Tata AIA Life Insurance Smart Income Plus

Tata AIA Smart Income Plus Plan is a non-linked, non-participating, limited pay endowment assurance income plan that offers guaranteed returns. This plan helps you to take care of your medium- and long-term financial goals and ensures that your family always stays financially protected against any uncertainty. Tata AIA Smart Income Plus Policy comes with two plan options. Moreover, you can enhance the policy coverage by adding accidental and dismemberment rider and waiver of premium rider to it. The plan has exclusive benefits for female policyholders, charging lower premium rates from them. Policyholders can avail income tax benefit under section 80C and 10(10D) of the Income Tax Act, 1961.

Plan option: The customers have a flexibility to choose between option 1 - Regular income and option 2 - Endowment options. Death benefit: If the life insured dies during the policy tenure, the death benefit is payable to the nominee, regardless of the payment of survival benefit already received. The death benefit shall be the highest of

• 11 times of the annualised premium,
• 105% of all premiums paid till,
• the minimum guaranteed sum assured on maturity, or
• the total sum assured as payable on death.

Survival benefit:

Option 1 – Regular benefit

Under this option, the guaranteed payout is payable annually. Guaranteed payout is calculated as a percentage of annualised premium. The income will be provided to the policyholder starting from the 9th, 12th, or 14th policy year where the premium payment terms are 7, 10 and 12 years during the policy terms. The guaranteed payouts will be calculated at 120%, 140% and 160% of the annualised premium respectively.

Option 2 – Endowment plan

If the policy is active and all the premiums are paid on time, the policyholder is entitled to a guaranteed payout, which will be a percentage of the annualised premium. Guaranteed payout will be payable at the end of the year falling right before the year of maturity of the plan. The guaranteed payout provided under this option depends on various factors like premium payment term, age and gender of the policyholder.

Maturity benefit:

Option 1 – Regular benefit

Under this option, the life insured is entitled to receive guaranteed maturity payout in a lump sum at the time of maturity. The guaranteed maturity payout is calculated as a percentage of annualised premium, and it depends on various factors such as the age of the policyholder at the time of entry into the plan, premium payment term, and gender. Option 2 – Endowment plan

Under this option, the life insured is entitled to receive the minimum guaranteed sum assured at the time of maturity of the policy. The amount is equal to the Guaranteed maturity payout, which is payable under the regular income option.

Surrender benefit:

For both option 1 and 2

Tata AIA Smart Income Plus Plan can be surrendered at any time during the policy tenure, provided at least two full years’ premiums have been paid where the premium payment term is seven years. In the case of 10 and 12 years of premium payment terms, the premiums must be paid for a full three years. The surrender value payable is the guaranteed surrender value or special surrender value whichever is higher.

Income tax benefit:

Tax deduction up to Rs. 1,50,000 of the premiums paid towards the policy can be claimed under Section 80C of the Income Tax Act, 1961. As per Section 10(10D) of the Income Tax Act, 1961, benefits received under a life insurance policy, including bonus is exempted from tax.

Tata AIA Life Smart Income Plus Plan helps you to save with these additional value-added benefits.

• Grace period: Policyholders are provided with a grace period of 15 days in case of monthly premium payment frequency, and 30 days for other premium payment mode starting from the due date of premium payment. If a policy claim arises during the grace period, the amount paid against the claim will be deducted by the amount of unpaid premiums.

• Policy lapse: If the policyholder fails to make premium payment within the specified grace period, the plan will lapse. Policy revival: A lapsed plan can be revived within 2 years before it matures. For this, the policyholder needs to provide a written request to the company for the revival of the policy. A valid certificate of insurability is required to submit along with the amount of all unpaid premiums that are due to the policy.

• Free-look period: Policyholders are provided with a free look period of 15 days (30 days if the policy is sold via digital marketing channels). If you wish to cancel the policy, you may do so within the specified free-look period. If the customer found this plan unsatisfactory, the plan can be cancelled within this period, and the premium paid would be refunded to the customer after deducting the applicable charges such as service tax and stamp duty.

• Loan against policy: Policyholders can avail loan against Tata AIA Smart Income Plus Plan. The loan facility is available after it has acquired a surrender value. The loan provided under this policy is up to 65% of its surrender value.

• Assignment: Assignment of policy is permitted under Section 38 of the Insurance Act, 1938.

• Nomination: Nomination for the policy is allowed under Section 39 of the Insurance Act, 1938.

• Riders: If the policyholder wants to enhance the coverage offered by Tata AIA Smart Income Plus Plan, they can opt for additional riders that are available with the plan. The riders can be chosen at the time of policy commencement. The two riders available with this plan are – Tata AIA Life Insurance Accidental Death and Dismemberment rider and Tata AIA Life Insurance Waiver of Premium Plus rider.

• Online payment: Customers have an option to make premium payments online at their convenience. Online payment options include payment via NEFT or IMPS, Paytm, EMI using Kissht, via Jio money, and ICICI bank quick pay.

Track policy application: Customers can also track their policy application from the official website of Tata AIA to find out its progress.

Discounted premium rates for female customers: The company offers discounted premium rates to female policyholders.

• Large premium Boost: If the policyholder selects a large amount of sum assured, he/she would get additional benefits which would be payable along with the guaranteed payout and guaranteed maturity payout. This benefit depends on the amount of premium payable and the plan option selected as illustrated below:

• For option 1 – Regular Income

• For option 2 – Endowment

Following documents are required to process the Tata AIA Life Insurance Smart Income Plus Plan.

Age proof: Any of these can be submitted as a proof of age – Driving license, Passport, School/college certificate, PAN card, Birth Certificate.

Identity proof: PAN card, Aadhaar card, Voter ID or driving license can be used as an identity proof.

Address proof: Utility bill, Aadhaar or bank account statement can be presented as an address proof.

Apart from the documents listed above, the customer has to fill up a policy application form and provide self-attested copies of KYC documents.

There are several life insurance providers in India, each offering a wide range of insurance plans to meet the different life insurance needs of people. Tata AIA is well-known for offering customized life insurance plans to its customers in addition to the flexibility in premium payments and higher benefits.

The Tata AIA Life Insurance Smart Income Plus is a non-linked, non-participating, limited-pay, insurance-cum-investment plan that gives the policyholder the flexibility to choose between regular income option and endowment option. Under the first option, the policyholder is entitled to receive a regular income, whereas, in the second option, a lump sum endowment benefit is given to the policyholder. Tata AIA Smart Income Plus is an ideal plan for those who are looking for comprehensive coverage along with return on investment. Policyholders can enhance their coverage by adding optional riders to the existing policy. The two riders available with this plan are – Tata AIA Life Insurance Accidental Death and Dismemberment rider and Tata AIA Life Insurance Waiver of Premium Plus rider. The plan comes with a free-look period of 15 days and also offers a grace period to make the payment of due premium. The Tata AIA Smart Income Plus Plan has a special benefit for female policyholders. Moreover, the company provides large premium boost on higher premium amount.

As per the policy, the life insured is entitled to receive maturity and survival benefits and nominee is eligible to receive death benefits. The policyholder has the flexibility to select the payout option to receive the maturity benefit. The premiums paid and benefits received against Tata AIA Smart Income Plus Plan are eligible to receive income tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961, respectively.

Who should buy this plan?

Individuals falling within the age group of 3 to 50 years can buy this plan to receive decent returns on their investment and also to protect their family’s financial future against uncertain death.