Tata AIA Life launches Smart Value Income Plan

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Tata AIA Life Insurance

27 May, 2022, 19:00 IST

~A savings plan where one can adjust the bonus against premium payments~

A Plan that -

  • Provides the option to receive accumulated cash bonus* from the end of the very 1st month
  • Offers life cover & option to receive cash bonuses till 100 years of age (whole life)
  • Can pay for itself by offsetting premium payments against cash bonuses*
  • Offers life Protect feature offering Full Sum Assured on Death in case of inability to pay premium given unemployment / loss of income.

Industry first features like –

  • Sub-Wallet - A facility to accumulate cash bonuses. These accumulations in the sub wallet to earn returns as loyalty additions
  • Preferential interest rates for MSMEs owners and Women entrepreneurs on loans against policy. Additional 1% discount on loan facility for women entrepreneurs

MUMBAI, India, May 27, 2022 /PRNewswire/ -- Tata AIA Life Insurance Co. Ltd. (Tata AIA), on the back of its strong fund performance and bonus track record of last year, TATA AIA, one of India's leading life insurers, announced the launch of Tata AIA Life Insurance Smart Value Income Plan, a non-linked, participating life insurance savings plan.

Tata AIA Life Smart Value Income Plan provides several first time features along with best-in-class regular and consistent income options, enabling consumers to secure their financial future and create wealth for long-term goals. The following unique and industry first features make it a must have in every investment portfolio.

  • Cash bonus from Month 1: Consumers can choose to receive cash bonuses* from the very first month of policy purchase and continue to accrue bonuses, even if they are unable to pay premiums in case of loss of pay / income.
  • Premium Offset feature: A policyholder who has chosen regular premium payment option will be able to adjust the premium payable against cash bonuses*, provided that the frequency and timing of bonus payments match premium payment.
  • In-built Sub-Wallet: This allows consumers to accrue cash bonuses* and facilitates withdrawal of the bonus amount, as per needs. The amount in the sub wallet further accrues returns as daily loyalty additions, which can also be used to offset upcoming premium payments.
  • Life Protect feature: Tata AIA Smart Value Income Plan also comes with a Life Protect feature that allows consumers to continue with their life covers even if they must postpone premium payments due to loss of income or when faced with a financial crunch. Under this feature, Tata AIA will continue to offer the Sum Assured chosen by the consumer, if the policy becomes paid-up due to non-payment of premiums. Cash bonuses* will also continue to accrue in this case.
  • Special benefit for SME owners and Women Entrepreneurs: A first-of-its-kind feature for small and medium businesses, Tata AIA Life Smart Value Income Plan offers additional benefit of preferential rate on loans against the policy. For women entrepreneurs, the policy offers a further special discount of 1% on policy loan interest rates.

The plan also offers an attractive maturity benefit. Consider a 35-year-old male non-smoker who opts for a premium paying term of 10 years and a policy term of 40 years. Apart from the INR 12,00,000 Life Cover throughout the Policy Term, the consumer would receive the following benefits:

Maturity Benefit

With a cash bonus option
of @8%

With a cash bonus option
of @4%

Sum Assured on Maturity

10,50,000

10,50,000

Last Cash Bonus (Non- Guaranteed)

37,000

21,000

Terminal Bonus
(Non- Guaranteed)

12,64,000

4,60,000

Total

23,51,000

15,31,000

These assumed rates of return (4% and 8%) are not guaranteed, and  are not the upper or lower limits of
what one might get back, as the value of your policy is dependent on a number of factors including actual
future investment performance.

Commenting on launch of Smart Value Income Plan, Venky Iyer, President & Chief Distribution Officer at Tata AIA said, "As we come out of the pandemic, the economic landscape continues to remain uncertain amid geo-political issues, rising inflation, income uncertainty, etc. Amid these conditions, consumers prefer a balance between quality of life and achievement of key financial goals. Our unique proposition, 'Tata AIA Smart Value Income Plan' will empower consumers and their families with its best-in-class features. It helps them generate wealth and avail life cover even in situations where there are premium payment gaps, with the one-of-its-kind 'Premium offset' facility. Such benefits make this product stand out in the market and should be a preferred choice for all consumers."

Smart Value Income Plan can be bought by individuals from age 1 to 65, with the maximum maturity age being 100 years. The policyholder can also avail tax benefits u/s 80 C and 10 (10 D) of the Income Tax Act, 1961.

*Subject to performance and terms & conditions of the Company.

About Tata AIA Life

Tata AIA Life Insurance Company Limited (Tata AIA Life) is a joint venture company, formed by Tata Sons Pvt. Ltd. and AIA Group Ltd. (AIA). Tata AIA Life combines Tata's pre-eminent leadership position in India and AIA's presence as the largest, independent listed pan-Asian life insurance group in the world spanning 18 markets in the Asia Pacific region. For the financial year 2021-22, the total premium income of Tata AIA Life increased to INR 14,445Cr., a growth of 30%. For the same period, the Company registered a Retail New Business Weighted Premium of INR 4,455 Cr. Individual Death Claims Settlement ratio was at 98.53%. One of the fastest growing companies in the Life Insurance sector, Tata AIA Life maintained its rank no. 5, based on Individual Weighted New Business Premium.

Website: https://www.tataaia.com/