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New Launch: Tata AIA Life Insurance Smart Value Income plan allows policyholders to adjust bonus against premium

The plan comes with a feature that allows policyholders to continue with their life covers even if they had to postpone premium payments.

By: Sachin Telawane | 
Read Time: 2 minutes, 7 seconds | 
Last Updated: 30-05-2022
New Launch: Tata AIA Life Insurance Smart Value Income plan allows policyholders to adjust bonus against premium
Tata AIA Life Insurance has announced the launch of Tata AIA Life Insurance Smart Value Income Plan, a non-linked, participating life insurance savings plan. Tata AIA Life Smart Value Income Plan provides several features along with regular and consistent income options. The plan can be bought by individuals from age 1 to 65, with the maximum the maturity age being 100 years.

Key features

Cash bonus from Month 1: Consumers can choose to receive cash bonuses from the very first month of policy purchase and continue to accrue bonuses, even if they are unable to pay premiums in case of loss of pay or income.

Premium Offset feature: A policyholder who has chosen regular premium payment option will be able to adjust the premium payable against cash bonuses, provided that the frequency and timing of bonus payments match premium payment.

In-built Sub-Wallet: This allows consumers to accrue cash bonuses and facilitates withdrawal of the bonus amount, as per needs. The amount in the sub wallet further accrues returns as daily loyalty additions, which can also be used to offset upcoming premium payments.

Life Protect feature: Tata AIA Smart Value Income Plan also comes with a Life Protect feature that allows policyholders to continue with their life covers even if they must postpone premium payments due to loss of income or when faced with a financial crunch. Under this feature, Tata AIA will continue to offer the Sum Assured chosen by the consumer, if the policy becomes paid-up due to non-payment of premiums. Cash bonuses will also continue to accrue in this case.

Special benefit for SME owners and Women Entrepreneurs: A first of its kind feature for small and medium businesses, Tata AIA Life Smart Value Income Plan offers additional benefit of preferential rate on loans against the policy. For women entrepreneurs, the policy offers a further special discount of 1% on policy loan interest rates.

An illustration: Consider a 35-year-old male non-smoker who opts for a premium paying term of 10 years and a policy term of 40 years. Apart from the Rs 12,00,000 Life Cover throughout the Policy Term, the consumer would receive the following benefits:
 
Maturity Benefit With a cash bonus option of @8% With a cash bonus option of @4%
Sum Assured on Maturity 10,50,000 10,50,000
Last Cash Bonus (Non-Gauranteed) 37,000 21,000
Terminal Bonus (Non-Gauranteed) 12,64,000 4,60,000
Total 23,51,000 15,31,000

These assumed rates of return (4% and 8%) are not guaranteed, and are not the upper or lower limits of what you might get back, as the value of your policy is dependent on a number of factors including actual future investment performance.

This article was originally posted here.

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