Facebook TwitterLinkedInYoutubewhatsapp Start Planning for your Financial goals
Schedule Your Free Consultation
  • Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Holistic investment planners, financial planning Chennai, Private wealth management Chennai

Holistic investment planners, financial planning Chennai, Private wealth management Chennai

Financial Planning chennai India, Private wealth management chennai India, Investment Advisory India, Systematic Investment Plan, Mutual Fund SIP, Mutual Fund ELSS, Tax Saving scheme

  • Home
  • About Us
    • Who we are & What we do
    • Services
      • Financial Road Map
      • Retirement Roadmap
      • Asset Allocation Plan
      • Webinar
      • Money Management
      • Wealth Management
    • In the Media
    • Testimonials
    • What Makes Us Different
    • How we can help you
    • Specialties
    • Honors and Awards
    • Vision & Mission
  • Resources
    • Blog
    • Articles
    • Podcast
  • Ideal Client
  • Contact Us

Tata AIA Life Insurance Value Income Plan – Review (2023) – Is it Good or Bad?

by Holistic Leave a Comment | Filed Under: Insurance

Listen to this article


We all have different dreams at different stages of life.

We need a considerable amount of corpus to fulfill our dreams.

Tata AIA Life Insurance Plan Value Income plan assures you to take care of your financial dreams.

It is an endowment plan with a whole life option. It assures you of protecting your dreams at various stages of life without compromising on your needs through financial resources.

Let us look into the plan’s highlights & benefit options in detail.

Table of Contents:

1.) What is Tata AIA Life Insurance Value Income Plan?

2.) Features of Tata AIA Life Insurance Value Income Plan

3.) Eligibility Criteria & Other Details of Tata AIA Life Insurance Value Income Plan

4.) Benefits of Tata AIA Life Insurance Value Income Plan

  • Survival Benefit
  • Maturity Benefit
  • Death Benefit

5.) Additional Features & Benefits of Tata AIA Life Insurance Value Income Plan

6.) The grace Period, Revival & Reduced Paid-up of Tata AIA Life Insurance Value Income Plan

7.) Surrender Benefit of Tata AIA Life Insurance Value Income Plan

8.) Free look-up Period of Tata AIA Life Insurance Value Income Plan

9.) Advantages of Tata AIA Life Insurance Value Income Plan

10.) Disadvantages of Tata AIA Life Insurance Value Income Plan

11.) Research Methodology

12.) IRR of Tata AIA Life Insurance Value Income Plan

13.) Tata AIA Life Insurance Value Income Plan Vs Other Investment Products

14.) Tata AIA Life Insurance Value Income Plan Vs PPF Vs ELSS

15.) Final Verdict

What is Tata AIA Life Insurance Value Income plan?

Tata AIA Life Insurance Value Income Plan is an individual, non-linked, participating life insurance savings plan. 

It is an endowment policy, which allows you to get the cash bonus on your policy anniversary, or you can accumulate the cash bonus for a bigger corpus to receive as your maturity value. These cash bonuses will help you to have a stress-free life. 

Features of Tata AIA Life Insurance Value Income Plan:

  • There are 2 plan options: Endowment or Endowment with extended life cover till the age of 100
  • Option to receive the cash bonus or to let it accumulate every year to receive it on maturity.
  • A Cash bonus can be received either on the policy anniversary or on Birthdays following the second policy anniversary.
  • Flexibility to choose your premium paying term & policy term
  • The Policy Cover can be enhanced through optional riders.

Eligibility Criteria & Other Details of Tata AIA Life Insurance Value Income Plan:

Plan Parameters Minimum Maximum
Age at Entry (years) 30 days 55 years for 5 PPT 58 years for 6 PPT 62 years for 7 PPT 65 years for 8 to 15 PPT
Age at Maturity (years) 18 80
Policy Term (PT) 10 to 40 (Minimum Policy term: Premium Paying Term + 5 years)
Premium Payment Term (PPT) 5 – 15 Years
Premium PPT- 5 to 8: Rs. 50,000/- p.a.
PPT- 9 to 15: Rs. 24,000/- p.a.
No Limit (subject to Underwriting Policy)
Premium Payment Mode Annual/ Half-yearly / Quarterly/ Monthly
Plan Option Option 1 – Endowment
Option 2 – Endowment with Extended Life Cover (ELC) till age 100

Benefits of Tata AIA Life Insurance Value Income Plan:

Survival benefit:

Survival benefit is paid as Cash bonuses, which are not guaranteed in nature. The Company may declare the Cash Bonus rate annually in advance. The Cash Bonuses if declared will be applicable provided all due premiums have been paid.

In case, a cash bonus is opted: At inception, the policyholder can choose if he wants to take a cash bonus if declared yes, each year on the policy anniversary or his/her birthday following the second policy anniversary. It is expressed as % of the Basic Sum Assured.

In case, an accumulated cash bonus has opted: It gets vested at policy anniversary and subsequently gets accumulated at a non-participating accumulation rate. The Accumulated Cash Bonus, if declared is payable at the time of Death/Surrender/Maturity.

 Under the whole life option, survival benefit equals to Basic Sum Assured which is payable on the life insured attaining the age of 100 years, and the policy is terminated. No bonuses shall be payable during the Extended Life Cover period.

Maturity benefit:

In case cash bonus opts:
Guaranteed Maturity Benefit
Terminal Bonus, if declared

In case accumulated cash bonus opts:

Guaranteed Maturity Benefit

Accumulated Cash Bonus, if declared 

Terminal Bonus, if declared

Under the whole life option, there will be two pay-outs of the Basic Sum Assured, first pay-out is on maturity and another pay-out shall be payable upon the death of the life insured during the ELC period or upon the life insured surviving to 100 years of age, whichever is earlier. No bonuses are payable during the ELC period.

Death benefit:

The following shall be payable provided the policy is in force

The Sum Assured on Death + Accumulated Cash Bonus and Terminal Bonus, if declared,

The Sum assured on death is higher of,

  • 11 times the Annualised Premium 
  • Guaranteed Maturity Benefit
  • 105% of Total premiums paid 
  • Basic Sum Assured

Under Option 2, an additional benefit equal to Basic Sum Assured shall be payable upon the death of the life insured during the ELC period

Additional features & benefits of Tata AIA Life Insurance Value Income Plan:

Flexible premium payment mode:

Annual Premium Rate Multiply Annual Premium Rate by 1 (i.e., No loading)
Half Yearly Premium Rate Multiply Annual Premium Rate by 0.51
Quarterly Premium Rate Multiply Annual Premium Rate by 0.26
Monthly Premium Rate Multiply Annual Premium Rate by 0.0883

Additional riders:

  • Tata AIA Life Insurance Accidental Death and Dismemberment (Long Scale) (ADDL) Rider
  • Tata AIA Life Insurance Waiver of Premium Plus (WOPP) Rider

Policy loan:

Tata AIA Life Insurance Value Income Plan will acquire a Surrender Value based on your premium-paying term; policyholders may apply for a policy loan for such an amount within the extent of 80% of the Surrender Value.

The grace period, Revival & Reduced paid-up of Tata AIA Life insurance Value Income Plan:

Grace period:

A grace period of 15 days will be offered to the policyholder if they bought the policy under the monthly mode and 30 days will be offered in case they bought it from other modes.

Revival:

If a premium is in default beyond the policyholder’s Grace period, it may be revived, within five years after the due date of the first unpaid premium and before the date of maturity.

Reduced Paid-Up:

Tata AIA Life Insurance Value Income Plan will be converted into a reduced paid-up policy by default, provided the policy has acquired a surrender value and its subsequent premiums remain unpaid by the policyholder. 

Surrender Benefit of Tata AIA Life Insurance Value Income Plan:

Tata AIA Life Insurance Value Income Plan shall acquire a surrender value during the Policy Term provided at least 2 full years of premiums have been paid. 

The surrender value payable is higher than the Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV).

Free Look-up Period of Tata AIA Life Insurance Value Income Plan:

 If the policyholder is not satisfied with the features of the Tata AIA Life Insurance Value Income Plan, then the policyholder can cancel the policy by proving the written statement to the company.

The policyholder will get a refund of the premium after deducting the charges.

The free look period is 15 days from the date of receipt of the policy document if the policy is purchased directly. It will be extended up to 30 days if the policy is purchased through electronic or distance mode.

Advantages of Tata AIA Life Insurance Value Income Plan:

  • You will have the flexibility in choosing the premium paying frequency – Annual/ Half-yearly / Quarterly/ Monthly.
  • There are two options to choose from – Endowment & Endowment with an extended life cover of 100 years
  • You can choose between taking a cash bonus or letting the amount accumulate till maturity for a lump sum pay-out.
  • Cash bonus starts from the 2nd policy anniversary & continues till maturity.
  • A cash bonus can be received on Birthdays following the 2nd policy year.
  • To meet any emergency, a loan facility is available.
  • Riders will enhance the cover.
  • Tax benefit as per Sec 80 C & Sec 10 (10D) of Income tax act.

Disadvantages of Tata AIA Life Insurance Value Income Plan:

  • All the cash bonuses and terminal bonuses are non-guaranteed benefits. So, these bonuses are not uniform all through the policy years.
  • The survival benefit may not be sufficient to meet your financial goals.
  • The lock-in period is 2 years for loan & surrender.
  • The sum assured can’t be changed post inception of the policy.
  • The sum assured is too low. In case of death, the death benefit may not be sufficient to meet any of your future financial goals.

For further details, you can read Tata AIA Life Insurance Value Income Plan’s brochure.

Research Methodology:

Now we have seen all the necessary details that we need to know about Tata AIA Life Insurance Value Income Plan. But it is not enough to decide whether we should buy this plan or not. So, now let us do a detailed analysis.

First, you are going to discover the IRR of Tata AIA Life Insurance Value Income Plan for the best-case scenario and the worst-case scenario. 

Then we are going to find out the IRR of other risk-free and risk-oriented investments to discover which gives the better investment return.

Later, we are going to compare the factors such as affordability, tax benefit, long-term performance, and tax benefit for all the investment options to see which will be the better investment option for you.

IRR of Tata AIA Life Insurance Value Income Plan:

Option 1 Endowment with Accumulated cash bonus 

Age 40 years Annualised premium 1,00,000
Gender Male Basic sum assured 9,52,381
Premium paying term 10 Years Premium frequency Annual
Policy term 20 Years Plan option Endowment
Bonus option Accumulated cash bonus    
    At 4% p.a. At 8% p.a.
Age Year Annualised premium / Maturity benefit Death benefit Annualised premium / Maturity benefit Death benefit
40 1 -1,00,000 11,00,000 -1,00,000 11,00,000
41 2 -1,00,000 11,00,000 -1,00,000 11,00,000
42 3 -1,00,000 11,00,000 -1,00,000 11,00,000
43 4 -1,00,000 11,00,000 -1,00,000 11,00,000
44 5 -1,00,000 11,00,000 -1,00,000 11,00,000
45 6 -1,00,000 11,00,000 -1,00,000 11,00,000
46 7 -1,00,000 11,00,000 -1,00,000 11,00,000
47 8 -1,00,000 11,00,000 -1,00,000 11,00,000
48 9 -1,00,000 11,00,000 -1,00,000 11,00,000
49 10 -1,00,000 11,00,000 -1,00,000 11,00,000
50 11 0 11,00,000 0 11,00,000
51 12 0 11,00,000 0 11,00,000
52 13 0 11,00,000 0 11,00,000
53 14 0 11,00,000 0 11,00,000
54 15 0 11,00,000 0 11,00,000
55 16 0 11,00,000 0 11,00,000
56 17 0 11,00,000 0 11,00,000
57 18 0 11,00,000 0 11,00,000
58 19 0 11,00,000 0 11,00,000
59 20 0 11,00,000 0 11,00,000
14,56,456 22,22,647
IRR 2.44% 5.22%

These assumed returns are not guaranteed returns. The returns from this policy are solely dependent on its actual future investment performance. 

From analysing the IRR, it is clear that Tata AIA Life Insurance Value Income Plan does not provide an inflation-beating return. It provides which are some similar savings bank interest rates & FD interest rates.

Tata AIA Life Insurance Value Income Plan Vs Other Investment Choices: 

In the Tata AIA Life Insurance value Income plan, the Sum assured is very low. Instead of opting for this, you can take pure term insurance for Rs. 1 crore cover. 

The premium for this would be approx. Rs. 21,000. Here, the annual premium is Rs. 1 lakh. We can assume a similar cash outflow each year. So, after paying Rs. 21000 as a term insurance premium, the balance amount of Rs. 79,000 can be invested in other products for corpus accumulation. 

Risk-averse investors can choose PPF as an investment choice, but we have to pay a minimum of 15 years. In order to have a similar cash outflow of 10 years as in the illustration benefit, we have assumed to pay Rs. 500 (minimum investment) in the 11th to 15th year. This amount (500*5 =Rs 2500) is deducted from the 10th-year contribution.

If you are a risk-tolerant investor and have good knowledge about market-related products, you can choose the ELSS option to invest the balance amount of Rs. 79,000.

Now let us see the IRR of PPF and ELSS in the below-mentioned table.

    Term Insurance + PPF Term insurance + ELSS
Age  Year Term Insurance premium + PPF Death benefit Term Insurance premium + ELSS Death benefit
40 1 -1,00,000 1,00,00,000 -1,00,000 1,00,00,000
41 2 -1,00,000 1,00,00,000 -1,00,000 1,00,00,000
42 3 -1,00,000 1,00,00,000 -1,00,000 1,00,00,000
43 4 -1,00,000 1,00,00,000 -1,00,000 1,00,00,000
44 5 -1,00,000 1,00,00,000 -1,00,000 1,00,00,000
45 6 -1,00,000 1,00,00,000 -1,00,000 1,00,00,000
46 7 -1,00,000 1,00,00,000 -1,00,000 1,00,00,000
47 8 -1,00,000 1,00,00,000 -1,00,000 1,00,00,000
48 9 -1,00,000 1,00,00,000 -1,00,000 1,00,00,000
49 10 -97,500 1,00,00,000 -1,00,000 1,00,00,000
50 11 -500   0  
51 12 -500   0  
52 13 -500   0  
53 14 -500   0  
54 15 -500   0  
55 16 0   0  
56 17 0   0  
57 18 0   0  
58 19 0   0  
59 20 0   0  
    23,31,198   59,05,680  
           
IRR 5.53%   11.77%

Tata AIA Value Income Plan Vs. PPF Vs. ELSS:

  IRR (post tax) Maturity Value (post tax) Sum Assured
Tata AIA Value Income plan @ 4% 2.44%                   14,56,456  11,00,000
Tata AIA Value Income plan @ 8% 5.22%                   22,22,647  11,00,000
PPF 5.53%                   23,36,515        1,00,00,000 
ELSS 11.77% 59,05,680 1,00,00,000

Comparing Tata AIA Value Income Plan’s IRR (Post-tax), Maturity, and sum assured along with ELSS and PPF makes it clear that the returns provided by this policy are not sufficient to consider it a good long-term investment.

Final Verdict: 

Tata AIA Value Income plan provides twin benefits of the Life insurance cover & regular pay-outs as you wish. This plan claims to help you achieve your financial goals. But, in reality, this plan is a participating endowment policy where the returns are not guaranteed. Moreover, the sum assured is very meagre to take care of your family in case of any eventuality.

It is always better to invest separately, in order to accumulate a corpus for your life goals and to have an adequate life cover to protect your loved ones.

Depending on your risk appetite & investment horizon, choose an investment vehicle. Plan your investment portfolio to give an inflation-beating return. 

If you have any comments or questions, write them in the comment box below.

Or are you interested in creating a Comprehensive Financial Plan for your financial goals?

Skip the queue by registering for your 30 Minute FREE Financial Plan Consultation. Click the ‘Book Now’ button below.

Reader Interactions

Previous article: What, Why, When & How of Retirement Planning?
Next article: Max Life Smart Secure Plus Plan – Review (2023) – Should you buy?

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Client Login

Recent Posts

  • Mastering Islamic Finance: The Ultimate Guide to Sharia Investment
  • Smart Financial Planning Tips for Beginners – A Complete Guide
  • SIP Investment Mistakes! How to Overcome Them?
  • What is Flexi Cap Mutual Fund:
    Explained
  • Explained: What is ELSS Mutual Fund?
Jey S
Jey S
24. September, 2021.
I have been using Holistic Investment Planners for the last three years. Mr. Srinivasavaradhan answered all my questions and doubts very patiently during the first free consultation. I was able to clearly define my short-, medium- and long-term goals once I signed up for the comprehensive plan and got their investment plan suggestion to achieve my goals. They are very polite and highly professional whenever I contact them for any queries or make investments. They never pressurize you to invest on their recommended financial products. I would have been lost money by investing directly without their help since I do not have time and knowledge about different financial products. Risk planning is also done as part of financial planning. Truly, they are holistic planners when it comes to your financial planning. They help you to define your life goals, understand your financial resources and establish a plan to invest towards reaching those goals. They do review your plan as you progress to make sure that you are on correct path to achieve those goals. Kudos to the team and keep up the good work!!! I am happy that I found holistic investment planners for my financial planning and management.
aksaswadkar
aksaswadkar
24. September, 2021.
I was about to retire and really not understanding how to invest money to have financial freedom and fulfilling my goals. Was desperately searching on internet way out and fortunately came across Holistic Investment Planners. I read number of articles on their website and realized that this is the agency which I want and engaged their services for my retirement planning. It is an excellent experience to be associated with Holistic. Right from day one our interaction was fantastic and they gave me such a wonderful plan that I had never imagined. I am fortunate enough to be in the client list of Holistic. I have recommended Holistic to my friends as well.
Lionel Faber
Lionel Faber
16. September, 2021.
I've been availing their services for the past year. They are highly knowledgeable in the field and are very patient with all doubts and queries. Personalized financial planning is provided keeping your short term, medium term and long term goals in mind. They do not pressurize you to purchase schemes of their choice. They provide their input and suggestions and leave the decision up to you which shows their honesty and high principle.
Sridhar
Sridhar
8. September, 2021.
Financial planning brings peace in life. Holistic Investment have supported in arriving financial plan based on future goals. My investments are regular since then. They are professionals in their business, will recommend others.
Nitesh Agrawal
Nitesh Agrawal
6. September, 2021.
I have been using Holistic Investment Planners from last one year. The journey has been fantastic. Being a finance person myself I always thought we can look after and plan own finances also. However, due to lack of time and deciplain the things are not always as desired. After joining with Holistic Investment for the first time Icame to know the Financial goals and quantified them. Some dreams were unrealistic based on the earnings and savings so had a reality check. Also got the information and deciplain of investing on regular and more rewarding securities. I definetly suggest to use Holistic Investment Planners. They are professionals, available and hear youor full story before presenting plans. They are flexile in the sense if there are some urgent deviations required, they help to plan the same. For all professionals/individuals I would suggest using professional help of Holistic Investment Planners for best results in long term investment and financial goals achivements. Last advise will be to start early in your life. It really pays well to start in the beginning itself else the dreams needs to adjust :)
Swetha Vasanth
Swetha Vasanth
6. September, 2021.
This is my first year service with the Holistic Team and I would say that they are very much helpful in creating a financial plan and follow ups during the year. I would definitely suggest them if anyone who is willing to proceed with their savings professionally.
Joseph Mathias
Joseph Mathias
6. September, 2021.
I came to know about Holistic Investment Planners online while searching for different investment ideas. Once I contacted them the journey was very smooth. Mr. Ramalingam explained all the aspects of Financial planning in detail and it opened my mind. I realized how important it is to have a Financial planning. Mr. Rajan suggested all the requirements as per my goals and made a Investment plan keeping in mind of my goals. I started my Investment journey with them. I wish I had done it some years back then it would have been in a different level. Review meetings were held every six month to check the implementation of the plan and check the results as per the requirements and to check if any changes required. Overall it was a good experience with Holistic Investment team and would like to continue in the years to come.
Srinvas Kannan
Srinvas Kannan
30. July, 2021.
I came across Holistic investment planners almost 5-6 years back, but I did not have the trust since I had met a few of them who did not sound promising. Then I started investing through a financial advisor of my friend. After 4 years of investing the returns were very low. I was disappointed and started looking for financial advisors when I came across Holistic investment. I had a detailed discussion about my goals and the way they would approach achieving my goal before deciding to switch my investments to them. After a thorough analysis of my then existing portfolios, they suggested new ones and we zeroed-in on 6 schemes/funds where our investment would be split. I am glad I made the decision of switching over and taking Holistic planner's advise, my returns are handsome and I only wish I could have taken their help/advise 5 years back itself. Neverthless, I would like to recommend their services for investment and financial advise if someone is serious about their investments.
Shivaram Andiappan Selvaraj
Shivaram Andiappan Selvaraj
3. July, 2021.
I got a free first time consultation. I got my doubts resolved. They also gave additional advises for investment planning which was also useful.
Nellai B
Nellai B
26. June, 2021.
I have been associated with them for the past three years. They are very professional and polite in answering all our questions. I have complete trust in their suggestions. I strongly recommend for anyone. I am looking forward to have strong and successful association with them.
Google rating score: 4.4 of 5,
based on 61 reviews

Footer

  • Articles
  • Gallery
  • Ideal Client
  • Jobs(Full Time)
  • Podcast
  • Services
  • Testimonials

Connect With Us

Holisticinvestment.in
10/15, Second Cross Street,
Seethammal Extn.,
Teynampet,
Chennai – 600 018,
INDIA.

Copyright © 2022. Holisticinvestment.in | All rights reserved.    Cared with ❤ by T-Square Cloud

×