Tata AIA Life Insurance has upgraded its flagship annuity (guaranteed income for life) plan, Tata AIA Life Fortune Guarantee Pension. The new version of the policy includes higher annuity rates and death benefits, making it a must-have for consumers to live financially independent and worry-free in their golden years, the Life insurer said in a statement.
Tata AIA Life said that longer life expectancy and reduced savings levels have made Retirement Income a major concern in the country. The Retirement Savings Gap in India is projected to reach USD 85 trillion by 2050, according to World Economic Forum. Indian consumers must prepare for this crisis by ensuring financial independence after retirement.
What is this plan offering?
Tata AIA Life Fortune Guarantee Pension plan offers multiple tailor-made guaranteed income options and helps consumers save adequately for retired life. The plan aims to cater to a diverse set of customers, including married, women and individuals wanting to seriously consider saving to maintain their current lifestyles for the future. The plan may suitable for SME customers who need to ensure a security net for themselves in their life. Following are key benefits of this scheme:
|Immediate Life Annuity:||Fortune Guarantee Pension offers immediate annuity payouts as per the chosen frequency during the annuitant’s lifespan. It also offers Immediate Life Annuity with Return of Purchase Price, wherein the amount paid at the time of purchase is paid back as a death benefit.|
|Option of Guaranteed Additions:||Guaranteed Additions are accumulated at the end of every policy month during the Deferment Period|
|Option of choosing annuity in advance:||This option allows you to avail the annual annuity payout in advance|
|Avail loan against policy:||You can get a loan on the policy, six months after the policy’s commencement. Under Joint Life option, you can take a loan which the secondary annuitant can avail in case of your death.|
|Joint Life Options:||Wherein the Primary Annuitant is the person entitled to receive the Annuity Payouts. Secondary Annuitants (spouse/ child/ parent/ parent-in-law or sibling) are entitled to receive the Annuity Payouts in the event of death of the Primary Annuitant, as applicable.|
Samit Upadhyay, Chief Financial Officer, Tata AIA Life Insurance, said, “Retirement is like starting a new chapter in one’s life. It is a time when we can focus on enjoying ourselves rather than worrying about professional responsibilities. All of us, therefore, desire financial independence after retirement so money will not dictate how we live,” Samit Upadhyay, Chief Financial Officer, Tata AIA Life Insurance said.
“With regular guaranteed income for life to help us manage our expenses after retirement, Tata AIA Life Fortune Guarantee Pension is an excellent financial tool to achieve that goal. The plan helps our consumers save enough before they retire and ensures stable income when the regular salary income stops,” he added.
Who should buy it?
Tata AIA Life Fortune Guarantee Pension plan may be suitable for consumers seeking secured retirement income, and for retired consumers who want to increase their retirement kitty by investing any surplus funds into a guaranteed life insurance solution.
Sharing an example, the insurance company said that in the Deferred Life Annuity (GA-I) and with Return of Purchase Price, when a 45-year-old male annuitant pays an annual premium of Rs. 5 lakhs for seven years, he would start receiving an annuity income of Rs. 261,030 per annum from the 8th year till the time he is alive. Thus, he ensures an annual income of 7.46% of the total premiums paid. In case of the annuitant’s death, the nominee is also entitled to receive Death Benefit.
The product offers an equally attractive proposition for the Deferred Life Annuity (GA-II) and with Return of Purchase Price. Tata AIA LIfe said when a 50-year-old individual invests an annual premium of Rs 5 lakhs for 10 years when still employed, they would start receiving an annuity income of Rs 4,06,100 per annum on reaching the age of retirement. Upon the annuitant’s death, the total premiums paid would be returned to his nominee.
In the Joint Life option, when a 48-year-old husband and 45-year-old wife invest Rs. 2 lakhs for 12 years, they will get a guaranteed annual annuity of Rs. 2,12,040 for life. Upon their death, their nominee would receive Rs. 24 lakhs.