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Tata AIA Life Insurance Smart Income Plus

Tata AIA Smart Income Plus Plan is a non-linked, non-participating, limited pay endowment assurance income plan that offers guaranteed returns. This plan helps you to take care of your medium- and long-term financial goals and ensures that your family always stays financially protected against any uncertainty. Tata AIA Smart Income Plus Policy comes with two plan options. Moreover, you can enhance the policy coverage by adding accidental and dismemberment rider and waiver of premium rider to it. The plan has exclusive benefits for female policyholders, charging lower premium rates from them. Policyholders can avail income tax benefit under section 80C and 10(10D) of the Income Tax Act, 1961.

Features of Smart Income Plus Plan

  • Flexibility to choose a plan option - Regular income or Endowment plan
  • Receive Guaranteed Payouts ranging from 120% to 160% of the Annualised Premium
  • Limited premium payment feature by which one can Pay for 7/10/12 years, get guaranteed life cover for 15/21/25 years
  • Higher benefit for female lives
  • Tax benefits can be availed under the Income Tax Act, 1961
  • Enhance protection with optional Riders

Benefits of Tata Aia Smart Income Plus Plan

Plan option: The customers have a flexibility to choose between option 1 - Regular income and option 2 - Endowment options. Death benefit: If the life insured dies during the policy tenure, the death benefit is payable to the nominee, regardless of the payment of survival benefit already received. The death benefit shall be the highest of

  • 11 times of the annualised premium,
  • 105% of all premiums paid till,
  • the minimum guaranteed sum assured on maturity, or
  • the total sum assured as payable on death.

Survival benefit:

Option 1 – Regular benefit

Under this option, the guaranteed payout is payable annually. Guaranteed payout is calculated as a percentage of annualised premium. The income will be provided to the policyholder starting from the 9th, 12th, or 14th policy year where the premium payment terms are 7, 10 and 12 years during the policy terms. The guaranteed payouts will be calculated at 120%, 140% and 160% of the annualised premium respectively.

Option 2 – Endowment plan

If the policy is active and all the premiums are paid on time, the policyholder is entitled to a guaranteed payout, which will be a percentage of the annualised premium. Guaranteed payout will be payable at the end of the year falling right before the year of maturity of the plan. The guaranteed payout provided under this option depends on various factors like premium payment term, age and gender of the policyholder.

Maturity benefit:

Option 1 – Regular benefit

Under this option, the life insured is entitled to receive guaranteed maturity payout in a lump sum at the time of maturity. The guaranteed maturity payout is calculated as a percentage of annualised premium, and it depends on various factors such as the age of the policyholder at the time of entry into the plan, premium payment term, and gender. Option 2 – Endowment plan

Under this option, the life insured is entitled to receive the minimum guaranteed sum assured at the time of maturity of the policy. The amount is equal to the Guaranteed maturity payout, which is payable under the regular income option.

Surrender benefit:

For both option 1 and 2

Tata AIA Smart Income Plus Plan can be surrendered at any time during the policy tenure, provided at least two full years’ premiums have been paid where the premium payment term is seven years. In the case of 10 and 12 years of premium payment terms, the premiums must be paid for a full three years. The surrender value payable is the guaranteed surrender value or special surrender value whichever is higher.

Income tax benefit:

Tax deduction up to Rs. 1,50,000 of the premiums paid towards the policy can be claimed under Section 80C of the Income Tax Act, 1961. As per Section 10(10D) of the Income Tax Act, 1961, benefits received under a life insurance policy, including bonus is exempted from tax.

Eligibility Criteria

ParameterCriteria
Minimum entry age3 years
Minimum entry age50 years
Minimum maturity age18 years
Maximum maturity age
For policy term 15 years – 65 years
For policy term 21 years – 71 years
For policy term 25 years – 75 years
Policy term15 years / 21 years / 25 years
Premium paying term7 years – for policy term of 15 years, 10 years – for policy term of 21 years, 12 years – for policy term of 25 years
Basic sum assured11 times annualised premium
Minimum premium (in multiples of "000."
For option 1 – 18,000
For option 2 – 36,000
Maximum premium (in multiples of "000."No limit subject to board underwriting policy

Premium details

TermPremium
Premium payment term 7 years policy term: 15 years
Premium payment term 10 years policy term: 21 years
Premium payment term 12 years policy term: 25 years
Premium payment modeYearly / half-yearly / quarterly / monthly
Minimum premium
For option 1: 18,000 per annum
For option 2: 36,000 per annum

Product details

Tata AIA Life Insurance Smart Income Plus Plan at a glance

ParameterMinimumMaximum
Entry age3 years50 years
Maturity age18 years
Term 15 years – 65 years
Term 21 years – 71 years
Term 25 years – 75 years
Policy tenure15, 21 or 25 years
Premium payable
Option 1 – 18,000
Option 2 – 36,000
No limit
Monthly incomeRs. 2000No limit
Premium paying term
Term 15 years – 7 years
Term 21 years – 10 years
Term 25 years – 12 years
Sum assured11 times of the annualised premium
Premium payment modeMonthly, quarterly, half-yearly and yearly
Free look period15 days (30 days if the policy is sold through distance marketing)
Grace period15 days for monthly premium payment frequency, 30 days for other modes.

Other benefits of Tata AIA Life Smart Income Plus

Tata AIA Life Smart Income Plus Plan helps you to save with these additional value-added benefits.

  • Grace period: Policyholders are provided with a grace period of 15 days in case of monthly premium payment frequency, and 30 days for other premium payment mode starting from the due date of premium payment. If a policy claim arises during the grace period, the amount paid against the claim will be deducted by the amount of unpaid premiums.

  • Policy lapse: If the policyholder fails to make premium payment within the specified grace period, the plan will lapse. Policy revival: A lapsed plan can be revived within 2 years before it matures. For this, the policyholder needs to provide a written request to the company for the revival of the policy. A valid certificate of insurability is required to submit along with the amount of all unpaid premiums that are due to the policy.

  • Free-look period: Policyholders are provided with a free look period of 15 days (30 days if the policy is sold via digital marketing channels). If you wish to cancel the policy, you may do so within the specified free-look period. If the customer found this plan unsatisfactory, the plan can be cancelled within this period, and the premium paid would be refunded to the customer after deducting the applicable charges such as service tax and stamp duty.
  • Loan against policy: Policyholders can avail loan against Tata AIA Smart Income Plus Plan. The loan facility is available after it has acquired a surrender value. The loan provided under this policy is up to 65% of its surrender value.
  • Assignment: Assignment of policy is permitted under Section 38 of the Insurance Act, 1938.
  • Nomination: Nomination for the policy is allowed under Section 39 of the Insurance Act, 1938.
  • Riders: If the policyholder wants to enhance the coverage offered by Tata AIA Smart Income Plus Plan, they can opt for additional riders that are available with the plan. The riders can be chosen at the time of policy commencement. The two riders available with this plan are – Tata AIA Life Insurance Accidental Death and Dismemberment rider and Tata AIA Life Insurance Waiver of Premium Plus rider.
  • Online payment: Customers have an option to make premium payments online at their convenience. Online payment options include payment via NEFT or IMPS, Paytm, EMI using Kissht, via Jio money, and ICICI bank quick pay.

Track policy application: Customers can also track their policy application from the official website of Tata AIA to find out its progress.

Discounted premium rates for female customers: The company offers discounted premium rates to female policyholders.

  • Large premium Boost: If the policyholder selects a large amount of sum assured, he/she would get additional benefits which would be payable along with the guaranteed payout and guaranteed maturity payout. This benefit depends on the amount of premium payable and the plan option selected as illustrated below:

  • For option 1 – Regular Income

Annual premiumLarge premium Boost (as a percentage of GMP)
Rs. 18,000 to Rs. 49,9990%
Rs. 50,000 to Rs. 99,9995%
Rs. 1 lakh to Rs. 1,99,99920%
Rs. 2 lakh and above30%
  • For option 2 – Endowment
Annual premiumLarge premium Boost (as a percentage of GP)
Rs. 36,000 to Rs. 74,9990%
Rs. 75,000 to Rs. 99,9991%
Rs. 1 lakh to Rs. 1,99,9992%
Rs. 2 lakhs and above3%

How does Tata Aia Smart Income Plus Plan work?

Amar, is an MBA, aged 35 years is planning to buy a limited pay guaranteed insurance plan. Besides, he also wants guaranteed income at regular interval along with tax benefits. Amar opts for Tata AIA Life insurance Smart Income Plus Plan for a policy tenure of 21 years and premium payment of 10 years.

  • Option 1 regular income –

Amar pays an annual premium of Rs. 1 lakh per annum, assuming that he is in good health. Amar receives a guaranteed payout for 10 years commencing from the end of the 12th policy year. He gets a guaranteed maturity payout along with last guaranteed payout.

  • Scenario 1:

mar gets guaranteed benefits commencing from the end of the 12th policy year as illustrated below:

End of the policy yearGuaranteed payoutsBenefit amount
12140% of the annual premiumRs. 1,40,000
13140% of the annual premiumRs. 1,40,000
14140% of the annual premiumRs. 1,40,000
16140% of the annual premiumRs. 1,40,000
17140% of the annual premium
18140% of the annual premiumRs. 1,40,000
19140% of the annual premiumRs. 1,40,000
20140% of the annual premiumRs. 1,40,000
21140% of the annual premiumRs. 1,40,000
BenefitBenefit %Benefit Amount
Guaranteed maturity payout as % of the annual sum 296% of the annual premium2,96,000
Large premium Boost as % of the guaranteed maturity period20%59,200
Total benefit amountRs. 17,55,200Rs. 17,55,200
  • Scenario 2:

In case of an unfortunate demise of Amar in 3rd policy year, a lump sum death benefit is paid.

Death benefitBenefit amount
Sum assured on deathRs. 11,00,000

Document required for Tata AIA Life Insurance Smart Income Plus

Following documents are required to process the Tata AIA Life Insurance Smart Income Plus Plan.

Age proof: Any of these can be submitted as a proof of age – Driving license, Passport, School/college certificate, PAN card, Birth Certificate.

Identity proof: PAN card, Aadhaar card, Voter ID or driving license can be used as an identity proof.

Address proof: Utility bill, Aadhaar or bank account statement can be presented as an address proof.

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

Exclusions - Tata AIA Life Insurance Smart Income Plus

Suicide: In case the policyholder whether sane or insane, commits suicide within 12 months from the date of policy commencement, the nominee shall be entitled to all the premiums paid till date, provided the policy is in force. In case the policyholder whether sane or insane commits suicide within 12 months from the date of policy revival, the nominee shall be entitled to higher of the premiums paid till date or the acquired surrender value as on date of death, provided the policy is in force.

Review of Tata AIA Life Insurance Smart Income Plus

There are several life insurance providers in India, each offering a wide range of insurance plans to meet the different life insurance needs of people. Tata AIA is well-known for offering customized life insurance plans to its customers in addition to the flexibility in premium payments and higher benefits.

The Tata AIA Life Insurance Smart Income Plus is a non-linked, non-participating, limited-pay, insurance-cum-investment plan that gives the policyholder the flexibility to choose between regular income option and endowment option. Under the first option, the policyholder is entitled to receive a regular income, whereas, in the second option, a lump sum endowment benefit is given to the policyholder. Tata AIA Smart Income Plus is an ideal plan for those who are looking for comprehensive coverage along with return on investment. Policyholders can enhance their coverage by adding optional riders to the existing policy. The two riders available with this plan are – Tata AIA Life Insurance Accidental Death and Dismemberment rider and Tata AIA Life Insurance Waiver of Premium Plus rider. The plan comes with a free-look period of 15 days and also offers a grace period to make the payment of due premium. The Tata AIA Smart Income Plus Plan has a special benefit for female policyholders. Moreover, the company provides large premium boost on higher premium amount.

As per the policy, the life insured is entitled to receive maturity and survival benefits and nominee is eligible to receive death benefits. The policyholder has the flexibility to select the payout option to receive the maturity benefit. The premiums paid and benefits received against Tata AIA Smart Income Plus Plan are eligible to receive income tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961, respectively.

Who should buy this plan?

Individuals falling within the age group of 3 to 50 years can buy this plan to receive decent returns on their investment and also to protect their family’s financial future against uncertain death.

FAQs on Tata Aia life insurance smart income plus

What is Tata AIA Life Insurance Smart Income Plus Plan?

Tata AIA Life Insurance Smart Income Plus is an insurance cum investment plan.

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

Any Indian national age between 3 to 50 years can buy this policy. This plan is suitable for those who want to provide financial protection to their family.

What are the highlights of Tata AIA Life Insurance Smart Income Plus Plan?

Some key features of Tata AIA Smart Income Plus Plan are as follows:

  • Flexibility to choose a plan option - Regular income or Endowment plan
  • The product allows you to ensure a monthly income for you and your family
  • The premium rates are lower for female policyholders
  • Tax benefits can be availed under the Income Tax Act, 1961
  • Receive guaranteed payouts starting from 120% to 160% of the annual premium

What plan options does this policy offer?

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

Option 1: Regular Income

Guaranteed payout shall be payable annually up to maturity for policy terms of 15, 21 and 25 years in the ratio of 120%, 140% and 160% of the annual premiums respectively.

Option 2:

Guaranteed payout is paid at the end of the policy year preceding the year of maturity, which is 5.26 to 15.03 time of annual premium.

What are the benefits offered in case of death of the policyholder?

In case of the unfortunate demise of the policyholder, the company will pay the death benefit as per the plan option chosen at the time of commencement of the policy.

What riders are available under Tata AIA Life Insurance Smart Income Plus Plan?

The plan comes with additional riders for both the options:

  • Accidental death and dismemberment rider
  • Waiver of premium plus rider

Is it possible to discontinue/surrender the policy?

Yes, it is possible to discontinue or surrender the policy. However, surrender value is payable if all the premiums have been paid for 2/3 full policy years. On surrendering the plan, guaranteed surrendered value or the special surrender value, whichever is higher is paid to the policyholder.

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

Yes, it is possible to revive your policy. The revival of the plan is allowed within two years from the date of first unpaid premium. You need to pay the outstanding premiums and the interest charged by the insurance company if any.

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

Yes, you can get loan up to 65% of your policy surrender value.

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

If you are unsatisfied with the policy terms, you can cancel the plan within 15 days from the policy issue date (30 days if the policy is purchased through distance marketing).

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

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

You have an option to make yearly, half-yearly, quarterly and monthly premium payment.

How long does the company take to process the claim?

Once you inform the company about the event and submit necessary documents, it will take about ten working days to process your application.

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