Tata AIA Life Insurance Wealth Maxima

What are the Key Features of the Tata AIA Life Insurance Wealth Maxima?

Here are the key features of Tata AIA Wealth Maxima:

• Flexible Premium Payment: You can choose to pay premiums once or for a limited period, and in return, you get insurance protection for your entire life.

• Loyalty Additions: The policy offers regular loyalty additions that help boost your investments over time, enhancing the overall value of your plan.

• Diverse Investment Options: You have the flexibility to choose from 18 different fund options, allowing you to tailor your investments according to your risk tolerance and financial goals.

• Rider Customization: This investment plan offers a range of riders that you can add to your plan, providing additional coverage and benefits based on your specific needs and circumstances.

• Investment Portfolio Strategy: You have the choice of opting for the Enhanced Systematic Money Allocation and Regular Transfer (SMART) Investment Portfolio Strategy. This strategy aims to optimize your investments by periodically reallocating funds based on market conditions.

• Tax Benefits: The Tata AIA Life Insurance Wealth Maxima Plan offers tax benefits as per the prevailing tax laws. This can help you save on taxes while also securing your financial future.

What is the Eligibility Criteria for Tata AIA Life Insurance Wealth Maxima?

*AP = Annualised Premium

What are the Benefits of Tata AIA Life Insurance Wealth Maxima?

Here are the benefits of Tata AIA Wealth Maxima:

1. Maturity Benefit:

   • Upon survival to the end of the policy term, you will receive the Total Fund Value.

   • The Total Fund Value includes the sum of Regular/Single Premium Fund Value and Top-Up Premium Fund Value.

   • The value is determined based on the applicable Net Asset Value (NAV) on the date of maturity.

2. Death Benefit:

   In the event of the life insured's death during the policy term while the policy is active, the nominee/legal heir will receive a death benefit.

   The death benefit is the highest of the following:

   • Basic Sum Assured (net of "Deductible Partial Withdrawals") from Regular/Single Premium Fund Value.

   • Regular/Single Premium Fund Value of the policy.

   • 105 percent of the total Regular/Single Premiums paid until the date of death.

   Additionally, the following are also payable if applicable:

   • 105 percent of the total Top-Up Premiums paid until the date of death.

   • Highest of approved Top-Up Sum Assured(s).

   • Top-Up Premium Fund Value of the policy.

   Note: Deductible Partial Withdrawals are excluded in case of Top-Up Sum Assured.

   Deductible Partial Withdrawals refer to withdrawals made in the last two years before the insured's date of death.

3. Loyalty Additions:

   • As a gesture of loyalty, additional units are credited to your policy each anniversary.

   • For policies with regular premium payments, additional units equal to 0.20% of the units in each fund are credited.

   • For single premium payment policies, additional units equal to 0.35% of the units in each fund are credited.

   • The credited units are calculated after deducting applicable charges.

   • Loyalty Additions are credited starting from the 11th policy anniversary for regular premium policies and the 6th policy anniversary for single premium policies.

   • To receive Loyalty Additions, the policy must be in force, and all due premiums must be paid.

   • Loyalty Additions are not applicable to the Top-Up Premium Account.

4. Flexibility of Partial Withdrawals:

   • Allows withdrawals from the Regular / Single Premium Fund after five policy anniversaries, as long as the policy is in force.

   • Partial withdrawal from the Top-up Premium Fund possible after five policy anniversaries from the date of accepting each Top-up Premium paid.

   • Minimum partial withdrawal amount of ₹5,000 for Regular Premium policy and Single Premium policy.

   • Partial withdrawal available only after the insured person attains 18 years of age.

   • Up to four partial withdrawals allowed in a policy year without any charges.

   • Partial withdrawals must be made first from the Top-up Premium Fund, if available, and then from the Regular / Single Premium Fund.

   • Partial withdrawals are not allowed if they lead to contract termination.

5. Flexibility of Top-ups:

   • Additional premium can be paid as 'Top-up Premium' while the policy is in force.

   • Top-up premiums can be paid anytime except during the last five years of the policy term.

   • Maximum of four top-ups allowed in a policy year, subject to underwriting and if all due premiums are paid.

   • Minimum Top-up amount is ₹5,000. Acceptance subject to prevailing underwriting rules.

   • Top-up premiums can be allocated across different funds as chosen by the policyholder.

   • Each Top-up Premium has a lock-in period of five years, except in cases of complete policy withdrawal.

   • Total Top-up premiums paid cannot exceed the sum of total regular premiums / single premium paid.

   • Charges for Top-up premiums described under "What are my Policy charges?"

6. Top-up Sum Assured:

   • Sum Assured increases by Top-up Sum Assured when a Top-up is availed, subject to underwriting.

   • Top-up Sum Assured = Top-Up Multiple * Top-Up Premium.

   • Top-Up Multiple is 1.25.

7. Flexibility of Premium Mode:

   • Premiums can be paid annually, semi-annually, quarterly, monthly, or as a single premium, according to your convenience.

   • Premium calculation: Monthly Premium = 0.0833 of Annualised Premium, Quarterly Premium = 0.25 of Annualised Premium, Semi-annual premium = 0.50 of Annualised Premium (subject to minimum premium conditions for each mode).

How does the Tata AIA Life Insurance Wealth Maxima Plan Work?

Tata AIA Life Insurance Wealth Maxima Plan is a ULIP policy that allows you to plan your financial future in a simple way:

• Policy Setup: The policyholder selects the annual premium amount, premium payment term, payment mode, and the desired investment strategy.

• Investment Funds: The policyholder can choose from five available funds for investment:

  • Large Cap Equity Fund

  • Whole Life Stable Growth Fund

  • Whole Life Mid Cap Equity Fund

  • Whole Life Aggressive Growth Fund

  • Whole Life Income Fund

  • Whole Life Short-Term Fixed Income Fund

• Premium Investment: After deducting the applicable allocation charge, the premium is invested according to the chosen investment strategy.

• SMART Strategy: The policyholder can opt for the enhanced Systematic Money Allocation and Regular Transfer (SMART) strategy. This involves selecting either a debt fund or an equity fund. The net premium is initially invested in the chosen debt fund. Subsequently, systematic transfers are made to the selected equity fund. This strategy shields the entire investment from market volatility, providing protection against equity exposure. This feature is available for both single pay and annual pay plans.

• Death Benefit: If the policyholder passes away during the policy term, a death benefit is paid out.

• Maturity Benefit: When the policy matures, the maturity benefit is paid to the policyholder.

Policy Charges for Tata AIA Life Insurance Wealth Maxima

Here are the charges associated with the Tata AIA Life Insurance Wealth Maxima: 

1. Premium Allocation Charge:

   • This charge is deducted from the regular premium or single premium.

   • The remaining net regular premiums or single premium after this charge deduction are invested in the chosen funds.

   • The charge amounts to 3% of the initial payment for Single Pay plans, and 1.5% of top-up premium contributions.

   • Allocation charges for limited pay plans is as follows: 

   Policy year	Premium Allocation Charge
   1 year	6%
   2 years	6%
   3 to 5 years	5.50%
   6 to 7 years	4.50%
   8 to 10 years	3.50%
   11 and above years	2%

2. Policy Administration Charge:

   • A monthly policy administration charge is deducted from the fund value.

   • This charge can increase annually by a maximum of 5%, compounded annually.

   • The maximum charge is capped at Rs. 500 per month as per regulatory guidelines.

   • Charge for Single Pay Option: 0.90% p.a. of Single Premium throughout the policy term.

   • Charge for Regular / Limited Pay Option: 0.75% p.a. of Annualised Premium throughout the policy term.

3. Fund Management Charge:

   They depend on the type of fund selected and are charged on a daily basis. The applicable charges are:

   Fund Type	Charge
   Large Cap Equity Fund	1.20%
   Whole Life Mid Cap Equity Fund	1.20%
   Whole Life Aggressive Growth Fund	1.10%
   Whole Life Stable Growth Fund	1.00%
   Whole Life Income Fund	0.80%
   Whole Life Short-Term Fixed Income Fund	0.65%

4. Mortality Charge:

   • Deducted from the policy's fund value.

   • It is based on the Sum at Risk (SAR) multiplied by the applicable Mortality Rate.

   • SAR is calculated differently for Regular/Single Premium Account and Top-up Premium Account.

5. Discontinuance Charge:

   • If the policy is discontinued within the ULIP lock-in period of 5 years, discontinuance charges are applied.

   • After the lock-in period, the policy is put into the Discontinued Policy Fund.

   • Proceeds of the Discontinued Policy are paid after the lock-in period, which includes the fund value and earned income.

6. Partial Withdrawal Charge:

   No charges for partial withdrawals under this plan.

7. Fund Switching Charge:

   • 12 free switches are allowed per policy year.

   • After that, a charge of Rs. 100/- per switch applies, which may be revised with IRDAI approval.

   • The maximum charge is capped at Rs. 250/- or the maximum Switching Charge declared by the Authority.

8. Miscellaneous Charge - Premium Re-direction:

   No charge for premium re-direction.

Riders under Tata AIA Life Insurance Wealth Maxima

Tata AIA Life Insurance Wealth Maxima provides additional rider options to enhance protection and allow for personalized adjustments.

1. Tata AIA Life Insurance Accidental Death and Dismemberment (Long Scale) (ADDL) Rider

   This rider provides additional protection by paying a sum assured to the nominee in the event of accidental death. If the insured suffers from severe dismemberment due to an accident, such as the loss of limbs or bodily functions, or severe burns, a percentage of the rider sum assured will be paid based on the ADDL benefit chart. In certain cases of accidental death or severe dismemberment, the benefits are doubled.
   Eligibility:

   • Entry Age: 18 to 60 years

   • Maximum Maturity Age: 70 years

2. Tata AIA Life Insurance Waiver of Premium (Linked) Rider

   This rider ensures that all future premiums of the basic policy are waived in case the proposer becomes totally and permanently disabled, provided the disability begins before the proposer reaches the age of 65 or the end of the premium payment term of the basic plan (whichever is earlier).
   Eligibility:

   • Entry Age: 18 to 60 years

   • Maximum Maturity Age: 65 years

3. Tata AIA Life Insurance Waiver of Premium Plus (Linked) Rider

   This rider provides the waiver of all future premiums of the basic policy in case of the proposer's death or total and permanent disability. The death or disability must occur before the proposer reaches the age of 70 or the end of the premium payment term of the basic plan (whichever is earlier).
   Eligibility:

   • Entry Age: 18 to 65 years (of the Proposer)

   • Maximum Maturity Age: 70 years (of the Proposer)

Policy Details of Tata AIA Life Insurance Wealth Maxima

1. Grace Period

   If you can't pay your Regular Premium on time, you have a grace period of 30 days (15 days for monthly mode) from the first unpaid premium date. Your policy remains active during this time with the specified risk cover.

2. Free Look Period

   You can cancel the Policy within 15 days of receiving it by giving written notice. You'll get back the premium, minus charges, cancellation fees, risk premium, medical costs, stamp duty, and taxes. The cancellation period is 30 days for distance marketing mode.

3. Switching of Funds

   You have the flexibility to change funds within your self-managed investment portfolio. The initial 12 switches within a policy year come at no extra cost, while subsequent switches incur a fee of Rs. 100 each. However, it's important to note that switching is not permitted within the SMART investment option.

4. Backdating

   Backdating is not allowed for this plan.

5. Loan

   Loan option is not available for this plan.

6. Premium Re-direction

   No Premium Re-direction Charge.

7. Juvenile Policy

   If the policy is taken out for a minor's life, it automatically vests in the Life Insured upon reaching adulthood (age of majority).

What are the Exclusions of Tata AIA Life Insurance Wealth Maxima? 

Suicide 

If the policyholder's death results from suicide within 12 months of policy start or revival, the nominee will receive the fund value or policy account value on the date of death notice, excluding charges other than Fund Management charges incurred after death, which will also be reimbursed along with the death benefit.