Tata AIA Life Fortune Guarantee Pension plan: Key features and benefits

Tata AIA Life Fortune Guarantee Pension is a flexible annuity solution offering multiple guaranteed income options. It offers immediate annuity payouts as per chosen frequency during the annuitant’s lifespan. This plan comes with the benefits of multiple annuity options for various needs such as second income, child education and vacation.

Also, there is an option to increase annuity through top-up premiums.

Under the plan, one can choose from varied and flexible options in an immediate annuity and deferred annuity and return of purchase price. The product also offers a choice of plan options on the basis of single pay, limited pay, regular pay, single life or joint life.

The policy also gives a death benefit which is paid out either to the nominee in case of the single life option or on the second annuitant's death in the joint life option.

There are guaranteed additions which are accumulated at the end of every policy month during the deferment period and become part of the death benefit considering all premiums are paid. These additions can’t accrue if the policy lapses or becomes a reduced paid-up policy.

The plan has several key features. These include the following:

A. The plan gives multiple annuity options to choose from.

B. It gives the option of availing a higher annuity amount by choosing higher purchase price/ premium.

C. There is availability of top-up premium. One can choose to raise the annuity amount by paying top-up premiums.

D. The policy has a high purchase price benefit to give an incentive to save more.

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There are essentially three stages of this insurance plan. In the first step, a prospective policy holder needs to choose a purchase price or policy premium to buy the annuity.

In the next step, one must choose one of the plan options available: a) immediate life annuity, b) immediate life annuity with return of purchase price, c) deferred life annuity with return of purchase price. Finally, one can receive annuity payouts as per the chosen payout mode i.e., yearly, half-yearly, quarterly, monthly and annually in advance.

There are two riders offered with the policy:

1. Comprehensive protection rider: One can choose from one or more risk covers to avail of coverage against various risks including accidental death or disability, critical and terminal illness. One can choose to receive a return of balance premiums on policy maturity.

2. Comprehensive health rider: This rider offers coverage against major illnesses, minor illnesses and injuries and also allows for multiple claim payments. The rider offers flexible payout options either as lumps sum of lumpsum and income for a fixed period or a monthly income for up to 10 years.