TATA AIA Life Insurance company has launched it’s online term insurance plan called TATA AIA Life iRaksha Supreme. For those who are new to the concept of term insurance being sold online, please be aware that there are other insurance companies life ICICI Prudential, HDFC Life Insurance, Aegon Reliagre among many others who have already launched their online term plans.
The latest to join the band wagon is TATA AIA life insurance company. Tata AIA Life had in the middle of 2012 launched a new term insurance plan by the name of Maha RakshaSupreme – this was an offline term plan – what you have now is the online version. Let us look at some salient features of TATA AIA Life iRaksha Supreme.
Features of TATA AIA Life iRaksha Supreme
Tata AIA Life is using the tag line – “You click, we cover” to sell this product online. Starting from a minimum age of 18 to maximum 80, TATA AIA Life iRaksha Supreme offers a minimum live cover/sum assured of Rs 50 lakhs with no maximum limit. You must first read this article and understand how to calculate your life insurance needs. There is a plethora of premium payment options that are made available to the investor. You can either pay each year till the end of the policy term or you can choose to pay a single premium. There is a middle choice as well – pay for some years (5 or 10) and get life cover for your chosen tenure.
Discounted rates are offered for high sum assured policies. So if you were to take a policy with sum assured of Rs 75,00,000 to 99,99,999, the discount per 1000 sum assured will be 0.1. This goes up as the sum assured increases and if you take a policy with sum assured of 5,00,00,000 and above, then the discount is 0.25 per 1000 sum assured.
TATA AIA Life iRaksha Supreme has a free look up period of 30 days as per regulations that insurance policies need to fall in line with – what this means is that if you do not like the policy you need to return it to the insurer within 30 days of receipt and your premium will be refunded to you.
Since this is a pure vanilla term plan, there is no maturity benefit – what that means is that if you survive the policy term, you get nothing. But if you die during the term of the policy, your family members get the sum assured – this is exactly what a term plan is meant to do and so this is a product which investors should look at if they want to cover themselves in the right manner.
Needless to say, you cannot take a loan on this policy. Also, the premiums that you pay under TATA AIA Life iRaksha Supreme are eligible for tax benefits under Section 80C of the Income Tax Act, 1961.
Should you buy TATA AIA Life iRaksha Supreme ?
With so many online term plans out there – should you buy TATA AIA Life iRaksha Supreme ?
I believe that as long as you fill in the insurance form yourself and fill it in the right details and do not hide anything, there is nothing to fear. You do have fan followings of ICICI Prudential iCare, Aegon Religare iTerm, HDFC Click 2 Protect and other online term plans as well. You must have read about the fact that one should go with insurance companies which have a good claim settlement ratio – I don’t quite believe in that as each and every insurance company will pay as long as you provide the right set of information. Do read whether your life insurance company will pay the claim on your death ?
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You need to know that TATA AIA was formerly TATA AIG and so it might make sense to do some homework on this joint venture and convince yourself that you are making an association with the right insurance company.
Also, be aware that you will be subjected to tough underwriting norms and getting the cover might not be a walk in the park. As you can see, a minimum sum assured of Rs 50 lakhs means that this is meant for those individuals who are earning well and need a high end term insurance plan to cover themselves.
Would you buy TATA AIA Life iRaksha Supreme – if not, why ?