Investment Plans November 18, 2020

Tata AIA Smart Income Plus Plan

Life can throw uncertain situations at you at different points in your lives. The biggest of these uncertainties is death. So, it is important to have a life insurance policy to protect yourself and your loved ones in case something unfortunate happens. But what should individuals do if they want to have a life insurance plan that can also help achieve their financial goals? Well, this is where the Tata AIA Smart Income Plus Plan can help achieve so! This plan is a non-linked, non-participating, limited-pay endowment assurance income plan with which individuals can get guaranteed returns at maturity.

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Tata AIA Life Insurance is one of the most trusted companies among customers, and individuals can fulfill their various financial goals such as Child Marriage, Education, Retirement Planning, Business Planning with this plan. The best thing about Tata AIA Smart Income Plus Plan is that you can choose between regular and endowment options according to your convenience. By choosing this plan from Tata AIA Life Insurance, you can ensure your family’s safety along with meeting your future financial goals.

So, what are the several benefits of this life insurance policy? Here, we will cover the same along with other key information. Keep reading to know more!

Tata AIA Smart Income Plus Plan Key Features

Tata AIA Smart Income Plus Plan can be suitable for those individuals who want to opt for a limited pay guaranteed insurance plan along with tax benefits. We are showing some of the highlights of this insurance plan that you can see below.

  1. One of the best things about Smart Income Plus Plan is the flexibility to choose between Regular Income and Endowment Plan according to your convenience.
  2. With the Regular Income Plan option, individuals can get a guaranteed payout ranging from 120-160% of the annual premium paid towards the policy. However, this will depend on the premium payment term chosen by you.
  3. Individuals can get guaranteed life cover for 15, 21, and 25 years by paying the premium for 7, 10, and 12 years, respectively.
  4. With this Life Insurance Plan, individuals can also enhance their policy coverage by adding different types of riders such as Accidental, Dismemberment, and waiver of premium rider.
  5. This plan offers exclusive benefits to female lives as they have to pay a reduced premium towards their Tata AIA Smart Income Plus Plan. Male individuals will need to pay a higher premium charge compared to females.
  6. Along with all the features mentioned above, 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. You can also choose to pay the premium according to your choice. The options are Annual, Half-yearly, Quarterly, and Monthly. Tata AIA will charge Modal Loading according to the mode of premium payment chosen by you.

Benefits of Tata AIA Smart Income Plus Plan

There are several benefits that individuals can enjoy by having a Tata AIA Smart Income Plus Plan. Want to know them in detail? We are showing them below. Check it out!

Death Benefits

In case the insured person dies during the policy period, the nominee will receive the death benefit under the Tata AIA Smart Income Plus Plan. A nominee will receive this regardless of the survival benefits received already. Also, these benefits will be the same for both the Regular Option and Endowment option. The maximum death benefit will be one of these four options mentioned below.

  1. 11 times of the Annual Premium paid towards the Policy
  2. 105% of the total premiums paid until the death of the insured person
  3. The minimum sum assured on maturity
  4. The total sum assured is payable on death

Survival Benefits

In the case of a Regular Plan, individuals will get a guaranteed payout on an annual basis. This payout is usually a percentage of the annual premium paid towards the policy. Policyholders will get the income starting from the 9th, 12th, or 14th year of his/her policy with the premium payment terms being 7, 10, and 12 years, respectively, during the overall terms of the policy. The payouts will be calculated at 120%, 140% and 160% of the annual premium respectively.

However, in the case of an Endowment Plan, the policyholder will get a guaranteed payout at the end of falling right before the year of maturity of the Tata AIA Smart Income Plus Plan. Remember that payout amount depends on several factors such as Premium Payment term, Age, and Gender of Policyholder. To receive the survival benefits, all the premiums must be paid on time, and the policy should be active.

Maturity Benefits

In the case of a Regular Income Option, the insured person will get a guaranteed maturity payout as a lump sum amount at the time of maturity as maturity benefits. As usual, this payout is calculated as a percentage of premium payment and depends on factors such as the age of the policyholder at the time of entry, premium payment term, and gender. While in the case of the Endowment option, the insured person will receive the minimum guaranteed sum assured at the time of policy maturity.

Surrender Benefits

Tata AIA Smart Income Plus Plan offers the same surrender benefits to people choosing both Regular Income and Endowment options. If you want to surrender your policy before maturity, you can do it at any time during the policy tenure. However, you must have paid the premium of at least two years if the payment term of the premium is 7 years. While in the case of 10 and 12 years premium payment terms, the premiums must be paid for the full three years. Thinking about what will be the surrender value? Well, it will be the higher of guaranteed surrender value or special surrender value.

Reduced Paid-up

In case the policy acquires Surrender Value and the following premiums remain unpaid, the Tata AIA Smart Income Plus Plan will automatically be converted into a Reduced Paid-up Policy.

Loan Against 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 65% of the overall surrender value of your policy.

Tata AIA Smart Income Plus Plan Eligibility Criteria

When choosing theTata AIA Smart Income Plus Plan, you need to fulfill a few conditions. We are showing them below. Do check!

  1. The minimum age at entry depends on the premium payment term. If you are choosing a term of 7 years, the minimum entry age can be 3 years. While for the 10 and 12- years term, the minimum age can be 30 days after birth.
  2. The maximum age of entry into the policy can be as high as 50 years.
  3. The minimum age of maturity into the policy is fixed at 18 years
  4. The maximum age will vary according to the premium term which is 65, 71 and 75 years for 15, 21 and 25 years of the premium term, respectively.
  5. The Policy term can be 15, 21 or 25 years from which customers can choose according to their convenience.
  6. The basic sum assured will be 11 times the annualized premium paid towards the policy.
  7. The minimum premium for the policy is fixed at INR 18,000 and INR 36,000 for Regular and Endowment Options, respectively.
  8. Tata AIA provides a free look period of 15 days. However, if the policy is sold through distance marketing, it will be for 30 days.

Exclusions from Tata AIA Smart Income Plus Plan

In case the insured person commits suicide within 12 months from the inception of policy risk under the plan or the date of revival of the 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) provided the policy is active.

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