Tata AIA Life Insurance Smart Income Plus Plan

Death Benefit

In the event of death of the insured during the term of the policy, Sum Assured on Death is payable irrespective of the survival benefits (if already paid).

Sum Assured on Death is highest of 105% of the total premiums paid (till the date of death), Minimum Guaranteed Sum Assured on Maturity, Absolute amount assured to be paid on death, or 11 times of annualized premium.

Maturity Benefit

For Regular Income Option: Guaranteed maturity payout (GMP) as a lump sum is payable at the maturity. The last installment of guaranteed payout is payable along with the maturity benefit. GMP = GMP factor * Annualized Premium. The payout under this option may vary as per the age at entry, gender and premium payment term.

For Endowment Option: Minimum Guaranteed Sum Assured on Maturity equal to the Guaranteed Maturity Payout is payable.

Large Premium Boost

An additional amount is payable on payment of higher premium.

For Regular Income Option, the large premium boost (% of GMP) is 5%/20%/30% for Premium Band of Rs 50,000 to 99,999/Rs 1,00,000 to 1,99,999/Rs 2,00,000 & above, respectively.

For Endowment Option, the large premium boost (% of GP) is 1%/2%/3% for Premium Band of Rs 75,000 to 99,999/Rs 1,00,000 to 1,99,999/Rs 2,00,000 & above, respectively.

Survival Benefit

For Regular Income Option: 130%/150%/175% Guaranteed payouts (a percentage of annualized premium) is payable annually from the end of 9/12/14 policy years for 15/21/25 years policy term (or, 7/10/12 years premium payment term) respectively. The payout under this option may vary with the chosen premium payment term.

For Endowment Option: A Guaranteed payout (GP) as a multiple of the annualized premium is payable at the end of the policy year following the year of maturity. The payout under this option may vary with the chosen premium payment term, age and gender.

Loan Benefit

The maximum loan amount that can be borrowed under this policy is 65% of the surrender value. The interest charged for the loan amount is the prevailing State bank of India term deposit interest rate for ‘1 year to less than 2 years’ + 2%.

Surrender Value

Surrender Value is higher of Special Surrender Value or Guaranteed Surrender Value. Surrender Value is acquired on payment of first full policy year’s premium.

Tax Benefit

Premiums paid for this policy is eligible for tax benefits under section 80C and Death/Maturity/Survival/Surrender benefit can avail tax benefits under section 10 (10D) of the Income Tax Act, subject to prevailing tax laws.

Following riders can be opted under this plan, on payment of additional rider premium.

• Tata AIA Life Insurance Accidental Death and Dismemberment (Long Scale) (ADDL) Rider
• Tata AIA Life Insurance Waiver of Premium Plus Rider

Raman at 35 years, wants to buy a limited pay guaranteed income plan to meet tomorrow’s financial requirements. He thus opts to buy Tata AIA Life Insurance Smart Income Plus with a policy term of 21 years and premium pay term of 10 years. He opts for regular income.

Scenario A: Raman Survives the Policy Term

If Mr. Raman survives till the maturity of the policy term, he gets guaranteed benefits starting from the end of 12th policy year. He receives guaranteed maturity payout plus large premium boost.

Scenario B: Raman dies during the Term of the Policy

In the event of demise of Mr. Raman during the 3^rd policy year, a lump sum amount of Rs 5.5 Lacs is payable as the death benefit to the nominee. This payout provides financial cover for the family.