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Tata AIA Life debuts industry-first smart value income plan

This plan includes first-in-industry features such as the option to accumulate cash bonuses which will earn rewards in the form of loyalty bonuses in the sub wallet and favourable interest rates on loans for MSMEs and women entrepreneurs, as well as an additional 1% concession on loan facilities for women entrepreneurs.Premium
This plan includes first-in-industry features such as the option to accumulate cash bonuses which will earn rewards in the form of loyalty bonuses in the sub wallet and favourable interest rates on loans for MSMEs and women entrepreneurs, as well as an additional 1% concession on loan facilities for women entrepreneurs.

  • Tata AIA Life Insurance Company Limited (Tata AIA Life), a joint venture company established by Tata Sons Pvt. Ltd. and AIA Group Ltd. (AIA), has launched a 'Smart Value Income Plan', a non-linked, participating life insurance savings plan where the bonus can be adjusted against premium payments.

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Tata AIA Life Insurance Company Limited (Tata AIA Life), a joint venture company established by Tata Sons Pvt. Ltd. and AIA Group Ltd. (AIA), has launched a 'Smart Value Income Plan', a non-linked, participating life insurance savings plan where the bonus can be adjusted against premium payments. This plan includes first-in-industry features such as the option to accumulate cash bonuses which will earn rewards in the form of loyalty bonuses in the sub wallet and favourable interest rates on loans for MSMEs and women entrepreneurs, as well as an additional 1% concession on loan facilities for women entrepreneurs. Individuals between the age group of 1 and 65 can buy the Smart Value Income Plan, with a maximum maturity age of 100 years. The policyholder may also be eligible for tax advantages under Sections 80 C and 10 (10 D) of the Income Tax Act of 1961.

Features and benefits of Tata AIA Life Insurance Smart Value Income Plan

As per the official release statement, the Tata AIA Life Insurance Smart Value Income Plan has the following unique and industry-first features.

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.

There's also a considerable maturity advantage in the plan. Consider a 35-year-old non-smoker who chooses a 10-year premium-paying term and a 40-year insurance term. Apart from the INR 12,00,000 life cover for the policy term, the consumer would get 10,50,000 as the sum assured on maturity, 37,000 as last cash bonus (non-guaranteed), and 12,64,000 in terminal bonus (non-guaranteed), for a total benefit of 23,51,000 under the cash bonus option of 8%. The sum assured on maturity benefit will be 10,50,000, the last cash bonus would be 21,000, and the terminal bonus benefit will be 4,60,000 a total benefit of 15,31,000 if you choose the 4% cash bonus option.

Commenting on the 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."

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