Tata AIA Life Insurance Company is a joint venture between Tata Sons Limited who owns the majority of the stake-holding in the company at 74% and AIA Group Limited who have the remaining holding of 26%. While on one hand Tata is a leading group in the country specializing in multiple business ventures, on the other hand AIA boasts of being the largest listed pan-Asian life insurance group which has a presence in over 17 markets in the Asia Pacific region. The experience and efficiency of both these companies have established Tata AIA Life Insurance Company in the insurance sector of the country. Today, the company offers a multitude of products to its customers to meet their insurance requirements.
Tata AIA Life Term Plans
With three different term plans available both online and offline, TATA AIA Life Insurance promises something new to the customers in all their plans. A complete feature analysis of the plans sold by the company is done below.
Tata AIA Life Insurance iRaksha TROP
The plan has return of premium option on maturity so that the policyholder does not lose the premiums paid on survival till maturity. Other notable points are:
- It can be bought through online website of the company
- Death benefit will be given on death
- The death benefit is higher of Sum Assured chosen or 10 times the yearly premium or 105% of premiums paid till death or the total premium paid till death.
- 100% of premiums paid are returned at maturity
- Premiums can be paid regularly for the entire duration of the plan under the Regular pay option, for a limited period of 10 or 5 years only under the Limited Pay option or in one lump sum on inception of the plan under the Single Pay option of premium payment.
- Non-smokers are given preferential rates of premiums for maintaining a healthy lifestyle
- Female lives are charged lower premiums
- Rebates in premiums are also allowed for choosing high Sum Assured levels.
Eligibility Details
|
|
Minimum
|
Maximum
|
|
Entry Age
|
18 years
|
65 years
|
|
Maturity Age
|
-
|
75 years
|
|
Policy Term
|
10 years
|
30 years
|
|
Sum Assured
|
Rs.50 lakhs
|
No limit
|
|
Premium Payment Term
|
Equal to the policy term or Limited pay for 5 or 10 years or Single Pay
|
|
Premium Payment Frequency
|
Yearly or half-yearly
|
Sample Rates of Premium
The table illustrates sample rates of premium for different premium payment terms and different ages assuming the coverage to be of Rs.1 crore
|
Age
|
Policy term
|
Single pay
|
Regular pay
|
Limited pay (5 years)
|
Limited pay (10 years)
|
|
30 years
|
20 years
|
182,600
|
19,22
|
53,500
|
30,000
|
|
30 years
|
25 years
|
218,500
|
17,100
|
61,600
|
33,600
|
|
35 years
|
20 years
|
264,000
|
26,800
|
75,900
|
42,800
|
|
35 years
|
25 years
|
320,100
|
24,400
|
88,800
|
48,700
|
Tata AIA Life Insurance Maharaksha Supreme
A pure term plan which allows enhancement of the Sum Assured at important milestones of one’s life. The details of the plan are:
- If the life which was insured dies, death benefit is payable equal to the applicable Sum Assured as on death of the insured
- The death benefit payable will be the amount higher of the Sum Assured or 10 times the annual premium or 105% of total premiums paid till the date of death for regular premium payment option and higher of Sum Assured or 125% of the Single Premium paid under the Single Premium payment option.
- There is a unique option of a Life Stage Plus feature which the policyholder has to choose the inception of the plan. The option enables the policyholder to increase the Sum Assured during the tenure of the plan up to a maximum of Rs.50 lakhs at important milestones of the insured’s life like marriage and childbirth. The enhancement in the Sum Assured will be dome by the company without any fresh underwriting formalities which may involve medical examinations
- There is an inbuilt Payout Accelerator Benefit which pays 50% of the Sum Assured immediately if the insured is diagnosed with a terminal illness during the tenure of the plan.
- Premiums can be paid regularly for the entire duration of the plan under the Regular pay option or in one lump sum at the time of inception of the plan under the Single Pay option of premium payment.
- Non-smokers are given preferential rates of premiums for maintaining a healthy lifestyle
- Female lives are charged lower premiums
Eligibility Details
|
|
Minimum
|
Maximum
|
|
Entry Age
|
18 years
|
70 years
|
|
Maturity Age
|
-
|
80 years
|
|
Policy Term
|
10 years
|
40 years
|
|
Sum Assured
|
Rs.5 lakhs
|
No limit
|
|
Premium Payment Term
|
Equal to the policy term or Single Pay
|
|
Premium Payment Frequency
|
Yearly, half-yearly, quarterly or monthly
|
Sample Rates of Premium
The following table illustrates sample rates of premium for different premium payment terms and different ages. The chosen Sum Assured and the tenure of the plan are also varying at each instance.
|
Age
|
Sum Assured
|
Policy Term
|
Regular Pay
|
Single Pay
|
|
35 years
|
50 Lakhs
|
30 years
|
9300
|
139600
|
|
35 years
|
1 crore
|
30 years
|
16600
|
274200
|
|
40 years
|
50 lakhs
|
20 years
|
11500
|
127300
|
|
40 years
|
1 crore
|
20 years
|
21000
|
249600
|
Tata AIA Life Insurance iRaksha Supreme
An online term insurance plan offering higher coverage levels at lower rates of premiums. The features of the plan are as follows:
- The plan is available online and it can be bought from anywhere just by visiting the company’s official website
- Death benefit is payable on death
- Death benefit payable will be higher of the Sum Assured or 10 times the annual premium or 105% of total premiums paid till the date of death
- Premiums can be paid regularly for the entire duration of the plan under the Regular pay option, for a limited period of 10 or 5 years only under the Limited Pay option or in one lump sum at the time of inception of the plan under the Single Pay option of premium payment.
- Non-smokers are given preferential rates of premiums for maintaining a healthy lifestyle
- Female lives are charged lower premiums
- Rebates in premiums are also allowed for choosing high Sum Assured levels of Rs.75 lakhs and above.
Eligibility Details
|
|
Minimum
|
Maximum
|
|
Entry Age
|
18 years
|
70 years
|
|
Maturity Age
|
-
|
80 years
|
|
Policy Term
|
10 years
|
40 years
|
|
Sum Assured
|
Rs.50 lakhs
|
No limit
|
|
Premium Payment Term
|
Equal to the policy term or Limited pay for 5 or 10 years or Single Pay
|
|
Premium Payment Frequency
|
Yearly or half-yearly
|
Sample Premium Rates
The table illustrates the sample rates of premium payable by males and females depending on their smoking habits. The age of the individual is taken to be 30 years. The policy tenure is 25 years and the coverage amount is Rs.1 crore.
|
Gender
|
Smoking habit
|
Single pay
|
Regular pay
|
Limited 5 pay
|
Limited 10 pay
|
|
Female
|
Non-smoker
|
85,900
|
6,300
|
18,900
|
10,200
|
|
Female
|
Smoker
|
129,000
|
9,300
|
31,800
|
15,900
|
|
Male
|
Non-smoker
|
100,300
|
7,000
|
21,900
|
11,900
|
|
Male
|
Smoker
|
153,700
|
10,900
|
37,600
|
18,800
|
Applying for a Term Insurance Plan from the company:
Online
The company offers specific plans which are available online only. The customer only needs to log into the company’s website, choose the required plan, choose the coverage and provide the details. The premium will be determined using the filled details. The customer then needs to pay the premium online through credit card, debit card or net banking facilities and the policy will be issued
Intermediaries
Plans which are not available online can be purchased from agents, brokers, banks, etc. where the intermediaries help with the application process.
Why Term Life Insurance?
Term life insurance is one of the most handy, useful and affordable life insurance products available today. With extremely low costs and extremely high coverage, it makes all the sense in the world to buy a term plan, no matter what your life situation is. Whether you are a single, young entrepreneur, a family person with kids, a person with loans and mortgages or a healthy middle aged person, a term plan would always be a suitable life insurance policy for you. With many advantages and almost no drawbacks, you can secure the future of your dependents with a term plan and rest assured that if something unfortunate were to happen to you, they would not be left in a financially challenging position.
What are the advantages of term life insurance?
There are many advantages if term life insurance. They are:
- Low cost – The greatest benefit of a term plan is that allows you to buy a substantial amount of life insurance at a very low cost. This makes it possible for people of all financial levels to have life insurance.
- Flexibility – Since term plans are bought for a specific term, you can choose for how long you want to stay covered and how much you want the sum assured to be. For example, if you have your 10 year old son as a nominee, you would want to purchase the policy for 15 years, because surely by the time he is 25, he will be financially independent. However if you die before that, he may need financial assistance.
- Fixed premium – No matter what length you take the plan for, your premium will be fixed throughout, and so you don’t have to appear for medical tests, etc during the policy tenure and have the premium increased.
- Riders – A term plan can be customized by adding additional riders such as waiver of premium, accidental death, etc.
- Return of premium – You can offer to pay higher premiums and opt for a return of premium plan, where at the end of the policy period, the premium would be returned to you if you survive.
- Easily available – Most term plans are available online and so buying them becomes extremely simple. All you have to do is log in, select the plan you want, and buy it instantly.
What are the disadvantages of term life insurance?
Broadly speaking, there aren’t really any disadvantages of a term plan. The cost at which you get the cover is so good that everything else becomes negligible. However, the only problem with term insurance is that you cannot surrender the plan mid way. So once you purchase the policy, you have to continue with it. You obviously have the option of lapsing the policy by stopping the premium payments. However you cannot get a surrender value and once you discontinue, you lose the cover as well as the previously paid premiums.
So should I buy term insurance?
Of course you should buy term insurance! From the above mentioned points, we can clearly see that the advantages overwhelmingly outweigh the disadvantages and so you must most definitely get a term plan today if you haven’t done so already.
I won't be inheriting any money. Do I need a term plan?
People who inherit a lot of money may feel secured about their future and also about the financial security of their dependents after their demise. However, if a person doesn’t have this kind of a fund to fall back upon, it is important to buy a term plan that will provide financial aid to the family after the person’s demise.
Tata AIA Term Insurance Plans - FAQ
1. How to pay premium? What are the modes of payment available?
TATA AIA life Insurance offers 5 modes of premium payment namely;
- Online Payment
- DropBoxes
- Auto debit
- Cash/Cheque collection center
- Payment Collection Center.
For online payment mode, the policyholder can pay via;
- NEFT transfer
- Activating auto debit facility in the bank account
- Quick pay via ICICI portal
- Internet Mobile Payment Service
Alternatively, the policyholder can pay in cash or drop cheque at any of the payment collection centers or dropboxes mentioned on the TATA AIA website.
2. How can I check policy status for Tata AIA Term Insurance Plans?
If you are a registered user, directly log into TATA AIA website with relevant username and password. You would be directed to the homepage of your policy account. Now simply click the tab “Check Policy Details” to check the status of your policy and other relevant details. For new policyholders they must register on the website and proceed with the same steps.
3. What is the policy renewal process for Tata AIA Term Insurance Plans?
TATA AIA offers the policyholders a chance to renew their policy online. Simply log into the portal and follow the link that leads to secured payment process. You can renew your policy by using debit, credit card, or net banking option.Opt for Auto Renewal, when you initially sign up for the policy to save efforts and time. If you did not then you can do now by contacting customer helpdesk at the same toll free number.
4. What is the company’s process to settle claim for Tata AIA Term Insurance Plans?
Company offers a transparent claim process. The policyholder can register claims by submitting their request at the customer care helpdesk or via an SMS. Upon receiving complete documents, the claim is settled within 7 working days. There are dedicated offices at certain locations to directly file the claims.
5. What is the policy cancellation process for Tata AIA Term Insurance Plans?
The policyholders must attach the relevant policy documents along with a filled surrender form at any of the branch locations in their city. Upon receiving the correct documents, the deposited amount is credited into the policyholder’s bank account as per the company’s records, and the policy is cancelled.
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