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Tata AIA Life Insurance Company Limited (Tata AIA) is a joint venture between India’s eminent business conglomerate Tata Sons Ltd. and the largest independent publicly listed pan-Asian life insurance provider across the world, the AIA Group Ltd. The company has an extensive product portfolio on offer, which consists of a variety of life insurance solutions for wealth creation, savings, protection, and retirement. Since its inception in the year 2001, the company has been providing world-class insurance products & solutions to a huge customer base, and further aims to secure the lives of 3 million customers by the year 2020.
As a parent, you would surely want your child to have a bright and secure future. To help you achieve this dream, Tata AIA offers two intelligently designed child plans that provide the required financial support to your child during emergency situations as well as important milestones of his/her life, be it education, career, or marriage.
Let’s have a look at what child plans are all about and how they benefit the parents and the child. A child plan is one wherein the parent is the policy holder and the child is the beneficiary. These plans offer dual benefits. Firstly, they protect the child in the unfortunate event of death of the parent, and secondly, they create a fund for meeting the needs at key milestones of the child’s life.
Child plans are of three types:
|Benefits Payable at the end of the year||Percentage of Basic Sum Assured paid out as Money Back|
|( Policy Term minus 3) years||15%|
|( Policy Term minus 2) years||15%|
|( Policy Term minus 1) years||15%|
|Entry Age of the parent||Minimum – 25 years | Maximum - 45 years|
|Entry Age of Child||Minimum- 0 years (30 days) | Maximum: 17 years|
|Maturity Age||Maximum – 70 years last birthday|
|Policy Term||Minimum: 12 years | Maximum: 25 years|
|Premium Amount||Minimum: Based on minimum Basic Sum Assured | Maximum: No Limit|
|Sum Assured||Minimum: 2,50,000 | Maximum: No Limit|
|Premium Payment Term||Policy term less 5 years|
|Premium Payment Frequency||Yearly, half-yearly, or monthly|
On maturity of the policy, the policy holder is entitled to receive Guaranteed Maturity Addition, in the form of additional 5% of units in each of the funds in the Regular Premium Account, provided the policy is in force.
At the end of the policy term, the parent/child receives the Total Fund Value, which is an accumulation of the Regular Premium fund Value and the Top-Up Premium fund Value. Both of these are valued as per the applicable NAV as on the date of Maturity.
In case of demise of the insured during the policy term, the child is eligible to receive Death Benefit in the form of a lump sum, the amount of which is higher of i) Basic Sum Assured ii) 105 percent of the total Regular Premiums paid. Additionally, the company takes over the onus of paying 100% of the future regular premiums into the policy holder’s fund. Further, in the presence of a Top-Up Premium Fund Value, the child also receives an amount which is higher of
|Entry Age of the parent||Minimum – 25 years | Maximum: 50 years|
|Entry Age of Child||Minimum- 0 years | Maximum: 17 years|
|Maturity Age||Maximum – 70 years|
|Policy Term||10 – 20 years|
|Premium Amount||Minimum: 24,000 | Maximum: No Limit|
|Sum Assured||10 x Annualized Premium|
|Premium Payment Term||10 Years|
|Premium Payment Frequency||Yearly, half-yearly or monthly|