Tata AIA Life Insurance has launched Tata AIA Shubh SIP, a unit-linked insurance plan (ULIP) that combines market-linked wealth creation, life protection and retirement planning. The insurer has partnered with Policybazaar to offer the product through a digital distribution channel.
The new insurance policy comes with multiple variants designed around different financial needs, including wealth creation, family protection and retirement planning. Tata AIA’s product page lists eight customer-focused variants under Shubh SIP.
Insurance Plan Adds Retirement Income Option
Tata AIA Shubh SIP provides market-linked investment options along with Loyalty Additions and Maturity Boosters, subject to the applicable policy terms. The insurance policy also includes enhanced Waiver of Premium options with 1X, 2X and 3X multipliers, depending on the selected variant.
For retirement planning, the plan offers a Retirement/Whole Life option with an automatic Systematic Withdrawal Plan (SWP) from age 60. Policyholders can structure withdrawals as a fixed amount or a percentage of the fund value, subject to the terms of the selected option.
The product also provides partial withdrawal facilities and an automatic partial withdrawal option. These features give policyholders different ways to access their accumulated fund value during the policy term, subject to applicable conditions.
Nominees Get Policy Continuation Rights
Tata AIA Shubh SIP also includes Nominee Continuation Rights. Eligible nominees can continue managing the policy after the death of the life assured, including permitted fund switches, transfers and partial withdrawals. The product also provides nominee settlement options over 15, 20, 25 or 30 years under applicable terms.
The partnership with Policybazaar adds a digital route for customers exploring the new insurance policy. Policybazaar will distribute Shubh SIP through its online platform, expanding the product’s digital reach.
Tata AIA said the product aims to address changing financial priorities across different life stages within a single framework. Jeelani Basha, Chief Business Officer for Partnership Distribution and Group Business at Tata AIA Life Insurance, said the plan brings together wealth creation, family protection and retirement needs.
As a ULIP, Shubh SIP carries market-linked investment exposure, and the policyholder bears the investment risk in the investment portfolio. Tata AIA also states that linked insurance products do not offer liquidity during the first five years of the contract, subject to applicable ULIP rules.
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