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Investment Plans 705 views February 13, 2021
Tata AIA Life Insurance Smart Annuity Plan could be the right plan for an individual looking to plan a smooth retirement time, considered to be the second innings of our lives. With this plan, you can enjoy financial freedom even when you aren’t earning a specified amount every month. Some of the key features of the Tata AIA Life Insurance Smart Annuity Plan include-
- Flexible Annuity options according to your future financial goals
- Convenience to choose between single and joint life annuity option
- Annuity payout mode option available
- Enhanced annuity with the Top-up option
- A free look period of 15 or 30 days
- Loan up to 80% of the policy surrender value
Want to know more about Tata AIA Life Insurance Smart Annuity Plan? Read this page further as we will discuss these key features in detail along with other information. So, without any further delay, let’s get to it!
Table of Contents
Let’s Understand the Key Features of Tata AIA Life Insurance Smart Annuity Plan in Detail!
We are showing some striking features of the Tata AIA Life Insurance Smart Annuity Plan in detail so that you can have a better understanding. Have a look!
- Under this insurance product from Tata AIA, policyholders can choose from three annuity options – Immediate Life Annuity, Immediate Life Annuity with Return of Purchase Price, and Deferred Life Annuity with Return of Purchase Price.
- Policyholders can choose the annuity payouts modes from the options of yearly, half-yearly, quarterly and monthly.
- If you want to enhance your overall annuity payout, you can do it the same with the top-up option. This additional annuity amount will depend on the top-up amount and rates according to that time.
- On choosing the Deferred Life Annuity with Return of Purchase Price option under the plan, individuals can also opt for a loan against the policy up to 80% of the surrender value during the deferment period.
- The premium payment period will be a one-time payment towards your policy.
What will be the Minimum Annuity Purchase Price under Tata AIA Life Insurance Smart Annuity Plan?
Do remember that the annuity purchase price depends on the annuity option chosen by a policyholder where there is no maximum limit. However, the minimum amount is shown in the table below. Have a look!
| Parameters | Minimum Purchase Price |
|---|---|
| Immediate Life Annuity | INR 87,527 |
| Immediate Life Annuity with Return of Purchase Price | INR 2,06,155 |
| Deferred Life Annuity with Return of Purchase Price | INR 1,08, 303 |
What Will be the Annuity Payout?
The annuity payout under the Tata AIA Life Insurance Smart Annuity Plan will depend on the annuity payout mode chosen by you. To know the minimum amount, you can check the below table.
| Annuity Payout Mode | Minimum Amount | Maximum Amount |
|---|---|---|
| Annually | INR 12,000 | No Limit |
| Half-yearly | INR 6,000 | |
| Quarterly | INR 3,000 | |
| Monthly | INR 1,000 |
Tata AIA Life Insurance Smart Annuity Plan Benefits
You can enjoy death and surrender benefits when you choose Tata AIA Life Insurance Smart Annuity Plan. We are telling you about them below that you should check.
Death Benefit
Do remember that the death benefit option will depend on the annuity option chosen by the policyholder. To know more about it, you can check the below table.
| Annuity Option | Death Benefits |
|---|---|
| Immediate Life Annuity | None |
| Immediate Life Annuity with Return of Purchase Price | 100% of the purchase price of the annuity |
| Deferred Life Annuity with Return of Purchase Price | Higher of the following amounts - Purchase Price + Guaranteed Additions (GA) – Total Annuity Payouts till the date of death, or 110% of Purchase Price (including Top-up amount, if any) |
Note: Here, Guaranteed additions will be equal to the (purchase price X annuity rate) / 12
Surrender Benefits
With Tata AIA Life Insurance Smart Annuity Plan, individuals can also get surrender benefits under different plan options. When you choose the immediate life annuity option (for both single and joint life options), you will not get any surrender benefits. If you choose Immediate and Deferred Life Annuity with Return of Purchase Price, you will get surrender benefits higher of the guaranteed surrender value and special surrender value. The policy will terminate upon receiving the surrender benefits, and you will not get further benefits.
Tata AIA Life Insurance Smart Annuity Plan Eligibility Criteria
- The entry age for all individuals for all the annuity options can be as low as 45 years.
- The maximum entry age for all annuity options stands at 85 years.