Rider Underwriting Guidelines ADB & ATPD Rider Medical Grid Criticare Plus/Inbuilt CI FG+ Option 2/WOP on CI (Proposer) Medical Sum at Risk 18 to 40 Years 41 to 50 years 51 to 65 years Upto 5,00,000 MER, ECG-R, CBC, BPB 5,00,001 to 10,00,000 MER, ECG-R, CBC, BPB 10,00,001 to 15,00,000 MER, ECG-R, CBC, BPB 15,00,001 to 20,00,000 MER, ECG-Exe, CBC, MER, ECG-Exe, CBC, MER, ECG-Exe, CBC, 20,00,001 & Above BPB BPB BPB Medical Sum at Risk Hospicare All Sum Assured 18-45 Years Above 45 Years MER, ECG-R, CBC, BPB MER, ECG-Exe, CBC,BPB (Above grid is applicable above NML/Tele limits & for adverse health) Contd. This is an internal training document created only for the sales employees of Tata AIA. This should be not used for solicitation. 51
Rider Underwriting Guidelines Financial Multiplier Age Group (in years) Income Multiplier Income Multiplier 18-35 (Smart Sampoorna Raksha) (Criticare Plus/Hospicare) 36-40 25 12 41-45 20 10 46-50 15 10 51-55 12 7.5 56-65 10 5 5 5 E.g.,51 year old Customer with income 10L wants to purchase Sampoorna Raksha Supreme. Eligibility would be calculated as :- Eligibility Income Income Multiplier Coverage Eligibility Max Allowed for the plan SSR 10L 10 1Cr No Limit ADB 10L NA 1Cr As per Base upto 2Cr ATPD 10L NA 1Cr As per Base upto 2Cr Criticare Plus 10L 5 50L Hospicare 10L 5 40L 50L 40L E.g.,40 year old Customer with income 10L wants to purchase Value Income Plan. Eligibility would be calculated as :- Eligibility Income Income Multiplier Coverage Eligibility Max Allowed for the plan VIP 10L 10 2Cr No Limit ADB 10L NA 2Cr 2Cr ATPD 10L NA 2Cr 2Cr Criticare Plus 10L 5 1Cr 1Cr Hospicare 10L 5 1Cr 40L If Criticare Plus/ Hospicare is opted with saving plan, financial document will be required as per channel wise guideline for FSAR greater than 25L. Back to Index This is an internal training document created only for the sales employees of Tata AIA. This should be not used for solicitation. 52
Non-Term Underwriting Guidelines Contd. 53
Non-Term U/W Guidelines Non-Medical Limit (Differentiated basis type of Broker & CA and customer education): Note: 1) The below document is applicable if Standard Age Proof is provided. Term Rider will not be allowed under Non-Standard Age Proof. 2) Health Insurance and Term Plan including any variation of term plan are excluded. Contd. This is an internal training document created only for the sales employees of Tata AIA. This should be not used for solicitation. 54
Non-Term U/W Guidelines Non-Medical Limit (Differentiated basis type of Broker & CA and customer education): Tele MER limit for Broker Incremental Tele MER Limits for those cases beyond NML limit table shared above Contd. This is an internal training document created only for the sales employees of Tata AIA. This should be not used for solicitation. 55
Non-Term U/W Guidelines New Non-Term NRI business Cases up to a SAR of INR 2 Crores^ will be accepted without Video MER/Tele MER subject to meeting below conditions ➢ Education Qualification: Graduates and above ➢ NML Eligible cases only: case falling under NML will only qualify, if cases doesn’t fall in NML limits mandatory medicals required ➢ Regular Financial UW guidelines are applicable ➢ Standard Lives [Regular applicable medical guidelines for Non-standard lives] ➢ Exclusions: Housewives and Students ➢ Geography: Pre-COVID Standard Residential Guidelines will be applicable [ any sub substandard country would not be eligible ] ➢ Other conditions [not covered above] to continue ^ TSAR of Non Term covers of last 1 year is to be considered for calculation of 2 Cr [irrespective of status of policy subsequently i.e lapsed , paid up etc ] Contd. This is an internal training document created only for the sales employees of Tata AIA. This should be not used for solicitation. 56
Non-Term U/W Guidelines * = Sum of Death Benefit payable# under all current, issued, pending, simultaneous application(s)@ taken in last 24 months, on same life to be insured + Death Benefit payable# under current, issued (includes issued and lapsed), pending, simultaneous application(s) @ taken in last 24 months, on same life to be insured. The period of 24 months is calculated from the earliest application which is under process of evaluation. All issued policies where the policy commencement date of the earlier issued application falling within the 24 month criteria will be considered for risk aggregation and calculation of Medical Sum At Risk (MSAR). # Death Benefit payable = Higher of the following (as applicable to the product) 1) 10 or 11 times of Annualized Premium (excluding Taxes) as per product design. 2) 105% of All premiums paid excluding the underwriting extra premium and modal loading 3) Actual Death Benefit as defined in Terms of @ Term Assurance and Health / Critical Illness applications excluded. ^ = Juvenile / Minor Lives / Student Life guidelines will be applicable as appropriate. Underwriter reserve the right to call for medical evidence for any Medical Sum At Risk based on his / her underwriting assessment based on information disclosed by the applicant and information available to him / her from other sources. Contd. This is an internal training document created only for the sales employees of Tata AIA. This should be not used for solicitation. 57
Financial Underwriting Guidelines Financial Underwriting is done for the following reasons: Need for insurance cover is present This is established if there is financial loss to the family/nominee in case of untimely death of the proposed life insured. Financial Eligibility Cover proposed is commensurate with the financial loss. This is essential to avoid over insurance as it could lead to anti selection. Affordability of Insurance Cover This is required to ensure that the policy owner is able to keep the policy in force to get the benefit for which the insurance is taken. This is termed as “Premium Payment Capacity”. Need for Insurance: Need for Insurance is established where the proposed insured is a earning through source such as employment or self employment or carrying out business. Certain individuals are engaged in regular work however are not paid for their regular duties (such as housewife / home maker) are eligible for insurance cover. However, those who are not earning are generally do not qualify for taking insurance, except insurance on their lives is purely considered as future financial planning through investment in long term insurance plan. Standard Financial Eligibility: Those who satisfy the first criteria of “Need for Insurance” will be insured subject to a maximum limit. No one can insure him / herself for unlimited amount and hence financial eligibility is required to be established for each insurable life. This eligibility is derived through a simple income multiplier factor. Maximum insurance cover (across all insurance providers) is determines as per the following table. Contd. This is an internal training document created only for the sales employees of Tata AIA. This should be not used for solicitation. 58
Non-Term U/W Guidelines Income of the life to be insured is considered to arrive at financial eligibility and not of the proposer. Following table is used to calculate the Life Insurance eligibility and different tables/rules are used to calculate the eligibility for additional benefits such as Accidental Death Benefit rider, Critical Illness rider, etc. The rider eligibility criteria are defined separately. Age at Entry (years) Income Multiplier to arrive at “Standard Financial Eligibility” 18 – 40& 41 – 45 25 46 – 50 20 51 – 60 15 Above 60 10 5 & = Income multiplier for age below 20 will be based on merits of the application and wherever applicable minor lives guidelines will apply. Income is considered in Indian Rupees and consequently the financial eligibility is defined in Indian Rupees. Income in other currencies will be converted in Indian Rupees as per prevalent conversion factor and adjustments can be made if the economic situation warrants such correction. Financial eligibility arrived using the above factor represent the maximum amount of life insurance cover a person can obtain from all insurance providers across the world. All valid policies$ taken throughout the lifetime of the insured where death benefit is payable in case of claim are considered while arriving at the eligibility. This is referred as Total Sum At Risk (TSAR). $ Includes Term assurance and all life insurance policies taken from other insurance providers as well. Income of the proposed insured will be disclosed in the application form must commensurate with the occupation of the person and other characteristics of the person such as age, place of work etc. Actual income must be substantiated through reasonable evidence for large amount of insurance cover. Following table will define the Financial Evidence Requirement Table: Contd. This is an internal training document created only for the sales employees of Tata AIA. This should be not used for solicitation. 59
Non-Term U/W Guidelines Premium Payment Capacity: In general, we can allow 20% to 60% of total income paid towards insurance premium. Underwriters will assess the premium payment capacity to ensure the policy remain in force for a long time so that the desired profits are realized. Higher % of total income paid towards insurance premium will be evaluated by underwriters for reasons of persistency and from money laundering perspective. Financial Underwriting Requirement: Following grid is applicable for individuals engaged in full time employment or established business to earn the income in order to support a certain standard of living and their income can be reasonably verified through personal meeting and verification. *Underwriters will call for Standard Income Proof from proposed insured based on the underwriting assessment. ^List of Standard Income Proof is given below. Any other evidence submitted will be considered as surrogate income proof and will be evaluated based on the merit of the evidence and the underlying risk cover. Underwriter’s discretion is final while assessment of the surrogate income proof. #Total Sum at Risk = Total in-force and lapsed (eligible revival /reinstatement) Life Insurance Cover (Death benefit) taken throughout the lifetime of an individual across the world including Term Cover. Contd. This is an internal training document created only for the sales employees of Tata AIA. This should be not used for solicitation. 60
Non-Term U/W Guidelines Agriculturist Following grid is applicable for individuals engaged in agriculture (similar occupation) to earn the income in order to support a certain standard of living however their income cannot be verified with reasonable means (such as standard income proof). @ = Underwriters may call for Latest land records documents + Crop sale receipts or alternate proof of agricultural income based on his / her assessment. Contd. This is an internal training document created only for the sales employees of Tata AIA. This should be not used for solicitation. 61
Non-Term U/W Guidelines List of Standard Income Proof: ❖ Recent Appointment Letter (Not more than 3 months old) ❖ Latest salary revision letter (Not more than 3 months old) ❖ Last 3 months salary slips ❖ Last 6 months Bank statements reflecting salary credit at regular periodic interval ❖ Latest Form 16 / Form 16 A ❖ Income Tax Returns (ITR) along with CA certified (as applicable) ❖ CA certified / Audited Profit and Loss (P&L) account & audited Balance Sheet (for last two years). CA details need to be valid and the CA certificate should not be based on the client’s declaration. Please note, Income proof / Proof of Source of Fund is required under AML guidelines as per defined matrix. Evidence received under AML guidelines will be used for financial assessment as well. Contd. This is an internal training document created only for the sales employees of Tata AIA. This should be not used for solicitation. 62
Non-Term U/W Guidelines Financial Waiver basis Credit bureau Life to be insured shall be required to meet all of the following eligibility criteria to be eligible for financial waiver with Credit report form Experian / CIBIL / CRIF. ❑ Declared income minimum income 300,000 and above ❑ Minimum Estimated income as per credit bureau report is equal to for Salaried and Self-employed is INR 3 Lac. Estimated avg income from credit bureaus shall be taken for financial evaluation. ❑ Minimum Education Criteria: Graduate and above only ❑ Credit score: CRIF: 650 & above; EXPERIAN: 750 & above; CIBIL * Not applicable ❑ Maximum Financial TSAR including the current and simultaneous plan offered will be INR 2 Crore per life basis CIBIL income & CRIF/Experian income Calculation of HLV basis Credit bureau *For CIBIL – Credit score criteria is not applicable ^Financial TSAR includes total sum assured across all policies of life assured with the Tata AIA and with other Life Insurance Companies Contd. This is an internal training document created only for the sales employees of Tata AIA. This should be not used for solicitation. 63
Non-Term U/W Guidelines Underwriting guidelines for Juvenile / Minor and Major Student Lives Juvenile / Student lives are dependent on their parents for financial security and hence do not qualify to get insurance cover on their lives. The primary reason for buying insurance cover is to build a corpus for higher education or for certain events in life such as marriage through systematic investment. In addition, certain amount of financial loss can be attributed to parents (in case of unfortunate death of child) if they have invested a significant amount of money on their child’s education which they could have otherwise used for retirement saving. However, it is essential that the parents are adequately insured so as to secure the feature of the child. Similarly, all the siblings should be covered for equal amount to avoid any anti selection against the insurer (e.g. a child which is ill or known to have a major life- threatening disease is only insured or insured for significantly large amount). ➢ Maximum Student Age is capped at 25 and Maximum cover for Student is capped at INR 5 Crore (This includes insurance cover taken from all insurance companies across the world). ➢ Any cover above 5 crore to be referred facultative to Reinsurer #Total Sum at Risk = Total in-force and lapsed (eligible revival /reinstatement) Life Insurance Cover (Death benefit) taken throughout the lifetime of an individual across the world. = Underwriters may call for Student ID Proof / Up to date immunization record / Income Proof / Standard Income Proof from proposed insured based on the underwriting assessment. ^List of Standard Income Proof is given above. Any other evidence submitted will be considered as surrogate income proof and will be evaluated based on the merit of the evidence and the underlying risk cover. Underwriter’s discretion is final while assessment of the surrogate income proof. Contd. This is an internal training document created only for the sales employees of Tata AIA. This should be not used for solicitation. 64
Non-Term U/W Guidelines Underwriting guidelines for Female Lives: In the Indian scenario, a male member of the family is usually the bread winner (earning member) of the family. While the scenario is rapidly changing in the metro cities and urban locations, the female lives in the semi urban or rural locations are still not engaged in active employment or business. Those who are engaged in business are primarily involved in small household business activity with no valid evidence to justify the actual income generated. Category 1: Female lives that are gainfully employed equivalent to their male counter parts. All female lives employed in Government Organizations, Public / Private Limited Companies are covered under this category. Female lives who independently running their own business as well in this category. Those who are carrying out their own business are required to provide all relevant business income proof if required to establish that they are indeed involved in running the business. Refer to main Financial Underwriting Guidelines for financial eligibility calculation. Refer additional condition below as well. Category 2: Female lives that are involved in household business activity like tuitions, beauty parlor, tailoring etc. Female lives carrying out small business activity to support the household but cannot substantiate their income through valid proofs or documents are covered under this category. Category 3: Female lives who do not have any earning through employment or business. However, these female lives may have income through interest, investment, rent, capital gain, gift or any other source which is classified as unearned source. Housewives, widow, unmarried female lives are also considered under this category. No cover to be offered above 50 Lacs for category 3 and non-graduate housewives. Contd. This is an internal training document created only for the sales employees of Tata AIA. This should be not used for solicitation. 65
Non-Term U/W Guidelines Underwriting guidelines for Female Lives: All cases above 5 cr will be referred to Reinsurer Any deviation to the above guidelines will be referred to Munich Re for facultative assessment. There is a possibility of a female life that may fall in category 2 and 3. Maximum cover in such scenario will be dependent upon the income proof submitted for evaluation. Contd. This is an internal training document created only for the sales employees of Tata AIA. This should be not used for solicitation. 66
Non-Term U/W Guidelines Guidelines related to Client Confidential Report (CCR) and Client Profile Report (CPR) Customer Confidential Report (CCR) & Customer Profile Report (CPR) documents are not applicable for Broker Channel. However, CCR is required for Corporate Agency channel only. Underwriter may call for CPR if required for underwriting assessment (for Policy Bazaar cases) Contd. This is an internal training document created only for the sales employees of Tata AIA. This should be not used for solicitation. 67
Non-Term U/W Guidelines Medical Grid for Non-TERM Life Plans Prostate-specific antigen (PSA) required for Male life above 55 years for above SAR 25 Cr Contd. This is an internal training document created only for the sales employees of Tata AIA. This should be not used for solicitation. 68
Non-Term U/W Guidelines COVID- 19 Guidelines Normal [pre-COVID standard residential guidelines] UW guidelines for NRIs for: 1. GRIP Joint-Life Single-Premium plan with 5 year term: up to a cover of INR. 3 Cr. 2. Savings plan with 11 times Premium to Sum Assured ratio: up to a cover INR. 1.50 Cr. No limit on cover amount or product for sourcing from: Singapore, Hong Kong, UAE, Australia, New Zealand, Mauritius, Taiwan, Thailand, Oman, Qatar, Saudi Arabia , Sri Lanka No pre-approval required for the aforementioned categories. COVID Questionnaire continues to be a mandatory requirement for both Savings & Investments and Term applications. Back to Index This is an internal training document created only for the sales employees of Tata AIA. This should be not used for solicitation. 69
FAQs Contd. 70
FAQs Example- Mr Ramchandran Das is a customer from the bank. He wishes to apply for a Term insurance plan. He wants to know the vaccination requirements from TATA AIA Life before applying for the plan: Answer: Vaccination is not mandatory. The customer can apply for a term plan with TATA AIA Life Example - Ms. Chitra has recently joined TATA AIA as a Cam. In one of the bank branches, she meets a customer who wants to apply for a term plan. The customer shares that he has taken his second dose of vaccination 2 days ago. The customer wants the case to be logged in. What should Ms. Chitra do? Answer- In this situation where you know that the customer got vaccinated recently and it’s not been 15 days from the date of vaccination, hence, we will not be able to issue the term policy to the customer. In TATA AIA there is a specific underwriting guidelines if the customer has taken 1st dose, then 7 days of waiting period will be applicable from the date of vaccination whereas if the customer has taken 2nd dose, then 15 days of waiting period will be applicable from the date of vaccination Contd. This is an internal training document created only for the sales employees of Tata AIA. This should be not used for solicitation. 71
FAQs Example - Mr. Karan 66 years old and wants to apply for a term plan as he is a Silent partner is his business currently and wants to safeguard the interest of his family by booking a term plan Answer - No, he is not eligible as the maximum entry age is 65 years Example - Mr. Khanna is a Businessman (10th pass) and runs a chain of logistics in FMCG sector and files an ITR of 20 lacs every year, he has a dependent family which includes a wife and three children and he is the only bread winner in his family. Currently, he lives in Mumbai and taking care of his business and travels a lot because of business requirements. By analysing the entire scenario, how much cover will you offer him? Answer - As per the guidelines we can’t offer the plan to Mr. Khanna because the minimum qualification which is required for a term plan is 12th pass but there is an exception which can be considered here for the customer who is 10th pass and having an average ITR of 10 lacs ( last 2 years average) plus- 1. Mandatory Standard income proof required 2. Financial waiver OR any kind of Financial surrogate income shall not be accepted 3. Mandatory Medicals + VPSC required 4. The Risk Score of TALIC is within acceptable limit 5. Video PSC Mandatory/Video MER and/or PIV as per underwriter’s discretion 6. Final decision is subject to underwriting Contd. This is an internal training document created only for the sales employees of Tata AIA. This should be not used for solicitation. 72
FAQs Example - You have recently joined a bank branch and in the morning huddle Branch Manager asked about the minimum salary criteria for his employees to ensure that responsibly everyone should go for a protection solution. What will be your answer 5 lacs or 3 lacs? Answer - Here in this scenario we are not talking about the customers but we are referring to the bank staff i.e. our partner employees, so, for them the minimum annual package requirement is of 3 lacs p.a. with max cover upto 1 Cr with mandatory medicals and should be a Graduate The correct answer will be 3 lacs in this case Example - Mr. Rajesh 43 years old, HSC passed and currently he is self employed and owns a garment shop in one of the busy localities in Mumbai Being a businessman, his ITR for last two years are 2019- 9 lac, 2020- 3 lac (hit loss due to pandemic), Is he eligible to buy the term plan? Answer - Mr. Rajesh is eligible to buy a term plan as his average business profit for last two years is INR 6 Lac (9+3 lacs/2) which is more than the minimum eligibility amount i.e. INR 5 Lac. Contd. This is an internal training document created only for the sales employees of Tata AIA. This should be not used for solicitation. 73
FAQs Example - Mr. Kambuj Kapoor the RM of the bank was in a meeting with his customer where during the discussion the client wanted to know whether he can proceed with the term plan without any medicals and hassle free issuance without any financials due to time constraint at work . Pls specify the parameters of VMER and financials waiver Answer - If the customer is willing to avail the facility of financial & VMER waiver (financial & VMER not required) then he must meet the below mentioned conditions • Min Annual Income- salaried 7.5 lac, self-employed 10 Lac • Min Education- Graduate • Financial Waiver Criteria basis TERM TSAR (all issued policies from April 21) • Credit Score>=650 • Resident Indian Only Example - The bank RM has a follow up customer who is interested in PR and PR plus proposition but taking time to take the decision, what are the unique points about medicals that you can discuss with the customer, pls specify- Answer - Yes, Special Video-MER criteria is now applicable for ILP upto 1Cr MSAR • Min Annual Income - 5 Lakhs • Min Education- Graduate • Occupation- Salaried, Professional, Self Employed. • Financial UW criteria – FSAR Upto 1 Cr (Estimated income basis bureau and Credit Score>650) Contd. This is an internal training document created only for the sales employees of Tata AIA. This should be not used for solicitation. 74
FAQs Example - A customer who is salaried and having an annual income of 7.5 lacs and opting for a sum assured of 2.25 Cr, will he be eligible for VMER & Financial waiver? Answer - Yes, the customer is eligible for VMER & Financial Waiver/ Standard financial documents might be required, provided he fulfils the above mentioned conditions in previous Q&A Pls refer the below table for more info- Age Brand Grid Guideline 1 Guideline 2 Lower of declared/ Lower band of Income : Salaried: 7.5 L: Self Employed: 7.5 L Estimated income basis Self Employed: 10 L 18-40 Yrs VMER only + FW / Std >=1 Cr to 2.5 Cr =1 Cr Financial Document 41-45 Yrs VMER only + FW / Std >=1 Cr to 1.5 Cr NA Financial Document Medical + Grid Medicals + VMER + <>1 Cr Financial Waiver FW [ If applicable upto 1 <1 Cr All Sum Assured conditions as per Cr] / SFE 1 Cr applicable as Grid Medicals + VMER + per below Grid FW [ If applicable upto 1 <1 Cr and >1.5 Cr Cr] / SFE Above 45 yrs to 55 yrs Grid Medicals + VMER + FW [ If applicable upto 1 Cr] / SFE Above 55 years No Financial Waiver Contd. This is an internal training document created only for the sales employees of Tata AIA. This should be not used for solicitation. 75
FAQs Example - Mr. Raghav, aged 62 years is done with VPSC while applying for the term plan, is it mandatory to go for physical medicals & Video MER? Answer - Yes, as the customer’s is 62 years old, refer the guideline for Age: 61-65 Years:- • VMER mandatory + Medical. • Whole life cover not allowed. • For SA > 1Cr, Policy Term will be allowed as per Reinsurer decision. • Standard Financials mandatory. Financial surrogates not allowed Contd. This is an internal training document created only for the sales employees of Tata AIA. This should be not used for solicitation. 76
FAQs Example - Mrs. Asha Prasad is a homemaker and a wife of a successful businessman Mr. Kamal Prasad, who is into retail chain of FMCG products and wants to apply for a term policy to have a secure future. Mr. Prasad also wanted to cover his wife in the same policy. As a CAM or Insurance specialist what will you suggest in such scenario Answer - As an Insurance specialist you must make you customer aware about the homemaker guidelines- • Homemaker should be graduate or above • PSC will be mandatory • 50% of husband’s Term Cover* OR INR 50 Lac whichever is lower [*With TALIC/any other with life insurance company/ies] • Husband’s Cover - May or may not be from TALIC. If husband’s term cover is not from TALIC, a copy of the policy schedule with Sum Assured and Terms of Acceptance to be attached [policy to be less than 5 years old] Example - If husband is covered for INR 1 Crore with TALIC and intends to take a INR 50 Lac cover on his wife with TALIC, he needs to be eligible for INR 1.5 Crore basis his earned income. Standard Financial documents of the husband will be required. Contd. This is an internal training document created only for the sales employees of Tata AIA. This should be not used for solicitation. 77
FAQs Example - Mr. Ram is an agriculturist, earns well up to INR 12 Lac through agriculture in his 10 acres of land. If he wishes to go for a term plan, what is the amount of Sum Assured Capped at and other documents required? Answer - If the customer is an Agriculturist the following conditions need to be taken of- • Minimum Income Criteria - Being self-employed, INR 10 Lac will be applicable • Education - Graduate • Verified Income - ITRs and Form J* will be considered for Min. Income Criteria • Land ownership papers, mandi receipts in LAs name to be submitted • Sum Assured - Capped at INR 50,00,000 based on eligibility • Medical + Video MER mandatory Example - Mr. Ravi is 33 years old and self employed in a cloth manufacturing business with 4.40 lacs of income (ITR) wishes to apply for a term plan, is there any provision where the customer can apply for the same with 1 Cr term cover as his annual income is not 5 lacs which is a basic eligibility? Answer - Yes, now we can add surrogates with the plan to bridge the financial gap to reach the eligibility. So ,in this case using surrogate income, 20% income can be bridged (88,000) , new Income: 4,40,000 + 88,000 = 5,28,000 as the required eligibility for Term plan is 5,00,000 by using surrogates customer is eligible for the term plan now Financial Eligibility: 5,28,000 x 25 = 1,32,00,000 Contd. This is an internal training document created only for the sales employees of Tata AIA. This should be not used for solicitation. 78
FAQs Example - Mr. Rakesh Sharma (30 years old) is your customer and earns 5 lacs of annual income and wants to apply for the term plan, while having a discussion with the customer, what Sum Assured will you suggest him an how will you calculate? Answer - The Sum assured/Life cover is calculated basis the multiplier factor as per the age of the customer, Rakesh Sharma is 30 years old therefore as the standard financial eligibility table the multiplier is 25 times Sum Assured=25*5 lacs= 1.25 Cr Refer the table below fir the multiplier at different ages- Age at Entry (years) Max Income Multiple* 18 – 35 25 36 – 40 20 41 – 45 15 46 – 50 12 51 – 55 10 56 - 65 5 Contd. This is an internal training document created only for the sales employees of Tata AIA. This should be not used for solicitation. 79
FAQs Example - Mr. Karan Mehra is bank’s customer and wishes to invest 50 lacs in a ULIP plan and wants to know if there is any financial waiver of documents which is available basis the credit bureau report Answer - The financial waiver of documents is available for the customer basis credit bureau report provided the customer fulfils the below mentioned conditions- • Minimum Education Criteria: Graduate • Minimum Declared Annual Income: INR 5 Lac for Salaried and Self – Employed • Credit Score: 650 & above • Maximum Age allowed: 55 years • Verified Income: Income only from mandatory documents to be considered even if estimated income is higher • Lower income of Bureau to be compared with declared income & lower of these to be used for financial evaluation Example - Mr. Jacob Jose is an NRI and presently in India to visit his family, he wants to book SRS plan with TATA AIA Life but his passport renewal is under process, what will you consider as a age proof document in this case? Answer - When our customer is an NRI/OCI/PIO, in such cases the only standard age proof which can be considered is a PASSPORT and no other document will be applicable as passport is a mandatory document. In the above-mentioned case study, the passport is not available therefore you will have to wait for the renewal of the same Contd. This is an internal training document created only for the sales employees of Tata AIA. This should be not used for solicitation. 80
FAQs Example - An RM has joined the bank recently and wants to understand list of documents that is acceptable as an income proof in TATA AIA. You as a CAM need to illustrate the same Answer - The list of documents acceptable as an income proof are as follows- • Answer Recent Appointment Letter (Not more than 3 months old) with at least 1 months’ salary slip with Provident Fund deduction • Latest salary revision letter (Not more than 3 months old) with at least 1 months’ salary slip with Provident Fund deduction • Last 3 months’ salary slips (With Provident Fund Deduction, average income will be considered) • Last 6 months Bank statements reflecting salary credit at regular periodic interval • Latest Form 16/Form 16 A • Income Tax Returns (ITR) along with CA certified (as applicable) Computation of income for last three years – Average Income of 2 years will be considered for computing eligibility • CA certified/Audited Profit and Loss (P&L) account & audited Balance Sheet for last 2 years. (average income will be considered Contd. This is an internal training document created only for the sales employees of Tata AIA. This should be not used for solicitation. 81
FAQs Example - Mr. X who is an NRI walks into the bank branch to inquire about our SRS term plan and understand the basic eligibility criteria to apply for the same. As a CAM, pls specify the conditions- Answer - If the customer is an NRI, the minimum annual verified income for Salaried, Professional, Business Owner or self-employed should be minimum 10 lac Example - Mr. C is a PIO and wishes to apply for a term cover of 2 Cr and wants to know about the documents to be submitted while processing the same as he is planning to travel back in the next week. Pls specify the mandatory documents Answer - If the TSAR is above 1 Cr which is 2 Cr in this scenario then copy of all pages of passport with entry and exit details+ travel questionnaire is required Contd. This is an internal training document created only for the sales employees of Tata AIA. This should be not used for solicitation. 82
FAQs Example - Mr. Ramanujam who is 40 years old is a PIO from Singapore and decides to purchase TATA AIA SRS plan with 2 Cr Sum Assured Limited 5 pay with a policy term of 40 years. Is he eligible for the term plan? If yes, pls specify, also, Is Video MER mandatory in this case? Answer - Yes, he is eligible for the term plan as the entry age for PIO/NRI/OCI is 18 to 60 years. Also, Singapore is a part of Set A countries and we can offer a Sum Assured upto 5 Cr Set A Countries: [Singapore, Hong Kong, China, UAE, Oman, Qatar, Saudi Arabia, Sri Lanka, Maldives, New Zealand, & Australia, Papua New Guinea, Fiji, Brunei, Thailand, Taiwan, Vietnam, Mauritius, South Korea, Bahrain, Kuwait] can be accepted upto 5 Cr, for higher Sum assured final decision subject to reinsurer approval Video MER is mandatory in all the cases of NRI/PIO/OCI Contd. This is an internal training document created only for the sales employees of Tata AIA. This should be not used for solicitation. 83
FAQs Example - If you are offering SRS under Keyman Insurance and the customer is interested to know the maximum coverage term then till what age you can provide the coverage? Answer - In Keyman insurance if we are offering a term plan then we have to ensure to communicate that 75 years is the maximum age at maturity for the customer Example - a customer who is a businessman and files an ITR of 5 lacs every year has approached you and looking for a plan which can offer him a protection and savings at the same time but the customer is 12th pass, can you offer any such plan to the customer? Answer - Yes, we can offer PR plus as the minimum education is HSC and minimum average of ITR required is 3 lacs (5+5/2=5 lacs) Contd. This is an internal training document created only for the sales employees of Tata AIA. This should be not used for solicitation. 84
FAQs Example - A customer is looking for a term plan where he canhave an additional cover over and above the existing term plan that is already there as the customer has been promoted as a Avp and with the increase in package he also wants to increase his cover by 10 lacs, do you have any plan in TATA AIA which can offer him a cover of 10 lacs? Also can we add any additional benefit in form of riders? Answer - Yes, TATA AIA has recentl launched saral Jeewan bima in which customer can easily opt for a sum assured of 10 lacs as the minimum sum assured in the plan is of 5 lacs and maximum is 25 lacs You can also add riders in this plan i.e ADB & ATPD Example - TATA AIA has launched various features in the existing 4 riders- ADB, ATPD, Criticare & Hospicare , those are lumpsum option, income +lumpsum option, income option, waiver of premium & partner care, if customer is opting for hospicare rider in this case will partner care opion is available if not then with which riders it is available Answer - No, partner care feature is not available with hospicare , this feature in only available with Adb, ATPD & criticare Back to Index This is an internal training document created only for the sales employees of Tata AIA. This should be not used for solicitation. 85
FAQs Pension Profile SRS (all PR PR Plus SJB PAR / Plans ULIPs options) Y Non-PAR (SAP, FG Pension) Resident Y Y YY Y Y Indian Y N NRI / OCI / PIO Y Y NN Y Y Y N Foreign N N NY Y Y Y National Y Y Housewife Y N NY Y Y Y Minor as Life N NN Y N Y Assured Y NY N N N Keyman (only Life YY Y Y Y Employer – Option) Employee Y HUF Y YY Y Y Y Partnership Y NY N N N (only Life Option) Back to Index This is an internal training document created only for the sales employees of Tata AIA. This should be not used for solicitation. 86
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