Tata AIA Monthly Income Plan

As we cruise through the various stages of life, our financial requirements change with the added burden of uncertainties and contingencies along the way. The best way to ensure your family’s financial protection and fulfill their dreams in the event of any unfortunate event is through a life insurance plan.

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Tata AIA Monthly Income Plan is a non-participating, non-linked individual life insurance savings plan. It offers financial security to you and your dependents through a monthly income plan. This plan can both meet your immediate needs and help you plan your future needs and protection of your loved ones.

Key Features of Tata AIA Monthly Income Plan

Some key features of the plan are:

  • This plan offers you the flexibility to choose your monthly income for either 10, 16, or 24 years.

  • There is an option of a significant premium boost that can help increase your monthly income.

  • You can choose the policy term as either 5, 8, or 12 years.

  • This plan offers you life cover that can secure your loved ones.

  • This plan offers you enhanced protection along with optional riders

  • There are tax benefits for this plan of the Income Tax Act under Section 10 and Section 80C.  (Tax benefit is subject to changes in tax laws.)

  • This plan offers a Grace period of 15 days for the monthly mode and 30 days for all other modes within which the premium must be paid.  If the premium is not paid within this time and the policy has not acquired surrender value, the plan will lapse, and no benefits will be payable.

  • If the plan is not revived within the grace period and the policy is not surrendered, you can revive the policy within five years after the due date of the first unpaid premium.

  • The basic sum assured for this policy is calculated as 11 times the annualized premium.

  • The premium for this policy can be paid annually, quarterly, half-yearly, or monthly.

How Does Tata AIA Monthly Income Plan Work?

First, you must choose the policy term, premium payment term, and amount to be paid. You can choose the policy term from 5/8/12 years and the monthly income term of 10/16/24 years.

  • The annualized premium will be 11 times the basic sum assured.

  • If the policyholder lives through the policy term, he will receive the maturity benefit of monthly income guaranteed for the pre-determined policy term.

  • If the policyholder dies during the policy or income term, the death benefit will be paid to the beneficiary.

You can also receive a significant premium boost based on the annualized premium and the premium payment term. It is calculated as a percentage that will be added to your monthly income.  

Additional Riders Applicable

You can enhance your Tata AIA Monthly Income Plan cover with the following additional riders:

  • Accidental Death and Dismemberment Rider: This rider ensures the protection of the insured’s family by paying the nominee an amount equal to the rider sum assured in the event of accidental death.

  • Waiver of Premium Plus: This rider waives all future premiums on the basic policy if the subscriber dies or becomes permanently disabled before he turns 70 or the conclusion of the basic plan's premium payment period, whichever comes first.

Eligibility Criteria for Tata AIA Monthly Income Plan

Premium Payment Term 5 years 8 years 12 years
Policy Term 5 years 8 years 12 years
Income Term 10 years 16 years 24 years
Minimum Entry Age 13 (for policy term 5 years) 10 (for policy term 8 years) 6 (for policy term 12 years)
Maximum Entry Age 60 (for policy term 5 years) 60(for policy term 8 years) 55 (for policy term 12 years)
Maximum Maturity Age 65 (for policy term 5 years) 68 (for policy term 8 years) 67 (for policy term 12 years)
Minimum Annualized Premium Rs. 75,000 per annum (for policy term 5 years) Rs. 50,000 per annum (for policy term 8 years) Rs. 36,000 per annum (for policy term 12 years
Maximum Annualized Premium No limit
Basic Sum Assured 11 times the annualized premium
Premium payment mode Annual/Half Yearly/Quarterly/Monthly

Benefits of Tata AIA Monthly Income Plan

Major benefits of the plan are:

  1. Maturity Benefit

    Provided the policy is in effect and all the premiums have been paid up to date, a Guaranteed Monthly Income is paid in arrears to the insured during the income term. 

    The income term begins from the end of the first month and ends after the end of the policy term. The Guaranteed monthly income is calculated as a percentage of Total Premiums paid based on the entry age and the policy term. 

  2. Death Benefit

    The nominee receives the Death Benefit if the insured dies during the policy term and the policy are still in force. "Sum Assured on Death" is the highest of the following:

    • 11 times the Annualized Premium

    • 105% of the total premiums paid up to the date of death

    • Guaranteed Sum Assured on Maturity

    • Absolute Sum Assured to be paid on death

    In the event of death of the insured within the income term, all the future Guaranteed Monthly Income would be paid to the beneficiary. The beneficiary can also choose to receive this income as a lump sum at the time of death.

  3. Policy Loan Benefit

    The policyholder can avail of a loan against the policy for an amount within 80% of the Surrender Value. The interest rate applicable on the bank loan will be equal to the current rate of any public sector bank.

  4. Surrender Benefit

    The policy can be surrendered any time during the policy tenure, but it must have acquired a Surrender Value after at least the first two years of premiums have been paid.  The Surrender Value is higher than the Guaranteed Surrender Value and Special Surrender Value.

  5. Tax Benefit

    The Tata AIA Monthly Income policy premiums are tax-deductible under Section 80C of the Internal Revenue Code.

Documents Required

To buy Tata AIA Monthly Income Plan, you must furnish the following supporting documents:

  • Valid document for identity proof such as Aadhar card, Passport, or Driver’s license 

  • Valid document for Address proof such as Aadhar card, passport, driving license, or voter’s card. 

  • Valid document for Income proof such as Income tax returns or salary slips

Steps to Buy the Tata AIA Monthly Income Policy

The Tata AIA Monthly Income Plan cannot be purchased online. To buy this plan, the subscriber must:

  • Visit the nearest Tata AIA Life Insurance branch office or schedule a meeting with a Tata AIA life insurance agent online.

  • Based on personal details, the Tata AIA Monthly Income Insurance Calculator will suggest an appropriate premium and sum assured.

  • The subscriber must provide all personal details and fill out the application form.

  • They must make the premium payment through cheque to activate the policy.

Policy Exclusions

The Tata AIA Monthly Income plan excludes death by suicide.

If the insured passes away due to suicide within 12 months after the policy's initial date or revival date, the beneficiary or nominee can receive:

  • at least 80% of the total premiums paid up to the date of death

  • or the surrender value of the policy at the time of death

Whichever is higher, the amount is given to the beneficiary.

In Conclusion

The Tata AIA Monthly Income Plan is ideal as it can accommodate your requirements for today’s needs as well as allows you to plan a comfortable future for yourself and your loved ones. This Tata AIA Life Insurance plan can enable you to fall back on a steady stream of income to meet your needs at every stage of life.

FAQ's

  • Until when does the monthly income benefit offered by the Tata AIA Monthly Income plan last?

    You can choose to receive your monthly income either for 10 or 16, or 24 years under the Tata AIA Monthly Income Plan.
  • What documents are necessary to buy the Tata AIA Monthly Income policy?

    You must submit the mandatory documents given below:
    For Address proof:
    • Aadhar card 
    • Bank statement
    • Passport
    • Driver license
    • Voter ID
    • Utility Bill
    As Identity proof:
    • PAN card
    • Aadhar card
    • Driver license
    • Passport
    As Income proof:
    • Salary slips
    • Income Tax returns
    • Bank statements
  • Can the premium be paid in advance under this policy?

    Collection of advance premium is allowed under this policy if it is collected in the same financial year, but the company may only collect the premium for up to a maximum of 3 months in advance of the premium due date.
  • What is the free-look period offered under this policy?

    The free-look period offered under the Tata AIA Monthly Income Policy would be 15 days and 30 days if a policy were purchased through distance marketing or online mode.
  • When does the Tata AIA Monthly Income Policy lapse?

    If the insured fails to pay the premiums within the grace period and the policy does not have a surrender value, the Tata AIA Monthly Income Policy would terminate. The policy will lapse from the due date of the first unpaid premium.
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Tata AIA Monthly Income Plan Reviews & Ratings

4.1 / 5 (Based on 25 Reviews)
(Showing Newest 10 reviews)
Chitvan
Kolavada, September 27, 2016
Trustable Policy
After a long web search, got great traditional insurance policy which i took from tata aia life insurance company. Service is fantastic provided by the executives and staff members of the insurance company. Policy coverage is high approx.89% and the claims are even better. Procedure of the claims are very easy due to fast service.
Ashish
Garifa, August 25, 2016
Tata insurance policy
Tata AIA life insurance is very great insurance company from long time. I purchase traditional insurance policy from them. Service is quick and the renewal of the policy can be done on online portal of the company website. Good coverage and claims, which can be easily sanctioned by the help of the executives of the company.
Manish
Ludhiana, July 27, 2016
Investment policy
I have bought an insurance policy plan from tata aia life insurance company. The company provides good service which is on time too. Online website facilitate the easy method to renew the policy with few clicks. It reduces paperwork and waste of time waiting in the queue.
Gaurav
Madhupur, July 12, 2016
Traditional Plan
The premium of my traditional insurance plan is less and infact it come in low investment too. Policy coverage is high and the claims are good enough to reimbursed the amount. Service provided is fantastic and due to that the claiming become easy.
Chirag
Algum, June 30, 2016
Good Plan
The traditional insurance plan you provided is superb which has low premiums. Service of tour staff is fabulous and even online portal service is easy to use. Updates of the insurance plan is mailed to me regularly. Policy coverage and claims are high.
Yogesh
Kolkata, May 09, 2016
Awesome
Tata aia traditional plan which has 94% policy coverage and the claims are easy to get because of fast services provided by the executives and staff members. The daily updates are texted and mailed time to time to may email id and cell number. Nice future investment and tax saving too.
Jayant
Sonipat, May 09, 2016
Wonderful Plan
I invest my money in tata aia traditional plan. The policy coverage is good ~86% and the claims are high. The premiums are low ~14 K quarterly per year. Paybacks are really very good Rs.41 L. Good investment and tax saver policy plan. The executives and staff members are behave well with fast service.
Nilesh
Durgapur, May 09, 2016
Perfect Policy Plan
Tata aia life insurance is one of the best insurance company. I took traditional insurance policy plan which provide me good service and high returns. The premiums are low and the policy coverage is high ~93% with high claims. The behaviour is good from executives and staff members. Good future investment.
Umakant
Hapur, May 09, 2016
Poor Plan
I purchase tata aia traditional policy plan. The policy coverage is low that is 71% and the claim is around 31 L. Service is bit slow, please improve your services for better performance. The web service is also slow. The policy is not good for long term investment and the tax rate cutter has low percentage. Please improve the terms and conditions for better results.
Manish
Siliguri, May 09, 2016
I Like It
I have traditional insurance policy plan which i buy from tata aia life insurance. The policy coverage is 92% and the claims are good. The premiums are low and the claiming process is easy and sanctioned in short time period. The policy is good future investment and it saves taxes too. I like the policy.
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