TATA AIA Life Insurance Wealth Pro Plan

Riders available under the plan enhance the coverage.

Premiums under the plan can be paid either for a limited duration or for the entire plan tenure or once at the commencement of the plan.

Regular Loyalty Additions payable under the plan help to boost the Fund Value.

• This is a Unit Linked Plan where premiums are invested in the market for attractive returns.
• Top-up premiums are allowed for enhancing the investment.
• The plan has six funds to choose from according to the policyholder’s investment strategy.
• The policyholder can choose any of the 6 available funds or invest as per the pre-defined Enhanced SMART investment strategy available under the plan.

On maturity, the Fund Value including the Loyalty Addition would be paid to the policyholder. The policyholder can also opt for the Settlement option wherein the Maturity Benefit can be taken in installments over a period of 5 years.

If the insured dies when the plan is in-force, higher of the following is paid as death benefit:

• Sum Assured or
• Fund Value as on the date of death or
• 105% of the total premiums paid till death or
• 10 times the annual premium
  Furthermore, higher of the following, if applicable, is also paid on death:
• Top-up Sum Assured
• Top-up premium Fund Value
• 105% of the top-up premiums paid
  If the insured dies before attaining 60 years of age, the Sum Assured would be reduced by the amount of partial withdrawals made in the two years immediately preceding death.
  If the insured dies after crossing 60 years of age, the Sum Assured would be reduced by the amount of partial withdrawals made from the Fund Value in the two years before attaining 60 years and all withdrawals made after attaining 60 years.

For limited pay plans, Loyalty Additions are added @ 0.20% of the available Fund Value every year from the 11th policy year and till the end of the plan tenure. For Single Pay plans, the rate of Loyalty Additions is increased to 0.35% of the Fund Value and these additions start from the 6th policy year and continue till the end of the term. Loyalty Additions are added only when premiums are paid as and when they are due.

Being a ULIP plan, bonus is not declared.

Loan is not available under the plan.

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 would also be tax exempt under Section 10(10D) of the Income Tax Act.

Three additional riders are available under the plan which includes TATA AIA Life Insurance Waiver of Premium Rider, TATA AIA Life Insurance Waiver of Premium Plus (Linked) Rider and TATA AIA Life Insurance Accidental Death and Dismemberment (Long scale) ADDL Linked Rider. While all the three riders are available for limited pay plans, only the last rider can be taken with single pay plans.

Four partial withdrawals are allowed in the plan after a completion of 5 policy years if the insured is above 18 years of age. The minimum amount of partial withdrawal is Rs.5000 and the maximum allowed withdrawal amount is such that the Fund Value after withdrawal should not be less than one annual premium. In case of single pay policies, the fund value after withdrawal should be at least 5% of the single premium paid.

Switching between the different funds is allowed only in the self-managed investment portfolio and not in the SMART investment option. The first 12 switches in a policy year are free of cost after which a charge of Rs.100 per switch would be applicable.

• Top-ups – Extra premiums can be invested in the plan through the option of top-ups. A minimum of Rs.5000 would be accepted as top-up premiums. The Sum Assured also increases and the top-up Sum Assured is 1.25 times the top-up premium if age of the insured is lower than 45 years and 1.1 times the premium if the age is 45 years and above.
• Premium Redirection – Future premiums can be redirected to be invested in another fund once in one policy year. Subsequent premiums would then be invested as per the revised redirected allocation. Premium Redirections can be done only in self-managed investment portfolios as the SMART portfolio does not allow such redirection.
• Grace Period – A grace period of 30 days is allowed for annual, half-yearly and quarterly payment of premium and 15 days for monthly mode of premium payment.
• 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.

The policy has a 5 year lock-in period. If the policy is surrendered within the first 5 years, the funds in the Fund Value would be transferred to the Discontinued Policy Fund net of the applicable charges where it would earn a minimum interest of 4% per annum. The money would remain in the Discontinuance Policy Fund till the completion of 5 years and the Fund Management charges would be deducted as and when applicable. If the policyholder dies during this period, the Fund Value as on the date of death would be paid. Otherwise, after the completion of the lock-in period of 5 years, the available Fund Value would be paid

If the plan is surrendered any time after the completion of 5 years, the available Fund Value would be paid. The option of making the policy paid-up is also possible in limited pay plans if the premiums are paid for the first 5 years. Under the paid-up state, the policy runs on a Reduced Sum Assured which is calculated as follows:

Base Sum Assured * (number of premiums paid/total number of premiums payable)

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.