TATA AIA Life Value Income Plan
Tata AIA Life Insurance Value Income Plan is an individual, non-linked, participating life insurance savings plan that gives you the choice between receiving cash bonuses, if declared payout each year on the policy anniversary or on your birthday following the second policy anniversary to take care of your financial commitments, or building a larger corpus if declared at a company declared interest rate, to create a stress-free lifestyle.
Tata AIA Life Insurance Value Income Plan offers you two practical options for saving, as well as the benefit of an extended life cover that lasts up to 100 years of age, depending on your preferences.
If you are looking to buy Tata AIA Value Income Plan, let’s discuss its eligibility criteria, key features and benefits, exclusions, premium calculation, and more.
Here is the eligibility criteria for Tata AIA Value Income Plan:
Minimum: 30 Days
|Age at Maturity||Minimum: 18 Years, Maximum: 80 Years|
|Policy Term (PT)||10 to 40 (Minimum Policy term: Premium Paying Term + 5 years)|
|Premium Payment Term (PPT)||5 to 15 years|
|Premium Payment Mode||Annual/ Half-yearly / Quarterly/ Monthly|
Option 1 – Endowment
Option 2 – Endowment with Extended Life Cover (ELC) till age 100
Important Features and Benefits of Tata AIA Value Income Plan
Here is the list of the features and benefits of the Tata AIA Value Income Plan.
- Life Cover Protection
You can choose the life insurance option that best suits your needs and those of your family by choosing between two insurance plan alternatives. For a better financial safety net for your loved ones, you can choose the Extended Life Cover until age 100 under one of the alternatives.
- Mindful Savings
The savings policy aids you in consistently setting aside funds so you can build up a financial corpus at maturity and satisfy all of your future financial obligations. A savings strategy like this aids in safeguarding the aspirations and objectives of your family so they can live carefree lives.
- Survival Benefit
You have two plan alternatives to pick from, and you can choose to start receiving the cash bonus (if any) after the second policy anniversary. As an alternative, you might decide to save up the cash bonus (if any) and get paid off upon demise, surrender, or maturity.
- 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 in accordance with its terms and conditions.
- Maturity Benefit
The maturity benefit can either consist of the Guaranteed* Maturity Benefit and a Terminal Bonus (if any), or of the Guaranteed* Maturity Benefit, Accumulated Cash Bonus (if any), and Terminal Bonus, depending on which of the two plan choices you choose (if any).
- Death Benefit
The Sum Assured on Death as described below plus Accumulated Cash Bonus and Terminal Bonus, if declared, shall be given upon the death of the life assured within the Policy Term, provided the policy is in force. Sum Assured on Death is the highest of the following:
- 11 times the Annualised Premium
- Guaranteed Maturity Benet
- Basic Sum Assured
- Surrender Benefit
The surrender benefit must be paid. If at least two full years’ worth of premiums has been paid, the policy will develop a surrender value during the policy term. The higher of the Guaranteed Surrender Value (GSV) or Special Surrender Value shall be the surrender value payable (SSV).
- 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.
If a premium is past due after the Grace Period and the policy hasn’t been surrendered, it may be revived within twenty years of the first unpaid premium’s due date and before the date of maturity, provided that I the policyholder submit a written request for 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, plus interest.
- Free Look Period
The policyholder has 15 days from the date of delivery of the policy paper to evaluate the terms and conditions of the policy, and they have 30 days if they purchased the policy electronically or remotely. The option to return the policy for cancellation exists if the policyholder objects to any of those terms or conditions. In this case, the policyholder will be entitled to a refund of the premiums paid without interest, less the proportionate risk premium, stamp duty, the cost of the medical examination, and any applicable taxes and cesses or levies, if any.
- Tax Benefits
Subject to meeting the requirements outlined in the applicable Income Tax Laws, tax benefits may be made available. No tax implications described in this material are taken on by Tata AIA Life Insurance.
Major Exclusion Under Tata AIA 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 from the date of revival of the policy, as applicable.
How Does The Tata AIA Value Income Plan Work?
40-year-old Vivek Mukherjee works as a teacher. He purchases the Endowment option of the Tata AIA Life Insurance Value Income Plan. The candidate is his wife. The following are the policy’s specifics:
|Premium Paying Term||Policy Term:||Bonus Option||Annualized Premium||Basic Sum Assured||Non Guaranteed Benefits: Accumulated Cash Bonus and Terminal Bonus at 8%||Total Death Benefit at 8%|
|10 years||20 Years||Accumulated Cash Bonus||Rs. 1, 00, 000||Rs. 9,52,381||INR 1,14,085||INR 12,14,085|
Frequently Asked Questions
No, according to the terms and circumstances of the rider, the rider benefit is only paid out if the incidents or casualties covered by the rider occur.
The policy will expire or be changed to a lower paid-up policy in accordance with the terms and circumstances of the policy if the premiums are not paid before the end of the grace period. The insurance can be revived, allowing you to continue receiving coverage if you pay the premiums plus interest after the grace period within 5 years of the initial missed premium.
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.
If the policyholder decides to accept the cash bonus and it is announced on their birthday:
- If a cash bonus was claimed for the previous year, it would be paid out concurrently with the maturity benefit rather than on the policyholder’s birthday.
- The amount must be paid at any moment during the week before the policyholder’s birthday.