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Tata AIA POS - Smart Income Plus

Tata AIA Life Insurance POS - Smart Income Plus is a non-linked, non-participating life insurance plan. This is a limited pay income plan that meets your future requirements along with protecting your family and dreams as it ensures you of guaranteed returns for the premiums paid. The POS – Smart Income Plus plan helps you to fulfil your medium and long-term goals such as child education, business funding, child marriage, and retirement planning. The plan also relieves you from the burden of any uncertainty happening.

POS – Smart Income Plan gives policyholders the flexibility to choose between Regular income benefit or Endowment benefit options. Under the regular income benefit option, policyholders receive a guaranteed benefit of 120% of the annual premium. The plan offers a higher benefit to female policyholders. Customers are not required to undergo a medical examination and are eligible to receive tax exemptions under Section 80C and 10(10D) of the Income Tax Act, 1961.

Features of POS - Smart Income Plus Plan

  • Flexibility to choose a plan - Regular Income Benefit and endowment benefit.
  • Receive a guaranteed benefit of 120% of the annual premium under Regular Income option.
  • Pay premiums for 7 years and get coverage for 15 years.
  • Higher benefits for female lives.
  • No medical examination is required.
  • Tax benefits are available under the Income Tax Act, 1961.

Key Benefits of POS - Smart Income Plus Plan

The customers have the flexibility to choose from two variants of the policy. Option 1 - Regular Income Benefit, and option 2 – Endowment benefit.

Death benefit:

For option 1 & 2: On the death of the policyholder during the policy tenure, provided the plan is in force as on the date of death, the sum assured shall be payable to the beneficiary, irrespective of the survival benefit already paid. The sum assured payable on death shall be the highest of the following:

  • 11 times annualised premium
  • 105% of all the premiums paid till the date of death
  • The guaranteed sum assured on maturity
  • Amount assured to be paid on death

Survival benefit:

  • Option 1 – Regular income benefit: Provided all due premiums have been paid and policy is in force, guaranteed payout of 120% of the annual premium shall be payable annually to the policyholder. The regular income shall commence from the end of the 9th policy year and shall continue to be paid till the policy maturity or death of the policyholder, whichever is earlier.

  • Option 2 – Endowment benefit: Provided all due premiums have been paid, and the policy is in force, a guaranteed payout determined as a multiple of one Annual Premium will be paid at the end of the policy year preceding the year of policy maturity. The guaranteed payout may vary as per the age and gender of the life insured, as mentioned in the table below:

Guaranteed payout as multiple of one annual premium
Age bandMaleFemale
3 to 10 years5.575.59
11 to 15 years5.585.59
16 to 20 years5.575.57
21 to 25 years5.565.56
26 to 30 years5.555.55
31 to 35 years5.535.54
36 to 40 years5.495.51
41 to 45 years5.415.46
46 to 50 years5.265.36

Maturity benefits:

  • Option 1 – Regular income benefit: Provided all due premiums have been paid and the policy is in force, the amount equal to guarantee maturity payout will be paid to the policyholder as a lump sum at the time of maturity. The last instalment of guaranteed payout will be paid along with the maturity benefits. The guaranteed maturity benefit will be equal to the maturity factor multiplied by one annual premium. The factors will vary as per the age and gender of the life insured, as mentioned in the table below:
Guaranteed payout as % of one annual premium
Age bandMaleFemale
3 to 10 years161%143%
11 to 15 years162%164%
16 to 20 years158%160%
21 to 25 years155%156%
26 to 30 years153%155%
31 to 35 years145%150%
36 to 40 years130%140%
41 to 45 years103%121%
46 to 50 years46%74%
  • Option 2 – Endowment benefit: Provided all due premiums have been paid and the policy is in force, the guaranteed sum assured on maturity which is equal to the guaranteed maturity payout will be paid at the time of maturity of the policy. Income Tax benefits: Premiums paid under this policy are eligible for tax benefit under Section 80C of the Income Tax Act, 1961. Additionally, the proceeds received from the policy are eligible for tax benefits under Section 10(10D) of the said Act. The income tax benefits available under this policy are as per prevailing tax laws and are subject to fulfilment of conditions stipulated therein.

Eligibility criteria

ParameterMinimumMaximum
Age at entry3 years50 years
Age at maturity18 years65 years
Policy term15 years
Premium payment term7 years -
Basic sum assured11 times of the annual premium
Premium (in multiple of 1000)
For option 1: 18,000
For option 2: 36,000
90,000 for both options
Premium payment modeYearly / half-yearly / Quarterly / Monthly

Additional benefits and features of POS - Smart Income Plus

  • Grace period: The policy comes with a grace period of 15 days in case of monthly premium payment frequency and 30 days in case of all other modes from the premium due date. If death claim occurs during the policy grace period, the unpaid premium will be deducted from the death benefit payout.
  • Free-look period: Customers have a free look period of 15 days (30 days if the policy is sold through distance marketing channels). So, if you are not satisfied with the policy terms, you can cancel it within the specified free look period, and the company would refund the premium paid after deducting the applicable charges such as stamp duty and service tax.
  • Loan against policy: Loan option is available against your Tata AIA Life Insurance POS Smart Income Plus Plan, provided that your policy acquires a surrender value. You may apply for a loan against the policy for such an amount within the extent of 80% of the surrender value. The interest rate applicable to such loan will be equal to the prevailing SBI domestic term deposit rate.

  • Assignment: Policy assignment is permitted as per Section 38 of the Insurance Act, 1938 as amended from time to time.

  • Nomination: Nomination is allowed as per Section 39 of the Insurance Act, 1938 as amended from time to time.
  • Policy on the life of minor: In case the life insured is a minor, the policy shall automatically vest into the life insured on his/her attaining majority.
  • Advance premium: As per the policy, the policyholder may pay the premiums in advance, only if the premium is paid within the same financial year. However, if the premium is due in one financial year is being paid in advance in the earlier financial year, the company may collect the premium for a maximum period of three months in advance from the due date of the premium. The premium paid in advance shall only be adjusted on the due date of the premium.
  • Change in basic sum assured: As per the policy rule, any change in the basic sum assured is not allowed after the policy commencement.

  • Flexible premium payment modes: Policyholders have an option to pay the premiums either monthly, quarterly, half-yearly or yearly. Loading on premiums is applicable as specified in the table below:

ModeModal loading
Annual0%
Half-yearly2%
Quarterly4%
Monthly4%
  • Higher benefits to female policyholders: The policy offers a higher benefit to female policyholders between the ages of 11 to 50 years.

  • Online payment: Policyholders have an option to pay premiums online at their convenience. Online payment options include payment via NEFT, Paytm, EMI using Kissht, Jio money, and ICICI bank quick pay.

  • Track policy application: Customers can track their policy application on the official company website to find out the progress. Large premium boost: An additional benefit shall be payable to the policyholders with a higher premium. The large premium boost is applicable, as mentioned in the table below:
Option 1: Regular income benefit
Annualised premiumLarge premium boost as a % of guaranteed maturity payout
Rs. 18,000 to Rs. 49,9990%
Rs. 50,000 and above5%
Option 1: Endowment benefit
Annualised premiumLarge premium boost as a % of guaranteed payout
Rs. 36,000 to Rs. 74,9990%
Rs. 75,000 and above1%

Non-forfeitures provisions of POS – Smart Income Plus

Policy lapse: When premiums for at least two policy years are not paid, the policy shall lapse from the due date of the first unpaid premium and no benefit will be payable. However, if full premiums for at least 2 policy years have been paid and subsequent premiums are not paid, the policy will be converted into a reduced paid-up policy.

Surrender benefits: The policy can be surrendered at any time during the tenure of the policy, provided premiums for at least two years have been paid. The surrender value payable is the guaranteed surrender value or the special surrender value, whichever is higher.

Guaranteed surrender value (GSV) = (total premiums paid x GSV factor) – survival benefit paid if any Special surrender value (SSV) = Special surrender value factor x [(number of total premiums paid) / (number of premiums payable during the policy term) x (survival + maturity benefits) – (survival benefit paid, if any]

Reduce paid-up: When the policy has acquired a surrender benefit, and the subsequent premiums remain unpaid, the plan will be converted into a reduced paid-up policy.

In case of a reduced paid-up plan, the policy benefits shall be payable as follows:

  • The death benefit for both plan options: On the death of the policyholder during the policy term, Sum assured payable on death x number of premiums paid) / (number of premiums payable during the entire policy term) The total amount payable shall be subject to a minimum of 105% of all premiums paid as on the date of death.
  • Survival benefit: The reduced survival benefit shall be payable as mentioned below:

Option 1: Guaranteed payout x (number of premiums paid / number of premiums payable during the entire policy tenure) The reduced guaranteed payout shall start from the end of the 9th policy year and shall be payable till maturity year .
Option 2: Guaranteed payout x (number of premiums paid / number of premiums payable during the entire policy tenure) The reduced guaranteed payout shall be payable at the end of the preceding year of maturity.

  • Maturity benefit:

Option 1: Guaranteed maturity payout x (number of premiums paid / number of premiums payable during the entire policy tenure) The reduced guaranteed maturity benefit will be paid as a lump sum on maturity.

Option 2: Guaranteed maturity payout x (number of premiums paid / number of premiums payable during the entire policy tenure) The reduced guaranteed maturity payout shall be paid at the time of policy maturity.

How does POS - Smart Income Plus work?

Mr. Sahil, aged 35, is a software engineer who has recently started his career. He is planning to purchase a limited pay life insurance policy. He opts for Tata AIA life insurance POS Smart Income Plus policy for the term of 15 years with a premium payment term of 7 years.

Option 1 – Regular Income Benefit

  • Sahil pays an annual premium of Rs. 50,000 per annum.
  • He receives a guaranteed payout for 7 years starting from the end of the 9th policy year.
  • He receives guaranteed maturity benefit along with the last guaranteed payout.

Scenario 1:

Sahil receives a guaranteed payout starting from the end of 9th policy year as illustrated below:

End of the policy yearGuaranteed PayoutBenefit amount
9120% of the annual premiumRs. 60,000
10120% of the annual premiumRs. 60,000
11120% of the annual premiumRs. 60,000
13120% of the annual premiumRs. 60,000
14120% of the annual premiumRs. 60,000
15120% of the annual premiumRs. 60,000
BenefitBenefit %Benefit Amount
Guaranteed maturity payout (as % of annual premium)145% of one annual premiumRs. 72,500
Large premium boost (as guaranteed maturity payout)5%Rs. 3,625
Total benefit amount Rs. 4,96,125

Scenario 2:

In case of unfortunate death of Mr. Sahil in the third policy year, a lump sum death benefit is paid as below:

Death benefitBenefit amount
Sum assured on deathRs. 5,50,000

The policy will come to an end upon the death of the policyholder and no other benefit mentioned in the policy shall be payable. Option 2 – Endowment benefit

  • Sahil pays an annual payment of Rs. 50,000 per annum, assuming he is in good health.
  • He receives a guaranteed annual payout at the end of the 14th policy year.
  • He receives a guaranteed maturity payout at the end of the 15th policy year.

Scenario 1:

Sahil receives guaranteed benefits in the last two policy years, as illustrated below:

End of the policy yearBenefitsFactorBenefit AmountTotal amount
14Guaranteed Payout (as a multiple of the annualised premium)5.53Rs. 2,76,5,00Rs. 2,76,5,00
Substantial premium Boost (as a percentage of guaranteed payout)Nil 0
15Guaranteed maturity payout (equal to guaranteed payout)5.53Rs. 2,76,500Rs. 2,76,500
Large premium BoostNil0
Total Benefit5,53,000

Scenario 2:

In the case of the unfortunate demise of Mr. Sahil in the third policy year, a lump sum death benefit is paid as illustrated below:

Death benefitBenefit amount
Sum assured on deathRs. 5,50,000

The policy will terminate upon the decease of the policyholder, and no other benefits under the policy shall be payable.

Documents required to claim POS – Smart Income Plus

Before making a claim, it is essential to note that you have all the documents ready with you. Here is a list of documents that you require for filing a claim for your POS – Smart Income Plus Plan.

  • The death certificate (in case of death)
  • Original policy document
  • Medical certificate (as a proof of the cause of death)
  • Discharge form
  • Police FIR
  • Age proof of life insured
  • Identity proof of the beneficiary

Exclusions of POS - Smart Income Plus

In case the policyholder dies due to suicide within 12 months of the policy issue date, the beneficiary of the policy is entitled to receive 80% of the premiums paid, provided the policy is in force.

From the date of revival, the beneficiary is entitled to receive 80% of the total premiums paid or the surrender benefit, whichever is higher as on date of death.

Review of POS - Smart Income Plus

Life insurance offers complete security for the future along with investment option. With an adequate life insurance policy, you can stay financially protected and earn good returns on your investment. A good life insurance policy ensures that your family members and dependents continue to have financial security after your retirement, demise or any disability.

The Tata AIA Life Insurance POS Smart Income Plus is a non-linked, non-participating insurance cum saving instrument that gives the policyholder the flexibility to choose between regular income and endowment benefit option. In case of regular benefit option, the policyholder is entitled to receive a regular income whereas, in the case of endowment benefit, a lump sum benefit is given to the policyholder. The plan comes with a free-look period of 15 days and also offers a grace period to make payment of outstanding premium. Tata AIA POS Smart Income Plus plan has special benefits for female policyholders. Additionally, the company offers a large premium boost on higher premium amount.

As per the POS Smart Income plus plan, the policyholder is entitled to receive survival benefit, and maturity benefit and the beneficiary is eligible to receive death benefits. The premiums paid and the benefits received against the policy are eligible to receive income tax benefits under Section 80C and 10(10D) of the Income Tax Act, 1961, respectively.

FAQs on Tata Aia life insurance POS smart income plus

What is Tata AIA Life Insurance POS - Smart Income Plus Plan?

Tata AIA Life Insurance POS - Smart Income Plus is a life insurance cum savings plan

Who can buy Tata AIA Life Insurance POS - Smart Income Plus Plan?

Any Indian national aged between 3 to 50 years can buy Tata AIA POS – Smart Income Plus plan. This insurance cum savings policy is suitable for those who want to provide financial protection to their family against untimely death.

What documents are required to purchase Tata AIA Life Insurance POS – Smart Income Plus Plan?

Following documents are required to purchase Tata AIA Life Insurance POS – Smart Income Plus Plan.

  • Age proof
  • Identity proof
  • Address proof

The customer has to fill up a policy application form and provide self-attested copies of the above-listed documents.

What plan options does this policy offer?

Tata AIA Life Insurance POS - Smart Income Plus Plan offers two options:

Option 1: Regular Income benefit where a guaranteed payout of 120% of the annual premium is paid to the policyholder. Option 2: Endowment Benefit where Guaranteed lump sum payout is paid at the end of the policy year preceding the year of maturity.

What are the benefits offered in case of death of the life insured?

In case of the unfortunate demise of the life insured, the company shall pay the death benefit to the beneficiary as per the plan option chosen at the time of commencement of the policy.

Is it possible to discontinue/surrender Tata AIA POS – Smart Income Plus plan?

Yes, it is possible to discontinue/surrender the policy. However, surrender value is payable to the policyholder if all the premiums have been paid for 2 full policy years. The guaranteed surrender value or the special surrender value, whichever is higher, is paid on the event of discontinuation of the policy.

Is it possible to revive my Tata AIA Life Insurance POS - Smart Income Plus Plan?

Yes, it is possible to revive your Tata AIA POS – Smart Income Plus plan. Policy revival is allowed within two years from the date of first unpaid premium. You need to pay all the outstanding premiums and the interest charged by the company if any.

Can I get a loan against my Tata AIA Life Insurance POS - Smart Income Plus Plan?

Yes, you can get a loan within the extent of 80% of policy surrender value.

What is the process to cancel my Tata AIA Life Insurance POS - Smart Income Plus Plan?

If you are not satisfied with the policy terms, it is possible to cancel the plan within 15 days from the policy issue date (30 days in case the policy is bought through distance marketing channel).

How to pay the premium? What are the premium payment modes available?

You can make premium payment via NEFT, Paytm, EMI using Kissht, Jio money, and ICICI bank quick pay or by visiting the nearest branch of Tata AIA.

You have an option to make monthly, quarterly, semi-annually and annually premium payment.

How long does the company take to process the claim?

Once you file a claim and submit necessary documents to the insurance company, it will take about 10 working days to process your claim.