Life is unpredictable. This is also especially true from a financial perspective. In economic uncertain times such as this, it is imperative for customers to ensure that their financials are secure and one way to ensure this is to invest in a life insurance policy. Life Insurance policies ensure that, in the event of untimely death of the insured, his/her family will not have to suffer financially.
TATA AIA Life Insurance Monthly Insurance plan allows customers to save every month for a predetermined period so as to create a large corpus for their future requirements. In addition to this, customers also procure guaranteed annual additions and bonuses to enhance their savings along with tax benefits and life cover.
The Monthly Insurance Plan is a participating endowment assurance plan that is non linked.
Eligibility Conditions for TATA AIA Life Insurance Monthly Insurance Plan
|Entry Age (in years)||30 days||50|
|Maturity Age (in years)||18||70|
|Policy Tenure (in years)||15 years and 20 years|
|Premium Payment Tenure (in years)||For policy tenure of 15 years, 7 is the term For policy tenure of 20 years, 10 is the term|
|Basic Assured Sum||Rs. 114,482 for a 50 years old male with a policy tenure of 15 years||Based on the maximum premium amount|
|Premium (calculated in multiples of Rs. 100)||2000 per month||Depends on Underwriting limit that is subject to Underwriting Policy that is Board approved.|
|Mode for Premium Payment||Only Monthly|
Key Features of TATA AIA Life Insurance Monthly Insurance Plan
|Plan Type||Participating Endowment Assurance Plan that is Non Linked|
|Policy Term||15 years , 20 years|
|Maturity Benefits||Guaranteed assured sum along with other bonuses, if any.|
|Premium Payment Frequency||Monthly|
|Loan Availability||Available once policy acquires surrender value|
|Advance Premium||Allowed only if the premium is collected within the same year (financial)|
|Surrender Benefit||Allowed if the complete payment for the first year is paid.|
|Death Benefit||Death benefit will be payable as long as the policy is in force and all premiums (that have been due) have been paid|
|Grace Period||15 days|
|Lapse||In case premium for the first year of policy has not been paid within the grace time, policy will lapse and no benefits will be provided.|
|Free Look Period||Available|
|Riders||TATA AIA Life Insurance Accidental Death and Dismemberment|
Benefits of TATA AIA Life Insurance Monthly Insurance Plan
This plan comes with a number of unique benefits and features.
- At the beginning of the previous policy year, the accrued annual additions will be paid as the survival benefit.
- As maturity benefit, customers will receive a sum of terminal and vested compound reversionary bonuses, if any and assured sum.
- In case of untimely death of insured, his/her nominee will receive a higher of assured sum along with bonuses, if any and 105 percent of total paid premiums.
- Apart from death and maturity benefits, customers also have the flexibility of availing additional coverage by procuring a rider.
- In case customers have not made the premium payment even after the grace period and the policy has not been surrendered, they have the option of reviving the policy.
- Nomination and assignment is allowed.
How the TATA AIA Life Insurance Monthly Insurance Plan Works
Let us take the example of Arunoday who is 35 years old and works in an automobile manufacturing company. He has a five year old daughter from him marriage and wants to create a corpus for his daughter’s higher education and hence decides to opt for the TATA AIA Life Insurance Savings Plan ( Monthly Insurance Plan).He opts for a term of 20 years and pays a premium of Rs. 5000 every month. Assuming he survives till maturity of the plan and interest is four percent, he receives a total benefit of Rs. 8,44,872.
Premium Discount Rates for TATA AIA Life Insurance Monthly Insurance Plan
|Premium||Discount for every 1000 Basic Assured Sum|
|A maximum of 49,000||0.00|
|50,000 to 99,000||3.00|
|1,00,000 and more||5.00|
Customers have the option of procuring an optional rider which is the TATA AIA Life Insurance Accidental Death and Dismemberment.
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GST of 18% is applicable on life insurance effective from the 1st of July, 2017