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Retirement And Pension Plans
Retirement and pension plans help you accumulate funds to secure your golden years post-retirement. After all, your retirement years are a new phase of your ... life and we at Tata AIA want you to make the best of it. Read on to retire like a boss with Tata AIA’s pension plans!
Pension Calculator
Pension Calculator
What are Retirement/Pension Plans?
Retirement or pension plans are retirement investment plans that help you create a financial fund for your retirement years. They aim to provide you with the stability of a monthly salary by offering regular payments or a lumpsum amount when you retire and need to support your family and your goals.
Tata AIA’s Best Selling Retirement Plans
Non-Participating, Unit Linked, Individual Life Insurance Pension Plan
(UIN: 110L182V01)
Tata AIA
Fortune Guarantee Pension
A Non-Linked, Non-Participating, Annuity Plan
(UIN: 110N161V10) | 3T&C apply
Table of Content
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Importance of Retirement Pension Plans -
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How Does a Retirement Pension Plan Work? -
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Types of Pension Plans in India -
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Types of Retirement Plans Under Tata AIA -
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Features of a Retirement Pension Plan -
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Benefits of Retirement Pension Plans -
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How Much Do I Need to Save for Retirement? -
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How to Use a Retirement Planning Calculator? -
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Calculate Your Retirement Premium
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Factors to Consider While Buying Pension Scheme -
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Steps to Purchase a Tata AIA Pension Plan -
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Why Buy Pension Plans Online? -
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Who Should Invest in a Retirement Plan? -
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Retirement Planning Tips -
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Frequently Asked Questions (FAQs) -
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People Like You Also Read
Importance of Retirement Pension Plans in 2025
Inflation rates have caused living expenses to rise dramatically over the years. This means you need to account for future living expenses while accumulating a large enough savings fund to tide you over your retirement years.
Here are some reasons why a retirement pension plan could be the perfect solution to living a stress-free lifestyle in your golden years:
It is a disciplined, affordable, and secure method of retirement planning that can be started at any time.- You are offered a guaranteed3 income after retirement to cater to your financial needs.
- You can secure your family members in the form of a death benefit along with your retirement savings.
- You can choose between investing in a market-linked pension plan or a conventional pension plan, depending on your investor profile.
How Does a Retirement Pension Plan Work?
Retirement pension plans in India comprise two main phases: Accumulation and Distribution
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![Accumulation Phase: Pay Premiums, Build Savings]( "Accumulation Phase: Pay Premiums, Build Savings")
Accumulation Phase
This phase begins once the policy term commences. Here, you must make regular premium payments or a lump sum payment, which will be invested into a fund for a set period - usually the policy's term. With Tata AIA pension plans, the payments can be a one-time lump sum payment or regular/limited payments equal to the policy term. These are paid to your account to accumulate interest over time.
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![Distribution Phase: Choose Pension or Annuity]( "Distribution Phase: Choose Pension or Annuity")
Distribution Phase
Also known as the vesting phase. This phase commences once your policy matures. You have two choices when you reach this phase: Start receiving your pension payouts or withdraw your earnings and buy an annuity plan.
The annuity plan must be bought from the same insurer you bought your pension policy from. Moreover, the minimum vesting age in India is 30 - 40 years, while the maximum vesting age is 80 years. As a policyholder, you can choose any appropriate vesting age between the minimum age and higher limit to start getting the benefits.
Some of Tata AIA's pension plans also allow you to increase your annuity through top-up premiums. Namely the Tata AIA Fortune Guarantee Pension.
Tata AIA Life Insurance Retirement Plans
Types of Retirement Pension Plans in India
Let us take a closer look at the types of pension plans in India:
Pension With Insurance Cover
These are pension plans that come with a life insurance cover. The insured retiree is guaranteed a pension income for the entirety of their lives post-retirement, and upon death, their family members get a death benefit payout.
Pension Without Insurance Cover
These pension plans do not offer a death benefit on the insured retiree's passing but will provide a pension income for their lifespan.
Deferred Annuity Plans
You can accumulate a corpus through single or regular premiums. Under this plan, you will start receiving annuity with or without return of premium.
Immediate Annuity Plans
You can start receiving your regular pension income immediately after making your lump sum investment under this annuity plan. This type of plan can be paired with retirement plans that offer a lump sum benefit on maturity, like the NPS scheme.
Guaranteed Period Annuity
These plans offer annuity payments for a guaranteed fixed term – usually for 5, 10, 15 or 20 years, regardless of whether the insured retiree survives the policy term. If the insured retiree dies during the guaranteed term, the remaining payments will be paid to their policy nominee or family members as regular payments or a lump sum..
Life Annuity
As the name suggests, it provides annuity payment to the insured retiree for the entirety of their life span. If you choose the 'With Spouse' option under this pension plan, the annuity amount will be transferred to your spouse upon death.
Whole Life ULIPs
The money stays invested for the insured's whole life into assets/funds they chose, i.e., debt or equity-linked plans. These plans offer a death benefit, a maturity benefit, and a survival benefit if the insured retiree lives beyond a certain age limit.
Defined Benefit
This is usually an employer-based pension plan that guarantees a specific amount as your pension income for the entirety of your life after retirement.
In the event of your passing, your family gets a lump sum. This amount is a multiple of your salary, paid tax-free if you die before your 75th birthday. Otherwise (death after 75 years), it is taxed as income. Some plans may also pay a refund of the premiums paid if the insured person dies before they begin to get their pension payments.
Types of Retirement Plans Under Tata AIA
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Annuity Plans
Tata AIA offers immediate and deferred annuity plans. You can make Single or regular payments under the policy and upon retirement, the annuity plan will offer annuity amount as per the mode chosen.
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Guaranteed Returns Retirement Plans
These are low-risk retirement plans that offer guaranteed3 returns under three different options – lump sum (endowment), regular income, and whole life income. Since the returns are not market-linked, you get an assured amount on retirement.
Features of a Retirement Pension Plan
Here are some prominent features of retirement pension policies from Tata AIA:
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![Regular Income from Retirement Pension Plans]( "Regular Income from Retirement Pension Plans")
A Steady Flow of Income
When you invest in a retirement pension plan, you receive a regular income as per the plan of your choice.
For example, in the case of a deferred annuity plan, you begin receiving the fixed, regular income at a later date (post deferment period), while in an immediate annuity, this benefit is paid out soon after you start the investment. A retirement calculator can be a useful tool to help you calculate this amount. -
![Tax Benefits of Pension Plans]( "Tax Benefits of Pension Plans")
Tax Benefits
Pension plans in India are eligible for tax4 deductions under applicable tax laws. This specific tax deduction will depend on the type of retirement pension policy you choose.
Most plans offer tax deductions on your annual premium payments, allowing you to reduce your taxable income in the year you make contributions. Under some plans, your investments are tax-exempt, allowing them to grow without immediate tax consequences. Moreover, death benefits received from a pension policy due to the insured person's death are tax-exempt.
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![Payout Period in Pension Plans]( "Payout Period in Pension Plans")
Payout Period
The time during which you get the benefits of your pension plan is known as the payment or payout period. If you choose to receive payments between the ages of 65 - 80, the payout period will be 15 years.
In some pension plans in India, you can choose the payout/income period as per the options under the plan. At Tata AIA, you can opt for a Life Annuity under our plans, where you will receive payments for as long as you live.
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![Tata AIA Pension Plan Loans]( "Tata AIA Pension Plan Loans")
Avail Loans
Tata AIA pension plans allow annuitants to get a loan against their policy. The terms under which you can get avail loans are subject to policy conditions. For example, under a Joint Life option in our Fortune Guarantee Pension Plan, the primary annuitant can take a loan six months from the commencement date. If the primary annuitant dies, it can be availed by the secondary annuitant.
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![Retirement Plan Liquidity Options]( "Retirement Plan Liquidity Options")
Liquidity in Retirement Plans
As stated, upon policy maturity, you can opt to withdraw the pension plan benefit or purchase an annuity plan. Some annuity plans also offer a return on the purchase price. This means the benefits of your pension plan will also include the purchase price which was paid for the annuity plan.
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![Insurance Surrender Value Information]( "Insurance Surrender Value Information")
Surrender Value
This is an amount the insurance company will pay you if you ever decide to "surrender" or discontinue your plan before it reaches maturity. In simple terms, you can choose to cash out your pension policy.
This amount will be stated in your policy wording and available only if you have held your pension plan for a minimum number of years. Remember to check your policy terms before purchase to ensure you get properly compensated if you want to discontinue your policy.
Benefits of Retirement Pension Plans
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Guaranteed* Returns Benefit
Under your retirement pension plan, you will begin receiving guaranteed3 income benefits from the distribution phase. This means You do not need to worry about any delays in getting a regular income stream once you retire.
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Financial Security for Your Family
In case of your untimely demise, any applicable death benefit under your pension policy will be paid out to your family. In the case of a Joint Life annuity plan, the second annuitant continues to receive the annuity after the death of the first annuitant.
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Flexible Premium Payment Terms
Most pension plans in India offer flexible premium payment modes and terms you can opt for under your policy. This way, you can pay when you can at your desired frequency. Tata AIA pension plans offer Single/Regular/Limited payment modes.
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Creation of a Stream of Regular Income
Once you retire, your pension policy steps in to help you afford daily expenses in place of your salary. These pension payouts can be received as a lump or monthly income to ensure your savings last throughout your retirement.
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Get Tax Benefits
The best retirement plans in India offer several different tax deductions and exemptions depending on the type of pension policy you buy. This means Tata AIA pension plans are also eligible for tax4 benefits under applicable tax laws.
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Customize your Retirement Plan
Though your retirement plan should be able to suffice for all kinds of emergencies, you can still enhance your policy coverage with optional rider benefits. Keep in mind that any additional top-ups or add-on riders will require additional premium payments under your policy.
How Much Do I Need to Save for Retirement?
As a general rule, you should be saving at least 15-20% of your income for retirement. When saving for retirement, you should consider a tentative figure that will account for all essential and emergency expenses for yourself and your family. While this will give you a basic idea of the total amount to be accumulated, here are some points that will give you a better understanding.
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![Retirement Expenses Assessment]( "Retirement Expenses Assessment")
Evaluate All expenses
When you retire, some expenses will cease, while there may be some new ones. Your daily commute to work will stop, saving you some money; however, a minor health condition may be an added expense. Listing down all of these missing and added expenses can help you know the approximate amount needed for your retirement savings.
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![Income Considerations for Retirement]( "Income Considerations for Retirement")
Income from All Sources
Along with a pension plan, if you have other funds like an EPF (Employee Provident Fund) that can provide you with some income, take those into consideration. However, since your pension plan will look after a majority of your basic and emergency expenses, this additional income is meant to help you plan your retirement plan corpus.
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![Plan for Lifestyle After Retirement]( "Plan for Lifestyle After Retirement")
Think About Your Lifestyle
Just because you retire does not mean your family has to change their lifestyle to accommodate for the loss of income. Your retirement plan should be able to provide you with the same comfortable lifestyle that you enjoyed on a regular salary. Therefore, invest in your pension plan such that you’re able to provide a comfortable life to your loved ones and yourself.
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![Plan for Future Income Value]( "Plan for Future Income Value")
Consider the Future Value of Your Income
Your current salary may be enough for your family, but years later, when you retire, the value of your current salary will not be the same. The inflation rate will help you calculate how much income you need to have, over and above your current income, to handle all your post-retirement expenses, any additional costs as well as any financial emergencies. We also recommend diversifying your savings across different options like EPF, PPF, NPS, and mutual funds. However, if you want more concrete estimates, use Tata AIA's retirement planning calculator.
How to Use a Retirement Planning Calculator?
To use the Tata AIA Life Insurance retirement planning calculator, you need to follow the steps given below:
Visit the official Tata AIA Life Insurance website and Select “Calculators”.
Go to the “Retirement Calculator” page and fill in your details correctly.
Submit the details to proceed with the next steps.
You can then select your current age, the expected retirement age, your monthly expenses, expected return on investment and other factors.
After submitting these details, you will be able to know how much funds you need for your retirement savings.
Factors to Consider While Buying a Pension Plan
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01
Monthly Expenses Post-Retirement
Consider all your essential monthly expenses that will need to be taken care of in the future once you retire. The regular income benefits of your retirement pension plan should be enough to cover these expenses for years. -
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Inflation-Beating Returns
Years later, the inflation rate will lead to an increase in the prices of commodities. The funds that suffice today will be inadequate when you retire. Therefore, carefully plan your retirement fund accordingly. -
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Cover Medical Emergencies
Though a retirement plan may be enough for your regular expenses, it is better to be prepared for some emergencies too. In old age, sickness can be an issue, and so, your retirement fund should be able to protect these medical expenses. -
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Assets and Income Sources
If you have certain assets or income sources, such as a home on rent, then this becomes an extra income. However, there are also additional costs such as property maintenance, etc. Consider this when you buy a pension plan. -
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Research Your Options
All pension plans are not made the same so when you buy one, check if it suits your needs look into how long you need financial coverage for. The total guaranteed income offered on the plan is a crucial point to note down. -
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Plan Ahead of Retirement
Your retirement planning should start years before you retire so that you are able to accumulate enough finances for a secure retired life. Keep a gap of about 10-20 years between your earning and retirement stages to plan properly. -
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Assess Your Risk Tolerance
Pension plans in India allow you to opt for 2market-linked policies and conventional pension plans. So, assessing your risk profile is crucial as it can help you decide what type of retirement pension policy you should buy from Tata AIA.
Steps to Purchase a Tata AIA Pension Plan
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Set a Budget
This is the most crucial step in picking a retirement plan. You can set a budget for your retirement plan policy once you have analysed your post-retirement needs and expenses, your family's requirements, and other emergency expenses. After this, you can buy a pension plan that allows you to invest the amount and receive the benefits at your convenience.
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Evaluate Your Current Finances
Your current income and financial status should be considered. You should be able to comfortably invest and make premium payments under your chosen retirement plan without it disrupting your current financial obligations.
However, pick a retirement corpus sufficient to cover your future expenses and your family's requirements so that you do not end up with inadequate finances once you retire.
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Identify Your Income Sources
If you have additional income from other sources, such as a business or property, you still need a pension plan for your regular expenses.
However, it is important to know that the other income sources attract taxes while your retirement plan premiums will be eligible for tax benefits4 under Section 80C of the Income Tax Act.
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Deferred or Immediate Annuity?
If you need an immediate income upon investment, an immediate annuity plan can be a good choice.
However, if you are planning in advance, you can choose a deferred annuity plan where you can pay the premiums over the policy term and then receive the benefits during the vesting period.
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Choose Your Tata AIA Pension Plan
Once you have set up a budget and evaluated all your income sources and financial obligations, you will now have an estimate of how large you need your retirement corpus to be.
The next step is to browse through our catalogue and see which retirement plans best suit your financial requirements. Ensure you check the investment amount, guaranteed3 payouts, other returns and if the plan has any loan facilities.
All of this information will be available on the policy brochure and policy wordings, so remember to check them as well.
Why Buy Pension Plans Online?
Here are some of the important benefits of purchasing a pension plan online:
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![Compare Pension Plans Online]( "Compare Pension Plans Online")
Compare Plans
When you buy a pension plan online, you can easily compare the plans alongside and look through the features, benefits and exclusions of all the plans before you choose a suitable one and purchase it.
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![Online Policy Purchase for Time and Money Savings]( "Online Policy Purchase for Time and Money Savings")
Save Time and Money
The online purchasing process is quick and easy, which means you can get your policy in a matter of minutes. And since there are no overhead costs of an online purchase, you can benefit from discounts when you buy the policy online.
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![Secure Access to Your Policy Documents Online for Peace of Mind]( "Secure Access to Your Policy Documents Online for Peace of Mind")
Security of Policy Document
Since the policy document is online, there is no chance of you misplacing the policy like you can lose the hard copy. If you do happen to lose the hard copy, you can easily access the online soft copy or even save it on your device.
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![Round-the-Clock Assistance for Seamless Online Insurance Purchase]( "Round-the-Clock Assistance for Seamless Online Insurance Purchase")
24x7 Customer Support
Your insurance provider’s customer service can offer you 24/7 support for your feedback and queries when you buy online. You can reach out to them or leave them a query, and they can resolve it in a few minutes for a swifter process.
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![Minimal Paperwork: Green Process, No Physical Clutter]( "Minimal Paperwork: Green Process, No Physical Clutter")
Minimum Paperwork
Buying online means that you do not need to use any papers for your policy document. This not only saves you from a lot of physical clutter but ensures a green and environment-friendly process for everyone.
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![Transparency in Insurer'Claim Ratio]( "Transparency in Insurer'Claim Ratio")
Transparency
Before you buy a policy online, the necessary research such as knowing your insurance provider’s claim settlement ratio, reading their reviews and knowing their products can be done quickly and easily online.
Who Should Invest in a Retirement Pension Plan?
This short answer is – Everyone. Anyone who wants to maintain their standard of living and enjoy a steady income once they retire should consider getting a Tata AIA pension plan. Here are some age-wise recommendations:
People in Their 20s: Single, No Dependents
The earlier you start, the more you save. While your 20s may seem too early to start thinking of retirement, you can easily build up a huge retirement corpus if you start saving now.
People in Their 30s: Single, Married or With Dependents
For those in their 30s who want to secure their family's financial future, investing in a pension plan can ensure their living expenses are taken care of during retirement. Even if you are unmarried or do not have any dependents planning for retirement in your 30s is still good idea as it allows you to build a larger corpus.
Depending on your investor profile, you can take on any type of retirement pension policy that meets your future requirements and allow you to maintain your current standard of living.
People in Their 40s: With Dependents or Financial Obligations
40s is when most people begin to think of retirement. You may also still have some major expenses or financial obligations that must be considered at this stage. We recommend getting a guaranteed benefit plan or a more conservative pension plan that invests in more risk-averse funds and assets.
People in Their 50s or Older: Early Retirement or Legacy Building
The best retirement plans in India can be purchased until age 70. At this stage, you will have most likely accomplished your financial goals and not have any significant financial obligations.
Even if your children have achieved financial independence, you can still opt for a pension plan to ensure you leave behind a financial legacy for you family members. You can invest a lump sum into an immediate annuity plan for immediate pension payments or even a deferred annuity plan if you are still an employee. Moreover, look into pension plans that specifically offer death benefits.
Why Choose Tata AIA Life Insurance Retirement and Pension Plans?
3T&C apply
Looking to buy a new insurance plan?
Our experts are happy to help you!
- The linked insurance product do not offer any liquidity during the first five years of the contract. The policy holder will not be able to surrender/withdraw the monies invested in linked insurance products completely or partially till the end of the fifth year.
- Tata AIA Smart Pension Secure (UIN: 110L182V01) - Non-Participating, Unit Linked, Individual Life Insurance Pension Plan
- The complete name of Tata AIA Fortune Guarantee Pension is Tata AIA Life Insurance Fortune Guarantee Pension (UIN:110N161V10) - A Non-Linked, Non-Participating, Annuity Plan. Multiple options are available in this plan: Immediate Life Annuity, Immediate Life Annuity with Return of Purchase Price, Deferred Life Annuity (GA-I) and with Return of Purchase Price, Deferred Life Annuity (GA-II) and with Return of Purchase Price.
- The complete name of Tata AIA Saral Pension is Tata AIA Life Insurance Saral Pension (UIN: 110N159V09) - A Single Premium, Non-Linked, Non-Participating, Individual, Immediate Annuity Plan
- Tata AIA Fortune Guarantee Retirement Ready (UIN: 110N175V03) - Individual Non-Linked, Non-Participating, Pension Plan. Multiple options are available in this plan: My Pension, Partner Pension, and Partner Pension Plus.
- The complete name of the product is Tata AIA Life Insurance Smart Annuity Plan (UIN: 110N150V08) - A, Non-Linked Non-Participating, Individual Annuity Plan
- 1All funds open for new business which have completed 5 years since inception are rated 4 star or 5 star by Morningstar as of December 2024
- 2Partial withdrawals only available 3 times during the entire policy term and only for reasons specified in IRDA Regulations as amended from time to time
- 3The word Guaranteed and Guarantee means the annuity payout is fixed at inception of the policy and will be payable for whole of life or till death of the Annuitant(s).
- 4Income 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.
- 585,76,889 families protected till December ’24.
- 6Individual Death Claim Settlement Ratio is 99.13% for FY 2023 - 24 as per the latest annual audited figures.
- 7Applicable to only non-early claims with more than 3 years of policy duration, non-investigation cases, up to Sum Assured of Rs. 50 lakhs. Applicable for branch walk in. Time limit to submit claim to Tata AIA Life Insurance is 2 pm on working days. Subject to submission of complete documents. Not applicable for ULIP policies and open title claims.
- Unit Linked Life Insurance products are different from traditional insurance products and are subject to risk factors. The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns. The underlying Fund’s NAV will be affected by interest rates and the performance of the underlying stocks. The fund is managed by Tata AIA Life Insurance Company Ltd. (hereinafter the Company"). The performance of the managed portfolios and funds is not guaranteed, and the value may increase or decrease in accordance with the future experience of the managed portfolios and funds. Past performance is not indicative of future performance. Returns are calculated on an absolute basis for a period of less than (or equal to) a year, with reinvestment of dividends (if any). All investments made by the Company are subject to market risks. The Company does not guarantee any assured returns. The investment income and price may go down as well as up depending on several factors influencing the market. Please know the associated risks and the applicable charges, from your insurance agent or the Intermediary or policy document issued by the insurance company.
- Goods and Services Tax and cesses, if any will be charged extra by redemption of units, as per applicable rates. Tax laws are subject to amendments from time to time. Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfilment of conditions stipulated therein. Tata AIA Life Insurance Company Ltd. does not assume responsibility on tax implications mentioned anywhere on this site. Please consult your own tax consultant to know the tax benefits available to you.
- The products are underwritten by Tata AIA Life Insurance Company Limited. The plans are not guaranteed issuance plans, and it will be subject to Company's underwriting and acceptance. Whilst every care has been taken in the preparation of this content, it is subject to correction and markets may not perform in a similar fashion based on factors influencing the capital and debt markets; hence this advertisement does not individually confer any legal rights or duties. This is not an investment advice, please make your own independent decision after consulting your financial or other professional advisor.
- The fund is managed by Tata AIA Life Insurance Company Ltd. (hereinafter the Company).
- Tata AIA Life Insurance Company Limited is only the name of the Insurance Company & Tata AIA Smart Pension Secure are only the names of the Unit Linked Life Insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns. This is not an investment advice, please make your own independent decision after consulting your financial or other professional advisor.
- 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.
- Insurance cover is available under the product. For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale.
- The products are underwritten by Tata AIA Life Insurance Company Limited.
- The plans are not guaranteed issuance plans, and it will be subject to Company's underwriting and acceptance.
- L&C/Advt/2025/Feb/0891
