Tata AIA Life Insurance Good Kid Plan

• Money back benefits to meet child’s needs
• Milestone Additions
• Complete Protection for family
• Build corpus through bonuses
• Large Sum Assured Discount
• Flexible premium payment modes
• Flexibility of Additional Coverage
• Loan benefit available
• Avail tax benefits

Death Benefit

In the event of death of the life insured during the term of the policy, the Sum Assured on Death is payable. The amount payable subject to a minimum of 105% of Total Premiums Paid. ‘Sum Assured on death’ is higher of 11 times the Annualized Premium, Absolute amount assured to be paid on death, or Guaranteed Sum Assured on Maturity.

On the demise of the life insured, the inbuilt Waiver of Premium benefit becomes applicable and all the future outstanding premiums will be waived. If death occurs in the last four policy years, the Death Benefit is reduced by the amount of benefit already paid.

Maturity Benefit

An amount equal to Guaranteed Sum Assured on Maturity plus vested Compound Reversionary Bonuses plus Terminal Bonus is payable on maturity. This benefit is payable, in case the policy is in force and all due premiums have been paid. Here, Guaranteed Sum Assured on Maturity is 55% of the Basic Sum Assured.

Money Back Benefits

Money Back Benefits is expressed as a percentage of the Basic Sum Assured and it is 15% payable at the end of (Policy Term minus 3) years, (Policy Term minus 2) years, and (Policy Term minus 1) years.

Milestone Additions

Milestone Additions at the rate of 5% p.a of basic sum assured is accrued in each of the first 5 policy years starting from the end of year 1. The Accrued Milestone Additions are payable at the end of (Policy Term minus 4) year. Total Accrued Milestone Additions payable will be 25% of Basic Sum Assured.

Bonus

Compound Reversionary Bonus: Starting from 1st policy anniversary, Compound Reversionary Bonus is declared based on the performance of the company. It is a percentage of the Basic Sum Assured and vested Compound Reversionary Bonus. Accrued Compound Reversionary Bonus is payable on Surrender or on maturity.

Terminal Bonus: Terminal bonus is a percentage of Basic Sum Assured. It is payable on surrender provided at least 7 full annual premiums have been paid or at maturity.

These are non-guaranteed benefits.

Loan Benefit

The maximum loan amount that can be availed under this policy is 65% of the surrender value. The minimum loan amount under the policy is Rs 2,500.

Surrender Value

Surrender Value can be acquired after paying at least first full year’s premium. Surrender Value is higher of Special Surrender Value or Guaranteed Surrender Value.

Tax Benefit

Premiums paid under this policy is eligible for tax benefits under section 80C and the policy proceeds can avail tax benefits under section 10(10D) of the Income Tax Act, 1961.

Tata AIA Life Insurance Accidental Death and Dismemberment (Long Scale) (ADDL) Rider can be opted, on payment of additional rider premium.

Sameer at 35 years of age, buys Tata AIA Life Insurance Good Kid with the policy term of 20 years, premium payment term of 15 years, sum assured of Rs 10,00,000 and annual premium of Rs 74,690.

Scenario A: Sameer Survives the Policy Term

In case Sameer survives till maturity of the policy term, Guaranteed Sum Assured on Maturity plus vested Compound Reversionary Bonuses plus Terminal Bonus is payable on maturity. Money Back Benefits and Milestone Additions are also payable, as applicable.



Scenario B: Sameer dies during the Term of the Policy

In the event of Sameer’s death during the 5th policy year, a lump sum of Rs 10,00,00 is payable as Sum Assured on Death. All due future premiums are waived. All scheduled future benefits will be paid to Sameer’s nominee.