Tata AIA Life Plus Plan
Objective
This term insurance policy aims to protect family members from financial distress in the event of death of the insured member.
What does it do?
This is a return-of-premium policy that can pay the sum assured in case of untimely death of the insured, or refund premiums at maturity.
The policy offers surrender value at 30 per cent of basic premiums paid excluding first year premiums, provided the premiums were regularly paid for three consecutive years.
It also offers optional accidental death and dismemberment short scale rider for extra protection.
In case the policyholder is unable to pay premium within grace period, insurance company advances an automatic loan to policyholder to pay the due premiums. However, this facility is provided only if your policy has acquired a cash value which is more than the premiums due.
Pros
A lapsed policy can be reinstated within 5 years.
Accidental death and dismemberment rider enhances insurance cover.
Premium due can be advanced as loan if policyholder is unable to make payment.
There is no limit on maximum sum assured.
Premiums paid toward the policy qualify for tax benefit under section 80C of Income Tax Act.
Cons
There is only one policy term of 20 years, which may not suit everyone.
Suited for
It is suitable for those who specifically require a policy for 20 years.
Our View
You should be covered until you have to support a family or someone else replaces you as breadwinner. The 20-year policy tenure may not fulfil this criteria for everyone.
Being a refund-of-premium policy, the plan factors in the benefit cost and charges high premiums. We recommend a pure term plan for policy term till you have dependents.
Eligibility
| Entry Age (years) | |
| Minimum | 18 |
| Maximum | 60 |
| Maximum Maturity Age (years) | 80 |
| Policy Term (years) | |
| Minimum | 20 |
| Maximum | 20 |
| Sum Assured (Rs) | |
| Minimum | 10000 and in multiples of Rs 1000 thereafter |
| Maximum | No limit |
| Minimum Premium (Rs) | ….. |
| Premium Payment Frequency | Yearly, Half-yearly, Quarterly, Monthly |
| Premium Payment Term | Limited (15 years) |
| Premium Factor (multiply with annual premium) | Half Yearly: 0.51 times annual premium; Quarterly: 0.26 time annual premium; Monthly: 0.0883 time annual premium |
| Policy Cover | Cover remains fixed for the tenure of the policy |
| Other Features | |
| Free Look Cancellation | In case, you are not satisfied, you may choose to cancel the policy within 15 days of receiving the policy documents. Upon such cancellation, you will be paid back the premiums, minus the cost of stamp duty, medical reports and proportionate premium for the period for which the risk was covered. |
| Grace Period | You are allowed to pay premiums within 31 days from the due date. If a due premium is not received within the grace period of 31 days, your policy will lapse and the life insurance cover will be terminated. |
| Lapsed Policy Reinstatement | You can reinstate your lapsed policy any time (within 5 years from the due date of the first unpaid premium) by paying all the due premiums with interest and undergoing underwriting requirements, if any. |
| Tax Benefits | Section 80C, 10(10D) of the Income Tax Act, 1961 would apply.Premium paid is eligible for tax deduction as per current income tax act. |
| Exclusions | In case of death by suicide during the first policy year, or within one year from the date of reinstatement, no death benefit is payable. |
| Maturity Value | It returns all basic premium paid on survival at maturity. |
| Surrender Value | Allowed after first three years have been paid in full on time. Guaranteed Surrender Value= 30%* Basic Premiums paid(excluding rider premiums or extra premiums paid if any) - first year's premium |
| Customer Service | |
| Address | Tata AIG Life Insurance Company Limited Delphi-B Wing, 2nd Floor, Orchard Avenue, Hiranandani Business Park, Powai, Mumbai 400076 |
| Mail To | ……. |
| Call On | 1800119966; 24 hours |
| SMS | SERVICE' to 58888 |
| Available Rider(s) | AIG Life Accidental Death and Dismemberment Short Scale Rider: covers Accidental death, dismemberment, loss of sight, speech and hearing resulting from accident |
| Rider Conditions | |
| Entry Age (years) | |
| Minimum | 18 |
| Maximum | 60 |
| Maximum Maturity Age (years) | 80 |
| Sum Assured (Rs) | |
| Minimum | Minimum Sum Assured of Base policy |
| Maximum | Maximum sum assured of base policy |
| Rider Premium (Rs) | Rider premiums vary for each policyholder. For instance, if a 30-year old opts for the AIG Life Accidental Death and Dismemberment Short Scale Rider for Rs 5 lakh, the annual premium works to Rs 800. |
| Annual Premium Option | |||||||||
| Policy Term^ (in years) | Age (in years) | ||||||||
| 25 | 30 | 35 | 40 | 45 | 50 | 55 | 60 | ||
| 20 | 34820 | 38440 | 45620 | 56920 | 72700 | 93640 | 118860 | 148040 | |
| Figures indicate premiums on a Rs 20 lakh policy for an age over different policy tenures exclusive of service tax.^Premium payment term is 15 years | |||||||||
