Tata AIA Life Insurance Fortune Guarantee Retirement Ready (FGRR)

Category

1. What is a monthly pension plan?

A monthly pension plan is a retirement pension plan wherein you can secure funds for a life cover and accumulate a pool of funds over a period of time to receive a guaranteed regular income starting from the vesting age for your life after retirement.

2. What are the factors to consider while purchasing a pension plan?

• Current income
• Future financial commitments and goals
• Routine expenses
• Inflation rate
• Years to retirement
• Life expectancy
• Affordability
  
  

3. What are the benefits of an effective retirement pension plan?

• Continue your current lifestyle seamlessly after retirement
• Get a life cover
• Make cost-efficient financial decisions
• Have peace of mind
• Maximise tax deduction and exemption benefits
• Choose from varied, flexible pension plan options
• Ensure long-term savings
  
  

4. What is an annuity?

An annuity is a financial contract between you and your insurance provider, wherein you can make a lump sum payment to your insurance provider, and they will agree to provide a regular income either starting immediately or in the future.

5. What are the types of annuity plan options?

The two most common types of annuity plan options are the Immediate and the Deferred annuity plans.

• Immediate Annuity - With the immediate annuity plan option, you can start receiving the regular income immediately after you purchase the annuity plan.
• Deferred Annuity - With the deferred annuity plan option, you will start receiving the regular income after a certain period as required based on your financial needs.
  
  

6. How to choose the best pension plan?

The best pension plan for your retirement will be based on your individual financial needs. Here is how you can make a valuable choice.

• Analyse your current financial condition.
• Find the years to retirement.
• Determine the routine expenses and future financial commitments that will incur in your life after retirement and account for the inflation rate.
• Decide on the required funds based on the above-determined values and subtract your savings and investments. You will derive the most approximate value for the required retirement corpus.
• Analyse and compare the different pension plans and choose the best pension plan that can serve your financial needs and is affordable over the long term.
  
  

Plan

1. Who should purchase the Tata AIA Fortune Guarantee Retirement Ready Policy?

Everyone must plan for retirement early in life to lead a peaceful and financially independent life. However, purchasing the Tata AIA Fortune Guarantee Retirement Ready Policy is important for people:

• Planning for their retirement early in life
• Having dependents throughout their life
  
• Who do not have financial support from their family members
• Who want to continue their current lifestyle and lead an independent life
  
  

2. Is there a joint life option under the Tata AIA Fortune Guarantee Retirement Ready Policy?

There are three plan options: My Pension, Partner Pension, and Partner Pension Plus. The My Pension plan is a single life option, and the Partner Pension and the Partner Pension Plus are joint life policies.

3. What is the difference between Partner Pension and Partner Pension Plus plan options?

The vesting and death benefits are similar in the Partner Pension and Partner Pension Plus plan options. However, in addition to these benefits, there is the Waiver of Premium benefit in the Partner Pension Plus plan option.

Under this benefit, in case of the unexpected death of the primary life assured during the Premium Payment Term, the future premiums are waived off so that the policy continues for the second life assured and the related policy benefits. However, the benefit is not applicable in case of death of the secondary life assured. Furthermore, the Partner Pension Plus option is available only for the Limited and the Regular Premium payment options.

4. Can I utilise the surrender benefit to purchase annuity plans?

You can utilise the surrender value paid:

• To commute up to 60% and utilise the remaining to purchase our annuity plans.
• To purchase annuity plans from other insurance providers to the extent applicable, currently 50% of the entire proceeds net of commutation value.
  
  

Cover

1. How much is the required sum assured for my pension plan?

The extent of the sum assured required for your pension plan will be based on your income, current lifestyle and future financial goals. The sum assured should suffice for your regular income for life after retirement to manage routine expenses and other unexpected financial emergencies. You can utilise the retirement calculators available online to calculate the funds required considering the inflation rate.

2. Who can be covered for Secondary Life in the joint life policies?

In a joint life policy, the secondary life can be the spouse, parent, child, grandparent, grandchild, parent-i-law, or sibling of the primary life. And in the case of other relationships, the insurable interest will be examined and considered based on our Board Approved Underwriting Policy (BAUP).

Premium

1. What are the premium payment term options available for the policy?

Three premium payment term options exist:

• Single - You can make the premium payment as a one-time payment during policy inception.
• Limited Term - You can pay the premium for a limited term while ensuring the benefits throughout the policy period.
• Regular Term - You can pay the premium regularly throughout the policy period. It can be either the monthly, quarterly, semi-annual, or annual modes of payment.
  
  

2. What is the waiver of premium benefit under Option 3?

In case of death of primary life during the premium payment term, provided the secondary life is alive and all due premiums have been paid, the outstanding premiums shall be waived off, and the policy shall continue until the death of secondary life or vesting, whichever is earlier. Once the waiver of the outstanding premium benefit is triggered, no alterations under the policy will be allowed thereafter.

3. What is the grace period?

The grace period is 15 days for the monthly premium payment mode and 30 days for all the other modes from the actual due date.

4. When does a policy lapse?

The policy will lapse, and no benefits will be paid on discontinuance of the payment of the premium during the first two policy years. However, it can be revived within 5 years from the due date of the first unpaid premium by paying all the due premiums with the applicable interest.

5. Can I revive my policy if I have not paid the premium beyond the grace period?

You can reinstate or revive the policy within 5 years after the due date of the first unpaid premium and before the maturity date, subject to the policy conditions.
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6. What is a reduced paid-up policy?

If you have stopped paying the premiums after the policy has acquired a surrender value, the policy will be made paid-up at the end of the grace period. The benefits applicable to reduced paid-up policies, subject to the policy terms and conditions, are as follows:

• Death benefit
• Maturity/ Vesting benefit - Aggregate of paid-up sum assured on vesting, guaranteed additions (accrued before the policy became paid-up), paid-up guaranteed additions (accrued after the policy became paid-up), vesting addition based on reduced paid-up factor.

• This product is underwritten by Tata AIA Life Insurance Company Ltd.
• Insurance cover is available under this product.
• This plan is not a guaranteed issuance plan, and it will be subject to Company’s underwriting and acceptance.
• This plan is also available for sale through online mode.
• This product brochure should be read along with Benefit Illustration.
• Risk cover commences along with policy commencement for all lives.
• Buying a Life Insurance Policy is a long-term commitment. An early termination of the Policy usually involves high costs and the Surrender Value payable may be less than the all the Premiums Paid.
• In case of non-standard lives and on submission of non-standard age proof, extra premiums will be charged as per our underwriting guidelines.
• All Premiums and interest payable under the policy are exclusive of applicable taxes, duties, surcharge, cesses or levies which will be entirely borne/ paid by the Policyholder, in addition to the payment of such Premium or interest. Tata AIA Life shall have the right to claim, deduct, adjust and recover the amount of any applicable tax or imposition, levied by any statutory or administrative body, from the benefits payable under the Policy
• Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfillment of conditions stipulated therein. Income Tax laws are subject to change from time to time. Tata AIA Life Insurance Company Ltd. does not assume responsibility on tax implication mentioned anywhere in this document. Please consult your own tax consultant to know the tax benefits available to you.
• HDFC Bank Limited (4621612) (IRDAI Registration No: CA0010) is the Corporate Agent of Tata AIA Life Insurance Company Limited and does not underwrite the risk or act as an insurer. HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai - 400 013. Participation by the Bank’s clients in the Insurance products is purely on a voluntary basis. The contract of Insurance is between Tata AIA Life and the Insured and not between HDFC Bank and the Insured.
• Tata AIA Life Insurance Company Limited (IRDAI Regn. No.110 • CIN: U66010MH2000PLC128403). Registered & Corporate Office: 14th Floor, Tower A, Peninsula Business Park, Senapati Bapat Marg, Lower Parel, Mumbai - 400013. Trade logo displayed above belongs to Tata Sons Ltd and AIA Group Ltd. and is used by Tata AIA Life Insurance Company Ltd under a license. For any information including cancellation, claims and complaints, please contact our Insurance Advisor / Intermediary or visit Tata AIA Lifes nearest branch office or call 1-860-266-9966 (local charges apply) or write to us at customercare@tataaia.com. Visit us at: www.tataaia.com L&C/Advt/2023/Oct/3431