April 06, 2010

Tata AIG Life Apex Pension Plans offer retirement solutions with highest-NAV guarantee

  • Zero premium-allocation charges
  • Flexibility of premium payment options: pay for one, three, five and ten years
  • Return of premium on death and vesting
  • One medical declaration only
  • Tax benefits under section 80CCC as per Income Tax Act, 1961
Mumbai: Tata AIG Life Insurance Company (Tata AIG Life) announced the launch of Tata AIG Life Apex Pension Plans — a bouquet of four ingeniously designed unit-linked pension plans that assist the policyholder to secure his golden years through the unique feature called Guaranteed Maturity Unit Price (GMUP) which enables him to get returns based on the highest NAV per unit achieved on the reset dates.

The policyholder’s premium is allocated immediately in the respective1  Investment Fund from where the money is transitioned to the respective2 Return Lock-in Fund on the immediate next reset date.
  • The Investment Fund — The investment objective for the Investment Fund is to provide capital protection with a high level of safety and liquidity through judicious investment in high quality short-term debt.
  • The Return Lock-in Fund — The investment objective for the Return Lock-in Fund is to use the participation in an actively managed well diversified equity portfolio of large cap companies to generate capital appreciation and use high credit quality debt instruments to lock in that capital appreciation. The NAV per unit of this fund is noted every reset date for the purposes of calculating the GMUP.
The four plans a customer can choose from, depending upon his age, planned retirement age and financial requirement, include:
  1. Tata AIG Life Apex Pension — With this plan, the policyholder pays a single premium for a 10-year term. The Apex Pension Return Lock-in Fund comes with 100 reset dates in the plan.
  2. Tata AIG Life Apex Pension 10 — The plan requires payment of premium for 3 years only for a 10-year term. It offers the policyholder the flexibility to opt for reducing premium from the second policy year. The Apex Pension 10 Return Lock-in Fund comes with 100 reset dates in the plan.
  3. Tata AIG Life Apex Pension 15 — Under this variant, the policyholder is required to pay premium for five years for a 15-year term. This plan also offers the flexibility to opt for reducing premium from the second policy year. The Apex Pension 15 Return Lock-in Fund comes with 150 reset dates in the plan.
  4. Tata AIG Life Apex Pension 20 — The policyholder pays premium for 10 years for a 20-year term in this plan. The option of reducing premium can be chosen from the second policy year. The Apex Pension 20 Return Lock-in Fund comes with 200 reset dates in the plan.
For all the above variants, the minimum annualised premium is Rs48,000.

Tata AIG Life Apex Pension Plans will be available nationally through Tata AIG Life’s advisors and several other distribution partners.

1 Apex Pension Investment Fund, Apex Pension 10 Investment Fund, Apex Pension 15 Investment Fund and Apex Pension 20 Investment Fund for single, three, five and ten pay options, respectively.

2 Apex Pension Return Lock-in-Fund Fund, Apex Pension 10 Return Lock-in-Fund Fund, Apex Pension 15 Return Lock-in-Fund Fund and Apex Pension 20 Return Lock-in-Fund Fund for single, three, five and ten pay options, respectively.

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