Tata AIA Term Insurance Plan iRaksha Supreme – Features, Benefits and Exclusions
Tata AIA Term Insurance Plan iRaksha Supreme Review
Term Insurance plan comes with lower cost with high risk coverage. Recently IRDA has published latest claim settlement ratio for 2018-19 which can help to pick-up a good term insurance plan from a life insurance company that has consistently high claim settlement ratio. Tata AIA Life Insurance is one among them which has a higher claim settlement ratio in India in the last few years. What are the features of Tata AIA Term insurance Plan – iRaksha Supreme? What are various benefits of Tata AIA iRaksha Supreme Term Insurance Plan? Should you opt this term insurance plan?
Also Read: Best Term Insurance Plans in India in 2020
What is Term Insurance Plan?
Term Insurance in simple term provides life risk coverage with lower premiums. Online term insurance plans have become famous owning to its low premium and ease of buying them online. Since term insurance provides only risk coverage, there are no maturity or survival benefits. It enables you to secure your family financially in case of untimely death at a very low cost. The premiums are comparatively lower in these term plans than any other life insurance plan.
Term Insurance Plans offered by Tata AIA Life Insurance
Tata AIA Life Insurance Company is a joint undertaking by Tata Sons Ltd. and AIA Group Ltd (AIA). The company offers many insurance products like pension plans, ULIP plans, child life insurance plans, travel plans with highlighted being the term insurance plans.
It offers 5 term insurance plans with every plan containing distinctive features. The plans being Sampoorna Raksha, Sampoorna Raksha+, iRAksha TROP, iRaksha Supreme and Maha Raksha Supreme.
Amongst all the plans, the only plan available online is Tata AIA Life Insurance iRaksha Supreme.
Features of Tata AIA Term Insurance Plan – iRaksha Supreme
Tata AIA Life Insurance iRaksha Supreme is a non-linked, non-participating, online term insurance plan. It is a comprehensive life-protection plan that provides financial protection against the unfortunate demise of the insured.
There are three choices of premium payment to suit your convenience-regular pay, limited pay, and single pay.
The term insurance plan is available for 10 to 40 years.
The plan offers lower premium rates for female customers.
The plan promotes to adopt a healthier lifestyle by benefits through preferential premium rates for non-smokers.
It offers rate benefits for customers opting for a higher sum assured (Rs. 75 Lakhs and above).
There is no loan available on the plan.
The sum assured has to be chosen at the time of inception of the policy and it cannot be altered.
A grace period of 30 days from the due date for all modes will be allowed for payment of each subsequent premium. The policy will remain in force during this period.
If you are not satisfied with the features of the policy, one has the right to cancel the policy by providing a written notice to the company within 30 days after receiving the policy document.
It offers tax benefits u/s 80C and 10 (10D) of the Income Tax Act, 1961.
Eligibility to take Tata AIA Term Insurance Plan – iRaksha Supreme
The eligibility criteria of the plan are:
The minimum age to enter this plan is 18 years and the maximum is 70 years.
The maximum maturity age is 80 years.
The minimum sum assured is Rs 50 Lakhs and there is no upper cap to it (subject to underwriting). The sum assured is to be taken in the multiples of Rs 100,000.
Benefits of Tata AIA Term Insurance Plan – iRaksha Supreme
1) Death Benefit – In case of death of the insured during the policy term of the insured, the death benefit will be paid to the nominee or legal heir. It is the highest of the following:
i) Sum Assured
ii) 10 times the annualized premium
iii) 105% of the total premium paid
2) Maturity Benefit – There is no maturity benefit payable under this policy.
3) Income Tax Benefits – Premiums paid under this plan are eligible for tax benefits under Section 80C of the Income Tax Act, 1961. Moreover, life insurance proceeds enjoy tax benefits as per Section 10 (10D) of the said Act.
What are the approximate premiums in Tata iRaksha Supreme Term Insurance Plan?
The following table is the sample for annual premiums for a healthy 30 year old individual for a sum assured of Rs. 1 Crore where the policy term is 25 years. The premiums mentioned are exclusive of all taxes, cess, and levies.
What are the various payment options in this term insurance plan?
There are three payment options in this plan.
1) Regular pay – One has to pay the premium till the end of the chosen term plan.
2) Limited pay – Pay premium for a limited period of 5 or 10 years and stay covered for a longer period of time.
3) Single pay – The premium is to be paid once for coverage over the entire chosen term policy.
In regular and limited payment mode, the premium has to be paid annually or semi-annually.
Is the policy term different based on payment mode?
Yes. Below are the policy term that can be taken based on various payment modes
1) Regular pay and single pay – 10 to 40 years tenure.
2) Limited pay 5 years – 10 to 40 years tenure.
3) Limited pay 10 years – 15 to 40 years tenure
Are there are any discounts offered for high sum assured?
Tata AIA offers discounts on premiums if you take the high sum assured. Below are the discount for every Rs 1,000 sum assured for regular pay/limited pay and single pay.
What are Non Forfeiture benefits available in Tata AIA iRaksha Supreme Term Insurance Plan?
It is always sensible to continue the policy till the chosen policy term, but if for some reason you are not able to continue the policy, and if you surrender it, the company will pay the following surrender benefits-
Surrender value factor*(Outstanding policy term/policy term)*total premiums paid. Please note that the surrender value factor is provided in the policy document.
Policies can be surrendered after policy commencement in case of single pay policies.
Policies can be surrendered, provided that 3 or 7 years, premiums have been paid for 5 and 10 pay policies respectively in case of limited pay policies.
Policy surrender is not applicable under regular pay policies.
In case of non-payment of premiums within the grace period, the policy will acquire the paid-up value provided 3 and 7 years premium has been paid for 5 and 10 year Pay policies respectively.
The policy shall remain in force for the balance policy term for a reduced sum assured i.e. Paid-up sum assured which will be payable in case of death.
Paid up sum assured= (number of premiums paid/ total number of premiums payable)*sum assured.
What are the various exclusions in this plan?
In case of death of the insured, whether sane or insane due to suicide, within 12 months from the date of commencement of the policy, the nominee shall be entitled to the total premiums paid, provided that the policy is in force. If the policy is in revival state, the nominee shall be entitled to higher of total premiums paid or the acquired surrender value/ policy account value as on the date of death, provided the policy is in force.
Should you opt for Tata AIA iRaksha Supreme Term Insurance Plan?
As life is unpredictable, one should add another layer of protection in the form of term insurance. Tata AIA is one of the best life insurance company and holds a creditable claim settlement ratio in the financial year 2017-18 of 99.05% which his published in Dec-2019. Considering the features, benefits and limited exclusions, one can opt for Tata AIA iRaksha Supreme Term insurance plan.
Tata AIA iRaksha Plan brochure can be downloaded here
Tata AIA iRaksha Supreme Term Insurance Plan Review