Tata AIG Life Assure Money Saver Plan

Tata AIA Life Assure 21 years Money Saver Plan is a Money Back Plan. This is a Traditional Plan with Bonus facility.

In this plan, premium needs to be paid till the end of the policy tenure. Survival Benefit of 10% of the Sum Assured is paid out every 3 years for the next 21 years and the remaining amount along with bonus is paid on maturity as Maturity Benefit. However if the Life Insured meets with death within the policy tenure, then the entire Sum Assured, irrespective of the amount already paid, along with accrued Bonus is paid as Death Benefit.

The coverage can be enhanced by 10 additional riders.

• This is a traditional participating Money Back Plan
• In this plan 10% of the Sum Assured is paid every 3 years for the next 21 years and the remaining amount of 40% of the Sum Assured is paid on maturity
• Bonus is available on maturity or on earlier death
• In case of Death Benefit, the entire Sum Assured is paid, irrespective of the amount already paid as Survival Benefit
• There is a Guaranteed 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
• There are 10 additional riders in this plan.

Death Benefit –

• If the Life Insured dies before 4 years of age:
  • At Age 0, then 20% of Sum Assured is paid
  • At Age 1, then 40% of Sum Assured is paid
  • At Age 2, then 60% of Sum Assured is paid
  • At Age 3, then 80% of Sum Assured is paid
• If the Life Insured dies after 4 years of age, then Death Benefit of entire Sum Assured + Guaranteed Loyalty Addition of 10% of Sum Assured (if the policy has been inforce for at least 10 years) + Compound Reversionary and Terminal Bonuses, irrespective of the amount already paid.

Survival Benefit – 10% of Sum Assured is paid back every 3 years for the next 21 years, i.e. at the end of 3^rd year, 6^th year, 9^th year, 12^th year, 15^th year and 18^th year.

Maturity Benefit – The remaining 40% of Sum Assured + Guaranteed Loyalty Addition of 10% of Sum Assured + Compound 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. 1,00,000

Age= 15, 25 and 35 years

Riders- There are 10 additional riders available with this plan-

1. Tata AIG Life 5 Year Renewable Term Rider
2. Tata AIG Life 10/15/20/25 Years Term Rider
3. Tata AIG Life Term to Age 60 Rider
4. Tata AIG Life Accidental Death Benefit (ADB) Rider
5. Tata AIG Life Accidental Death and Dismemberment (Long scale)
6. Tata AIG Life Accidental Death and Dismemberment (Short scale)
7. Tata AIG Life Critical Illness Rider (Lumpsum Benefit)
8. Tata AIG Life Critical Illness Rider (Accelerated Benefit)
9. Tata AIG Life Waiver of Premium (WP) Rider
10. Tata AIG Life Payor Benefit(PB) Rider (only for juvenile policies) -

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.