When it comes to investments, the goal is to invest in a plan which will yield the maximum returns while offering maximum protection to your capital. To cater to that very requirement, Tata presents the Tata AIA Life Insurance Smart 7, a non-linked Participating Endowment Plan with the feature of limited premium payment. This plan can help you plan and make smarter investments and has been designed to address several financial requirements with the help of shorter premium payment and maturity terms. Read on to find out more about the Tata AIA Life Insurance Smart 7 plan and how it can benefit you.
Eligibility for Tata AIA Life Insurance Smart 7
|Minimum Age Of Entry||6 years|
|Maximum Age Of Entry||55 years|
|Maximum Age At Maturity||67 years|
|Minimum Basic Sum Assured||Rs 2,00,000|
|Maximum Basic Sum Assured||No maximum limit of Sum Assured. Amount provided is subject to underwriting guidelines.|
Key Features - Tata AIA Life Insurance Smart 7 Plan
|Plan Type||Non-linked Participating Endowment Plan|
|Premium Payment Terms||7 years|
|Policy Term||12 years|
|Maturity Benefits||Upon maturity, you will receive a Guaranteed Sum Assured + vested compound Reversionary Bonus + Terminal Bonus (if any, subject to the condition that the policy is active all due premiums have been paid).|
|Premium Payment Frequency||Premium payments can be done on an annual, semi-annual, quarterly or monthly basis.|
|Free Look Period||15 days after you have received the policy document. This period may be extended to 30 days if the policy has been sourced via distance marketing.|
|Grace Period||A grace period of 15 days (for monthly mode) and 30 days (for all other modes) will be given, from the due date, for the payment of premium.|
|Surrender||Customers can surrender their policy any time during the term of the policy. However, this is subject to the condition that a minimum premium for the full first year of the policy has been paid.|
|Policy Loan||Policy loans is available with this plan.|
|Nominee||Facility of nomination is allowed.|
|Policy Revival||If the premium has been unpaid beyond the, along with the condition that the Policy has not been surrendered, customers can revive or re-instate their policy, within a period of 2 years after the due date of the first unpaid premium but before the policy’s maturity date.|
|Sum Assured||The minimum sum assured is Rs 2 lakh, while there is no limit to the maximum sum assured which may be provided (depending on the underwriting guidelines of the policy).|
|Policy Coverage||Maturity benefit and Death Benefit.|
Benefits / Advantages of Tata AIA Life Insurance Smart 7
- Tax Benefits – Maximize your gains as all premiums which you pay towards your Tata AIA Life Insurance Smart 7 Plan will allow you to enjoy tax benefits, under Section 80C of the Income Tax Act, 1961.
- Maturity Benefit - Upon maturity, policy holders will receive a Guaranteed Sum Assured, vested compound Reversionary Bonus and Terminal Bonus (if any, subject to the condition that the policy is active all due premiums have been paid).
- Bonus – Policy holders will also receive a Compound Reversionary Bonus (CRB) and Terminal Bonus. Compound Reversionary Bonus (CRB) is the amount which will accumulate on a yearly basis, starting from the first policy anniversary (on the condition that the policy is in force). The collected amount will be paid either on maturity of the policy or on the death of the policy holder. Terminal Bonus – Is a percentage of the CRB or Compound Reversionary Bonus which will only be payable on the event of death (if the policy has been going on for a duration of 8 years) or upon maturity.
- Death Benefit – In the unfortunate event of the death or the insured / policy holder, before the maturity of the policy, the company will provide the Sum Assured amount, along with the vested Compound Reversionary Bonus and Terminal Bonus (if any), to the nominee/legal heir who has been named by the deceased policy holder / insured (on the condition that the policy is active). The amount of Sum Assured to be granted upon the death of the insured will be higher than (i) 10 times of the Annualized Premium and (ii) 1.75 times of Basic Sum Assured.
The Tata AIA Life Insurance smart 7 features flexible and convenient terms when it comes to premium payments. The total term allowed for Premium Payments is fixed at 7 years. However, policy holders have the choice to opt from multiple modes to make their payments. Payments can be done on an annual, semi-annual, quarterly or monthly basis.
Riders – Tata AIA Life Insurance Smart 7
The Tata AIA Smart 7 Policy fully understands your needs and provides you with the feature of enhancing your cover. Policy holders can avail additional coverage, based on their needs by simply opting for an additional rider – Tata AIA Life Insurance Accidental Death & Dismemberment Rider. With the help of this rider, you can rest assured that your family stays protected even when you may not be around. As a part of this rider, the company will pay your nominee an amount which is equal to the amount of the rider sum assured in the event of an accidental death. In the event of severe dismemberment like loss of bodily functions, loss of limbs or severe burns resulting from an accident, a percentage of the rider sum assured will be provided (following the guidelines of the ADDL benefit chart). These benefits stand to be doubled in the event of certain dismemberment or accidental death. The term for premium payments for this rider will be the same as that being followed for the base policy or up to the time when the insured is 70 years of age, whichever occurs sooner.
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GST of 18% is applicable on life insurance effective from the 1st of July, 2017