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

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. 

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.

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. 

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. 

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).

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. 

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. 

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.

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.

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.

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.