.
Here is the eligibility criteria for Tata AIA Smart Value Income Plan.
|Entry Age||Minimum- 30 days, Maximum- 65 Years|
|Age at Maturity||Minimum- 18 Years, Maximum- 85 Years|
Single/Limited/Regular Pay: Rs.24,000 p.a., No Limit
(subject to Underwriting Policy
|Premium Payment Mode||Single/ Annual/ Half-yearly/ Quarterly/ Monthly|
|Cash Bonus Payout Frequency||Annual / Half-yearly / Quarterly / Monthly|
|Plan Option||Option 1 – Cash Bonus Option 2 – Accumulating Cash Bonus|
Key Features & Benefits of Tata AIA Smart Value Income Plan
Here is the list of the features and benefits of the Tata AIA Smart Value Income Plan.
- Death Benefit
The Death Benefit upon the death of the Life Insured for an in-force policy (all due premiums paid) during the life of the policy shall be:
According to the decision of SA-I (Sum Assured – I) or SA-II (Sum Assured – II) taken at the time of purchasing the product, single pay may be constant or fluctuate by age at entry.
- Survival Benefit:
The policyholder would be eligible to receive Cash Bonus until death or the end of the policy term, whichever occurs earlier, provided the policy is in force and all required premiums have been paid.
The Cash Bonus will follow the guidelines outlined under “Non-Guaranteed Bonuses” earlier.
There is no survival benefit due.
The survival benefit will be paid upon the insured person’s death by the frequency of payouts and, if applicable, the “special date” set.
- Grace Period:
A Grace Period of 15 days for monthly modes and 30 days for all other modes will be provided if you are unable to pay your Premium before the premium due date. Your policy is regarded as being in effect during this time, providing risk coverage by its terms and conditions. Any unpaid premiums (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.
If a premium is past due after the Grace Period and the policy hasn’t been surrendered, it may be reinstated or revived within five years of the first unpaid premium’s due date and before the date of maturity, provided that (i) the policyholder submits a written request for reinstatement or revival, (ii) the insured produces a current health certificate and other acceptable proof of insurability, and (iii) all past due premiums are paid in full.
- Free Look Period
The Policyholder has the right to cancel the Policy by giving written notice to the Company if the terms and conditions or features are not satisfactory to them. In this case, the Policyholder will receive a refund of all premium payments made without interest, less the following deductions: a) proportionate risk premium for the period of coverage; b) stamp duty, and c) medical examination costs (including goods and services tax) incurred for issuing the Policy. If any Cash Bonus was paid before the Free Look cancellation amount was processed, we will deduct it from the policyholder’s refund amount.
- Policy Loan
Policyholders may request for a policy loan for an amount up to 80% of the surrender value, provided that the policy gains surrender value. Tata AIA Life must be given ownership of the Policy.
- Tax Benefits
Subject to meeting the requirements outlined in the applicable Income Tax Laws, tax benefits may be made available. Any tax implications described in this material are not taken on by Tata AIA Life Insurance Company Ltd. To learn more about the tax benefits you may be eligible for, please visit your tax advisor.
The cash bonus can either be given to you in cash or placed in a sub-wallet. The percentage of the Cash Bonus that will be received in the Sub-Wallet can be adjusted. The balance in your Sub-wallet may also be withdrawn in full or in part at any time during the duration of the policy.
- Withdrawal from Wallet
During the insurance term, you have the option to withdraw all of the cash bonus funds from your Sub-Wallet or only a portion of them. When the insurance is surrendered or terminated, you will be given the remaining funds in the Sub-Wallet in the event of a partial withdrawal.
- Rider Advantage
By selecting one of the two riders, you can expand the coverage of your savings plan. If the rider policy term does not exceed the duration of the base policy, you may add them to your base policy at the time of its creation or any policy anniversary.
What Are The Things Not Included Under Tata AIA Smart Value Income 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 from the date of commencement of risk under the policy or the date of revival of the policy, as applicable.
How Does Tata AIA Smart Value Income Plan Work?
Let’s take an example to understand!
A man named Mr. Mangesh Rajput, who is 30 years old looking for an investment plan that can help him in protecting his dreams at various stages of life without compromising on his needs through financial resources. After getting many suggestions from friends and searching on the internet, he stumbled upon the Tata AIA Smart Value Income Plan and found it a great deal of investment. Mr. Bhatia, then, decided to buy this plan.
Here’s what he will get under different circumstances.
|Premium Paying Term:||Policy Term||Annualized Premium||Basic Sum Assured||Premium Frequency:||Plan Option||Mode of Payment of Cash Bonus|
|8 Years||40 Years||Rs. 1, 00, 000||RS. 12,50,000||Annual||Cash Bonus||Annual|
Frequently Asked Questions
Yes. Policyholders may apply for a Policy Loan for a sum up to 80% of Surrender Value, provided that the policy gains Surrender Value.
At the time of purchase, the policyholder has the option of accepting cash bonuses that are announced annually on policy anniversaries or on the birthday that follows the second policy anniversary.
Up to 30% of Par Fund’s equity exposure in VIP offers the possibility of better gains.