Tata AIA Child Plans
Tata AIA Life Insurance Company is a joint venture between Tata Sons Limited who owns the majority of the stake-holding in the company at 74% and AIA Group Limited who have the remaining holding of 26%. While on one hand Tata is a leading group in the country specializing in multiple business ventures, on the other hand AIA boasts of being the largest listed pan-Asian life insurance group which has a presence in over 17 markets in the Asia Pacific region. The expreince and efficiency of both these companies have established Tata AIA Life Insurance Company in the insurance sector of the country. Today, the company offers a multitude of products to its customers to meet their insurance requirements. The range of products offered by Tata AIA Life Insurance Company include Protection plans in the form of term plans, Child Plans, Savings and Investment Plans which are available in both conventional or ULIPs form and pension plans. With a wide range of products, the company strives to meet every individual’s insurance related requirement at a single source.
What are Child Plans?
Child plans are insurance plans offered by insurers to provide for the welfare of an individual’s child even if the individual is not around. A child plan is developed on the concept of providing financial support to the family for the child’s future if the parents meet with an unfortunate death. Insurance plans designed for the child do not usually insure the child. The life insured under these plans are the parent who has a minor child to provide for. The underwriting is done on the life of the parent and the details of the child are to be provided in the policy.
Child plans have some common features which are given below:
- There is a concept of ‘deferment’ in some of the child plans. Deferment means postponement and is usually applied if the child is the person insured. Under the deferment clause, the risk coverage under the plan starts after the expiry of a couple of years. In case the child dies during the deferment period, the premiums paid till the date of death are returned because the life cover is not applicable during that period.
- Another concept is ‘Vesting’ which means the age of the child when the policy vests in the name of the child and he becomes the policyholder. The Vesting age is usually 18 years when the child attains majority and becomes the policyholder of the plan.
- There is an inbuilt Waiver of Premium Rider in most of the child plans. The rider states that if the parent who is the policyholder and life insured under the plan dies during the tenure of the plan, all future premiums payable under the plan will be waived and paid for by the company. The plan will continue unaffected and the benefits as promised under the plan will accrue as and when they fall due.
Why Child Plans?
Child Insurance plans have become very important because they specifically provide for one’s child’s future even in one’s absence. The inbuilt premium waiver rider ensures that the plan continues even after the parent’s death and the benefits accrue and when they are payable so that the benefits can be utilized for the purpose for which it was initially planned, i.e. for the child’s future. For example, an individual with a child currently aged 5 years buys a 20 year child plan which promises money backs at the 15th, 17th and 20th policy anniversary. The policyholder has planned the money back periods to coincide with the child’s educational milestones and would receive the funds when the child reaches 20 years, 22 years and 25 years. The funds will be utilized to take care of the child’s higher education. If the insured dies, the plan will not be terminated. Future premiums will be paid by the company and the money-backs will be paid as and when promised. Thus, the money will be utilized only for the child’s education which was the actual rationale for buying the plan.
TATA AIA Child Plans
Tata AIA Life Insurance Company offers one type of child insurance plan called the Super Achiever Plan which is a unit linked insurance plan offered by the company. Let us take a detailed look at this child education policy along with its features and benefits:
TATA AIA Life Insurance Super Achiever Plan
A unit linked child insurance plan which provides for the financial security of the child’s future even in the absence of the parent. The features and benefits of the plan are as follows:
- The premiums under the plan are supposed to be paid for a limited tenure only
- The premiums paid net of charges are invested as per three investment strategies. The policyholder may either choose to manage the investments himself or leave the management to the company under two strategies of Enhanced Automatic Asset Allocation Plus (EAAAP) or Protect Returns Of Funds Increased over Time (PROFIT).
- For the self-managed strategy, there are 8 fund options to choose from namely – Multi Cap Fund, India Consumption Fund, Large Cap Equity Fund, Whole Life Mid Cap Equity Fund, Whole Life Aggressive Growth Fund, Whole Life Stable Growth Fund, Whole Life Income Fund and Whole Life Short-Term Fixed Income Fund
- Under the EAAAP strategy, the net premium is invested in a specified ratio in the Large Cap Equity Fund and Whole Life Income Fund with a higher proportion in the Large Cap Equity Fund. The ratio changes over time and with the date of maturity approaching, the proportion of investment increases in the Whole Life Income Fund to protect the fund from market volatility. The funds rebalance themselves as per the relevant ratio every quarter
- Under the PROFIT Strategy, net premiums are invested in the Equity Fund and the returns in the fund act as a trigger whereby the profits are booked into a low risk debt fund to protect them against market volatility
- On maturity, the Fund Value is payable which can be availed in lump sum or taken in instalments over a period of 5 years through the Settlement Option feature
- Guaranteed Maturity Additions are added to the fund value on maturity @5% of the fund value
- In case of death of the insured during the plan tenure, higher of the Sum Assured including top-up Sum Assured or 105% of all premiums paid including top-up premiums paid is paid immediately on death of the insured. Furthermore, all future premiums are waived off and are paid for by the company as and when they accrue and on maturity, the Fund Value is paid.
- Four free Partial withdrawals can be made after 5 completed policy years at a minimum of Rs.5000
- Top-ups can be done to increase the Sum Assured and the Fund Value with a minimum amount of Rs.5000
- 12annual free switching is available and also is the feature of premium redirection to redirect future premiums to a new fund than the actual chosen one
- Income tax benefit on the premium paid as per Section 80C and on claims under Section 10(10D) of the Income Tax Act.
Life Insured – 25 years
Child – 30 days
Life Insured – 50 years
Child – 17 years
10 times the annual premium
Premium Payment Term
Premium Paying Frequency
Yearly, half-yearly or monthly
Applying for a Child Plan from the company:
The company offers specific plans which are available online only. The customer only needs to log into the company’s website, choose the required plan, choose the coverage and provide the details. The premium will be determined using the filled details. The customer then needs to pay the premium online through credit card, debit card or net banking facilities and the policy will be issued
Plans which are not available online can be purchased from agents, brokers, banks, etc. where the intermediaries help with the application process.
Applying For Child Plans through PolicyBazaar
- On the PolicyBazaar homepage, click on Child Plans under the Personal tab.
- Click New Quotes to compare and choose from top insurance providers.
- Fill your date of birth (DOB), whether you are a smoker/non-smoker, and the payout amount. On the basis of your payout amount, you will get an estimate of your premium. Next click Continue.
- Fill in your name, email address, city, country code, and mobile number. Click Continue.
- You will be taken to the Life Insurance quotes page where you will see life insurance quotes of more than 10 insurers. Next, choose the plan as per payment schedule – One Time Payout and Monthly Payout Plans.
- After reviewing and comparing each life insurance quote, click the premium amount to buy the desired plan.
- You will see a pop-up on the screen which will give you an overview of the chosen plan like premium, plan features, exclusions, additional riders, etc. Click Proceed.
This will take you to the insurer’s website. Fill in the necessary details to buy the plan.
Tata AIA Child Plans - FAQ
1. How to pay premium? What are the modes of payment available?
TATA AIA life Insurance offers 5 modes of premium payment namely;
- Online Payment
- Auto debit
- Cash/Cheque collection center
- Payment Collection Center.
For online payment mode, the policyholder can pay via;
- NEFT transfer
- Activating auto debit facility in the bank account
- Quick pay via ICICI portal
- Internet Mobile Payment Service
Alternatively, the policyholder can pay in cash or drop cheque at any of the payment collection centers or dropboxes mentioned on the TATA AIA website.
2. How can I check policy status for Tata AIA Child Plans?
If you are a registered user, directly log into TATA AIA website with relevant username and password. You would be directed to the homepage of your policy account. Now simply click the tab “Check Policy Details” to check the status of your policy and other relevant details. For new policyholders they must register on the website and proceed with the same steps.
3. What is the policy renewal process for Tata AIA Child Plans?
TATA AIA offers the policyholders a chance to renew their policy online. Simply log into the portal and follow the link that leads to secured payment process. You can renew your policy by using debit, credit card, or net banking option.Opt for Auto Renewal, when you initially sign up for the policy to save efforts and time. If you did not then you can do now by contacting customer helpdesk at the same toll free number.
4. What is the company’s process to settle claim for Tata AIA Child Plans?
Company offers a transparent claim process. The policyholder can register claims by submitting their request at the customer care helpdesk or via an SMS. Upon receiving complete documents, the claim is settled within 7 working days. There are dedicated offices at certain locations to directly file the claims.
5. What is the policy cancellation process for Tata AIA Child Plans?
The policyholders must attach the relevant policy documents along with a filled surrender form at any of the branch locations in their city. Upon receiving the correct documents, the deposited amount is credited into the policyholder’s bank account as per the company’s records, and the policy is cancelled.
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