Investment Plans November 21, 2020

Tata AIA Diamond Savings Plan

Life Insurance is one of the most needed investments today as life can present different kinds of uncertainties for you to deal with. But when you have a life insurance policy, it covers you and your family from such things. But do you know that with Tata AIA Diamond Savings Plan, you can not only have a life insurance plan but also fulfill your different needs at different stages of life? Whether it is your retirement planning or your child’s marriage, or the education of your children, this plan helps to fulfill your medium and long-term goals.

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Tata AIA Diamond Savings Plan is a non-linked participating Individual life insurance savings plan with which customers don’t need to worry about their future requirements. The best thing about this policy from Tata AIA Life Insurance Company is that you can get a vested compounded reversionary bonus in the case of the demise of the insured or at the maturity of your policy. However, these benefits are not guaranteed and depend on the company’s performance. If you want to ensure your family’s safety along with fulfilling your other needs, this plan can be a good option.

So, what are the several benefits of the Tata AIA Diamond Savings Plan that you can enjoy? Here, we will discuss the same along with some important information. So, let’s read on!

Key Features of Tata AIA Diamond Savings Plan

Knowing the key features of the Tata AIA Diamond Savings Plan will help you maximize benefits and get adequate cover. We are showing some of them below. Please have a look!

  1. With the Diamond Savings Plan, individuals can receive guaranteed returns after the completion of the premium payment term. This guaranteed income will be in the form of an Assured Benefit that the insured person can get starting from the inception of the next policy year after the premium payment term until maturity or till the demise of the life insured (whichever is earlier).
  2. On the maturity of the policy or death of the insured person, the company will also give a vested compound reversionary bonus and terminal bonus. Remember, this will depend on the company’s performance as well as the policy should be in force.
  3. With Tata AIA Diamond Savings Plan, individuals can choose the policy term and premium payment term according to their convenience. You can pay for 8 or 12 years for Policy Terms of 18 and 25 years, respectively.
  4. Individuals will get Life Cover for the Entire Policy term. So, you don’t need to worry about the protection of your family.
  5. You can also enhance your overall protection by adding a few optional riders at the inception of the policy, such as Accidental Death & Dismemberment Rider and Waiver of Premium Plus Rider.
  6. Along with all the key features, individuals can also receive tax benefits for the premium paid towards the policy and maturity payout up to INR 1,50,000 under Section 80C and Section 10(10D) of the Income Tax Act, 1961.
  7. Under Section 39 of the Insurance Act 1938, you can also enjoy the nomination facility. Also, Tata AIA Insurance Company provides a free look period of 15 days. However, if the policy is sold through distance marketing (other than in person), it will be for 30 days.
  8. You can also choose to pay the premium from various payment frequency options of Annual, Half-yearly, Quarterly, and Monthly.

Tata AIA Diamond Savings Plan Benefits

Other than the key features, Tata AIA Diamond Savings Plan also provides a range of benefits that individuals can enjoy. These are Death Benefits, Maturity Benefits, Survival Benefits, etc. We are showing them below. Do check!

Death Benefit

If the insured person dies during the policy term, 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 as on the date of death. The sum assured on death will be the highest value amongst the options below.

  1. 11 times of the Annual Premium paid towards the Policy
  2. Sum Assured on the maturity
  3. Absolute Amount assured by the company to be paid on the death of the insured ( Annualised Premium x 1000 / Premium Rate per 1000 Assured Benefits)

Terminal Bonus

With Tata AIA Diamond Savings Plan, individuals will receive a terminal bonus, which will be a percentage of the assured benefit. However, you need to remember some of the below-mentioned conditions.

  1. Individuals must have paid at least 5-year full annual premiums if the premium payment term is 8 years
  2. In case the premium payment is 12 years, individuals must have paid annual premiums for 7 years

There is an important thing you need to remember that after the payment of the death benefit, the policy will be terminated and there will be no other benefits.

Survival Benefits

If the Tata AIA Diamond Savings Plan is in force, individuals will also receive a guaranteed income, which commences from the end of the 9th or 13th year, at 20% or 25% as the Assured Benefits for the policy term of 18 and 25 years, respectively. One important condition is that you must have paid all the premiums on time. You can receive these benefits till maturity or till the death of the insured person (whichever is earlier).

Maturity Benefits

At the time of maturity of your policy, you will also receive maturity benefits on your Tata AIA Diamond Savings Plan if the policy is in force and there are no due premiums. Check out below such benefits.

  1. Sum Assured on Maturity – It will be equal to the last guaranteed income installment payable on the maturity
  2. Vested Compound Reversionary Bonus (if any)
  3. Terminal Bonus (if any)

Large Scale Discount

Tata AIA Life Insurance Company also provides a large-scale discount on the assured benefit to individuals opting for a large premium amount towards a policy. You can look at discounts (in percentage) in the below table.

Premium Amount (INR) Discounts
0 – 49,999 0.0%
50,000 – 99,999 2.0%
Above 1,00,000 4.0%

Loan Against Your Policy

In case you need money urgently, you can apply for a loan against Tata AIA Smart Income Plus Plan. An individual can get a loan amount of up to 80% 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 455 days’ plus 2% per annum.

Reduced Paid-up

In case you have paid the full premiums of at least 2 years and the following premiums remain unpaid (without surrendering the policy), the Tata AIA Diamond Savings Plan will automatically be converted into a Reduced Paid-up Policy. However, this policy can be revived within 2 years from the due date of the first unpaid premium.

Exclusions from the Tata AIA Diamond Savings 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.

Tata AIA Diamond Savings Plan Eligibility Criteria

Want to know the necessary conditions that you need to fulfill while choosing the Tata AIA Diamond Savings Plan? Here’s a list of such conditions. Take a look.

  1. The minimum age at entry for this policy ranges from 0 to 50 years
  2. The minimum age at maturity has to be 18 years, while it can go as high as 75 years
  3. Individuals can opt for this policy with a minimum premium amount of INR 18,000 per annum while there is no maximum limit
  4. The Policy term can be for 18 or 25 years from which customers can choose according to their convenience.
  5. The premium payment term is fixed at 8 and 12 years for the Policy Term of 18 and 25 years, respectively.
  6. The basic sum assured will be 11 times the annualized premium paid towards the policy.

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