Investment Plans November 20, 2020

TATA AIA Guaranteed Monthly Income Plan

Your financial needs are never-ending, and to meet them, you should buy financial security for you and our family. And Life Insurance is the best way by which you can fulfill your dreams. Tata AIA Guaranteed Monthly Income Plan meets all your requirements by giving you and your family financial protection and a monthly income that will meet your future requirements. Read this post and know about TATA AIA policy coverage, exclusion, and benefits.

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Tata AIA Guaranteed Monthly Income Plan Maturity Benefit

At the end of the policy term, the company pays the Guaranteed Monthly Income if the policy is in force and all due premiums have been paid. Guaranteed Monthly Income is payable monthly, commencing from the end of the first month of the Income Term.

Guaranteed Monthly Income = (Income Factor/12) * Total Paid Premiums

Income Factors will be applicable as per the Entry Age, Policy Term, and Income Term. You can receive the commuted value of the future Guaranteed Monthly Income in lump sum any time during the Income Term, discounted at 7.50% per annum.

Tata AIA Guaranteed Monthly Income Plan Death Benefit

When Life Insured dies during the policy term, the company shall pay the Sum Assured on Death to the claimant. The Sum Assured on Death is the highest of the following:

  1. 11X the Annualized Premium
  2. 105% of the Total Premium Paid
  3. Guaranteed Sum Assured on Maturity
  4. Basic Sum Assured

If the Life Insured dies during the Income Term, the company pays all the future Guaranteed Monthly Income to the claimant. And here, the claimant has the option to receive the commuted value of the future Guaranteed Monthly Income in a lump sum at the time of death of Life Insured, discounted at 7.5% per annum.

Note – The Tata AIA Guaranteed Monthly Income Plan will terminate on the payment of Death Benefit, and no other benefits shall be payable under the policy.

Tata AIA Guaranteed Monthly Income Plan Surrender Benefits

You can surrender the policy at any point during the policy term. However, it shall acquire a Surrender Value, hwhich happens only if the premiums have been paid regularly for at premiums have been paid at least 2 years.

Guaranteed Surrender Value = GSV Factor * Total Paid Premiums

Special Surrender Value = SSV Factor * Reduced Paid-Up Factor * Guaranteed Sum Assured on Maturity

Reduced Paid-up Tata AIA Guaranteed Monthly Income Plan

When your policy has acquired the Surrender Value, and the subsequent premium remains unpaid at the end of the Grace Period, the policy will be converted into a Reduced Paid-up policy. This is a default nonforfeiture benefit where your reduced paid-up policy continues as the same unless the policy is revived within the revival period. In the case of a Reduced Paid-up Policy, the benefit under the policy shall be payable as follows –

Maturity Benefit:  This benefit remains the same

Death Benefit:  Sum Assured on Death * Reduced Paid-up factor, where the Reduced Paid-Up Factor = (Number of Paid Premiums) /(Number of Payable Premiums during the entire Policy Term). This benefit is a minimum of 105% of the Total Paid Premiums up to the date of death during the policy term. When the Life Insured dies during the Income Term, the death benefits remain the same.

Exclusion from the Tata AIA Guaranteed Monthly Income Plan

If death happens due to suicide within 12 months from the date of policy risk commencement or the date of revival, the nominee or beneficiary will be entitled to at least 80% of the Total Paid Premiums till the date of death or the Surrender Value of the policy as on the date of death, whichever is higher, provided the policy is in force.

Tata AIA Guaranteed Monthly Income Plan Claim Procedure

Every case of death claim notice must be sent to the company within 90 days. However, the company may condone delay on merit for delayed claims where the delay is proved to be for reasons beyond the control of the claimant. In the case of any delay on the part of the company to process the claim, the insurance company will need to pay the late payment interest as prescribed by the IRDAI from time to time.

Proof of Claim – An affirmative proof of loss as required by the company must be completed and furnished on time, at the claimant’s expenses, within 90 days after the date of death, unless specified.

A list of primary claim documents attached to the policy must be submitted to the company, containing the required forms or other proofs. The company has the right to require any additional proof and documents in support of the claim. For Tata AIA Guaranteed Monthly Income Plan processing, you must submit the following documents:

  1. Claim Forms Part I: Application Form for Death Claim along with NEFT form Part II: Physician’s Statement – to be called by the last attending physician
  2. Death Certificate issued by a local government body such as the Municipal Corporation
  3. Medical Records like Admission Notes, Discharge/Death Summary, Indoor Case Papers, Test Reports, etc.
  4. Claimant’s Photo ID, Age, and relationship proof with the Insured along with Address proof.
  5. Canceled cheque with name and account number
  6. Canceled cheque with a copy of Bank Passbook or Statement
  7.  Proof of legal title (If no nomination)

Death due to Accident (Documents in addition to the above)

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

  1. Postmortem report (Autopsy report) & Chemical Viscera report (if any of these is performed)
  2. Panchnama
  3. Inquest
  4. First Information Report (FIR)
  5. And Final Investigation Report

This is applicable if the life insured was in the hospital at the time of death or any time before the date of death. You can submit copies of the following documents certified or attested by the issuing authority, such as All Police Papers, Medical Records, Postmortem Report (Autopsy report) & Chemical Viscera Report, and copies of the other documents self-attested by the claimant.

Note – In case the Tata AIA Guaranteed Monthly Income Plan claim warrants any additional requirement, the company reserves the right to call for the same. All the death claims are payable to the claimant only. Notification of a claim and submission of claim requirements do not mean an admission of the claim. According to the policy terms and conditions, no agent is authorized to admit any liabilities on behalf of the company, nor can alter the list of documents or any claim requirements.

Claims Intimation Process

The following is the list of various mediums through which claimants can contact Tata AIA Life Insurance Co. Ltd.

  1. Visit Tata AIA Life Insurance Co. Ltd official website
  2. Email to – Customercare@tataaia.com
  3. Call 1-860-266-9966 (where local charges apply)
  4. Visit Tata AIA Life Insurance Co. Ltd branch office
  5. Send intimation of claim to 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.

TATA AIA Guaranteed Monthly Income Plan Key Features

  1. Guaranteed Monthly Income for Double the Policy Term – The guaranteed monthly income denotes a certain percentage of your Total Paid Premiums, depending on the age at entry and the selected policy term. It can be paid in arrears for 10, 16, and 24 years for a policy term of 5, 8, and 12 years respectively, starting from the end of the first month after the expiry of the Policy Term.
  2. Large Premium Boost to Increase Monthly Income – This benefit depends on the Premium Payment Term and Annualized Premium. Because the applicable percentage shall be added to the Income Factors while calculating the insured Guaranteed Monthly Income.
  3. Policy Term of 5/ 8/ 12 years – Buying a TATA AIA Guaranteed Monthly Income Plan is a long-term commitment. And an early termination of the policy involves high costs and the Surrender Value is payable less than the paid premiums.
  4. Enhanced Protection with Optional Rider – Riders are not mandatory and are available for a nominal cost. Read the Rider Brochure or contact the Insurance Advisor for more information.
  5. Tax Benefits – Under Section 80C and 10(10D) of the Income Tax Act, 1961, you can avail of a tax deduction. For this, the company does not assume the responsibility for tax implications mentioned anywhere in the policy document. So, consult your tax consultant for tax benefits.

The Tata AIA plan is not a guaranteed issuance plan, which will be subject to the company’s underwriting and acceptance. An insurance cover under this policy is available. For non-standard lives and on submission of non-standard age proof, extra premiums will be charged.

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