Tata AIA Life Insurance’s ‘Tata AIA Life Insurance Freedom’ is a non linked, participating, endowment plan which assures the users a retirement period that involves no worries about finances. The Tata AIA Pension plan offers Guaranteed Additions so that your retirement corpus is enhanced. Additionally, users can choose from optional rider in order to further enhance their plan.
Eligibility Criteria for Tata AIA Life Insurance Freedom
Given below are the eligibility criteria for Tata AIA Life Insurance Freedom
|Eligibility factor||Eligibility criteria|
|Minimum age at the time of entry||25 years|
|Maximum age at the time of entry||In case of Retirement Option1: 45 years In case of For Retirement Option 2: 50 years|
|Maximum maturity age||In case of Retirement Option 1: 55 years In case of Retirement Option 2: 60 years|
|Policy term||In case of Retirement Option 1: 55 is the age at entry In case of Retirement Option 2: 60 is the age at entry|
|Premium payment term||For Policy Term 10 to 14 -7/10 years For Policy Term 15 and above – 7/10/15 years|
|Payment mode||Annually, semi annually and monthly|
|Minimum Premium||As per Minimum Sum Assured|
|Minimum basic sum assured||Rs. 2,00,000 (in multiples of 1,000)|
|Maximum basic sum assured||Based on underwriting limit|
Key Features of Tata AIA Life Insurance Freedom
Listed below are the key important features of Tata AIA Life Insurance Freedom
|Policy terms||10, 15 and 20 years|
|Payment Mode||Annual/Semi-annual/ Monthly|
|Premium payment terms||For Policy Term 10 to 14 -7/10 years For Policy Term 15 and above – 7/10/15 years|
|Free look period||Within 15 days, the customer has a right to cancel the Policy by providing written notice to the Company. A refund of all the premiums that the customer paid without interest after deducting certain expenses will be given to the customer.|
|Grace period||One month (30 days)|
|Surrender||If the customer wishes, the policy can be surrendered at any point of the policy term, under the condition that at least the first full year’s premium has been paid.|
|Policy cover||Death benefit and maturity benefit along with guaranteed additions|
|Revival||In case of lapse of the policy, the policy can be revived within the two years from the date of the first unpaid premium .|
|Loan facility||Once it acquires surrender value, loan facility is offered. The loan will be guaranteed up to 65% of the surrender value.|
|Tax benefits||Under section 80c of the Income Tax Act, 1961, this policy qualifies for tax benefits|
Benefits of Tata AIA Life Insurance Freedom
Listed below are the benefits of Tata AIA Life Insurance Freedom
Online application- The policy can be purchased online
The application process is quick and hassle free.
- Death Benefit- If the death of the insured occurs during the policy term, the nominee will be paid the Sum Assured on Death (as well as the number of premiums paid). He/ she will also be paid the Accrued Guaranteed Additions and Vested Compounded Reversionary Bonus. Terminal Bonus will also be paid if it is payable. For more details on what the breakup of the payments will be, please check the official website.
- Maturity Benefit- On maturity of the benefit, the insured will be paid the Guaranteed Sum Assured on Maturity times the number of premiums paid. The vested Compounded Reversionary Bonus will also be paid. If payable, the Terminal Bonus will also be paid. For more details on what the breakup of the payments will be, please check the official website.
- Survival Benefit: At the beginning of the last policy year, the accrued Guaranteed Additions shall be payable.
- Tax Benefits- Under section 80c of the Income Tax Act, 1961, this policy qualifies for tax benefits
- Flexibility of additional cover- The product can be customized by adding the optional rider. This can only be done when the policy is initiated.
- Guaranteed Additions- Throughout the premium payment term, the customer can earn at 10% p.a. of annualised premium.
- Retirement corpus can be grown through accumulation of Compounded Reversionary Bonuses.
- Females need to pay lower premium rates.
How Tata AIA Life Insurance Freedom Works?
Tata AIA Life Insurance Freedom values the customer’s right to choose, thus the policy is very flexible. The basic sum assured, premium payment term and policy term must be chosen by the customer according to their requirement. The premium will be calculated based on policy term, age, basic sum assured and premium payment mode.
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GST of 18% is applicable on life insurance effective from the 1st of July, 2017