In many investment plans in India, choosing the right policy is a pivotal decision that demands careful consideration. In this article, we will compare the two best life insurance investment plans, TATA AIA Smart Income Plus and LIC New Jeevan Shanti. These policies are offered by the two best life insurance companies, TATA AIA Life Insurance Company and Life Insurance Corporation of India (LIC). Both these policies offer unique features and benefits designed to secure the financial future of policyholders. In this article, we will evaluate these plans based on their features, benefits, premium costs, returns, and performance, ultimately guiding you towards a wiser investment choice. Whether you are a seasoned investor or new to the investment, this analysis will empower you to make a well-informed investment decision for a secure and prosperous future.
TATA AIA Smart Income Plus Plan
TATA AIA Smart Income Plus Plan is a Non-Linked, Non-Participating, Individual Life Insurance Savings Plan that meets tomorrow's requirements along with protecting your family and dreams as it makes sure you guaranteed returns for the money invested.
TATA AIA Smart Income Plus Plan Features & Benefits
The TATA AIA Smart Income Plus Plan is a savings and investment plan designed to provide a combination of protection and wealth creation. Here are some key features and benefits of the TATA AIA Smart Income Plus Plan:
- Dual Benefits: The plan offers life insurance coverage to protect your loved ones financially in case of unfortunate events. It also provides a regular income stream, ensuring a steady cash flow at predefined intervals.
- Flexibility in Premium Payments: Policyholders have the flexibility to choose their premium payment term, which can be limited to a shorter duration while enjoying the benefits for a more extended period.
- Multiple Income Options: The plan provides various income options, allowing policyholders to choose the income payout frequency based on their financial needs
- Flexibility to Choose Additional Coverage: You have further flexibility to enhance your cover product by adding optional riders by paying an additional rider premium over and above your base policy premium.
- Tax Benefits: The premiums paid under the plan are eligible for tax benefits under Section 80C of the Income Tax Act. Additionally, the maturity benefits and death benefits may also qualify for tax exemptions under Section 10(10D).
- Surrender Benefits: Policyholders can surrender the policy, subject to the terms and conditions if required.
- Maturity Benefit: On survival till the end of the policy term, the policyholder receives the maturity benefit, which includes the fund value and loyalty additions.
- Death Benefit: In the unfortunate event of the policyholder's demise during the policy term, the nominee receives the higher sum assured or the fund value along with loyalty additions.
TATA AIA Smart Income Plus Plan Eligibility Criteria
| Plan Options |
- Regular Income Option
- Endowment Option
|
| Entry Age |
Minimum 0 Year to Maximum 65 Years |
| Maturity Age |
Minimum 18 Year to Maximum 85 Years |
| Premium Payment Frequency |
Yearly, Half-yearly, Quarterly and Monthly |
| Minimum Policy Term |
- Regular Income Option– Premium Payment Term+6
- Endowment Option- Regular/Limited Pay: 10
|
| Maximum Policy Term |
- Regular Income Option-51
- Endowment Option- Regular/Limited Pay: 50
|
| Minimum Sum Assured |
11 times Annualized Premium |
| Minimum Premium Payment Term |
- Regular Income Option: 5
- Endowment Option- Regular Pay - 10, Limited Pay - 5
|
| Maximum Premium Payment Term |
- Regular Income Option:15
- Endowment Option- Regular Pay/Limited Pay - 30
|
LIC New Jeevan Shanti Plan
LIC New Jeevan Shanti Plan (Plan No.858) is a Non-Linked, Non-Participating, Individual, Single Premium, Deferred Annuity Plan. This is a single premium plan that allows the Policyholder to choose between a Single life and Joint life deferred annuity.
Key Features and Benefits of LIC New Jeevan Shanti Plan
- Annuity Options: The plan provides various annuity options to choose from, catering to different income needs and preferences. These options include a single-life annuity and a joint-life annuity with different annuity payment modes.
- Immediate Income: The plan offers immediate annuity payouts, which means you start receiving regular income payments shortly after making a lump-sum premium payment.
- Guaranteed Income: The annuity payments are guaranteed for the entire policy term, providing financial security and peace of mind.
- Annuity Payment Modes: You can select from different annuity payment modes, such as monthly, quarterly, half-yearly, or yearly, depending on your income requirements.
- Death Benefit: Depending on the annuity option chosen, a death benefit may be available to the nominee, ensuring that a portion of the premium or purchase price is returned in the event of the annuitant's demise.
- Surrender Value: The plan may allow you to surrender the policy after a specific period and receive a surrender value, which can be useful in emergencies.
- Loan Facility: Some versions of the LIC New Jeevan Shanti Plan may offer a loan against the policy's surrender value, providing liquidity when needed.
- Tax Benefits: Premiums paid for the LIC New Jeevan Shanti Plan may qualify for a tax deduction under Section 80C of the Income Tax Act. Additionally, annuity income may be taxable as per prevailing tax laws.
- Flexible Purchase Price: You have the flexibility to choose the purchase price, which can affect the annuity payouts. A higher purchase price typically leads to higher annuity payouts.
Eligibility Criteria for LIC New Jeevan Santhi Plan
| Annuity Options |
- Deferred annuity for Single life Option
- Deferred annuity for Joint life
|
| Minimum Entry Age |
30 Years |
| Maximum Entry Age |
79 Years |
| Minimum Vesting Age |
31 Years |
| Maximum Vesting Age |
80 Years |
| Minimum Deferment Period |
1 Year |
| Maximum Deferment Period |
12 Years |
| Mode of Annuity Payment |
Monthly, Quarterly, Half-yearly, and Yearly |
| Minimum Purchase Price |
1.5 Lakhs |
| Maximum Purchase Price |
No Limit |
| Minimum Annuity Amount |
- Monthly: Rs. 1000
- Quarterly: Rs. 3000
- Half-yearly: Rs. 6000
- Yearly: Rs. 12000
|
How to Choose Between TATA AIA Smart Income Plus Vs LIC New Jeevan Shanti
Choosing between TATA AIA Smart Income Plus and LIC New Jeevan Shanti requires careful consideration of various factors, including your financial goals, risk tolerance, and preferences. Here are some factors to compare:
- Premiums: Compare the premium amounts for both policies. Consider whether the premiums are affordable for you and fit into your budget.
- Policy Term: Check the policy term offered by each plan. Some policies may have a fixed term, while others may offer flexibility in choosing the policy duration.
- Death Benefit: Understand the death benefits offered by both policies. The death benefit is provided to the nominee in case of the policyholder's demise.
- Maturity Benefits: Understand the maturity benefits offered by both policies. This includes the guaranteed and non-guaranteed returns, if any, at the end of the policy term.
- Guaranteed Returns: Check if either policy offers guaranteed returns. Some insurance plans provide a certain minimum guaranteed return on the premiums paid.
- Flexibility: Assess the flexibility provided by each policy. This includes the flexibility to choose the premium payment frequency, change the coverage amount, or adjust the policy term.
- Plan Options: Understand the plan options available. Different plan options provide different payout structures, and you should choose one that aligns with your retirement needs.
- Surrender Charges: Check the surrender charges for both policies. These charges are applicable if you decide to surrender the policy before maturity.
- Rider Options: Some policies offer additional riders (optional benefits) that can enhance the coverage. Check if there are any riders available for each policy and evaluate their relevance to your needs.
- Company Reputation: Consider the reputation and financial strength of both TATA AIA and LIC. A financially stable insurance provider is crucial for the long-term security of your policy.
How to Compare Investment Plans Online
Comparing Tata AIA Smart Income Plus and LIC New Jeevan Shanti online is a convenient way to make an informed decision when choosing an investment plan. Here's a step-by-step guide on how to compare investment plans online:
- Visit the official website of the PolicyBachat.
- Click on the Investment Plan tab.
- Fill in the requested details such as name, mobile number, and email address.
- Enter your age and city.
- Select the plan which you want to buy. Click on the Proceed button.
- Use the online premium calculator to compare the premium amounts.
- Compare benefits, features, returns, and additional riders or bonuses.
- After comparing the products, select a plan which suits your requirements.
- Then pay for your policy by using an online payment method.
What are the Documents Required to Buy Investment Plan
Here are some common documents that you may need to provide when buying an investment plan online:
- Identity Proof: Aadhaar card, PAN card, passport, driving license, or voter ID.
- Address Proof: Aadhaar card, passport, utility bill, or bank statement.
- Income Proof: salary slips, bank statements, or income tax returns.
- Bank Account Details: Account number, IFSC code, and branch address.
- Photographs: You may need to provide passport-sized photographs.
- Application Form: You may need to fill out the application form provided by the insurance company.
Frequently Asked Questions
What is the Difference between TATA AIA Smart Income Plus and LIC New Jeevan Shanti?
TATA AIA Smart Income Plus is a non-linked, non-participating, individual life insurance savings plan, providing both death and maturity benefits. LIC New Jeevan Shanti, on the other hand, is a single premium annuity plan that primarily focuses on providing guaranteed annuity payouts during the chosen annuity period.
What Annuity Options are Available with LIC New Jeevan Shanti?
LIC New Jeevan Shanti offers various annuity options, allowing policyholders to choose the annuity payout structure that suits their retirement needs. Options include immediate annuity, deferred annuity, and more.
Are There Any Guaranteed Returns with TATA AIA Smart Income Plus and LIC Jeevan Shanti?
Both policies may offer guaranteed returns. TATA AIA Smart Income Plus may provide guaranteed and non-guaranteed returns at the end of the policy term. LIC New Jeevan Shanti, being an annuity plan, guarantees annuity payouts during the chosen period.
What Flexibility Do TATA AIA Smart Income Plus and LIC Jeevan Shanti Plans Offer?
TATA AIA Smart Income Plus may offer flexibility in terms of premium payment frequency, coverage amount adjustment, and policy term. LIC New Jeevan Shanti, as an annuity plan, provides flexibility in choosing the annuity options but not in premium payments once the single premium is paid.
How do I choose between TATA AIA Smart Income Plus Vs LIC Jeevan Shanti?
The choice depends on your financial goals and preferences. If you seek a combination of insurance coverage and investment benefits with bonuses, TATA AIA Smart Income Plus may be suitable. If you are looking for a guaranteed annuity payout plan, LIC New Jeevan Shanti might be more appropriate.
Conclusion
TATA AIA Smart Income Plus and LIC New Jeevan Shanti serve different purposes. TATA AIA provides a mix of insurance and investment benefits, whereas LIC's product is geared towards providing a secure annuity for retirement. Carefully evaluate your financial objectives, risk tolerance, and preferences before making a decision. It's advisable to compare quotes online at PolicyBachat for a comprehensive evaluation tailored to your circumstances.