Tata AIA Life Insurance MahaLife Magic Plan

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Introduction/Overview

Tata AIA Life Insurance MahaLife Magic is a traditional participating Endowment Assurance plan under which premium needs to be paid for a limited time and the benefits accrue later. Bonus participation enhances the corpus invested.

Key Features

  • The plan is a limited premium plan with premium payable for only 9 years
  • The plan is eligible for Compound Reversionary Bonus and Terminal Bonus

Benefits

  • On Maturity, the policyholder gets the Sum Assured and the accrued bonuses
  • On Death, the Sum Assured along with the accumulated vested bonuses is paid which should be a minimum of 105% of all premiums paid
  • The Sum Assured payable on death would be higher of 10 times the annual premium or Basic SA
  • Premiums paid and claims received are exempted from taxation under Section 80C and 10(10D) of the Income Tax Act

Product Specification:

 

Minimum

Maximum

Entry Age (Last Birthday)

12 years

55 years

Maturity Age (Last Birthday)

-

73 years

Policy Term (PT) in years

18 years

Premium Paying Term (PPT) in years

9 years

Premium Paying Frequency

Annual, Half-yearly, monthly

Yearly Premium

Depends on age and coverage chosen

Sum Assured

200,000

No limit

Details About Premium

Annual premium in Rupees for a SA of 10 Lakhs

Age

Annual Premium

Benefits @ 4%

Benefits @ 8%

Compound Reversionary Bonus

Terminal Bonus

Maturity Benefit

Compound Reversionary Bonus

Terminal Bonus

Maturity Benefit

25

122,070

354,494

88,624

14,43,118

10,25,817

256,454

22,82,271

35

123,750

354,494

88,624

14,43,118

10,25,817

256,454

22,82,271

Policy Details

Grace Period: 15 days grace period is allowed for payment of premium in monthly mode and 30 days for annual and half-yearly mode. If policyholder fails to make payment within the grace period, the policy lapses

Policy Termination or Surrender Benefit: the policy can be surrendered anytime if one full years’ premium has been paid. The Surrender value will be higher of the Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV) where

GSV = total premiums paid*GSV Factor for premiums + (vested Compound Bonus* GSV Factor for bonus)

SSV = SSV Factor *Reduced Paid-up SA +vested Compound Bonus

Free Look Period: If you would not be pleased with the coverage, and terms and conditions of the policy, you have the option of canceling the policy within 15 days of receipt of the policy documents, provided there has been no claim.

Inclusions

  • Loan can be availed under the plan

Additional Features or Riders

  • There is a discount in premium for large Sum Assured ranges up to a maximum of 3.25% of SA

Exclusions

  • In case of suicide within 12 months from inception, total premiums paid is returned and within 12 months of revival, higher of total premiums paid or acquired Surrender Value is paid to the nominee

Documents Required

Policyholder has to fill up an ‘Application form/ proposal form’ with accurate medical history along with the address proof. Medical examination may be required in some cases, based on the sum assured and the age of the person.