• Nirvana Plus Pension Policy adds 10 per cent to the sum assured for every five years of premiums paid.
• Takes care of critical illness in the first three years of the plan after which the insured has the option to avail these benefits by buying critical illness riders.
• In case of loss of life during the period of the policy, beneficiary to get the full sum assured + guaranteed additions + bonuses (if any) immediately.
• In case of loss of life due to an accident, beneficiary to get double the sum assured
• Pays up to one-third of sum assured as lump sum cash on maturity.
• Balance amount of the retirement fund is used to buy a monthly income plan that will generate monthly cash income.
• Reversionary and terminal bonus credited to the policyholder.
• No medical examination is required for those between 18 and 45 years old.
• A one time special bonus of 2 per cent of the sum assured which is vested in the policy.

Tata AIG Life Insurance Company Limited recently announced the launch of ‘Nirvana Plus’, India’s first and only pension plan for individuals with a 10 per cent guaranteed addition to the sum assured every five years. The guaranteed addition will be payable either on death or upon survival at the end of the premium-paying period.

The company has also introduced three pre-packaged plans to choose from Nirvana Plus, with a sum assured of Rs 1 lakh, Rs 2 lakh and Rs 4 lakh.

This is the only pension plan of its kind in India, which has a built-in offer for the first three years to cover as many as six critical illnesses spanning cancer, stroke, heart attack, coronary bypass graft surgery, kidney failure and also some major organ (heart / liver / kidney / lung / pancreas / bone marrow) transplant. From then on, the insured has the option to avail these benefits by buying critical illness riders.

In case of loss of life, the beneficiary will get the full sum assured in addition to guaranteed additions along with bonuses (if any). Moreover, in case the insured dies due to an accident, then his / her beneficiary would get double the sum assured along with guaranteed additions and bonuses (if any). Thus, Nirvana Plus is not just a retirement plan; it also secures the future of the insured’s dependants.

Said Ian J-Watts, managing director, Tata AIG Life Insurance Company Limited, "With increased life expectancy coupled with the rising cost of living, it becomes imperative to save and plan for post-retirement life. Our new offering Nirvana Plus enables an individual to plan his retirement years prudently and make post retirement life comfortable. Additionally, it empowers an individual to choose according to his requirements. We have designed Nirvana Plus keeping in mind the emerging requirement of Indian insurance population."

Nirvana Plus has been designed to give policyholders the flexibility to choose the age at which they would like to retire and from which they would want a pension. Further, medical tests are waived off for individuals between ages 18 to 45 years (with 45 years being the maximum age of entry). Tata AIG Life offers three retirement plans to choose from: 55 years, 58 years and 60 years, minimum age entry being 18 years for all and maximum age entry being 40, 43 and 45 years respectively.

Further, at the time of retirement, the policyholder gets to withdraw up to one-third (33 per cent) of the accumulated benefit. The balance, two-third of the fund will be used to buy a monthly income plan that will generate monthly cash income. The customer also has the choice of buying this annuity from Tata AIG Life, or any other provider in India, giving them even more flexibility.

Nirvana Plus also pays non-guaranteed benefits in the form of reversionary bonus and terminal bonus. The reversionary bonus (based on the company’s performance) may be declared from the sixth policy anniversary. The terminal bonus is payable either on death or at the end of the premium paying period of the policy, provided the pension-plan has been in force for ten-years.

The premium paid for Tata AIG Life pension plan is deductible from taxable income up to Rs 10,000 under section 80 CCC (1) of the Income Tax Act. Further, the lump sum benefit amount received by the policyholder at the end of the premium-paying period or by the nominee in the event of death of the insured is also tax-free. However, the annuity received by the insured or by the nominee is a taxable income in the hands of insured or the nominee. *

(*As per current tax laws)