Tata AIA Life Insurance has introduced a new plan that allows customers to stop paying premiums after six years, while still maintaining the life insurance coverage. This innovative feature is designed to provide policyholders with greater flexibility and financial freedom.
The new plan, which is a type of unit-linked insurance plan (ULIP), offers a combination of life insurance coverage and investment opportunities. Policyholders can pay premiums for a limited period of six years, after which they can stop paying premiums and still enjoy the benefits of the policy.
The plan is targeted at individuals who want to secure their family’s financial future without being burdened with long-term premium payments. It is also suitable for those who want to invest in a life insurance policy but may not have a steady income stream or may face financial uncertainties in the future.
Key features of the plan include:
- Limited premium payment term: Policyholders pay premiums for only six years, after which they can stop paying premiums.
- Life insurance coverage: The policy provides a life insurance cover for the entire policy term, which can range from 10 to 30 years.
- Investment opportunities: The plan offers a range of investment options, allowing policyholders to invest in different asset classes, such as equity, debt, or balanced funds.
- Loyalty additions: The policy offers loyalty additions, which are additional units allocated to the policyholder’s account at the end of each policy year, starting from the sixth year.
The plan is available to individuals between the ages of 18 and 55, with a minimum policy term of 10 years. The premium payment term is fixed at six years, and policyholders can choose from various premium payment frequencies, including annual, semi-annual, quarterly, or monthly.
Overall, the Tata AIA plan offers a unique combination of flexibility, investment opportunities, and life insurance coverage, making it an attractive option for individuals looking for a comprehensive insurance plan with limited premium payment terms. By allowing policyholders to stop paying premiums after six years, the plan provides a sense of financial freedom and security, enabling them to plan their finances better and achieve their long-term goals.