TATA AIA Life Smart Annuity Plan

What is TATA AIA Life Smart Annuity Plan?

TATA AIA Life Smart Annuity Plan is a non-participating, non-linked individual annuity plan offered by Tata AIA Life Insurance Plan. This investment plan ensures guaranteed regular payouts to provide financial protection for you and your loved ones. 

Features of TATA AIA Life Smart Annuity Plan 

The salient features of this investment option provided by Tata AIA Life Insurance are listed below: 

• Choose from various annuity options to cater to the future needs of group members:

  • Immediate Life Annuity

  • Immediate Life Annuity with Return of Purchase Price

  • Deferred Life Annuity with Return of Purchase Price

• Select between Single or Joint Life annuity for added flexibility.

• Customize the mode of annuity payouts to suit individual preferences.

• Enjoy flexibility in premium payment terms, extending up to 15 years.

• Benefit from a deferment period of up to 10 years.

• Opt for Top Up options to boost your annuity payouts as desired. 

Annuity Options Available under TATA AIA Life Smart Annuity Plan 

1. Immediate Life Annuity

   • Single Life:

     • The annuity is paid as a chosen payment mode for the Annuitant's lifetime.

     • The indemnity ceases on the Annuitant's death, and there are no further payments.

   • Joint Life:

     • An annuity is paid based on the chosen mode as long as either Annuitant lives.

     • Payments stop on the death of both Annuitants.

2. Immediate Life Annuity with Return of Purchase Price

   • Single Life:

     • The annuity is paid as the chosen mode for the Annuitant's lifetime.

     • Lump sum Death Benefit to the nominee on Annuitant's death.

   • Joint Life:

     • The annuity is paid as the chosen mode for as long as either Annuitant lives.

     • Lump sum Death Benefit to the nominee after both Annuitants' deaths.

3. Deferred Life Annuity with Return of Purchase Price

   • Deferment Period: 1 to 10 years (chosen at inception).

   • Single Life:

     • Annuity paid post deferment period as the chosen mode for the Annuitant's lifetime.

     • Lump sum Death Benefit to the nominee on Annuitant's death.

   • Joint Life:

     • Annuity paid post deferment as chosen mode for as long as either Annuitant lives.

     • Lump sum Death Benefit to the nominee after both Annuitants' deaths.

4. Beneficiary Options

   • Primary Annuitant: Receives annuity payments.

   • Secondary Annuitant (for Joint Life): Receives payments upon Primary Annuitant's death, if opted for.

   • Secondary Annuitant eligibility: Spouse, child, parent, parent-in-law, or sibling with insurable interest.

5. Premium Payment Loadings/Discounts

   • Single Premium: No loading.

   • Annual Premium: No loading.

   • Half Yearly Premium: 51% loading.

   • Quarterly Premium: 74% loading.

   • Monthly Premium: 91.17% loading.

Eligibility Criteria to Buy TATA AIA Life Smart Annuity Plan:

Let us take a look at the policy eligibility criteria.

*ROP: Return of Premium Price

Benefits of TATA AIA Life Smart Annuity Plan 

• Maturity Benefit: No maturity benefit is provided in this plan.

• Death Benefit:

  Annuity Option	Death Benefits
  Immediate Life Annuity	None
  Immediate Life Annuity	Returns 100% of the Purchase Price upon the later of the two annuitants' deaths.
  Deferred Life Annuity	(a) Option I: Pays either total premiums plus accrued guaranteed additions or 110% of premiums paid upon death. Option II: During deferment: Pays premiums plus 0.5% of premiums paid monthly. Post deferment: Pays premiums plus a maximum of accrued 0.5% premiums till the end of deferment minus total annuity payouts.

NOTE: The choice between Option I and Option II was made at inception and are unchangeable thereafter.

• Lump Sum Death Benefit: The entire death benefit is paid to the nominee(s) all at once.

• Annuitization of Death Benefit: The benefit amount is used to buy an Immediate Annuity from the company for the nominee(s). The annuity amount paid to the nominee(s) upon the death claim is based on their age and the prevailing immediate annuity rates at the time of the Annuitant's death. This option can be chosen for the full or part of the benefit amount, subject to eligibility conditions and regulatory provisions.

• Surrender Benefit:

  • Immediate Life Annuity Option (Single and Joint Life): No surrender benefits available.

  • Immediate and Deferred Life Annuity with Return of Purchase Price (Single and Joint life): Surrender value available for Immediate Life with Return of Purchase Price and Deferred Life Annuity with Return of Purchase Price options.

Policy Details of TATA AIA Life Smart Annuity Plan

• Lapse: Not applicable.

• Grace Period:

  • Time is given after the premium due date to keep the policy active.

  • 30 days grace period for yearly, half-yearly, and quarterly payments; 15 days for monthly payments.

• Free Look Individual:

  • 15-day review period after receiving the policy document, or 30 days for electronic or distance mode.

  • Option to return the policy for cancellation within this period, with a refund of the purchase price after deduction of costs and taxes.

  • Notice of cancellation must be signed and directly received by the company.

• Policy Loan:

  • For Deferred Life Annuity with a Return of Purchase Price Option, you can apply for a loan during the deferment period, up to 80% of the surrender value.

  • Loan interest is calculated daily based on prevailing bank interest rates plus 2%, compounded annually.

  • Interest is payable each policy anniversary until the loan is repaid.

  • Unpaid interest is added to the principal loan and accrues interest at the same rate.

  • A policy is terminated if the loan with accrued interest exceeds the surrender value.

  • The excess amount is payable to you if the surrender value exceeds the loan amount with accrued interest.

  • The loan and its quantum are not subject to company discretion, but they are within permissible limits.

• Revival:

  • Defaulted premiums beyond the grace period can be reinstated within five years after the first unpaid premium's due date, subject to conditions.

  • Conditions include a written application for reinstatement, a current health certificate, and payment of all overdue premiums with interest.

• Utilization of Return of Purchase option for NPS subscribers:

  • Annuity option purchased default by Government sector NPS subscribers follows regulations of Pension Fund Regulatory and Development Authority (Exits and Withdrawals Under the National Pension System) Regulations, 2015.

  • Annuity available subject to terms prescribed by the Pension Fund Regulatory and Development Authority (PFRDA).

• Flexibility of Additional Coverage:

  • Optional riders can enhance coverage by paying additional premiums.

  • Riders include Tata AIA Life Insurance Non-Linked Comprehensive Protection Rider and Tata AIA Life Insurance Non-Linked Comprehensive Health Rider.

  • Tata AIA Vitality Protect and Tata AIA Vitality Health riders are also available.

  • Riders can be added from policy inception or any policy anniversary, subject to premium payment and policy term conditions.

How Does TATA AIA Life Smart Annuity Plan Work?

Follow the steps mentioned below to the working of the TATA AIA Life Smart Annuity Plan:

Step 1: Decide how you want to set up your plan: 

• Decide on the amount you want to invest or receive as an annuity.

• Choose how often you want to receive annuity payouts: monthly, quarterly, half-yearly, or yearly.

Step 2: Select your preferred plan option and annuity mode.

Step 3: Start receiving annuity payouts according to your chosen frequency. 

Suicide Exclusion Criteria

• Suicide Claim Rules: If a policyholder dies by suicide within 12 months:

  • The nominee or beneficiary receives 80% of the total premiums paid or surrender value, whichever is higher if the policy is active.

  • If the Top-Up Option is exercised, the nominee receives 80% of respective Top-Up Premiums, excluding extras.

  • Original and increased death benefits from the Top-Up Option before 12 months are fully payable.

• This applies to joint life policies if either commits suicide within 12 months.

• The limited/regular pay option is under the Deferred Life Annuity with the Return of Purchase Price Option during deferment.

• Suicide claim provision as per Regulation 9(c) of IRDAI (Non-Linked Insurance Products) Regulations, 2019.