Tata AIG Life Nirvana

 

Tata AIG Nirvana is a traditional pension plan in which you can choose the retirement age (between 50 & 65) at which you want to start receiving your regular monthly pension. At the retirement age set by you, 33% of your accumulated amount can be withdrawn as a lump sum. The remainder can be used by you to purchase an annuity which will start giving you monthly pension.

 

Suppose you are currently 35 years old and plan to retire at the age of 60 and want a cover of Rs. 5 lakhs. You would have to pay a premium of Rs. 17,150 + Service Tax every year for 25 years (retirement age of 60 minus current age of 35). At the age of 60 the total benefits accrued to you would be Rs. 16,14,169 (assuming a return of 10%). You may choose to withdraw 33% of this amount at the age of 60 or invest the entire amount in an annuity which will then give you regular monthly income.

 

 

 

§         Guaranteed addition of 10% of the Sum Assured

§         Terminal and Reversionary Bonus declared every year depending on Company’s performance

§         Option to choose the retirement age to decide the age to start the pension (between 50 and 65 years)

§         Provides Life insurance cover throughout the policy term

 

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Death Benefit – In case of death of the policy holder, the nominee gets sum assured + Bonus Benefits. In case the policy has been active for more than 10 years, a guaranteed 10% of the Sum Assured would also be received. Bonus will also be paid each year depending on the Company’s overall performance.

 

Maturity Benefit – The policy holder will get the Sum Assured + 10% of Sum Assured + Reversionary Bonus + Terminal Bonus.

 

Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C. The maturity amount you receive from this plan are exempt from tax under section 10(10D)

 

 

 

 

	Minimum	Maximum
Sum Assured (in Rs.)	50,000	No Limit
Policy Term (in years)	10	10
Choice of Retirement Age	50	65
Premium Payment Term (in years)	Depends on choice of retirement age
Single premium	NA	NA
Payment modes	Monthly, Quarterly, Half yearly & Yearly
Annual Premium	5,000	No Limit

 

 

 

Sum Assured                       = Rs. 5 lakhs

Age of Retirement               = 60 years

 

 

Notice the clear benefits of starting early

 

 

 

Riders – A host of riders can be purchased along with Tata AIG Nirvana Plan

 

 

Type of Rider	Available with Policy
Accidental Death Benefit	Yes
Accidental Death & Dismemberment	Yes
Critical illness (or dread diseases) benefit	Yes
Term Rider	Yes

  

 

The bonus declared by Tata AIG Life Insurance Company for its Nirvana Pension plan is

2010-11 = 3.5%

2011-12 = 3.5%