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 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.
It’s a traditional Endowment Assurance plan where premiums are paid for a limited term only. Other attributes of the plan include:
Eligibility Details
|
Minimum |
Maximum |
Entry Age |
18 years |
55 years |
Maturity Age |
- |
69 years |
Policy Term |
14 years |
|
Premium amount |
Rs.40, 000 |
No limit |
Sum Assured |
Rs.250, 000 |
No limit |
Premium Payment Term |
7 years |
|
Premium Paying Frequency |
Yearly, half-yearly, quarterly or monthly |
An Endowment Assurance plan where premiums are paid for a limited tenure only. The key points of the plan are discussed below:
Eligibility Details
|
Minimum |
Maximum |
Entry Age |
18 years |
50 years |
Maturity Age |
- |
Option A – 85 years Option B – 80 years |
Policy Term |
Option A – 35 years Option B – 30 years |
|
Premium amount |
Option A – Rs.15, 000 Option B – Rs.20, 000 |
No limit |
Sum Assured |
10 times the annual premium |
|
Premium Payment Term |
Option A – 15 years Option B – 12 years |
|
Premium Paying Frequency |
Yearly, half-yearly, quarterly or monthly |
A plan with the following features and benefits:
Eligibility Details
|
Minimum |
Maximum |
Entry Age |
8 years |
55 years |
Maturity Age |
- |
65 years |
Policy Term |
10 years |
|
Premium amount |
Rs.50, 000 |
No limit |
Sum Assured |
10 times the annual premium |
|
Premium Payment Term |
5 years |
|
Premium Paying Frequency |
Yearly, half-yearly, quarterly or monthly |
A plan where premiums are paid for a limited tenure only. The features and benefits of the plan are as follows:
Eligibility Details
|
Minimum |
Maximum |
Entry Age |
30 days |
45 years |
Maturity Age |
18 years |
65 years |
Policy Term |
10, 15 or 20 years |
|
Premium amount |
Rs.10, 000 |
No limit |
Sum Assured |
Rs.1 lakh |
Rs.10 lakhs |
Premium Payment Term |
7, 10 or 15 years |
|
Premium Paying Frequency |
Yearly, half-yearly or monthly |
A money back insurance plan participating in bonuses declared by the company. The features and benefits of the plan are as follows:
Eligibility Details
|
Minimum |
Maximum |
Entry Age |
2 years |
51 years |
Maturity Age |
18 years |
75 years |
Policy Term |
16, 20 or 24 years |
|
Premium amount |
Depends on term, age and coverage |
|
Sum Assured |
Rs.2 lakhs |
Rs.10 lakhs |
Premium Payment Term |
8, 10 or 12 years |
|
Premium Paying Frequency |
Yearly, half-yearly or monthly |
An Endowment Assurance plan participating in bonus. The features and benefits of the plan are as follows:
Eligibility Details
|
Minimum |
Maximum |
Entry Age |
6 years |
55 years |
Maturity Age |
- |
67 years |
Policy Term |
12 years |
|
Premium amount |
Depends on term, age and coverage |
|
Sum Assured |
Rs.2 lakhs |
No limit |
Premium Payment Term |
7 years |
|
Premium Paying Frequency |
Yearly, half-yearly, quarterly or monthly |
An Endowment Assurance plan earning bonus. The features and benefits of the plan are discussed as under:
Eligibility Details
|
Minimum |
Maximum |
Entry Age |
Option A – 30 days Option B - 18 years |
50 years |
Maturity Age |
- |
65 years |
Policy Term |
10 years |
30 years |
Premium amount |
Depends on age, tenure and coverage |
|
Sum Assured |
RS.1.5 lakhs |
No limit |
Premium Payment Term |
Equal to plan term |
|
Premium Paying Frequency |
Yearly, half-yearly, quarterly or monthly |
A plan covering the individual up to 85 years with the following attributes -
Eligibility Details
|
Minimum |
Maximum |
Entry Age |
30 days |
55 years |
Maturity Age |
- |
85 years |
Policy Term |
85 minus age at entry |
|
Premium amount |
Depends on age, tenure and coverage |
|
Sum Assured |
RS.2 lakhs |
No limit |
Premium Payment Term |
15 years |
|
Premium Paying Frequency |
Yearly, half-yearly or monthly |
A plan covering the individual up to 85 years with the following features and benefits:
Eligibility Details
|
Minimum |
Maximum |
Entry Age |
30 days |
55 years |
Maturity Age |
- |
85 years |
Policy Term |
85 minus age at entry |
|
Premium amount |
Depends on age, tenure and coverage |
|
Sum Assured |
RS.1 lakhs |
No limit |
Premium Payment Term |
15 years |
|
Premium Paying Frequency |
Yearly, half-yearly or monthly |
An Endowment Assurance plan earning bonuses with the following features:
Eligibility Details
|
Minimum |
Maximum |
Entry Age |
12 years |
55 years |
Maturity Age |
- |
73 years |
Policy Term |
18 years |
|
Premium amount |
Depends on age, tenure and coverage |
|
Sum Assured |
RS.2 lakhs |
No limit |
Premium Payment Term |
9 years |
|
Premium Paying Frequency |
Yearly, half-yearly or monthly |
An Endowment Assurance plan earning bonuses with the following features:
Eligibility Details
|
Minimum |
Maximum |
Entry Age |
12 years |
50 years |
Maturity Age |
- |
75 years |
Policy Term |
12 years |
30 years |
Premium amount |
Rs.12, 000 |
Depends on age, tenure and coverage |
Sum Assured |
RS.1 lakhs |
No limit |
Premium Payment Term |
Equal to plan tenure |
|
Premium Paying Frequency |
Yearly, half-yearly or monthly |
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.
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.
For online payment mode, the policyholder can pay via;
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.