Tata AIG MahaLife Gold Review

Tata AIG MahaLife Gold is a traditional whole life insurance plan in which you pay premiums for 15 years and get a life insurance cover till the age of 100. You also get a guaranteed annual income throughout your lifetime.

Our Advice – Tata AIG MahaLife Gold is a good whole life insurance plan which doubles up as a great Child Plan. It ranks among the few good whole life insurance plans available in the market. If you are looking at a long term and safe investment for your child this can be a good option.

Key Features of Tata AIG MahaLife Gold Policy

·         Guaranteed yearly payout of 5% of sum assured from the 10th policy anniversary

·         Enhance the payouts that you get each year through annual cash dividends

·         Your dreams are fully protected throughout your life with a life cover till age 100

·         Tax benefits for both the premiums paid and for the maturity benefit under relevant sections

·         Create an income stream for life, get a lifelong coverage with a limited 15 year payment

How does it work?

You can purchase this for yourself or for your child:

For a healthy male aged 30, for a life coverage of Rs. 3,00,000: the annual premium works out to Rs. 26,823 (including service tax) per year for 15 years. From the 10th policy anniversary onwards, you will get a guaranteed payment of Rs. 15,000 each year, till age 100. Assuming a life expectancy of 80 years, over a period of 50 years, you will have received Rs. 6,15,000 guaranteed. In addition to this, non – guaranteed payouts totaling to Rs. 10,88,100 will also be made from the 6th policy anniversary onwards. Therefore the total payout you will have received is Rs. 20,03,100 (i.e. guaranteed + non guaranteed payouts)

If taken for a child, it becomes an even better value proposition. Your wise decision today can benefit 3 generations. First, you get tax benefits for the premiums paid. Secondly, your child gets guaranteed & non – guaranteed income for life with a lifelong coverage. Finally, your grandchildren can get the sum assured, which acts as a legacy. For a child aged 5 years, the premium for a coverage of Rs. 3,00,000 works out to Rs. 26,823 (including service tax). From the 10th policy anniversary onwards, you will get a guaranteed payment of Rs. 15,000 each year, till age 100. Assuming a life expectancy of 80 years, over a period of 75 years, you will have received Rs. 9,90,000 guaranteed. In addition to this, non – guaranteed payouts totalling to Rs. 17,85,600 will also be made from the 6th policy anniversary onwards. Therefore the total payout you will have received is Rs. 30,75,600 (i.e. guaranteed + non guaranteed payouts)

Sample illustration of returns for Tata AIG Life MahaLife Gold

Sum Assured                       = Rs. 3 lakhs

Life Expectancy                   = 80 years

Bonus offered in Tata AIG MahaLife Gold Plan

The bonus rates declared by the company for MahaLife Gold are as mentioned below….

Bonus rates for 2011-12 - 26.4 per thousand sum assured

Bonus rates for 2010-11 - 21 per thousand sum assured

Benefits you get from Tata AIG MahaLife Gold Plan

Death Benefit – In case of death of the policy holder, the nominee gets the sum assured + 5% of Guaranteed Cash accumulated every year + Dividends/Bonus declared by the company.

In case the policyholder dies before the age of 4, the following payouts would be payable:

Age at the time of death	Amount Payable (Rs.)
0	20% of sum assured
1	40% of sum assured
2	60% of sum assured
3	80% of sum assured

Maturity Benefit – The policy holder will get the Sum Assured if the person survives till the age of 100.

Income Tax Benefit

Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C. The maturity amount you receive from this plan are exempt from tax under section 10(10D).

Eligibility conditions in Tata AIG MahaLife Gold Policy

	Minimum	Maximum
Sum Assured (in Rs.)	25,000	No Limit
Entry Age (in years)	30 days	60 years
Maturity Age (in years)	100 years
Premium Paying Term (in years)	15 years
Payment modes	Monthly, Quarterly, Half yearly & Yearly
Annual Premium	2,500	No Limit
Single premium	NA	NA

Additional Features and Benefits of Tata AIG MahaLife Gold Policy

Riders – A host of riders can be purchased along with Tata AIG MahaLife Gold Policy

Type of Rider	Available with Policy
Accidental Death Benefit	Yes
Accidental Death & Dismemberment	Yes
Critical illness (or dread diseases) benefit	Yes
Waiver of Premium	Yes
Payor Benefit	Yes
Term Rider	Yes