Tata AIA Life Insurance Launches Unique Guaranteed Monthly Income Plan

by Shrutee K/DNS

          Offers guaranteed monthly income for double the duration of premium paying term / policy term, longest maximum duration of 24 years

         Option to choose a policy term of 5/ 8/ 12 years

         Offers unique guaranteed¹ monthly tax free² retirement income

         Enhanced protection with optional riders³

  

Mumbai: Tata AIA Life Insurance, one of India’s fastest growing life insurance companies, 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.

Tata AIA Life Guaranteed Monthly Income Plan (Tata AIA Life GMIP) offers the longest duration of 24 years (288 months) of assured tax free2 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 guaranteed¹ monthly income is payable in arrears during the Income Term, starting from the end of 1st month after the end of Policy Term.

Mr. Samit Upadhyay, Chief Risk Officer and Head products, Tata AIA Life, said, “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.”

Under Tata AIA Life GMIP payable death benefit is the highest of 11 times of annualized premium, or 105% of all premiums paid, or guaranteed¹ 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 lumpsum 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 rider³, 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.

About Tata AIA Life: Tata AIA Life Insurance Company Limited (Tata AIA Life) is a joint venture company, formed by Tata Sons Ltd. and AIA Group Ltd. (AIA). Tata AIA Life combines Tata’s pre-eminent leadership position in India and AIA’s presence as the largest, independent listed pan-Asian life insurance group in the world spanning 18 markets in the Asia Pacific region. Tata AIA Life has written retail new business weighted premium of INR 784 crores till third quarter ending 31 December, 2017. For the same period, the 13th month persistency of the company was at 81.6% and, the retail claims settlement ratio was 97.04%.

About the Tata group : Founded by Jamsetji Tata in 1868, the Tata group is a global enterprise, headquartered in India, comprising over 100 independent operating companies. The group operates in more than 100 countries across six continents, with a mission 'To improve the quality of life of the communities we serve globally, through long-term stakeholder value creation based on Leadership with Trust'. Tata Sons is the principal investment holding company and promoter of Tata companies. Sixty-six percent of the equity share capital of Tata Sons is held by philanthropic trusts, which support education, health, livelihood generation and art and culture. In 2016-17, the revenue of Tata companies, taken together, was $100.39 billion. These companies collectively employ over 695,000 people.

Each Tata company or enterprise operates independently under the guidance and supervision of its own board of directors and shareholders. There are 29 publicly-listed Tata enterprises with a combined market capitalisation of about $130.13 billion (as on March 31, 2017). Tata companies with significant scale include Tata Steel, Tata Motors, Tata Consultancy Services, Tata Power, Tata Chemicals, Tata Global Beverages, Tata Teleservices, Titan, Tata Communications and Indian Hotels.

About AIA: AIA Group Limited and its subsidiaries (collectively “AIA” or the “Group”) comprise the largest independent publicly listed pan-Asian life insurance group. It has a presence in 18 markets in Asia-Pacific – wholly-owned branches and subsidiaries in Hong Kong, Thailand, Singapore, Malaysia, China, Korea, the Philippines, Australia, Indonesia, Taiwan, Vietnam, New Zealand, Macau, Brunei, Cambodia, a 97 per cent subsidiary in Sri Lanka, a 49 per cent joint venture in India and a representative office in Myanmar. The business that is now AIA was first established in Shanghai almost a century ago. It is a market leader in the Asia-Pacific region (ex-Japan) based on life insurance premiums and holds leading positions across the majority of its markets. It had total assets of US$216 billion as of 30 November 2017.

AIA meets the long-term savings and protection needs of individuals by offering a range of products and services including life insurance, accident and health insurance and savings plans. The Group also provides employee benefits, credit life and pension services to corporate clients. Through an extensive network of agents, partners and employees across Asia-Pacific, AIA serves the holders of more than 30 million individual policies and over 16 million participating members of group insurance schemes.

AIA Group Limited is listed on the Main Board of The Stock Exchange of Hong Kong Limited under the stock code “1299” with American Depositary Receipts (Level 1) traded on the over-the-counter market (ticker symbol: “AAGIY”).