Tata AIA Traditional Plans

Tata AIA Life Insurance Company is formed between Tata Sons and AIA group with a shareholding pattern of 74% and 26% respectively. Both the companies boast of being leaders in their individual sectors and jointly the company is also among the leaders in the insurance sector due to their trustworthiness. The company offers various different types of insurance plans with traditional plans being one of them.

TATA AIA Traditional / Investment Plans

TATA AIA Insurance Company deals in multiple plans which are in the genre of traditional plans. Detailed below is a complete list of all the investment plans which the company has to offer along with the respective traits of each plan.

TATA AIA Life Insurance Secure 7 Plan

It’s a traditional Endowment Assurance plan where premiums are paid for a limited term only. Other attributes of the plan include:

• Guaranteed Annual Income is paid from the 8^th year till the end of the term @ 50% to 150% of the annualized premium
• On maturity 25% of actual Sum Assured along with the last instalment of the Guaranteed Annual Income is paid
• On the insured’s demise, the Sum Assured on death is payable and itis higher of the given Sum Assured, 10 times the annualized premium, 105% of total premiums which were paid till the insured died or the maturity Sum Assured
• The plan has loan facility
• Discounts are given on premiums if Sum Assured is RS.7 lakhs and above

Eligibility Details

TATA AIA Life Insurance Maha Life Supreme Plan

An Endowment Assurance plan where premiums are paid for a limited tenure only. The key points of the plan are discussed below:

• Guaranteed Annual Income is expressed as a percentage of chosen Sum Assured and varies as per the plan options and premium amount
• The plan has two options of A and B with different premium payment terms and rates of Guaranteed Annual Incomes
• On maturity {140%-(0.1%*Entry Age)}* Basic Sum Assured is paid under Option A and {120%-(0.1%*Entry Age)}*Basic Sum Assured is paid under Option B. The last instalment of the Guaranteed income is also paid along with the above mentioned benefit
• In case of death during the tenure of the plan, the Sum Assured on death is payableand it is higher of 150% or 130% of basic Sum Assured or 105% of sum of premiums which were paid untildeath or Sum Assured as on maturity

Eligibility Details

TATA AIA Life Insurance Fortune Guarantee Plan

A plan with the following features and benefits:

• After maturity a percentage of aggregate premiums paid is payable. The percentage depends on the gender, entry age and the amount of premium paid
• On death during plan term, the Sum Assured on death is payable and it is higher of Sum Assured, 105% of total premiums paid up to death or the maturity Sum Assured
• TATA AIA Life Insurance Accidental Death and Dismemberment (Long Scale) Rider can be availed for a comprehensive protection
• Loans can be sought up to a maximum limit of 65% of applicable Surrender Value

Eligibility Details

TATA AIA Life Insurance Insta Wealth Plan

A plan where premiums are paid for a limited tenure only. The features and benefits of the plan are as follows:

• Payment of Guaranteed Additions is after the completion of premium paying term till the end of plan term @1% of the Sum Assured
• At the time of maturity, the Sum Assured and the vested bonuses with Terminal Bonus, if any accrued, and accrued Guaranteed Additions is paid
• In case of death during the tenure of the plan, the Sum Assured on death is payable which is higher of Sum Assured or 10 times of annualized premium to a minimum value of 105% of aggregate premiums paid till death and vested bonuses with accrued Guaranteed Additions
• Loans are available under the planup to 65% of the Surrender Value
• Premium discounts for Sum Assured levels of Rs.2 lakhs and above

Eligibility Details

TATA AIA Life Insurance Money Back Plus

A money back insurance plan participating in bonuses declared by the company. The features and benefits of the plan are as follows:

• Survival benefits accrue @20% thrice during the plan tenure
• On maturity, 50% of Sum Assured is paid for tenures of 16 years, 60% for a tenure of 20 years or 70% of Sum Assured is payable for a tenure of 24 years with the vested bonuses including any Terminal Bonus
• In case of death during the tenure of the plan, the Sum Assured on death is payable which should be higher of Sum Assured or 10 times the annualized premium with a minimum of 105% of aggregate premiums paid till death and vested bonuses
• The accidental benefit rider is inbuilt in the plan and it pays an additional Sum Assured if the insured suffers accidental death
• Loans are available under the plan to a maximum of 65% of the Surrender Value
• Discounts in premiums if the amount of chosen Sum Assured is RS.3.5 lakhs or above

Eligibility Details

TATA AIA Life Insurance Smart 7

An Endowment Assurance plan participating in bonus. The features and benefits of the plan are as follows:

• On maturity the amount payable is Guaranteed Sum Assured payable on maturity and the vested reversionary bonus and any Terminal Bonus
• In case of death during the tenure of the plan, the Sum Assured on death is payable and it is higher of 1.75 times the Sum Assured or 10 times the yearly premium with a minimum of 105% of aggregate premiums paid till death and the vested bonuses
• Loans are available under the plan

Eligibility Details

TATA AIA Life Insurance Smart Growth Plus

An Endowment Assurance plan earning bonus. The features and benefits of the plan are discussed as under:

• The plan has two options of A and B.
• Guaranteed Additions accrue during the first 5 years @5.5% of the Sum Assured
• Sum Assured + Vested Bonus + Terminal Bonus + Guaranteed Additions is paid on maturity
• In case of death during the tenure of the plan, the Sum Assured on death is payable which will be higher of Sum Assured or 10 times the annualized premium with a minimum of 105% of aggregate premiums paid till death and vested bonuses with accrued Guaranteed Additions
• Loans are available under the plan
• If Sum Assured is Rs.3 lakhs and above, a discount in premium will be given

Eligibility Details

TATA AIA Life Insurance Maha Life Gold Plus

A plan covering the individual up to 85 years with the following attributes -

• Guaranteed Annual Coupons are paid from the 11^th year till the 30^th year which depends on the Sum Assured chosen
• Cash dividends are paid from 6^th year till maturity or till death
• On maturity, Sum Assured along with the last coupon and dividend is paid
• In case of death during the tenure of the plan, the Sum Assured on death is payable which will be higher of Sum Assured or 10 times the annualized premium with a minimum of 105% of aggregate premiums paid till demise of the insured
• The amount of Sum Assured increases every 15 years till the 45^th policy year
• Loans are available under the plan

Eligibility Details

TATA AIA Life Insurance Maha Life Gold

A plan covering the individual up to 85 years with the following features and benefits:

• Guaranteed Annual Coupons are paid from the 11^th year till the 30^th year depending on the Sum Assured chosen
• Cash dividends are paid from 6^th year till maturity or death
• On maturity, the Sum Assured along with the last coupon and dividend is paid
• In case of death, the Sum Assured on death is paid which is the maturity Sum Assured or 10 times the annual premium up to a minimum of 105% of total premiums paid till the date of death
• The Sum Assured increases every 15 years till the 45^th policy year
• Loans are available under the plan
• Discounts are allowed if higher levels of Sum Assured

Eligibility Details

TATA AIA Life Insurance Maha Life Magic

An Endowment Assurance plan earning bonuses with the following features:

• At maturity the amount payable is the Sum Assured plus vested reversionary bonus +any Terminal Bonus
• In case of death during the tenure of the plan, the Sum Assured on death is payable which will be higher of Sum Assured or 10 times the annualized premium with a minimum of 105% of aggregate premiums paid till death and vested bonuses
• Loans are available under the plan

Eligibility Details

TATA AIA Life Insurance Money Maxima

An Endowment Assurance plan earning bonuses with the following features:

• A benefit which is the Guaranteed Loyalty Additions @ (term / 2)% of Sum Assured is paid on maturity or death
• At maturity Sum Assured and the vested reversionary bonus and Terminal Bonus is paid to the policyholder
• On death, the Sum Assured on death is payable which is equal to the maturity Sum Assured or 10 times the annual premium subjected to a minimum of 105% of aggregate premiums paid till death and the vested bonuses
• Loans are available under the plan

Eligibility Details

Applying for a Traditional / Investment Plan from the company:

Online

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

Intermediaries

Plans which are not available online can be purchased from agents, brokers, banks, etc. where the intermediaries help with the application process.

Applying For Traditional Insurance through PolicyBazaar

1. On the PolicyBazaar homepage, click on Traditional Insurance under the Personal tab.
2. Click New Quotes to compare and choose from top insurance providers.
3. 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.
4. Fill in your name, email address, city, country code, and mobile number. Click Continue.
5. 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.
6. After reviewing and comparing each life insurance quote, click the premium amount to buy the desired plan.
7. 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.
8. This will take you to the insurer’s website. Fill in the necessary details to buy the plan.

What is Endowment Life Insurance Plan?

An endowment life insurance plan is a kind of insurance policy where the premium is paid for the entire duration of the policy and when it matures, the policyholder receives a lump sum amount of money. Death benefits are also paid out if the policyholder dies within the policy period. An endowment plan can also be surrendered mid way and a surrender value can be claimed. In other words, an endowment life insurance plan provides both cover and investment.

How does an endowment plan work?

Let us take an example to understand this. Mahesh buys a life insurance plan of Rs.20 lacs for 25 years. He pays the yearly premiums for 25 years, at the end of which he receives the maturity benefit, which is the sum assured along with the bonuses, if any. However, if Mahesh had died within this time, his nominee would receive the sum assured and the policy would terminate then and there.

What are the different types of endowment plans?

There are different types of endowment plans. While we have the traditional endowment plans, like the one Mahesh had purchase, we also have money back plans, marriage endowment plans, child endowment plans, education endowment plans and so on. These types of endowment plans allow you to opt for a steady flow of income throughout the policy period. You can opt to get, for example, 10% of the sum assured 5 years into the plan and the rest at the time of maturity. These plans help people deal with financially challenging situations that may arise due to various reasons.

Who are the people who benefit from an endowment plan?

People with a medium risk appetite and who want guaranteed returns benefit greatly from the endowment insurance plans. Since the endowment plans have a fixed return component, many people like purchasing endowment plans as opposed to ULIPs. A policyholder also has the option of buy a participating plan by agreeing to pay a higher premium. In such a plan, he will be entitled to the bonuses along with the sum assured. An endowment insurance plan is also essential for a person who has dependent family members. An endowment plan will help him to pay for the various expenses like his children’s education, marriage, etc at various points in time.

Why Endowment Plan?

Endowment insurance plans have been favored insurance tools for a lot of people for a number of reasons. The biggest advantage of an endowment plan is the fact that the plan provides cover as well as a platform for investment. An endowment plan also provides you the chance to save and receive money when you need it the most. Let us take a look at some of the biggest reasons for the popularity of endowment plans.

How does an endowment plan help in building a fund?

An endowment plan works in a unique way. It help the policyholder in building up funds for specific life events like retirement, child’s marriage, etc. You can buy an endowment plan and opt to get parts of the sum assured at desired points in time. Let us take an example. Asoke’s son Varun is to get admitted into college exactly 20 years from the time he buys the policy. Asoke plans accordingly and receives 25% of the sum assured at that time. It helps him to pay for the college admission fees. Then, he opts to receive another 25% of the sum assured 10 years from then, at the time of Varun’s wedding. The remaining 50% he receives 10 years later, when he retires.

An endowment plan proves to be a great source of saving as well. It is particularly good for people who find it difficult to save in and maintain a savings bank account. An endowment plan sort of forces you to save and all this happens while your life is covered.

Do endowment plans provide tax benefits?

Yes, endowment plans do provide us with some very attractive tax benefits and this is another reason why endowment plans are popular. The entire amount received as the maturity benefit is non-taxable under section 10D(D). This proves to be helpful as you usually receive the amount when you need the cash badly and getting the maximum possible lump sum amount of money helps. Also, premiums up to Rs.1lac are tax exempted under Section 80C.

Tata AIA Traditional 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
• DropBoxes
• 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 Traditional 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 Traditional 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 Traditional Plans?

Company offers a transparent claim process. The policyholder can register claims by submitting their request at the customer care helpdesk. 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 Traditional 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.