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Systematic Money Allocation & Regular Transfer
(SMART) Investment is a systematic transfer plan that allows a customer to
enter the volatile equity market
in a structured manner under the
Regular Premium Account.
Through
SMART, one can initially park their
entire annual allocable premium along with any existing units in any one fund
(chosen out of the funds of Tata AIG Life InvestAssure II
+). This fund is called the
“Accumulation Fund”. Thereafter a defined portion out of the Accumulation Fund will get transferred to another fund (chosen out of the
funds of Tata AIG Life InvestAssure
II +) other than the accumulation fund on a monthly basis. This fund
is called the “Target Fund”.
The “Accumulation Fund” and “Target Fund” are not segregated funds
offered under this product but are the
names used to reflect the
investment strategy under the
“SMART”.
Thus, while the stock market remains volatile and unpredictable,
SMART Investment offers a systematic way of rupee cost averaging. However,
all investments through this option are still subject to investment risks,
which shall continue to be borne by you.
The
following are the notable features
of SMART:-
·
SMART can be availed at the
option of the policy holder,
exercisable at policy Inception or on any policy anniversary. Request to commence,
change or restart SMART should be received 30 days in advance of the policy anniversary. The request, if acceptable
by the Company shall take effect
on the following Policy
Anniversary
·
SMART option is available only to the
policies with the Annual Mode of
payment
·
The automatic fund switches in the
SMART option is available out of the
12 free switches
·
The policyholder will have the
option to stop the SMART at any
point of time by a written request and it shall take effect from the next
SMART switching that follows our receipt and approval
·
Manual fund switching for the
funds (Accumulation and Target) on which SMART is active is not allowed.
Manual fund switching is however allowed on other
available funds. For Top up premiums, manual switching option will be
available at applicable charges. Conditions regarding switch fee, minimum
switch and minimum fund after switch etc. for normal switching option shall
be as applicable during the SMART
·
Any amount remaining in regular premium funds, other than the
Accumulation Fund and the Target
Fund, would remain in those funds and continue to grow
·
SMART Option will not be available during Premium discontinuance.
·
SMART Option will not be available when Automatic Asset
Allocation is chosen
·
A portion of total units available in the
“Accumulation Fund” shall be switched automatically into the “Target Fund” in the
following way:
Monthly
SMART:
Policy Month 1
1/12 of the units available
at the beginning of Policy Month 1
Policy Month 2
1/11 of the units available
at the beginning of Policy Month 2
....................................................................................................................
Policy Month 6
1/ 7 of the units available
at the beginning of Policy Month 6
....................................................................................................................
Policy Month 11
½ of the units available at
the beginning of Policy Month 11
Policy Month 12
Balance units available at the
beginning of Policy Month 12
Tata AIG Life may refuse
request for SMART, or to cease offering SMART by giving 30 days of written
notice subject to prior
approval of Insurance Regulatory and Development Authority.
SMART will not be available if “Automatic Asset
Allocation” option is chosen
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