TATA AIA Life Insurance Smart Income                 Plus Combo 2 in 1 plan:

Plan review:

This advertisement is designed for the combination of benefits of two individual and separate products named (1) Tata AIA Life insurance Diamond Savings Plan (Non-Linked Participating Life Insurance Plan)- UIN: 110N126V01 and (2) Tata AIA  Life Insurance Smart Income Plus ( Non-Linked, Non-Participating, Endowment Assurance Plan)- UIN: 110N126V2. The customer has the choice of purchasing any one or more products as per his/her need and choice and there is no compulsion whatsoever that these products are to be taken together as suggested by the insurer and presented in this advertisement. The customer is expected to ask questions, understand and satisfy himself that the combination meets his/her specific needs better before deciding to purchase the suggested combination. The illustration in this advertisement is the arithmetic combination and chronological listing of the combined benefits of individual products. The customer is advised to refer the detailed sales brochure of respective individual products mentioned herein.

REASONS TO BUY:

1. Guaranteed Income minimum 125% of the Annualised premium for 12 years. 

2. Lumpsum on maturity with bonuses for your golden years.

3. Financial protection for your family.

4. Additional protection with optional Rider.

5. Tax Benefits as per applicable Tax Law U/S 80C and 10(10D)

SOLUTION AT A GLANCE:

The plan can be bought only by Resident Indians. The other eligibility criteria of the plan include:

BASIC SUM ASSURED	11 TIMES OF THE ANNUALISED PREMIUM
PREMIUM ( PER ANNUM)	RS 38000(MIN) AND NO LIMIT FOR MAXIMUM
PREMIUM PAYMENT MODE AND POLICY TERM	12 YEARS, 25 YEARS
AGE AT ENTRY	3 YEARS (MIN) AND 50 YEARS (MAX)
AGE AT MATURITY	28 YEARS (MIN) AND 75 YEARS (MAX)

MATURITY Example:

  Suppose Mr. Rahul (45 years old) has opted for Secure Savings Solution to secure his retirement and pays RS 100000 per annum for 12 years. Now his invest amount RS 100000 has been invested into two parts. 60% of the amount of RS 100000 is RS 60000 has been invested in Guaranteed Benefit and 40% of the amount of RS 100000 is RS 40000 has been invested in Non-Guaranteed Benefit. Now he will pay in 12 years RS 1200000. Now he doesn't need to pay any further amount. On the 13th year, he will get around RS 34,400. After 14th to 25th every year he will get RS 1,25,600, Which is Guaranteed. End of the 25th year he will also get RS 1,96,308 as the bonus from his Guaranteed investment side. On the other hand from his non-guaranteed side, he will get from Rs 9,12,735(@8%) to 1700000 (@15%).

Total he will get: RS 34400+RS1507200( RS 1,25,600*12)+RS1,96,308+RS 9,12,735 (FROM NON-GUARANTEED SIDE)

= RS 26,50,643 

NB: IT CAN BE MORE BECAUSE WE CAN ONLY COUNT @8% RETURN FROM NON-GUARANTEED INVESTMENT AS PER IRDA RULES. BUT LAST 4-5 YEARS TATA ATA NAV HAS PERFORMED @12% TO @15%. 

DEATH BENEFITS:

If the insured dies during plan term and the policy is in force, the death benefit payable would be the Sum Assured on Death irrespective of the survival benefits already paid.
The Sum Assured on Death under the plan would be higher of the following:

• Minimum Guaranteed Sum Assured on Maturity 
• Absolute amount assured payable on death 
• 105% of total premiums paid till death 
• 11 times the annual premium paid.
  The Minimum Guaranteed Sum Assured on Maturity is equal to the Guaranteed Maturity Payout in case of Option II and Guaranteed Maturity Payout and Guaranteed Payout in case of Option I.

• Loan –Loans are available under the plan if the plan acquires a Surrender Value. The maximum available loan amount is limited to 65% of the acquired Surrender Value. 
• Tax benefit – Premiums paid under the plan would be exempt from tax under Section 80C up to a limit of Rs.1.5 lakhs. The death benefit or the maturity benefit received and the Survival benefit received would also be tax exempt under Section 10(10D) of the Income Tax Act.

Additional Benefits:

• Riders – The plan has two additional riders which can be bought for additional coverage. The available riders are TATA AIA Life Insurance Accidental Death and Dismemberment (Long Scale) Rider and TATA AIA Life Insurance Waiver of Premium Plus Rider. 

• Large Premium Boost – If the policyholder selects a large amount of premium, he would get an additional benefit which would be payable along with the Guaranteed Maturity Payout and the Guaranteed Payout. This benefit depends on the amount of premium payable and the plan option selected and is as follows:
  For Option I – Regular Payout Option

• Grace Period – A grace period of 30 days is allowed for payment of premium after the due date for all modes except monthly mode where the allowed period is 15 days. The life cover under the policy would continue during the grace period.

• Free Look Period – A cooling off period or a free look period of 15 days (30 days for distance marketing channels) is granted to the policyholder after the policy issuance to review the policy terms and conditions. If found unsatisfactory, the plan can be canceled within this period and the premium paid would be refunded after deducting the relevant mortality charge, service tax, cess and stamp duty paid

Exclusions in Plan:

• If the insured commits suicide within a year of policy issuance, the premiums paid would be refunded and the policy would become void.

• If suicide is committed within a year of policy revival, higher of the premiums paid till death or the Surrender Value acquired would be paid provided the policy is in force.

Non-Payment of premium :

Premiums have to be paid for at least one full year otherwise the policy lapses and no benefit is payable. After this compulsory period, the policyholder can surrender the policy or make it paid-up if the premiums are not paid. 

Surrendering the policy:

Surrender is allowed only after the policy becomes paid-up, i.e. after one full year’s premiums have been paid. On surrendering the policy, higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV) would be paid.

• GSV would depend on the policy year in which the plan is surrendered and is expressed as follows:
  (Total premiums paid* GSV Factor of premiums) – Survival benefits already paid
• The SSV factors would be declared by the company based on its performance and would be calculated as follows:
  SSV Factor * (Maturity +Survival benefits) * (number of premiums paid / total number of premiums payable) – Survival benefits already paid.

Revival 

Revival is allowed within 2 years from the date of the first unpaid premium. The policyholder would be required to pay the outstanding premium and any interest charged by the insurer to revive his policy.

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