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.
*Tax benefit is subject to changes in tax laws.
**All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
With three different term life insurance available both online and offline, TATA AIA life term insurance something new to the customers in all their plans. A complete feature analysis of the plans sold by the company is done below.
(This plan has been withdrawn by Tata AIA)
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:
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 |
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 |
(This plan has been withdrawn by Tata AIA)
A pure term plan which allows enhancement of the Sum Assured at important milestones of one’s life. The details of the plan are:
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 |
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 |
(This plan has been withdrawn by Tata AIA)
An online term insurance plan offering higher coverage levels at lower rates of premiums. The features of the plan are as follows:
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 |
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 |
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
Plans which are not available online can be purchased from agents, brokers, banks, etc. where the intermediaries help with the application process.
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.
Your premium is decided on age at which you buy the policy and remains same, throughout your life
Premiums can increase between 4-8% each year after your Birthday
Your policy application could be rejected or premiums increase by 50-100%, if you develop a lifestyle disease
There are many advantages if term life insurance. They are:
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.
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.
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.
For online payment mode, the policyholder can pay via;
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.