Investment Plans 362 views November 26, 2020

Tata AIA Insta Wealth Plan

One of the top priorities for any individual in life is to protect his/her family financially in the case of death. For this, people choose Life Insurance. But choosing a suitable policy for yourself can be a tedious task because of the complex buying process and pre-medical tests. Tata AIA Insta Wealth Plan promises to solve this problem of people by providing them an easy to buy process. The insurance plan is so simple that you don’t need an expert to understand it; you can do it by yourself. This simple non-linked endowment assurance plan not only covers your family in the case of death but also provides solutions to save your hard-earned money.

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With compound reversionary bonus and terminal bonus, individuals can easily make a rough flowchart to achieve their medium-to-long-term goals such as retirement planning, marriage, education, etc. As you can see from its name, this plan will help you in becoming a bit wealthier along with protecting your loved ones. One of the best aspects of the Tata AIA Insta Wealth Plan is that you can choose the policy term according to your convenience. Other than this, this life insurance policy also provides guaranteed yearly additions that can enhance your overall wealth over time.

So what are the other key features of Tata AIA Insta Wealth Plan that you should know? On this page, we will tell you the same along with the benefits you can avail of, eligibility criteria, etc. Keep reading to know more!

What are the Key Features of Tata AIA Insta Wealth Plan?

Before choosing any life insurance plan, it is necessary to understand its key features so that you can make a better decision. Therefore, we are showing some of the key features of the Tata AIA Insta Wealth Plan below. Please check!

  1. For this particular policy, you don’t need to submit any medical or financial underwriting. This alone ensures that you get the insurance cover in a hassle-free manner. This is one of the crucial features of the policy, which makes it so popular among customers.
  2. You have the flexibility/freedom to choose a short or long premium payment and policy term according to your future goals. Irrespective of the premium payment term, you will get life cover throughout your policy term.
  3. After the completion of the premium paying term, guaranteed additions will start to accumulate every year until the maturity of your policy. Suppose your premium payment term is 7 years and the policy term is 10 years, your additions will start to accumulate from the 8th year.
  4. Want to increase your savings? Well, this policy from Tata AIA also provides compound reversionary bonus and terminal bonus.
  5. The minimum basic sum assured for this policy stands at INR 1,00,000 and can be further increased in the multiples of INR 1,000 up to INR 20 lakh. You can choose it according to your needs.
  6. Premium amount for your Tata AIA Plan will depend on several factors such as Age, Policy Term, Basic Sum Assured, and Premium Payment Mode.
  7. Policyholders with an entry age of lower than 35 years can enjoy a guaranteed cover up to INR 10 lakh.
  8. For some reason, if an individual is unable to pay the premium amount in one installment, he/she can choose to pay it on an annual, semi-annual, or monthly basis according to their convenience. So, there’s no need to worry about the premium payment.

Detailed Benefits of Tata AIA Insta Wealth Plan

You would be in a better position to choose Tata AIA Insta Wealth Plan after knowing its key features. It’s time to know the benefits of this policy that you can avail of. We are presenting them below in detail. Do look!

Guaranteed Additions

As we told you in the previous section, you will get a guaranteed addition from the Tata AIA Life Insurance Company either on the maturity of your policy or death or when you surrender it. What is this guaranteed addition? Well, 1% of the basic sum assured per year will start to accumulate from the next year after your premium payment term ends until the end of your policy. Suppose your basic sum assured is INR 2 lakh, the guaranteed return for this will be INR 200 per year (1% of 2,00,000). You must have paid all the due premiums to get this benefit in the form of additions.

Maturity Benefit

Upon the completion of your policy term i.e. maturity, policyholders will receive the basic sum assured along with the accumulated guaranteed additions, vested compound reversionary bonus, and terminal bonus (if any). However, your policy should be in force, and you must have paid all the premium to avail of this maturity benefit.

Death Benefit

Talking about death benefits, if something unfortunate like a death happens to the insured person, Tata AIA will provide the ‘Sum Assured on Death’ with the vested compound reversionary bonus and terminal bonus (if any). What will be the total amount an individual will receive? In any case, it cannot be lower than 105% of the total premiums paid as on the date of the insured person’s death. The sum assured amount on death can be the higher of the following two amounts.

  1. Total of 10 Annual Premium for the policy
  2. Basic Sum Assured on Death promised at the inception of the policy

Discounts on Large Sum Assured

For individuals who are looking to opt for a higher sum insured on Tata AIA Insta Wealth Plan, the company provides a discount on the sum assured per INR 1,000. To know the discount in detail, look at the below table!

Basic Sum Assured (in INR) Discount per INR 1,000 on the Basic Sum Assured (in INR)
1,00,000 – 1,99,000 Nil
2,00,000 – 2,99,000 2.00
3,00,000 – 4,99,000 3.00
5,00,00 and above 4.50

Grace Period

Tata AIA will also offer a few days, in case you miss to pay your premium amount on time starting from the premium pay-to-date. This period is known as the Grace Period, and it will depend on the premium payment frequency chosen at the time of entry into the policy. For monthly mode, you will receive a grace period of 15 days and 30 days for all other frequencies. Your policy will remain in force and will continue to cover the risk during this grace period.

Tax Benefits

Do you know that your policy can also let you enjoy tax benefits? Well, yes, with your Tata AIA Insta Wealth Plan, you can also avail of tax benefits on the premium paid towards the policy and maturity amount up to INR 1,50,000. Policyholders will receive these benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961.

Loan Against your Policy

As soon as your policy acquires surrender value, you are eligible to opt for a loan amount against your policy up to 65% of the overall surrender value. Thinking about what interest rate will be on your loan? Well, it will be equal to the current State Bank of India Deposit Interest Rate for the tenure of ‘1 year to less than 2 years’ plus 2% per annum. The company will review the rate on a semi-annual basis.

Conditions to Fulfill to Get Tata AIA Insta Wealth Plan

After knowing almost everything about the Tata AIA Insta Wealth Plan, you should know about its eligibility criteria. It is a set of conditions that you need to fulfill to choose this insurance plan from Tata AIA. We are showing them below. Please check!

  1. The minimum entry age is fixed at 0 years (30 days), while individuals up to 45 years of age can choose this policy.
  2. The minimum maturity age is fixed at 18 years for people, while it can go up to 65 years.
  3. The policy term for your Tata AIA Insta Wealth Plan can be 10 years, 15 years and 20 years for the premium payment term of 7 years, 10 years and 15 years, respectively.
  4. The minimum basic sum assured stands at INR 1,00,000. In case you want to increase it, you can do it in the multiples of INR 1,000 up to INR 20 lakh.
  5. You will need to pay a minimum premium amount of INR 10,000 per year for this plan.

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