Tata AIA Life Insurance MahaLife Magic Plan – Eligibility, Features & Claim

Updated: 29-08-2023 09:32:09 AM

Tata AIA Life Insurance is one of the most prominent life insurance providers in the country. Tata AIA Life Insurance MahaLife Magic insurance is a limited premium paying and non-linked participating endowment plan. This savings plan is designed for those who are looking for a solution to fulfil their short-term financial goals along with the opportunities to maximise the growth of their money.

Tata AIA Life Insurance MahaLife Magic Plan Details

Eligibility Criteria 

The eligibility details of this insurance plan have been listed below:

Particular	Detail
Entry Age	12-55 years
Maturity Age	73 years
Policy Term	18 years
Premium Payment Term	9 years
Premium Payment Mode	Monthly Half-yearly Annually
Sum Assured	Rs. 2 lakh – no upper limit

Review each and every minor detail of the plan while purchasing to maximise its benefits.

Features of this plan

This insurance plan is sealed with a number of unique features. Some of them are listed below:

• Lump Sum Amount at Maturity: The premium paying term of this insurance plan is only 9 years. This plan provides the policyholder with a lump sum benefit at the end of the policy term. This benefit can be used for achieving short-term and long-term financial goals.
• Additional Bonuses: The insurance plan provides the customers with additional bonuses to augment their maturity benefit. This plan also has the potential for upside with the various bonus components.
• Financial Stability against Uncertainties: Nominal life cover along with financial protection is something that makes Tata AIA Life Insurance Magic a preferred choice among the customers of Tata AIA. The insurance plan protects the insured and their loved ones against various uncertainties of life and provides financial stability throughout the policy term.

Claim Requirements under plan

The following are the documents needed for a death claim:

• Claim application form along with NEFT form
• Statement of the physician
• Death certificate issued by a government local body such as Municipal Corporation
• Medical records, such as admission notes, death/discharge summary, test reports, indoor case papers
• Original policy documents
• Age, address and relationship proof of the claimant
• PAN card of the claimant or duly filled form 60
• Bank details of the claimant along with a cancelled cheque and copy of their account passbook
• Details of policyholder’s PAN

Renewal process of this plan

If you have failed to pay the premium even after the Grace Period and also, do not intend to surrender the plan, you get the option of reviving the plan. This can be done within two years after the due date of the first unpaid premium and before the date of maturity. For this, you need to submit certain documents to the provider. They are – a written application for revival, updated health certificate of insured and other proof of insurability, payment of all due premiums along with interest, repayment of any outstanding amount till the due date of the premium along with the interest.

Surrender Value of this plan

 After the first year of buying the policy, a policyholder can surrender the insurance policy any time throughout the policy term. The surrender value provided for this plan will be the higher of Guaranteed Surrender Value or Special Surrender Value. There are various factors that determine the surrender value of the policy and they vary according to the year of policy surrender.

Look at the following formulas to calculate the guaranteed surrender value and special surrender value of an insurance policy:

Guaranteed Surrender Value (GSV) = (Total Paid Premiums + GSV Factors for Premiums^) + (Vested Compound Reversionary Bonus (if any) x GSV Factors for Compound Reversionary Bonus^)

Special Surrender Value (SSV) = Special Surrender Value Factor^ x (Vested Compound Reversionary Bonuses (if any) + Reduced Paid-up Sum Assured)

Benefits of this plan

Customers who opt for this insurance plan are eligible to avail the following benefits under this insurance product:

Maturity Benefit: On the completion of the policy term, the policyholder will get the minimum guaranteed sum assured amount on maturity along with vested compound reversionary and terminal bonuses (if any). This benefit will only be paid to in-force policies.

Death Benefit: In case of any unfortunate event i.e. death of the policyholder during the policy term, the sum assured amount on death will be paid to the legal heir or the nominee along with vested compound reversionary and terminal bonuses (if any). This benefit will be at least 105% of the total paid premiums on the date of the death. After paying this benefit, the company will terminate the policy. Death benefit provided by the company will be the higher of:

• Minimum guaranteed sum assured at the end of the policy term
• 10 times of the annualised premium

Rider Benefit: The policy also provides the insured with the flexibility to customise their product by adding the rider benefit. Tata AIA Life Insurance Accidental Death and Dismemberment (Long Scale) (ADDL) Rider is available with this plan. However, this benefit can only be attached at the inception of the policy. This added benefit helps the policyholder ensure protection against uncertainties for their loved ones.

Tax Benefit: Premiums paid under this insurance plan are eligible for tax exemptions under sections 80C and 10 (10D) of the Income Tax Act, 1961. However, income tax laws are subject to changes and modifications. Since the benefit will be provided on the basis of prevailing income tax laws, it is suggested to consult your tax consultant to know more about this benefit.

FAQs

Q1. What objectives can be solved by buying a Tata AIA Life insurance plan?

There are multiple objectives of an insurance plan. Listed below are the objectives of buying an insurance plan from Tata AIA Life:

• Providing financial stability to your loved ones in case of an unforeseen event
• Wealth creation
• Financial planning for a better tomorrow
• Securing post-retirement life
• Tax savings
• Life cover

Q2. Who can take a Tata AIA Life Insurance plan?

Anyone who is 18 years old and above or fulfil the age criteria specified under the ‘Indian Contract Act, 1872’ can buy an insurance plan either for themselves or for their dependents.

Q3. What are the different premium payment frequencies provided by Tata AIA Life Insurance?

The insurer provides the different frequencies for the different insurance policies. In general, a number of insurance plans allow the customers to pay premiums in the following frequencies – monthly, quarterly, semi-annually and annually.

Q4. What is the right time to buy an insurance plan?

The best time to buy a life insurance plan is at a younger age. The premiums will be comparatively low when you buy the policy at your younger age. On the other hand, when you buy an insurance plan at an older age, the premiums are higher as several health issues may arise.

Q5. What is meant by compound reversionary bonus?

At the end of every financial year, the insurance company declares the rate of reversionary bonus. This benefit is the percentage that is applied or added to the sum assured. This combination is called compound reversionary bonus.

Q5. How can a customer track his/her application?

Tracking application is quite easy with Tata AIA Life Insurance company. Below are the steps to follow to track the status of the application:

• Browse through the official website of Tata AIA Life Insurance
• Click on the ‘Track My Application’ option available on the homepage
• A new page will open. Provide your registered mobile number to generate OTP or fill in your policy number and date of birth to verify the details
• After providing all the requested details, you will be provided with the status of your application.

You can also call TATA AIA Life Insurance Company or visit your nearest branch to get the details in-person.

Q6. Is policy loan available on Tata AIA Life Insurance MahaLife Magic Plan?

Yes, policy loan can be availed by the policyholder on this plan. They can apply for the policy loan for a value up to 65% of their insurance policy’s surrender value.