OREANDA-NEWS. June 16, 2011. Tata AIG Life Insurance Company today announced the launch of Tata AIG Life Insurance Gyan Kosh, a non-participating unit-linked endowment insurance plan. The plan comes with in-built benefits to ensure financial protection of one's goals for children's education, important milestones of life like marriage, providing funds for setting up a business, etc.

The plan offers a choice of two inbuilt protection options for the prospective customer to ensure the protection of their financial goals — Security Net and Safety Net. Both these options have inbuilt waiver of premium benefit that waives all future premiums payable under the plan in case of death or total permanent disability of the insured.

In case of Safety Net a sum assured is paid to the nominee on death of the life assured, future premiums are waived and the policy benefits continue.

In case of Security Net, in addition to the sum assured getting paid to the nominee on death of the life assured and future premiums getting waived, the inbuilt “Family Income Benefit” also gets triggered. The “Family Income Benefit” pays a re-adjustment income of 1 per cent of sum assured to the family for the next 100 months or end of the policy term, whichever is earlier, in case of death or total permanent disability of the insured.

Under both the options, the total fund value is paid to the policyholder (in case of total permanent disability and survival till maturity) or the nominee (in case of death of life assured) on maturity.

In addition, under both Safety Net and Security Net explained above, the insured has the option of choosing one of the two waiver of premium benefits:

Family Guard – Get 100 per cent of the future premiums paid into the policy as if the policy is on monthly mode.

Family Advantage – Get 50 per cent of the future premiums paid into the policy as if the policy is on monthly mode and 50 per cent as cash payouts to the policyholder / nominee that acts as a supplementary income to the family.

Tata AIG Life Insurance Gyan Kosh offers the investor the opportunity to choose from a wide range of seven investment funds as per their risk profile. In addition, they can also benefit from Tata AIG Life's portfolio strategies — systematic money allocation and regular transfer ( SMART) to optimise one's returns due to rupee cost averaging or automatic asset allocation (AAA)  to benefit from age-appropriate allocation of assets.

Speaking at the launch, Suresh Mahalingam, MD and CEO, Tata AIG Life Insurance Company, said, “It is the dream of every parent to see their child achieve success in all their endeavours in life and save actively for their education to build the foundation of this success. Tata AIG Life Insurance Gyan Kosh with its two protection options and inbuilt benefits is designed to help parents not only assemble their desired savings but also protect it in case of any exigencies. The plan ensures that in the unfortunate event of the death or disability of insured, the journey of their loved ones towards success and happiness is not hampered by any financial constraints.”

On survival to the end of the policy term, guaranteed maturity addition of 1.5 per cent to 3 per cent of regular premium fund value (depending on the policy term) is paid to augment the maturity corpus.

The policy can be purchased by an individual at any age ranging from 18 years to 50 years.