Tata AIA Life Insurance, has launched its Guaranteed Monthly Income Plan, a non-linked, non-participating life insurance plan which offers guaranteed tax free2 monthly income for the longest duration of 24 years from the date of expiry of the premium payment / policy term of 12 years.
Tata AIA Life Guaranteed Monthly Income Plan (Tata AIA Life GMIP) offers the longest duration of 24 years (288 months) of assured tax free monthly income. The product caters to life-stage financial goals like retirement needs and children’s education expenses.
The policyholder has the option to choose a premium paying term / policy term of either of 5/ 8/ 12 years, which subsequently offers an income term of 10/16/24 years. A guaranteed monthly income is payable in arrears during the Income Term, starting from the end of 1st month after the end of Policy Term.
“TATA AIA Life Guaranteed Monthly Income Plan is an easy-to-understand and highly rewarding insurance plan that is specifically designed to provide a guaranteed1 tax free2 monthly income stream for the chosen income term, which can be as high as 24 years. This plan not only provides financial protection for one’s family but can also double up as a source of monthly income that helps in meeting tomorrow’s requirements. Thus it helps one plan ahead for future needs and provides protection for your loved ones,” said Samit Upadhyay, Chief Risk Officer and Head products, Tata AIA Life.
Under Tata AIA Life GMIP payable death benefit is the highest of 11 times of annualized premium, or 105% of all premiums paid, or guaranteed sum assured on maturity, or absolute amount assured to be paid on death, as the Sum Assured during the policy term (i.e. premium paying term), subject to policy being in force.
In case of death of the Life Insured during the Income Term, all the future Guaranteed Monthly Income shall be payable to the Claimant. The Claimant also has the option to receive the commuted value of the future Guaranteed Monthly Income payable in the form of a lump sum at the time of death of Life Insured, discounted at 7.5% per annum. The Policy will terminate on payment of Death Benefit.
The policy holder has the flexibility to enhance the life cover by adding an optional rider, by paying additional rider3 premium over and above the base policy premium. The product offers the three following riders:
- Tata AIA Life Insurance Accidental Death and Dismemberment (Long Scale) (ADDL) Rider, which ensures protection of one’s family by paying his nominee an amount equal to the rider sum assured in case of an accidental death.
- Tata AIA Life Insurance Waiver of Premium Plus (WOPP) Rider, which provides for the waiver of all future premiums of the basic policy which fall due in case of death or while the proposer is totally and permanently disabled.
- Tata AIA Life Insurance Term Rider, which ensures additional protection of one’s family by paying his nominee an amount equal to the rider sum assured in event of untimely death.
