Investment Plans November 21, 2020

Tata AIA Gold Income Plan

Tata AIA Life Insurance Gold Income Plan is a Limited Pay plan that helps meet your future financial needs. This is due to its feature of offering Guaranteed Returns for the money you invest in this plan. Along with the Guaranteed Lump Sum benefit on Maturity, the insured will also get a Guaranteed Income during the income term. If you invest in this plan, you can meet your long-term goals such as Child’s Education, Marriage, or Retirement planning. Read this page and know the policy coverage.

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List of Benefits

Maturity Benefit

When the Life Insured survives till the maturity of the policy, provided the policy is in force and all dues have been paid, Tata AIA Gold Income Plan will pay the following benefits at maturity –

  1. 100% of the Basic Sum Assured (in lump sum +the Guaranteed Income of 12% of the Basic Sum Assured)
  2. An additional percentage of benefit known as income boosters is available for the policyholder that increases the guaranteed income every year. The percentage of income boosters will depend on the premium amount, premium paying term, and income term.

Death Benefit

On the death of the Life Assured during the policy term, provided the policy is in force and all dues have been paid, the Sum Assured on Death becomes payable to the claimant. And once it is paid, the policy will terminate and no other benefit under the policy shall be payable, except otherwise mentioned in the policy.

An absolute amount assured to be paid on death is the Basic Sum Assured. The Sum Assured on Death will be the highest of the following –

  1. 11X Annualized Premium
  2. 105% of the Total Paid Premiums (up to the date of death)
  3.  Guaranteed Sum Assured on Maturity = 100% of the Basic Sum Assured + Commuted Value of all Future Guaranteed Income (payable during the Income Term, discounted at 7.5% p.a)
  4.  Absolute amount paid on death

All taxes, duties, surcharge, cesses, or levies are collected separately over and above the policy premiums. Post maturity, on the death of Life Insured, the outstanding income payments are made available to the nominee/legal heir(s) of the Life Insured.

The policy risk will commence from the date of commencement. During the age of minority, the proposer would take the policy. The proposer acts as a policyholder during the age of minority of the Insured. If the Life Assured dies during the age of minority, the policy money will be payable to the proposer. If it is not matured, the policy shall vest on minors till attaining 18 years of age.

Surrender Benefit

Your policy shall acquire a surrender value. Because the payable surrender value is higher than the Guaranteed Surrender Value or Special Surrender Value.

Guaranteed Surrender Value = Guaranteed Surrender Value Factor * All Paid Premiums (excluding the underwriting extra premiums and modal loading)

The Guaranteed Surrender Value factor will be applicable at the time of surrender. This may vary according to the policy term and policy year of surrender.

Special Surrender Value = Special Surrender Value Factor * RPU Factor * Guaranteed Sum Assured (on Maturity)

The Special Surrender Value Factor may vary as per the policy term and year of policy surrender. The company can review the Special Surrender Value factor from time to time, which is subject to prior approval from the IRDAI.

Reduced Paid-up (RPU)

When your Tata AIA Gold Income Plan premiums remain unpaid at the end of the Grace Period and it has acquired a Surrender Value, the policy is converted into a Reduced Paid-Up Tata AIA Gold Income Plan by default. The policy then continues with reduced benefits as mentioned below. Reduced Paid-up (RPU) Factor and Reduced Paid-up Sum Assured are defined as follows:

RPU Factor = (Number of Paid Premiums)/(Number of Payable Premiums during the premium payment term)

RPU Sum Assured = Basic Sum Assured * RPU Factor

RPU Death Benefit:

The nominee will receive the Sum Assured on the Death of the life insured, which is multiplied by the RPU Factor. It will be subject to a minimum of 105% of the Total Paid Premiums up to the date of death.

RPU Maturity Benefit:

When Tata AIA Gold Income Plan becomes Reduced paid-up, the maturity benefit remains the same as expressed above i. e. 100% of the Reduced paid-up Sum Assured in lump sum + the Guaranteed Income of 12% of the Reduced paid-up Sum Assured from the year-end following the maturity and increasing annually by the Income Booster.

However, from the first due date of the unpaid premium, by not later than 5-years from the due date of the first unpaid premium; the policy can be revived if you do the payment of full arrears of premiums with interest. This is subject to the policy isn’t surrendered, and continuing as Reduced Paid-up unless revived within Revival Period from the due date of first unpaid premium.

Key features

  1. Pay for 5 years out of a 12-year policy term and 12 years out of 15 years policy term – Buying a Life Insurance policy is a long-term investment and an early termination of the policy can cost you higher rates and the Surrender Value may also decrease.
  2. A Guaranteed Income for 10 or 15 years – Under the Tata AIA Gold Income Plan, the insured gets a Guaranteed Return equal to 100% of the Basic Sum Assured. The Guaranteed Income is equal to 12% of the Basic Sum Assured, which shall commence from the end of the year following the maturity which increases annually by an Income Booster.
  3. Enjoy Increasing Income with Income Booster on Guaranteed Income – The Income Booster percentage will depend on your premium amount, premium paying term, and income term that is chosen by you at the inception of the policy.
  4. Enhance Protection with Optional Rider – Riders are available for a nominal extra cost
  5. Receive Tax Benefits – Under Section 80C and 10(10D), as per the applicable Income Tax laws, the insured can claim a tax deduction if he/she fulfills the conditions stipulated therein. The company does not assume responsibility for tax implications.

Exclusions

Any death due to suicide within 12 months from the policy date of commencement of risk or the date of revival, the nominee or beneficiary will get a minimum of 80% of the Total Paid Premiums till the date of death or the policy surrender value as on the date of death (whichever is higher), provided the Policy is in force.

Claim Procedure

All death claims must be notified to the TATA AIA in writing within 90 days of its occurrence. However, the company may condone delay on merit for delayed claims where it is beyond the control of the claimant. In case of delay on the part of the company within the claim process extant regulatory timeline, the company will pay interest as prescribed by the IRDAI. Please know that all the death claims are payable to the nominee/legal heir of the insured policyholder only.

Unless it is specified, a duly filled in requisite form along with proof of loss must be furnished to the company within 90 days from the date of death. For claiming, a list of documents will be required in general, attached to the policy. And submission of such documents, forms, or other proof shouldn’t be construed as an admission of liabilities by the company as they reserve the right to request additional proof and/or documents in support.

The following documents are required for a death claim: (all causes of death)

  1. Part I: Application Form for Death Claim plus an NEFT form
  2. Part II: Physician’s Statement
  3. Death Certificate from a local government body
  4. Admission Notes
  5. Discharge/Death Summary
  6. Indoor Case Papers
  7. Test Reports
  8. Claimant’s Photo ID
  9. Age proof
  10. Relationship proof
  11. Address proof
  12. Canceled cheque
  13. Copy of Bank Passbook or Bank Statement
  14. Proof of legal title like the legal succession paper (If no nomination)

In case of accidental death, in addition to the above documents, the company may require the following documents –

  1. Postmortem Report & Chemical Viscera Report (if performed on the insured)
  2. Police papers such as Panchnama, Inquest, First Information Report (FIR), and Final Investigation Report

This list of documents is applicable if the insured was in the hospital at the time of death or any time before the date of death. You can either submit copies of the following documents like All Police papers, Medical Records and any other documents to be submitted by self-attestation of the claimant.

Tata AIA Gold Income Plan Claim Notification

The notification and submission of the claim do not mean an admission of the claim liability by the company. And as per the company’s terms and conditions, no agent is authorized to admit any liabilities on behalf of the company, nor to alter the list of documents or any claims requirements called for by the company. To inform the company immediately upon the occurrence of death, use the following –

  1. Visit Tata AIA Life Insurance Co. Ltd official website
  2.  Send an email to Customercare@tataaia.com
  3. Call the TATA AIA helpline number 1-860-266-9966
  4. Go to any of the company branch offices
  5. Write to the company at this address: Tata AIA Life Insurance Company Limited, B – Wing, 9th Floor, I-Think Techno Campus, Behind TCS, Pokhran Road No.2, Close to Eastern Express Highway, Thane (West) – 400 607, Maharashtra

Important Points Regarding Tata AIA Gold Income Plan

The Tata AIA Gold Income Plan is not a guaranteed insurance plan and this will be subject to the company’s underwriting and acceptance. And the Insurance cover under the policy is available for the insured persons only. In case of non-standard lives and on submission of non-standard age proof, extra premiums are charged as per the company underwriting guidelines.

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