Tata AIA Guaranteed Return Insurance Plan

With the Tata AIA Guaranteed Return Insurance Plan, you can get a protection cover for you and your loved ones. Besides, you can meet your goals like Child’s Education, Marriage, or Retirement planning, with this insurance plan. The guaranteed maturity benefit and its various options are sure to help in many ways. So, without wasting your precious time, we are explaining everything about this plan to you. Let’s read further to know the same.

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Tata AIA Guaranteed Return Insurance Plan Maturity Benefit

The policy benefits are dependent on the option you choose regarding the Tata AIA Guaranteed Return Insurance Plan. The options are shown below. Take a look.

Option I – Endowment:

The following are the list of benefits that the insured will get if they choose the endowment plan:

1. Guaranteed Maturity Benefit = (Guaranteed Maturity Benefit Factor x Total Payable Premiums)
2. Guaranteed Addition/s may not accrue if the policy was converted to a Reduced Paid-up
3. Upon payment of the Guaranteed Maturity Benefit, the Policy shall terminate and no other benefit shall be payable
4. On the death of the Life Insured during the policy term, the company will pay Sum Assured on Death, plus a Guaranteed Additions to the claimant

The Sum Assured on Death can be either of the following, whichever is higher –

1. 10X the Annualized Premium (if the age of the life insured is less than 45 years) or 7X the Annualized Premium (if the age of the life insured is more than 45 years)
2. 105% of the Total Paid Premiums
3. Guaranteed Maturity Benefit
4. Basic Sum Assured

Option II – Regular Income

The following are the list of benefits that the insured will get if they choose the regular income plan:

1. The “Guaranteed Maturity Benefit” for a regular income plan will be equal to the commuted value of the future GAI in a lump sum on the Date of Policy Maturity, which is discounted at 7.05% per annum. The discounting rate is subject to change from time to time. However, any change will be subject to IRDAI approval. Any change in SSV factors is led by the authority and shall be intimated to the insured from time to time.
2. On the death of the Life Insured during the income term, the company will pay all the future GAI to the claimant. In this, you have the option to receive the commuted value of the future GAI in a lump sum, discounted at 7.05% per annum.

The policy will be terminated upon the payment of Death Benefit.

Option III – Whole Life Income

The following are the list of benefits that the insured will get if they choose the whole life income plan:

1. GAI during income terms at the proposal stage – You can choose to receive the GAI every month payable at the end of each month after the date of policy maturity.

Monthly Guaranteed Annual Income = 96% of GAI x 1/12 GAI every month

After the Policy Term, you will get the option to receive a commuted value of the future GAI in a lump sum.

Commuted Value = (F1 * Guaranteed Annual Income + F2 * Total Paid Premiums)

The factors F1 & F2 depend on the age of the life assured at the time of commutation. In the case of a Joint Life, the age of the older of the two Life Insured will be considered.

1. Upon death during the policy term, provided the policy is in force, the company will pay the Sum Assured to the claimant.

The Sum Assured on Death for both Single and Joint Life Insurance is the higher of the following –

1. 1.25X the Single Premium (for Single Pay)
2. 7X the Annualized Premium (for Premium Paying Term of 5/10 years)
3. 105% of all the Total Paid Premiums
4. Guaranteed Maturity Benefit
5. Basic Sum Assured
6. In a Single Life Insurance, for death after the policy term, the company will pay total paid premiums to the claimant. Whereas on the death of the last surviving life Insured in Joint Life Insurance, the company shall pay total paid premiums to the claimant.

The policy will be terminated once the death benefit for Life Insured is paid or the last surviving Life Insured (in case of Joint Life).

Note – Guaranteed Maturity Benefit for Whole Life Income will be equal to the Guaranteed Annual Income X GMB Factors.

Tata AIA Guaranteed Return Insurance Plan Surrender Benefits

You can surrender the policy any time during the Policy Term. However, you will acquire a Surrender Value if:

1. Single-Premium is made throughout the policy term;
2. At least 2 years of premiums have been paid (for Policy other than Single Premium)

Guaranteed Surrender Value = GSV Factor on Premiums X Total Paid Premiums + GSV Factor on Guaranteed Additions X Accrued Guaranteed Additions (if any)

Special Surrender Value = SSV Factor x [Reduced Paid-Up Factor x Guaranteed Maturity Benefit + Accrued Guaranteed Additions (if any)]

Note: GSV Factor on Premiums, SSV, and GSV Factor on Guaranteed Additions are applicable at the time of surrender.

Reduced Paid-up on Tata AIA Guaranteed Return Insurance Plan

If your TATA AIA Policy has acquired a Surrender Value, and the subsequent premium remains unpaid at the end of the Grace Period, it will be converted into a Reduced Paid-up Policy by default. Your policy shall continue as Reduced Paid-up unless it is revived within the Revival Period by the payment of all due premiums together with interest.

For a Reduced Paid-up on Tata AIA Guaranteed Return Insurance Plan, the benefit shall be as follows:

Maturity Benefits: 

Option I – Endowment: (Guaranteed Maturity Benefit Factor x Total Payable Premiums) x Reduced Paid-up Factor

Option II – Regular Income: the commuted value of the future GAI in lump sum x Reduced Paid-up Factor

Option III – Whole Life Income: 96% of GAI x 1/12 GAI on monthly basis x Reduced Paid-up Factor

Death Benefits:

If the policyholder dies during the Policy Term, the company will pay –

Option I – Endowment: Sum Assured on Death x Reduced Paid-up factor, along with the accrued Guaranteed Addition, if any.

Option II– Regular Income: the commuted value of the future GAI in a lump sum, discounted at 7.05% per annum x Reduced Paid-up factor

Option III – Whole Life Income: Sum Assured on Death x Reduced Paid-up factor

This benefit shall be subject to a minimum of 105% of Total Premiums Paid up to the date of death.

If the policyholder dies after the Policy Term, the company will pay –

Option I – Endowment: No benefit

Option II – Regular Income: Future GAI will be payable to the claimant, and you will have the option to receive the commuted value of the future GAI in a lump sum, discounted at 7.05% per annum.

Option III – Whole Life Income: This benet is remains the same where “Reduced Paid-Up Factor” = (Number of Paid Premiums)/(Number of Payable Premiums during the entire Premium Payment Term)

Surrender Benefit – This benefit will remain the same

Exclusions

In case the insured dies due to suicide within 12 months from the date of commencement of risk or the date of revival, the claimant will be entitled to at least 80% of the Total Paid Premiums (till the date of insured death or the policy surrender value, whichever is higher, provided the policy is in force).

Tata AIA Guaranteed Return Insurance Plan Claim Procedure

In the case of death of the life assured, it must be notified to the company within a period of 90days in writing. However, it may delay claims where the reason for the delay is proved to be for reasons beyond the control of the claimant. If any delay is on the part of the company, they shall pay interest as prescribed by the IRDAI.

Note – All death claims will be payable to the claimant.

Appropriate forms and supporting documents must be submitted, at the claimant’s expense, within 90 days. A list of claim documents will be attached to the policy. The submission of the listed documents, forms, or other proof, should not be construed as an admission of liabilities. Because the company reserves the right to require any additional proof and documents in support of the claim. The following documents will be required for the claim:

Death (Other than the accidental death)

1. Claim application form with NEFT form
2. Attending physician’s statement
3. Death Certificate issued by a local government body
4. Admission Notes
5. Discharge/Death Summary
6. Indoor Case Papers
7. Test Reports, etc)
8. Claimant’s Photo ID with age proof
9. Address proof of the claimant
10. Canceled cheque with name and account number
11. Copy of Bank Passbook
12. Bank Statement

If no nomination is present, the proof of legal title can work if the legal succession paper is required.

Death due to Accidents (in addition to the above documents)

1. Postmortem report (Autopsy report)
2. Chemical Viscera report (if performed)
3. Panchnama
4. Inquest
5. First Information Report (FIR)
6. And the Final Investigation Report

The above documents will be applicable if the insured was in the hospital at the time of death or any time before the date of death. In case the claim warrants any additional requirement, the company reserves the right to call for the same. Any notification and submission of the claim requirements do not mean an admission of the claim liability. No agents are authorized to admit any liabilities on behalf of the company, nor to alter this list of documents or any claims requirements that are called by the company.

Claim Intimation Process

The following are the mediums through which claimants can contact TATA AIA.

1. Visit TATA AIA official website
2. Email – Customercare@tataaia.com
3. Toll-free number 1-860-266-9966
4. Visit any of the TATA AIA branches
5. Write directly to the company at this address: Tata AIA Life Insurance Company Limited B – Wing, 9th Floor, I-Think Techno Campus, Behind TCS, Pokhran Road No.2, Close to Eastern Express Highway, Thane (West) – 400 607, Maharashtra.

Tata AIA Guaranteed Return Insurance Plan Terms & Conditions

Loss of Policy document

If your policy documents are lost or destroyed, the company will issue upon your request a duplicate document to show that it is issued due to the loss or destruction of the original policy document. Upon the issuance of duplicate policy documents, the original policy documents cease to exist. For this, the company will charge a fee of INR 250/- + GST.

Taxes

Policy premiums and interest are exclusive of applicable taxes, duties, surcharges, cesses or levies, which will be borne entirely by the policyholder. The company shall have the right to claim, deduct, adjust and recover the amount of any applicable tax or imposition, levied by any statutory or administrative body, from the benefits under the policy.

Misstatement 

If your age, which was declared in the Proposal Form is found to be incorrect any time during the Policy Term or at the time of claim, the company may revise the premium with interest and applicable benefits payable under the policy if the correct age would have made the insured eligible to get a cover under the policy on the date of commencement. Otherwise, if at the correct age, the insured is not insurable under the Tata AIA Guaranteed Return Insurance plan, the policy shall be void and the company will refund the Total Paid Premiums without interest after deducting all charges incurred by it.

Termination of Policy

Tata AIA Guaranteed Return Insurance Plan terminates upon the following events:

1. Refund of premium under the free look
2. Payment of the death claim
3. Expiry of the Revival Period
4. Payment of Surrender Benefit
5. Payment of the last Guaranteed Annual Income

Policy Vesting 

Where the policy has been issued for the life of a minor, the policy shall automatically vest in the Life Insured on him/her attaining the age of majority. On policy vesting, the company shall recognize the Life Insured to be the holder of the policy.

Change Address or Nominee

You should intimate TATA AIA in the event of any change in the address or the nominee.

Free Look period

15 days of free look period from the date of receipt of the policy document will be provided to you. And 30 days will be provided in case the policy was obtained through distribution channels such as Web Aggregators, Online mode, and direct sales. In this period, you can review the terms and conditions of the policy. And if you disagree with any of these terms and conditions, you can return the same for cancellation, stating your objection. A refund of the paid premiums without interest will be provided to the policyholder when he/she cancels the policy during the free-look period. After the deduction of proportionate risk premium, stamp duty and medical examination cost along with applicable taxes and cesses or levies (if any), the amount will be refunded.

Revival

When there is a default in Premium Payment beyond the Grace Period and the policy hasn’t surrendered, it may be revived before the Date of Maturity of Policy, subject to the policyholder’s written application. Insured’s current health certificate and other evidence are also required. The interest rate for policy revival will be determined using the State Bank of India or any other public sector undertaking bank’s domestic term deposit rate for a tenure ‘1 year to less than 2 years’, plus 2%. If there is any alteration in the formula. This will be subject to prior approval of IRDAI.

The simple interest rate applicable as of 1st October 2019, is 8.50% per annum upon revival, the benefits shall be restored with effect from the date of revival.

Loan

You may apply for a loan against TATA AIA insurance, where you can borrow up to 80% of the policy Surrender Value. If you apply for a loan, the policy must be assigned to the company. And you will be liable to pay interest on the loan as mentioned below:

1. Daily interest on the loan is as per the prevailing State Bank of India or any other public sector undertaking bank domestic term deposit interest rate. This is for a tenure of‘ 1 year < 2 years’ + 2%. The formula of interest calculation will be reviewed annually and only altered after getting approval from IRDAI.
2. The loan interest is payable on each Policy Anniversary
3. Your unpaid interest will be added to the principal loan and bear the same rate
4. If a loan with accrued interest exceeds the Surrender Value, the policy is terminated. And the residual amount will be refunded to the policyholder.
5. There is no discretion of the company in granting the loan to identical or similar policyholders.

Policy Lapse

When your premium is not paid within the Grace Period and the policy has not acquired a Surrender Value, the Policy will lapse from the due date of the first unpaid premium. As a result, no benefits will be payable.

Premium Details

To do premium payment at any of TATA AIA offices or through TATA AIA official website, or by any other means, you will be deemed to receive such notification by the company only after the same has been realized and credited to the insurer bank account. The collection of advance premium payment is allowed within the same financial year for the due premium of that year.

However, where due in a financial year is being collected in advance, the company may collect the same for a maximum period of 3-months in advance of the due date of the premium. Later, the collected premium in advance shall be adjusted on the due date of the premium.

Premium Payment Frequency 

Policyholders can change the frequency of their premium payments by giving a request for it in writing. The company expects the premium to be paid monthly, quarterly, half-yearly, or annually at the rates applicable on the date of the policy commencement. Any alteration in the frequency of premium payment may lead to a change in the premium. No alterations will be permissible under the Tata AIA Guaranteed Return Insurance plan, except the change in the frequency of premium payment. After payment of the first premium, if you fail to pay a subsequent premium on or before the premium due date, it will constitute a default on premium payments.

The due premium will be payable by the due date as specified in the policy schedule. And if the premium is not paid till the due date, you can pay the same during the Grace Period without any interest over it. As during the Grace Period, if an overdue premium is not paid and the Life Insured dies, the company will pay the Death Benefit after deducting the due premium amount.

Premium Payment of Benefits

The Tata AIA Guaranteed Return Insurance policy benefit shall be payable to the claimant. And if the policy benefits are paid to a claimant, the same will constitute a valid discharge of the company’s liability.

Tata AIA Guaranteed Return Insurance Plan Key Features

1. Flexibility Plan Option
2. Financial protection for your family members in case of your death
3. Guaranteed Additions
4. Limited Premium Payment Term
5. Optional Riders