Tata AIG Life Assure Career Builder Plan

Tata AIA Life Assure Career Builder Plan is a Money Back Child Plan. This is a Traditional Plan with Bonus Facility. In this plan the life of the child is insured.

In this plan, premium needs to be paid till the end of the Policy Tenure. The child would receive 20% of the Sum Assured when he is 18, 21 and 24 years of age and the remaining 40% along with Guaranteed Additions and Bonuses would be payable on maturity when he is 27 years old. However if the child dies within the policy tenure, then the Sum Assured along with Guaranteed Additions and Bonuses would be payable and the policy would be terminated.

Along with this, there is an additional Life Payor Benefit that can be opted as a rider. If the rider has been opted for and the parent dies or meets with disability during the policy tenure, then the future premiums would be waived off by the Insurer and the policy continues to provide the benefit to the child. However, if the rider has not been opted for, then the premiums would still need to be paid even if the proposer, i.e. the parent dies within the policy tenure.

• In this plan money is paid back at pre-defined milestones of the child’s life
• Bonus is available on maturity or on earlier death.
• There is a Guaranteed Loyalty Addition of 10% of Sum Assured in the event of death or on maturity if the policy has been in force for 10 years
• Life Coverage begins from 4 years of age prior to which only percentage of Sum Assured would be paid as death benefit
• Life Payor Benefit rider ensures that in case of your unfortunate death or disability, all the future payments for this policy would be paid by the insurer.

Death Benefit –

• If the Life Insured, i.e. the child, dies before 4 years of age, the Death Benefit is paid and the policy terminates.
  • If the child dies at Age 0, then 20% of Sum Assured is paid
  • If the child dies at Age 1, then 40% of Sum Assured is paid
  • If the child dies at Age 2, then 60% of Sum Assured is paid
  • If the child dies at Age 3, then 80% of Sum Assured is paid
• If the Life Insured, i.e. the child dies after 4 years of age, then Sum Assured + Guaranteed Loyalty Addition of 10% of Sum Assured (if the policy has been in force for 10 years) + Simple Reversionary and Terminal Bonuses accrued till death and the policy terminates.

Survival Benefit –

• When the child is 18 years old, 20% of the Sum Assured is paid
• When the child is 21 years old, 20% of the Sum Assured is paid
• When the child is 24 years old, 20% of the Sum Assured is paid

Maturity Benefit – When the child is 27 years old, the remaining 40% of Sum Assured + Guaranteed Loyalty Addition of 10% of Sum Assured + Simple Reversionary and Terminal Bonuses

Income Tax Benefit – Premiums paid under life insurance policy are exempted from tax under Section 80 C and maturity proceeds are exempted from tax under Section 10 (10D)

The below illustration is for a healthy person opting for a Sum Assured = Rs. 2,00,000 &

Age= 0, 5 and 10 years

Guaranteed Benefits:

When Child is 18 years = 20% of SA= 20% of Rs 2,00,000= Rs 40000

When Child is 21 years = 20% of SA= 20% of Rs 2,00,000= Rs 40000

When Child is 24 years = 20% of SA= 20% of Rs 2,00,000= Rs 40000

When Child is 27 years = 20% of SA= 40% of Rs 2,00,000= Rs 80000 + Guaranteed Addition of Rs 20000 + Bonus

Riders- There are 1 additional rider available with this plan-

• Tata AIG Life Payor Benefit Rider- If this rider has been availed and the parent dies or meets with disability within the policy tenure, then the future premiums would be waived.

You stop paying the premium - If the policy holder stops paying the premium, the insurance cover will cease and the policy will lapse. However it can be revived within 5 years from the first unpaid premium after fulfillment of certain terms and conditions and payment of due premiums and interest.

You want to surrender the policy – Surrender is allowed after completion of 3 policy years.

Guaranteed Surrender Value = 30% of all basic premiums paid - 1^st years premium

You want a loan against your policy - There is no loan available under this plan. However an automatic loan is provided from the Cash Value of the policy if the premium is not paid within the Grace Period.