TATA AIA Smart Pension Secure Plan

What is the TATA AIA Smart Pension Secure Plan?

Tata AIA Smart Pension Secure is a Non-Participating, individual, Unit Linked Insurance Plan (ULIP) designed to help you systematically accumulate wealth for your retirement. It helps you build a strong financial corpus while also providing protection for your family in case of any unforeseen circumstances. This pension plan not only helps your wealth grow but also ensures financial stability for your loved ones, securing their future against uncertainties.

Features of TATA AIA Smart Pension Secure Plan

The key features of the TATA AIA Smart Pension Secure Plan are as follows:

• You can choose from two plan options: Smart Pension Secure and Smart Pension Secure Plus.

• This Unit Linked Pension Plan (ULPP) provides financial security for you and your family with market-linked returns.

• Enjoy higher fund growth with zero premium allocation charges.

• Receive Loyalty Additions and Maturity Boosters to enhance your retirement savings.

• Select from multiple funds and investment strategies based on your financial goals.

• Choose a premium payment term that suits you: Single Pay, Limited Pay, or Regular Pay.

• Withdraw a part of your savings whenever needed with the partial withdrawal option.

• Postpone your vesting date as per your retirement needs.

• Avail tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961. 

Eligibility Criteria for TATA AIA Smart Pension Secure Plan

Benefits of TATA AIA Smart Pension Secure Plan

Below are the benefits of the TATA AIA Smart Pension Secure Plan: 

• Vesting Benefit: The Vesting Benefit of this investment plan includes the Fund Value at applicable NAV as of the Vesting Date. If the life insured is alive on the Vesting Date, the nominee or policyholder is eligible to receive the benefit. The policyholder can opt to purchase an immediate or deferred annuity with up to 60% commuted, and the remaining can be invested at the prevailing annuity rate.

• Postponement of Vesting: Policyholders under the age of 60 can choose to extend the accumulation or deferment period beyond the Vesting Date while retaining the same terms and conditions for this investment option.

• Death Benefit: If the life insured passes away during the policy term, the nominee receives the higher of the Regular/Single Premium Fund Value or 105% of premiums paid, minus partial withdrawals. Top-up premiums, if any, also add to the death benefit. The policy terminates upon the insured's death.

• Fund Enhancements (Online/Digital Discount): For online policy purchases, policyholders get additional benefits, such as the Vesting Booster (0.5% of the average Fund Value over the last eight policy quarters) when opting to purchase an annuity from the company.

• Partial Withdrawal Benefit: After 5 policy years, partial withdrawals of up to 25% of the fund value are allowed, subject to a minimum withdrawal of ₹6,000. Withdrawals can be made for specific reasons, such as education or medical emergencies, and are limited to three times during the policy term.

• Top-up Facility: Policyholders can make top-up premiums during the policy term, which are subject to a 5-year lock-in period and allocation based on the chosen funds.

• Flexibility of Premium Mode: Premium payments can be made annually, semi-annually, quarterly, monthly, or as a single lump sum, depending on the policyholder’s preference.

• Switching Between Funds: Policyholders can switch their investments between funds as per their market outlook, at no additional cost, except if an Enhanced SMART or Life-stage strategy is chosen.

• Premium re-direction: The Premium e-direction facility allows policyholders to allocate future premiums to different funds without additional charges unless they’ve chosen the Enhanced SMART strategy.

• Flexibility of Additional Coverage: Unit-deducting riders, such as Tata AIA OPD Care, can be added at policy inception or any anniversary. The sum assured for these riders is subject to the base policy limits.

• Settlement Option: Upon the policyholder’s death, the nominee can opt for a settlement option to defer the utilization of the accumulated fund, subject to IRDAI guidelines, for a period of up to five years.

Policy Details of TATA AIA Smart Pension Secure Plan

1. Discontinuance of Premiums

   Within the Lock-in Period:

   • For Regular/Limited Premium Policies: If premiums are discontinued, the policy will be transferred to the discontinued pension policy fund after deducting applicable charges. The risk cover will cease, and the policyholder is given a 3-year revival period from the first unpaid premium to revive the policy. The policyholder has three options:

     • Revive the policy: If the policy is revived during the lock-in period, the original risk cover and investment will be restored, with due premiums collected without interest. If the policy is not revived by the end of the revival period, the fund value will be paid out.

     • Continue the policy: The policy continues without risk cover until the end of the lock-in period, after which the proceeds will be paid.

     • Complete withdrawal: The policy can be surrendered, and proceeds will be paid after the lock-in period.

   • For Single Pay Policies: The policyholder can surrender during the lock-in period, and the fund value after deducting charges will be credited to the discontinued pension policy fund, with no risk cover provided.

   After the Lock-in Period:

   • For Regular/Limited Premium Policies:
     If premiums are not paid after the lock-in period, the policy will convert into a reduced paid-up policy, without rider coverage. The policyholder has three options:

     • Revive the policy: If not revived by the end of the 3-year revival period, the fund value will be paid.

     • Continue the policy: The policy will remain in reduced paid-up status until the revival period ends, after which the proceeds will be paid.

     • Complete withdrawal: The policyholder may withdraw, and the fund value will be paid subject to regulatory guidelines.

   • For Single Pay Policies: The policyholder can surrender anytime after the lock-in period, with the fund value paid as per regulatory guidelines.

2. Free Look Period

   If the policyholder is not satisfied with the terms and conditions of the policy, they can cancel it within 30 days of receiving it. The refund will be made after deducting charges like extra premium allocation, risk premium for the period of cover, medical examination costs (if applicable), stamp duty, and GST.

3. Grace Period

   A 30-day grace period is allowed for policies with Annual, Semi-Annual, or Quarterly payment modes. For policies with the Monthly payment mode, the grace period is 15 days. During this period, the policy remains in place with risk cover.

4. Loyalty Program Reward

   Policyholders who are part of Tata AIA’s loyalty program can earn rewards such as points or coins based on the Annualized Premium or Single Premium. These rewards are offered by service providers empanelled by the company, subject to eligibility and the company’s terms.

5. Health Management Services

   Eligible policyholders of this Tata AIA Pension Plan Secure can avail complimentary health management services. These services may include medical consultation, coaching, second opinions, and personal medical case management, aiming at improving overall health and wellbeing.

Suicide Exclusion Criteria of TATA AIA Smart Pension Secure Plan

In the event of death due to suicide within 12 months from the policy commencement or revival date, the nominee or beneficiary will be entitled to the fund value available on the date of death intimation. Any charges, except the Fund Management Charge, recovered after the death date will be refunded to the fund value as on the date of death notification.