The Life Insurance Smart Income Plus plan offered by Tata AIA is a non-linked plan that also comes with profit endowment. This policy is tailormade to suit the life insured’s medium to long term requirements. It also enhances investment plans by offering guaranteed additions and bonus accumulation. The policyholder can choose from regular income plan or endowment plan, to invest and secure his & his family’s financial future.
Eligibility Criteria for Tata AIA Life Insurance Smart Income Plus
In order to purchase this non-linked, close-ended savings policy from Tata AIA , the prospective policyholder will have to fulfill the following eligibility conditions:
|Age at inception of the policy||3 years||50 years|
|Age at policy’s maturity||18 years||For 15 year policy term - 65 years For 21 year policy term - 71 years For 25 year policy term - 75 years|
Key Features of the Tata AIA Life Insurance Smart Income Plus Policy
Life Insurance Smart Income Plus provided by Tata AIA is an assurance plan that has a double benefit of increasing wealth through guaranteed additions and accumulation of bonuses. Here are some prominent features of this endowment plan:
|Type of plan||Non-linked life insurance policy that comes with profit endowment assurance plan and guaranteed additions|
|Term of the policy||15 years, 21 years, and 25 years|
|Premium (in multiples of Rs 1000)||Regular income - Rs 18,000 Endowment - Rs 36,000 There is no limit for maximum premium for either regular income or endowment plan|
|Basic sum assured||11 times the annualized premium (as chosen by the life insured)|
|Premium Payment Term (PPT)||For 15 year policy term - 7 years For 21 year policy term - 10 years For 25 year policy term - 12 years|
|Premium payment mode||Monthly, Quarterly, Half-yearly, and Annual|
Benefits of LIC’s Tata AIA Life Insurance Smart Income Plus Plan
Life Insurance Smart Income Plus insurance policy, offered by Tata AIA, comes with a number of key benefits. A few of them have been mentioned as under:
- The policyholder can choose between the regular income or endowment plan
- Guaranteed payouts ranging from 130% to 175% of the annualized premium is offered by the insurance provider under the regular income plan.
- For regular income and endowment options, the death benefit is 105% of the premiums paid or 11 times the annualized premium, whichever is higher.
- The maturity benefit for regular income is paid as lump sum, equal to the guaranteed maturity payout (GMP). The factors may vary according to the age & gender of the policyholder, and premium payment term opted.
- In case of endowment plan, a premium boost is paid along with guaranteed payout (GP) and guaranteed maturity payout (GMP).
- There are additional benefits for female policyholders.
- Optional riders are available in order to enhance the life insured’s protection cover
- Income tax benefits under Sections 80C and 10 (10D), can be availed on both regular as well as endowment plan.
- Guaranteed life cover for 15, 21, and 25 years can be availed on premium payment for tenures 7, 10, and 12 years, respectively.
How does the Tata AIA Life Insurance Smart Income Plus Policy Work?
Let us take the case of Mr. Aditya who is a software engineer, who recently switched jobs. Aged 35, Mr Aditya buys Tata AIA Life Insurance Smart Income Plus for a tenure of 21 years by paying an annualized premium of Rs 50,000. He also chooses the premium payment tenure of 10 years. On the end of the 12th policy year, he receives the guaranteed annual payout.
At the end of the 20th policy year, he gets Rs 11,38,000 (multiplying 11.38 guaranteed payout by 1000) and Rs 22,760 (2% premium boost of the guaranteed payout, totaling it to Rs 11,60,670. The same is received at the end of the 21st policy year. At the policy’s maturity, Mr Aditya receives Rs 21,21,520 as maturity sum assured.
The payment mode for this insurance plan can be done on monthly, quarterly, semi-annually, and yearly basis.
Tata AIA’s Life Insurance Smart Income Plus policy comes additional rider benefits for both the options - Regular Income and Endowment.
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GST of 18% is applicable on life insurance effective from the 1st of July, 2017