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TATA AIA Term Insurance Plan

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What is Tata AIA Term Plan?

Term plans are one of the best ways to take care of the family's financial needs in the uncertainties of life. Tata AIA Term Plans offer a range of features such as death cover, tax benefits, extended life coverage and more. Some of the other benefits include the return of premium in case of survival of the policyholder on maturity and preferential premium rates for females & non-smokers. The term insurance policy also provides surrender benefits to the policyholder. The other add-ons are enhanced life coverage through various riders like accident hospitalization, etc. Tata AIA term plan also provides protection against liabilities & claim pay-out. There are convenient premium payment options available.

Features & Benefits of Tata AIA Term Plan

The features of the range of Tata AIA term plans are: 

    • A non-linked and non-participating term insurance plan which provides death cover and maturity benefit
    • The life insurance policy cover has claim pay-out. Under this, a fixed lump sum is paid to the nominee on the policyholder’s death, and rest of the amount is paid as monthly installments
    • Females and non-smokers are granted special discounts in premium rates
    • The minimum sum assured is 50 lakh, and the maximum sum assured has no higher limit

Benefits of Tata AIA term plan are:

    • Lower costs: The term plans offered by the Tata AIA term plan are affordable.
    • Fixed premium: Whatever be the term plan, the premium will remain fixed.
    • Tax Benefits: It provides tax benefits through 80C & 10(10D) Income Tax Act 1961.
    • Flexibility: Premiums can be paid monthly, quarterly, half-yearly, annually, or in a lump sum.
    • Term: The life cover protection for the policyholders is 30 to 100 years of age.
    • Rebates: There are rebates available for those who opt for a high sum assured levels of above 75 lakh.
    • Convenient online buying: Since most Tata AIA term plans are available online so buying them is very convenient.

List of plans under the Tata AIA Term plan

There are four plans under Tata AIA Term Plan: -

    • iRaksha TROP
    • Maha Raksha Supreme
    • Life Insurance Sampoorna Raksha Plus

Tata AIA iRaksha TROP

The term insurance plan has dual benefits of life insurance the premium is returned if the policyholder survives. It comes with two conditions -

    • In case of the policyholder’s death, the nominee gets a lump sum amount.
    • On survival of the policyholder till maturity of the plan, premiums paid are returned in a lump sum.

TATA AIA Maha Raksha Supreme 

The regular pay policy provides higher life coverage at a lower premium rate. Since the plan is online, it can be bought by visiting the company's website. The minimum age required is 18 years, and the maximum is 70 years. On the death of the policyholder, the online term plan returns the assured amount as a lump sum. There are three ways in which premiums can be paid.

    • Regular pay - The premiums are paid until the policy ends
    • Limited pay - Premiums are paid in a fixed number of installments spread over a limited period
    • Single pay - Only one single premium is paid. The lump-sum amount is paid at the start of the policy.

There are lower premium rates for females and non-smokers. There is no maturity benefit in this plan. 

TATA AIA Life Insurance Sampoorna Raksha Plus

TATA AIA Life Insurance Sampoorna Raksha Plus has a maturity value if the policyholder survives until the maturity of the policy. The plan comes with the flexibility to choose from two options. The unique benefit of the policy is that on the death of the policyholder, the nominee gets a lump sum benefit and fixed monthly income for the next ten years.

Comparing TATA AIATerm Plans

Tata AIA Term Plan

Benefits of the plans

Tata AIA iRaksha TROP

●     Life Insurance of the policyholder with a surrender value.

●     If the policyholder survives when the policy ends, they will get a lump sum amount.

Tata AIA Maha Raksha Supreme

●     It only provides life insurance for the policyholder. So the nominee gets the sum assured on the policyholder’s death.

TATA AIA Life Insurance Sampoorna Raksha Plus

●     Life insurance comes with the flexibility to choose from two options.

●     On the death of the policyholder, there is a lump sum benefit + fixed monthly income for ten years.

Tata AIA Term Plans in Detail

Here are the details and term plans coverage: -

Tata AIA iRaksha TROP

Eligibility of the plan:

    • Age: 18 years to 65 years
    • Plan Validity:
      The minimum policy term is 10 years
      The maximum policy term is 30 years
    • Single pay - Only one single premium is paid. The lump-sum amount is paid at the start of the policy.
    • Maturity age of policy: 75 years
    • Premium Payment: Regular pay, limited pay of 5 or 10 years, or single pay.
    • Sum Assured:
      The minimum sum assured is 50 lakh
      There is no maximum amount limit

Premiums:

    • There is no limit for the maximum premium
    • Non-smokers & women pay a lower premium
    • There is a discount on premiums that have a sum assured of Rs 75 lakhs or above
    • Premiums paid are calculated based on age, the sum assured, lifestyle, and premium term

Payment of premiums:

    • The premiums can be paid half-yearly or yearly
    • There are three premium options: single pay, regular pay, and limited pay premiums if 5 or 10 years
    • A grace period of 30 days from the due date is available
    • If the premium is not paid in the grace period, the policy will lapse for regular pay policy

Sum Assured

    • The sum assured can't be changed once the policy has been started
    • The sum assured must be in multiples of Rs 1 lakh
    • On the maturity of the policy, all the premiums paid will be returned to the policyholder

Riders or Add on covers

The riders or add-on covers will be available if

    • The minimum sum assured is Rs 50, 000
    • The minimum or maximum sum assured depends on the parent plan
    • Premiums are paid regularly
    • The premium of the add-on plan must be of the sum duration as that of the parent plan

The riders can include accident hospitalization or lower premium rates. 

Surrender Period

For some reason, if the policyholder needs to surrender the policy then: -

    • Regular pay policies have no surrender value
    • Surrender benefit will be given to 5 or 10-year policies with premiums paid for three years and seven years, respectively
    • Single pay policies can be surrendered at any time

Free Look period

The policy comes with a 30-day free look period, i.e., if one doesn't like the policy, it can be returned within 30 days of the policy started.

    • If returned all premium paid will be refunded
    • The cost of stamp duty and cost of cover (no of active days) will be deducted

Benefits Offered:

The benefits offered by Tata iRaksha Trop are: -

    • Death Benefit: If the insurer dies before the policy ends the nominee will get higher of: -
      basic sum assured or
      10 times the annual premium or
      105% of total premiums paid on maturity benefit
    • Maturity Benefit: If the policyholder is alive when the policy ends, then the person gets all premiums paid.
    • Surrender Benefit: If the policy is surrendered due to some reason, then the policyholder gets the surrender value.

TATA AIA Maha Raksha Supreme 

Eligibility of the plan: -

The policy comes with a 30-day free look period, i.e., if one doesn't like the policy, it can be returned within 30 days of the policy started.

    • Age: The entry age of the plan is 18 years to 70 years
    • Plan Validity: The plan has a minimum plan validity of 10 years and maximum validity up to 80 years of age
    • Policy Term: The minimum term of the policy is 10 years & the maximum is 40 years
    • Sum Assured: The minimum sum that needs to be assured is 50 lakh, and there is no maximum amount limit

Premiums:

The policy comes with a 30-day free look period, i.e., if one doesn't like the policy, it can be returned within 30 days of the policy started.

    • Non-smokers & women are offered lower premiums
    • Discounts available when the plan is above 75 lakhs
    • Premiums paid are calculated based on age, the sum assured, lifestyle, and premium term

Payment of premiums:

The benefits offered by Tata iRaksha Trop are: -

    • Frequency: Annually or semi-annually.
    • There are three premium options:
      Single pay - premium paid once only
      Regular pay - premiums paid till the end of the policy
      Limited pay - premiums paid in 5 or 10 years
    • A grace period of 15 days from the due date is available for regular premium payers & 30 days for other premium payers.
    • If the premium is not paid in the grace period, the policy will lapse in case of regular pay policy.
    • The annualized premium will be the premium paid in a particular year for the basic sum assured by the policyholder. It excludes extra premiums.

Sum Assured

The benefits offered by Tata iRaksha Trop are: -

    • The sum assured can’t be changed after the policy has started

Surrender Period

For surrendering the policy, the amount refunded depends on:-

The benefits offered by Tata iRaksha Trop are: -

    • Surrender value for regular pay policies
    • Surrender benefit can be availed by the policyholders if there is more than 3 and 7 years of policy has passed for a policy term of 5 and 10 years, respectively
    • Single pay policies can be surrendered at any time

Free Look period

The policy comes with a 30 day free look period, i.e., if one doesn't like the policy, it can be returned within 30 days of the policy started.

    • All premiums paid will be refunded
    • The cost of stamp duty and the cost of cover calculated by the number of active days will be deducted

Benefits offered

The death benefit paid at the end of the policy will be the higher of:-

    • sum assured or
      10 times the annual premium or
      105% of the total premium paid till the date of death
    • Maturity Benefits:
      There is no maturity benefit offered by the insurance policy

TATA AIA Life Insurance Sampoorna Raksha Plus

Eligibility

    • Age
      Minimum Entry Age: 18 years for five years & 10 years term plan
      Maximum Entry Age: 70 years for five years and 65 years for 10 years term plan
    • Maturity Age: The Minimum maturity age is 28 years & the maximum is 80 years of age
    • Premium payment term-limited pay of 5 years or ten years
    • The premium can be made annually, half-yearly, quarterly, or monthly

Benefits:-

Death benefit -

    • Option 1: Sum assured which will be payable on the death of the policyholder
    • Option 2: Sum assured will be paid to the nominee in a lump sum and an additional fixed monthly income for ten years

The sum assured will be the highest of:-

    • Ten times the annual premium or
    • 105% of all the premiums paid or
    • Minimum sum assured on maturity or
    • The assured amount payable on the policyholder’s death

Maturity benefit -

    • The plan returns the premiums if the policyholder survives until the maturity of the plan

Surrender Benefit:

The sum assured will be the highest of:-

    • For regular pay, no surrender benefits available
    • For limited pay: For the policy of 5 years or ten years, if the premium is paid for a minimum of 2 years and three years respectively, then there will be a surrender value of the policy
    • Grace period: 15 days

Rider:

The sum assured will be the highest of:-

    • AIA Life Insurance Accidental Death and Dismemberment Rider

What is not Covered in the Tata AIA term plan?

Tata AIA term insurance comes with certain exclusions as well, which include-

Death due to suicide within 12 months from the date of commencement of the policy risk cover or revival of the policy. In such cases, the nominees will be paid 80% of the total premiums paid till the death of the policyholder, or the surrender value of the policy whichever is higher.

Claim process of Tata Insurance Policy

Tata AIA term plan has a hassle-free online claim process, which can be easily claimed through the website without the need to go through the paperwork. 

The claim process includes the following process:- 

    • Online claim & submission of important claim requirements
    • Verification
    • Claim decision

Step 1: Claim Intimation & Submission of Important Claim Requirements

For the claim intimation process, visit the official website and fill up the claim process form. The details required are policy number, claim reason, name of the policyholder, the date on which the policyholder died, the cause of death, the name of the person initiating the claim process & the relationship with the policyholder. Other details required are the address, pin code, mobile number, and email of the person claiming. Uploading of the other important documents is also required.

Step 2: Verification of Claim

After submitting the documents to the company, the official will verify the information. If found correct, they will notify the nominee through SMS or E-mail.

Step 3: Claim Decision

After completion of verification, the disbursal process starts. It usually takes eight working days from claim intimation to disbursal of the amount. For delays, additional interest of 6% per annum will be paid.

Documents Required

Claim Form (downloaded from the website) for the following:

    • Part 1: Claimant's Statement
    • FATCA CRS self-certificate form is required by Individual or Non-Individual
    • Part 2: Physician's Statement
    • Death Certificate issued by the local government body
    • Medical record of the policyholder
    • Original policy document
    • Photo ID proof of the claimant with address proof, a canceled cheque, and account number
    • If the death of the policyholder is due to an accident then
    • Postmortem report
    • Police papers like FIR, Final Investigation report, and other reports
    • Newspaper cutting is required for the accident and photographs (if available)

Tax Benefits under Tata AIA Term Plan

The insurance policies are exempted from Tax under the section of 10(10D) of the Income Tax Act 1961. Tax benefits can also be availed under section 80C of the Income Tax Act, 1981.

How to buy Tata AIA Term Plan?

Tata AIA Term Plans can be bought online. For buying the life insurance plan from the Tata AIA Life website.

    • Select the option to buy online. Then fill up the online form in which the following details are asked:-
    • Name, DOB, Gender, Email, Mobile Number, City, Occupation, and Annual Income
    • After submission of the above details, some other details like health records and documents need to be submitted
    • After the completion of the verification process, the policy commences.

How to renew Tata AIA Term Plan?

The company offers a chance for its policyholders to renew the policy. The renewal can be done by the following process:-

    • Login to the portal & go to the link that leads to the secured payment process.

The policy can be renewed by using a credit card, debit card, or net banking. The option for auto-renewal is available during the first sign-up process

    • If the auto-renewal option wasn't checked during the sign-up process, then the customer helpdesk is to be contacted using the given toll-free number

Required Documents to Apply for Tata AIA Term Plan

The various documents required to apply for the Tata AIA Term Plan are:-

    • Identity Proof - Aadhar Card, PAN Card, Voter ID Card, Driving License & Passport is acceptable
    • Address Proof - A voter ID card, PAN card, Adhaar Card, Passport, Driving License, Property Ownership Deed, Bank Passbook, Electricity Bill, or Water Bill is acceptable
    • Age Proof - Adhaar Card, Birth Certificate, Voter ID card, Driving License, and Passport are accepted
    • Income Proof - Six months bank passbook, Income Tax details are required
    • Proposal Form - The proposal form can be downloaded from the Tata AIA website
    • Medical Health Record is required
    • Medical tests are also conducted

TATA AIA Term Plan - FAQ

Written By: Paisawiki - Updated: 09 September 2020