Investment Plans 671 views November 23, 2020

Tata AIA Money Back Plus Plan

People have started to understand the necessity of having a Life Insurance Plan to cover them and their loved ones in case something unfortunate like Death happens. There are many insurance companies offering you a wide range of insurance plans to meet this purpose. One of them is Tata AIA whose Money Back Plus Plan is quite popular among customers. With Tata AIA Money Back Plus Plan, you can be assured of the fact that you will have your investments when you need them the most in different situations. These situations can be Family Vacation, Planning the wedding of your child, starting a new business, etc. This plan makes sure you fulfill your needs with ease.

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As you can see from the name of the policy, Tata AIA Money Back Plus Plan offers periodic payouts at key stages in life along with protecting your life. However, you need to remember this plan is not a guaranteed insurance plan, so returns will depend on the company’s performance. The best thing about this plan is the flexibility with which you can choose the premium term options according to your financial goals. Simply put, this plan from Tata AIA Life Insurance Company is a non-linked, participating, individual life insurance plan that helps customers secure their future with the assurance of returns on their investment.

So, what are some of the key features of the Tata AIA Money Back Plus Plan that make it so popular among customers? Here, we will discuss them along with their benefits, eligibility, and exclusion. Keep reading to know more!

Key Features of Tata AIA Money Back Plus Plan

Before choosing the Tata AIA Money Back Plus Plan, it would be appropriate to understand the key features of this plan so that you can choose the term of the premium according to your financial goals. We are showing some of them below.

  1. With the Money Back Plus Plan, you will get survival payouts up to 130% of the sum assured at regular intervals throughout your policy term. With these regular payouts, you can fulfill your different needs at key stages in your life, as we told you earlier.
  2. One of the key features of this life insurance plan is you can choose Policy Term according to your convenience from 16 years, 20 years, and 24 years. The premium payment term will be just half of these policy terms – 8 years, 10 years, and 12 years respectively. This means you only need to pay the premium for half the policy term.
  3. This policy also provides Accidental Death Benefit, so in case the insured person meets with an accident, he/she will get additional protection.
  4. Irrespective of the Survival Payout already being paid or not, a customer will get the life cover throughout his or her policy term chosen at the inception of the policy.
  5. Tata AIA Money Back Plus Plan also offers you the option to enhance your savings via Compounded Reversionary Bonus and Terminal Bonus.
  6. To fulfill your various needs, the policy provides the maturity addition as a lump sum amount.
  7. Customers can also enjoy additional protection by choosing the Life Insurance Waiver of Premium Plus Rider by paying a nominal extra cost. However, this rider is not mandatory. So, the decision will be yours.
  8. Customers can also get tax benefits up to INR 1,50,000 under Section 80C and Section 10(10D) of the Income Tax Act, 1961.
  9. An individual can also choose to pay the premium in Annual, Semi-annual, or Monthly Mode according to your convenience.

Tata AIA Money Back Plus Plan Benefits

So now, you know the key features of the Tata AIA Money Back Plus Plan. It’s time to know some other features of this plan that you can enjoy if the policy is in force and you have paid all the due premiums. We are showing all of them below. Do check!

Survival Benefit

As we told in the introduction, Tata AIA Money Back Plus Plan provides customers regular payouts as a percentage of the basic sum assured (BSA) that can be as high as 130%. It will depend on the policy term chosen by you. We are providing the table below where you can check the survival benefit as a percentage of the sum assured for the Policy Term of 24 years and a premium payment term of 12 years. Have a look

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Maturity Benefit

At the end of the policy term (maturity of your policy), individuals will get a guaranteed sum assured on maturity according to your policy term. Other than this, you will also get vested Compound Reversionary Bonus and Terminal Bonus (if any). The Guaranteed Sum Assured on Maturity will depend on the policy term chosen by you that we have shown below. Have a look!

  1. Policy Term 16 years – 50% of the Basic Sum Assured
  2. Policy Term 20 years – 60% of the Basic Sum Assured
  3. Policy Term 24 years – 70% of the Basic Sum Assured

What will be the Compound Reversionary Bonus (CRB) and Terminal Bonus?

Compound Reversionary Bonus will be accumulated every year starting from the first anniversary year if the policy is in force. Customers can get the total Accrued CRB on the death, maturity or surrender and it will be declared by the Tata AIA Life Insurance Company annually.

On the other hand, the terminal bonus will only be a percentage of vested CRB, and the company will only pay this bonus at the time of death of the insured person (if the policy is in force for at least 10 years) or maturity.

Death Benefits

In case the insured person dies, the company will provide a sum assured on death plus vested compound reversionary bonus and terminal bonus. The total amount will be a minimum of 105% of the total premiums paid during the policy term up to the date of death. The sum assured on death will be the higher of the following two options.

  1. 10 times the Annual Premium paid towards the Policy
  2. Basic Sum Assured on the Policy

Remember, individuals will get these death benefits irrespective of the survival benefits already being paid as the Regular payouts.

Accidental Death Benefits

One of the most exciting features of the Tata AIA Money Back Plus Plan is that customers will receive an additional amount equal to the basic sum assured in case something unfortunate like Death happens to an insured person due to an accident. However, this benefit is applicable only for entry age of 18 years or above. Also, the policy will terminate if the insured person dies due to an accident, and customers will receive no other benefits.

Loan Against Your Policy

Looking to get money urgently to fulfill your needs? Well, you can apply for a loan against Tata AIA Money Back Plus Plan. An individual can get a loan amount of up to 65% of the overall surrender value of your policy. Interest rates on this loan will be SBI Domestic Term Deposit Interest Rate for the tenure of ‘1 year to less than 2 years’ plus 2% per annum. The company will review interest rates on a semi-annual basis.

Tata AIA Money Back Plus Plan Eligibility Criteria

Before choosing this plan from Tata AIA, you need to keep a few conditions in mind. You can look at them below!

  1. The minimum age at the time of entry into policy depends on the policy term chosen by you. The minimum age stands at 2 years, 0 years (30 days), and 0 years (30 days) for the Policy terms of 16, 20, and 24 years respectively.
  2. The maximum age at the time of entry into this plan stands at 51 years.
  3. The minimum age at maturity has to be 18 years, while it can go as high as 75 years.
  4. The minimum basic sum assured for the Tata AIA Money Back Plus Plan is INR 2,00,000 (can be increased in the multiples of 1,000), while there is no maximum limit.

Exclusions from the Tata AIA Money Back Plus Plan

The nominee or beneficiary shall receive at least 80% of all the premiums paid till the date of the insured person’s death or the surrender value available on the date of death (whichever is higher), in case the insured person dies by suicide within 12 months from the inception of policy risk under the plan or the date of revival of the plan.

You should also know the exclusions for Accidental Death Benefit. Customers will not receive any benefit for any death caused directly or indirectly if the death happens due to an assault, a criminal offense, an illegal activity, self-destruction, self-inflicted injury, accident under the influence of alcohol, or any non-prescribed drug, nuclear contamination, etc.

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