NEW DELHI: Tata AIA Life Insurance, one of India's fastest growing life insurance companies, has launched its Guaranteed Monthly Income Plan, a non-linked, non-participating life insurance plan which offers guaranteed tax free monthly income for the longest duration of 24 years from the date of expiry of the premium payment and policy term of 12 years.
Tata AIA Life Guaranteed Monthly Income Plan (Tata AIA Life GMIP) offers the longest duration of 24 years (288 months) of assured tax-free monthly income.
The product caters to life-stage financial goals like retirement needs and children's education expenses.
The policyholder has the option to choose a premium paying term / policy term of either of 5/ 8/ 12 years, which subsequently offers an income term of 10/16/24 years.
A guaranteed monthly income is payable in arrears during the Income Term, starting from the end of first month after the end of Policy Term.
Tata AIA Life Chief Risk Officer and Head products Samit Upadhyay said, "TATA AIA Life Guaranteed Monthly Income Plan is an easy-to-understand and highly rewarding insurance plan that is specifically designed to provide a guaranteed tax free monthly income stream for the chosen income term, which can be as high as 24 years.
''This plan not only provides financial protection for one's family but can also double up as a source of monthly income that helps in meeting tomorrow's requirements.
Thus it helps one plan ahead for future needs and provides protection for your loved ones.
" Under Tata AIA Life GMIP payable death benefit is the highest of 11 times of annualised premium, or 105 per cent of all premiums paid, or guaranteed sum assured on maturity, or absolute amount assured to be paid on death, as the Sum Assured during the policy term (i e premium paying term), subject to policy being in force.
In case of death of the Life Insured during the Income Term, all the future Guaranteed Monthly Income shall be payable to the Claimant.
The Claimant also has the option to receive the commuted value of the future Guaranteed Monthly Income payable in the form of a lumpsum at the time of death of Life Insured, discounted at 7.5 per cent per annum.
The Policy will terminate on payment of Death Benefit.
The policy holder has the flexibility to enhance the life cover by adding an optional rider, by paying additional rider premium over and above the base policy premium, according to an official statement here on Wednesday.