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TATA AIA Life Insurance Insta Wealth Plan

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TATA AIA Life Insurance Insta Wealth Plan Review

TATA AIA Life Insurance Insta Wealth Plan is a traditional, participating Endowment Insurance Plan which can be easily bought and the plan provides savings and life insurance coverage too.


Highlights of the TATA AIA Life Insurance Insta Wealth Plan

  • This is a traditional Endowment Plan which participates in bonus declarations and earns reversionary and Terminal bonus. 
  • Premiums under the plan are payable only for a limited tenure. 
  • The plan can be bought without any medical or financial underwriting.
  • Guaranteed Yearly Additions further enhance the corpus


Working of the TATA AIA Life Insurance Insta Wealth Plan

  • The policyholder chooses the Sum Assured, the policy tenure and the premium paying mode.
  • Based on the above factors and the insured’s age, the premium amount is computed.
  • Guaranteed Additions would accrue every year after the premium paying term till plan maturity. 
  • On death during the period, the death benefit is paid 
  • On maturity, the maturity benefit is paid.

COMPARE THIS PLAN WITH OTHER ENDOWMENT PLANS



Benefits and Features of TATA AIA Life Insurance Insta Wealth Plan

  • Maturity Benefit – When the plan matures and the premiums have been duly paid, the benefit payable would be as follows:
    Basic Sum Assured + accrued Guaranteed Additions + Vested reversionary bonus + Terminal Bonus, if any
  • Death Benefit – If the insured dies during plan term and the policy is in force, the death benefit payable would be the Sum Assured on Death + accrued Guaranteed Additions till death + vested reversionary bonuses till death + Terminal Bonus, if any subject to a minimum of 105% of premiums paid till death.
    The Sum Assured on Death is higher of the following:
    • 10 times the annual premium 
    • Basic Sum Assured
  • Guaranteed Additions – Guaranteed Additions are added every year for which the policy is in force after the completion of the premium paying term and till the end of the plan tenure. These additions are added @ 1% of the Sum Assured and are payable on maturity, death or surrender of the plan.
  • Bonus – Compound reversionary bonuses are added every year provided the policy is in-force and all due premiums have been paid under the plan. These bonuses accrue from the first policy year and continue till plan maturity. A Terminal Bonus may also be paid on maturity or death. 
  • Loan –Loans are available under the planif 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.


Eligibility Criteria of TATA AIA Life Insurance Insta Wealth Plan

The plan can be bought only by Resident Indians. The other eligibility criteria of the plan includes:
  Minimum Maximum
Entry age (Last Birthday) 30 days 45 years
Maturity Age (Last Birthday) 18 years 65 years
Plan tenure 10,15 and 20 years
Premium payable Rs.10,000 Depends on age, term and the maximum Sum Assured
Premium Paying Term (PPT) Term 10 years – 7 years
Term 15 years – 10 years
Term 20 years – 15 years
Sum Assured Rs.1 lakh Age 0-35 years – Rs.10 lakhs
Age 36-45 years – Rs.5 lakhs
Premium payment mode Monthly, half-yearly or yearly



Additional Benefits of TATA AIA Life Insurance Insta Wealth Plan

  • Riders – There are no additional riders available under the plan.
  • Large Sum Assured Discount – If the policyholder selects a large level of Sum Assured, he would get a discount in the premium which is as follows:
Basic Sum Assured Level Discount per Rs.1000 Sum Assured
Rs.1 lakh to Rs.199,000 Nil
Rs.2 lakhs to Rs.299,000 Rs.2
Rs.3 lakhs to Rs.499,999 Rs.3
Rs.5 lakhs and above Rs.4.50
 
  • Grace Period – A grace period of 30 days is allowed for payment of premium after the due date in case of annual and half-yearly mode of premium payment. The period decreases to 15 days for the monthly mode of premium payment. 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 cancelled within this period and the premium paid would be refunded after deducting the relevant mortality charge, service tax, cess and stamp duty paid.


Premium Illustration

The chart below shows the premium rates at different levels of Sum Assured and for different ages.


The premium rates are also tabulated hereunder for a quick reference:
Sum Assured Term - 10 years Term - 15 years Term - 20 years
Age - 35 years Age - 45 years Age - 35 years Age - 45 years Age - 35 years Age - 45 years
Rs.2.5 lakhs 39,250 41,303 27,078 28,478 18,728 20,228
Rs.5 lakhs 77,250 81,355 52,905 55,705 36,205 39,205



Exclusions in TATA AIA Life Insurance Insta Wealth 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 in TATA AIA Life Insurance Insta Wealth Plan

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. 

Making the policy Paid-up

If at least one full years’ premium has been paid, the policy would become a paid-up policy if future premiums are not paid. The facility of loan cannot be availed in a paid-up policy. The benefits payable under the plan would be reduced and called Paid-up Benefits which are calculated as follows:
  • Death Benefit – The death benefit would be reduced and calculated as follows:
    {Sum Assured on Death *(number of premiums paid/total number of premiums payable)+ vested Guaranteed Additions + vested reversionary bonus + Terminal Bonus, if any} subject to a minimum of 105% of all premiums paid till death
  • Guaranteed Yearly Additions – The accrued additions added till the policy was in-force would be paid at the beginning of the last policy year. 
  • Maturity Benefit – The maturity benefit would  be calculated as follows:
    Minimum Guaranteed Sum Assured on Maturity * (number of premiums paid / number of premiums payable) + vested bonuses+ accrued Guaranteed Additions


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) + (vested Guaranteed Additions + reversionary bonus * GSV Factor of additions and bonus)
  • The SSV factors would be declared by the company based on its performance and would be calculated as follows:
    SSV Factor * (Reduced Paid-up Sum Assured + vested Guaranteed Additions + vested reversionary bonus + Terminal Bonus, if any)
    Paid-up Sum Assured = Basic Sum Assured * (number of premiums paid/number of premiums payable)

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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