Tata AIA Life Insurance Freedom Plan

Tata AIA Life Insurance Freedom Plan is a non-linked participating endowment plan that will help you grow your retirement corpus. There are two retirement plan options for you in this Tata AIA Life Insurance Freedom Plan – option 1 is up to 55 years of age while option 2 is up to 60 years of age. And under the Tata AIA Life Insurance Freedom Plan, you will get benefits like guaranteed additions at 10% per annum of annualized premium and compound reversionary bonuses. Want to know more? Read this page further below.

Benefits of Tata AIA Life Insurance Freedom Plan

You will be entitled to the following benefits under Tata AIA Life Insurance Freedom Plan, as the case may be:-

Survival Benefit:- The guaranteed additions shall accrue to your Tata AIA Life Insurance Freedom Plan from the beginning of the first policy year till the end of the premium payment term at 10% per annum of the annualized premium, provided the policy is in force and all premiums are paid. Tata AIA Life Insurance Freedom Plan guaranteed additions shall be payable at the start of the last policy year, death or surrender, whichever happens first.

Maturity Benefit:- On Tata AIA Life Insurance Freedom Plan maturity, you will receive the guaranteed sum assured on maturity plus the vested compound reversionary bonuses and terminal bonus if any. The compound reversionary bonuses shall accrue to your policy from the first policy anniversary year, provided the policy is in force. And these bonuses shall be declared by the company annually. Your Tata AIA Life Insurance Freedom Plan shall accrue a terminal bonus if you have paid a minimum of seven annual premiums.

Note:- Guaranteed Sum Assured on Maturity = Basic Sum Assured

Death Benefit:- In case the life insured dies, the nominee will be entitled to the sum assured on death plus the accrued guaranteed additions, vested compound reversionary bonuses and terminal bonus, if any, provided the policy is in force and all due premiums are paid till the time of death. Tata AIA Life Insurance Freedom Plan death benefit is subject to a minimum of 105% of total premiums paid, as on the date of death.

Sum assured on death shall be the highest of the following:-

1. 11X the annualized premium
2. Absolute amount assured to be paid on death
3. Guaranteed Sum Assured on Maturity

Note:- If the life insured dies in the last policy year, the accrued guaranteed additions shall not be payable to the nominee, as the same has already been paid at the beginning of the year.

Tata AIA Life Insurance Freedom Plan Eligibility

If you want to purchase this Tata AIA Life Insurance Freedom Plan, you need to meet the following –

1. Minimum age at entry – 25 years
2. Maximum age at entry – 45 years (for option 1) and 50 years (for option 2)
3. Maximum age at maturity – 50 years (for option 1) and 60 years (for option 2)

Note:– Your Tata AIA Life Insurance Freedom Plan policy term shall be up to the maximum maturity age allowed for this policy.

Additional Coverage Under Tata AIA Life Insurance Freedom Plan

You can customize the Tata AIA Life Insurance Freedom Plan by adding a rider, but you can do so only at inception. So choose the following rider if you want to enhance Tata AIA Life Insurance Freedom Plan coverage.

1. Tata AIA Life Insurance Accidental Death and Dismemberment Long Scale (ADDL) Rider

With this optional premium-paying rider, you can provide financial help to your family in case of unfortunate death or dismemberment. The rider for this plan will cover the following risks:-

1. Loss of life
2. Loss of sight of one eye or both eyes
3. Loss of or Loss of use of one limb or two limbs
4. loss of speech and hearing
5. Loss of hearing from both ears and one ear
6. Loss of or loss of use of four fingers and thumb of right or left hand
7. Accidental burns

The rider benefit shall be doubled if the accident happens in the following circumstances –

1. If you are riding as a fare-paying passenger on public land transportation such as a bus, tram or train. A taxi or any form of transport for private travel is excluded from this benefit.
2. You are in an elevator car (except for the elevators in mines and construction sites)
3. If you are in any of the following public buildings such as theatre, cinema, public auditorium, hotel, school and hospital.
4. If you are traveling as a commercial passenger in an airline

Important Notes Regarding Tata AIA Life Insurance Freedom Plan

1. Lower premium rates for female insured
2. Premium payment term – 7 or 10 years (if the policy term is 10 to 14 years) and 7, 10 or 15 years (if the policy term is 15 years or above)
3. Premium payment mode – yearly, half-yearly or monthly
4. Minimum basic sum assured – INR 2 lakh (in multiples of INR 1,000)
5. Maximum basic sum assured – Depends on the company’s underwriting limit
6. Minimum premium amount – based on the minimum sum assured
7. Policy term – 10-30 years (for option 1) and 10-35 years (for option 2)
8. Large sum assured discount – 0.00-2.50% per 1,000 sum assured (based on your sum assured)
9. You can surrender Tata AIA Life Insurance Freedom Plan anytime during the policy term, provided at least the first full year’s premium has been paid.
10. Grace Period – 15 days (monthly mode) and 30 days (other premium payment modes)
11. Free Look Period – 15 days (if the policy is purchased via company directly) and 30 days (if the policy is purchased through distance marketing mode)
12. Loan Against Policy – up to 65% of the Surrender Value
13. Suicide Clause – If the insured commits suicide within 12 months from the date of commencement or revival, the nominee shall be entitled to the total paid premiums or surrender value, whichever is higher.
14. Tax benefits – You can claim tax deductions under Section 80C and 10(10D) of the income tax act, 1961.