Investment Plans 158 views November 24, 2020

Tata AIA MahaLife Gold Plan

Tata AIA MahaLife Gold Plan is a Non-Linked, Participating, Whole Life Individual Savings Plan whose goal is to create a secure future with a comfortable lifestyle for the insured and his/her’s loved ones. This is a long term companion that can be used for a dream home, good education as you will get a guaranteed income. Read the post to know about it in detail.

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Tata AIA MahaLife Gold Plan Key Features

  1. Lifelong cover up to the age of 85 or 100
  2. Premium paying terms are for 6, 8, or 15 years
  3. Regular income for insured and his family for a specific period
  4. Guaranteed annual coupons for the policyholder starting from 10th policy anniversary till maturity
  5. Non-guaranteed cash dividends annually from the 6th policy anniversary till its maturity
  6. Enhanced protection through optional riders
  7. The lump-sum amount at maturity in addition to the regular income
  8. Tax benefits under section 80C and 10 (10D) of the Income -Tax Act, 1961

Tata AIA MahaLife Gold Plan Maturity

If the life insured has survived till the maturity date and the policy is in force with all due premiums paid, a Minimum Guaranteed Sum Assured on Maturity will be payable. The Minimum Guaranteed Sum Assured on Maturity is the policy Basic Sum Assured. On the policy maturity, the last non-guaranteed cash dividend is also paid, if any, and the last guaranteed annual coupon.

Tata AIA MahaLife Gold Plan Survival

Let’s have a look at the list of benefits you will get on the policy survival –

  1. Guaranteed Annual Coupons – This will be payable at every policy anniversary year starting from the 10th year till maturity or till death (whichever is earlier). With the Tata AIA MahaLife Gold Plan Guaranteed, the Annual Coupon rate will be INR 55/- per thousand Basic Sum Assured
  2.  Non-Guaranteed Cash Dividends – From the 6th policy anniversary onward, the company’s divisible surplus in the form of a Non-Guaranteed Cash Dividend will be determined and declared annually. The share of the divisible surplus, if any, will be payable every year to the insured/nominee from the 6th policy anniversary till maturity or death (whichever is earlier).

Tata AIA MahaLife Gold Plan Death Benefit

If the life insured dies during the term of the policy, the Sum Assured on death, which is subject to a minimum of 105% of the total paid premiums, will be payable to the claimant. The death benefit will be paid irrespective of any survival benefits, even if it is already paid. Your Sum Assured on death shall be higher of the following 10X Annualised Premium or the Minimum Guaranteed Sum Assured on Maturity

The Tata AIA MahaLife Gold Plan will terminate upon the death of the Life Insured and after that, no other benefits under the policy shall be payable. If there are any due premiums of the policy which are not paid as of the date of death, it will be deducted from the death claim.

Exclusions

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

Tata AIA MahaLife Gold Plan Premium Payment

Your Tata AIA MahaLife Gold Plan premiums are payable on or before their due dates either at the company’s issuing office or at its authorized Officer or Cashier. The company allows the collection of advance premium if it is collected within the same financial year. The collected premiums in advance are adjusted on the due date of premium payment.

Change in Frequency – You can change the frequency of premium payments by sending a written request. This may be subject to the company’s minimum premium requirements. The Tata AIA MahaLife Gold Plan premiums may be paid on an annual, semi-annual, or monthly mode.

Default Premium – After payment of the first premium, if you fail to pay a subsequent premium on or before the due date, it will constitute a default.

Grace Period – A period of 15-days for monthly premium paying mode and 30-days for other premium payment modes from the due date will be allowed. And the policy will remain in force during the grace period. If any premium remains unpaid at the end of the Grace Period, Tata AIA MahaLife Gold Plan will lapse from the due date of the first unpaid premium.

Tata AIA MahaLife Gold Plan Deduction

When a claim is payable under Tata AIA MahaLife Gold Plan, and if any balance of the premiums due for the full policy year where death occurs, it shall be deducted from the proceeds payable under the policy.

The benefits under Tata AIA MahaLife Gold Plan shall be payable to the claimant who will be either the policyholder, life Insured, the nominee(s), assignee(s), the legal heir(s), or a legal representative (declared by a court). Once the benefits under this policy are paid to the claimant, the same shall constitute a valid discharge.

Free Look Period

Before you agree to the Tata AIA MahaLife Gold Plan terms & conditions, you have the right to cancel the policy by providing written notice to the company stating the objections/reasons and can get a refund of all paid premiums without interest. Such notice must be signed by you and received directly by the company within 15 days from the date of its receipt. The said free look period of 15 days shall stand extended to 30 days if the policy is sourced through distance marketing or electronic mode including voice mode, SMS, electronic mode, a physical mode such as postal mail, or any other means of communication other than in person.

Tata AIA MahaLife Gold Plan Revival

When the premium is in default beyond the Grace Period and subject to be not surrendered, it may be revived. At the absolute discretion of the company, within 5-years after the due date of the premium in default and before the date of maturity, you should submit –

  1. Your written application for revival
  2. Production of Life Insured’s current health certificate along with other evidence of insurability
  3. Payment of all overdue premiums with interest
  4. Repayment or revival of any Indebtedness outstanding

Tata AIA MahaLife Gold Plan Loan

If your policy acquires a surrender value, you can apply for a policy loan up to 65% of the surrender value. For this, the policy must be assigned to TATA AIA. As the company reserves the right to determine the loan amount to be granted. The surrender payable value is higher than the Guaranteed Surrender Value or Special Surrender Value.

Tata AIA MahaLife Gold Plan Loan Interest

The interest rate on the loan will be equal to the prevailing State Bank of India (SBI) deposit interest rate as for an applicable tenure of 1 year to < 2 years + 2%, and it will be reviewed semi-annually. The current simple interest rate on revival from the 1st October 2019 is 8.50% p.a. which is an SBI interest rate of 6.50% + 2%.

  1. The daily interest shall accrue on policy loan at a rate which the company shall determine
  2. The interest shall be payable on each policy anniversary year, after the loan date, and until it is repaid.
  3. If there is any unpaid interest, it shall be added to the principal loan and will bear interest at the same rate.
  4. At any time, you may repay the principal and accrued interest, or any part of the loan
  5. If the loan with accrued interest together with any indebtedness exceeds the surrender value will become void.

Tata AIA MahaLife Gold Plan Deduction from Proceeds

If there is an unpaid loan or any indebtedness on Tata AIA MahaLife Gold Plan, it will be deducted from any payment or proceeds under this policy at the time of settlement. The claim for any indebtedness will have priority over the claim of any creditor, assignee, or any other interested party.

Tata AIA MahaLife Gold Plan Non-Forfeiture Provisions

If the full premium for the first policy year is not paid within the grace period, the policy shall lapse from the first due date of the unpaid premium and no benefits will be payable to you. However, if the full premium has been paid for the first policy year and if you have failed to pay the subsequent premium within the Grace Period, the policy will be converted into a Reduced Paid-Up by default. And if your policy has turned into a reduced paid-up the benefits will be as follows –

  1. Death Benefit: Sum Assured on death x (No of paid premiums)/ (No of payable premiums) is payable. This subject to a minimum of 105% of the total received premiums up to the date of death.
  2. Maturity Benefit: Minimum Guaranteed Sum Assured on maturity x (No of paid premiums)/ (No of payable premiums) is payable. The Guaranteed Annual coupons will be calculated on Reduced Paid-up Sum Assured and are payable along with the above maturity benefit.
  3. Survival Benefit: Guaranteed Annual Coupons will be payable on Reduced Paid-up Sum Assured every policy anniversary, commencing from 10th policy anniversary till maturity or till death (whichever is earlier).

Reduced Paid-up Sum Assured = (No. of paid premiums) / (No. of payable premiums) x Basic Sum Assured.

Provided the policy has not been surrendered, it shall continue as a Reduced Paid-up unless revived within 5-years from the first due date of the unpaid premium.

Tata AIA MahaLife Gold Plan Surrender

Your policy can be surrendered any time during the policy term, provided the first full year premiums have been paid. The payable surrender value is higher than the Guaranteed Surrender Value or Special Surrender Value.

Guaranteed Surrender Value (GSV) = (Total Paid Premiums x Guaranteed Surrender Value factor) – Total Guaranteed Annual Coupons (if already paid)

Special Surrender Value (SSV) = Special Surrender Value Factor x Reduced Paid-up Sum Assured = (No. of Paid Premiums) / (No. of Payable Premiums) x Basic Sum Assured

Note – The Special Surrender value factor varies according to the age of the Life Insured and Policy Year of Surrender.

Documents for Claim Settlement

Death other than an accident

  1. Duly filled application form for death claim
  2. NEFT form
  3. Physician’s statement
  4. Death certificate from a local government body like Municipal Corporation
  5. Admission notes
  6. Discharge or Death Summary
  7. Indoor case papers,
  8. Test reports
  9. Claimant’s ID, age & relationship proof along with address proof
  10. Canceled cheque
  11. Bank passbook
  12. Bank statement
  13. Proof of legal title (If no nomination)

In case of accidental death, in addition to the above documents, you should submit the following documents too –

  1. Postmortem Report
  2. Chemical Viscera Report
  3. Panchnama
  4. Inquest
  5. First Information Report (FIR)
  6. Final Investigation Report

Claim Requirement

All cases of death must be notified to Tata AIA in writing within 90 days of its occurrence. In case of any delay on the part of the company to process the claim, it will pay a penalty interest as prescribed by the IRDAI. The death claims will be payable to the nominee or legal heir of the insured. A duly filled in requisite form along with the proof of loss shall be furnished to the company within 90 days from the date of death. To inform the company immediately upon the occurrence of death, you can visit the Tata AIA official website, email at customercare@tataaia.com or call the helpline at 1-860-266-9966 (where the local charges apply).

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