Tata AIA Fortune Guarantee Pension Plan

What is Tata AIA Fortune Guarantee Pension Plan?

Tata AIA Life Insurance Fortune Guarantee Pension Plan is a retirement plan designed to help you achieve financial independence during your retirement years. It is a non-linked, non-participating annuity plan, which means the returns are not linked to the market and are guaranteed by the insurer.

The plan caters to your individual needs with multiple annuity options. It also incentivises saving more through a high purchase price benefit. Additionally, you have the option to further increase your annuity income by making top-up premium payments.

Features of Tata AIA Fortune Guarantee Pension Plan

The features of the Tata Fortune Guarantee Pension Plan are: 

• Multiple Annuity Options: Choose an annuity payout plan that aligns with your income needs. Whether you prefer monthly, quarterly, half-yearly, or annual payouts, the plan offers flexibility to match your lifestyle.

• High Purchase Price Benefit: The plan incentivises saving a larger sum. By opting for a higher purchase price, you could potentially receive a more substantial guaranteed pension income upon retirement.

• Boost your Pension with Top-up Premiums: Don't be limited by your initial investment. The plan allows you to increase your pension income through additional top-up premiums after a certain period. This lets you adjust your pension based on your future needs.

• Potential Tax Benefits:  The Tata AIA Fortune Guarantee Pension Plan may offer tax advantages on the premiums you pay and the benefits you receive. It's advisable to consult with a tax advisor to understand the latest tax implications for this plan.

Eligibility Criteria for the Tata AIA Fortune Guarantee Pension Plan

Benefits of the Tata AIA Fortune Guarantee Pension Plan

The benefits of Tata Guaranteed Pension Plan: 

• Flexible Annuity Options: Choose how you receive your retirement income: immediate annuity, deferred annuity, with or without return of purchase price, for single or joint life.

• Death Benefit: Provides financial security for your loved ones in case of your passing.

• Guaranteed Additions: Get bonus additions to your benefit amount (on select plan options).

• Loan Option: Access funds during retirement through a loan against your policy (except for Immediate Annuity option).

Policy Details of the Tata AIA Fortune Guarantee Pension Plan

Policy details for Tata AIA Life Insurance Fortune Guarantee Pension Plan: 

1. Free Look Period:

   • Policyholder/Annuitant can cancel policy within 30 days of receiving Policy Document.

   • Refund of all premiums paid (excluding Stamp duty and Medical examination costs).

   • Any annuity payments made will be deducted from the refund.

   • Exceptions apply if policy is sourced from NPS funds, bulk annuity, or QROPS.

2. Policy Loan:

   • Available after six months from policy commencement.

   • Maximum loan up to 80% of surrender value.

   • Loan plus interest not to exceed 90% of Total Premiums Paid.

   • Interest payable capped at 50% of annual annuity amount.

   • Loan interest recovered from annuity, due on annuity date.

   • Outstanding loan recovered from claim proceeds.

   • Interest rate tied to SBI domestic term deposit rate + 2%.

3. Grace Period:

   • 30 days grace period for yearly, half yearly, and quarterly premiums.

   • 15 days grace period for monthly premiums.

4. Revival Period:

   • Policy reinstated within five years after first unpaid premium.

   • Requires written application, evidence of insurability, and payment of overdue premiums with interest.

   • Revival covers losses occurring after revival date.

   • Accrual of guaranteed additions upon revival.

5. Termination of Policy:

   • Terminated upon death of Annuitant or second annuitant (Joint life).

   • Terminated upon acceptance of Free Look request.

   • Terminated upon payment of Surrender Benefit.

   • Terminated upon expiry of Revival period for lapsed policy.

   • Terminated when loan amount with accrued interest exceeds Surrender Value.

Exclusions Under the Tata AIA Fortune Guarantee Pension Plan

1. Suicide Claim Provisions:

   In the unfortunate event of death by suicide within the first 12 months:

   • The nominee or beneficiary will receive at least 80% of the Total Premiums Paid till the date of death or the surrender value available, whichever is higher, provided the policy is active.

   • For policies with a Top-Up Option, 80% of the respective Top-Up Premiums paid will be entitled to the nominee or beneficiary.

   • The original death benefit and any increased death benefit purchased through the Top-Up Option will be payable if suicide occurs within 12 months from the date of exercising the option.

   • This provision applies during the deferment period and for options 3 and 4 only. No benefit is payable for suicide otherwise.

   • Applicable terms are as per the definition given by the Insurance Regulatory and Development Authority of India (IRDAI), subject to amendments.

2. Death Exclusion:

   No benefits are payable for death under specific circumstances.

3. Access to Benefits/Payout for QROPS:

   If the plan is purchased as a Qualifying Recognized Overseas Pension Scheme (QROPS) through the transfer of UK tax-relieved assets, certain conditions apply:

   • The minimum age for annuity payment is 55 years.

   • Proceeds from cancellation during the Free Look Period will be transferred back to the fund house.

   • In case of applicable tax charges due to overseas transfer, deductions will be made from the Policy value and remitted to HM Revenue & Customs (HMRC).

   • Other terms and conditions of HMRC will apply as applicable from time to time.