TATA AIA Life Insurance iRaksha Supreme is a traditional, term insurance plan which can be bought online easily. The plan provides affordable protection through high Sum Assured coverage at low premiums.
The plan can be bought only by Resident Indians. The other eligibility criteria of the plan includes:
| Sum Assured Range |
Premium Discount per Rs.1000 Sum Assured |
| Rs.75 lakhs to Rs.99,99,999 |
0.5 |
| Rs.1 crore and above |
1 |
- Grace Period – A grace period of 30 days is allowed for payment of premium after the due date for all modes of premium payment. The life cover under the policy would continue during the grace period.
- Free Look Period – A cooling off period or a free look period of 30 days is granted to the policyholder after the policy issuance to review the policy terms and conditions. If found unsatisfactory, the plan can be cancelled within this period and the premium paid would be refunded after deducting the relevant mortality charge, service tax, cess and stamp duty paid
Premium Illustration
Given below is the specimen premium rate chart for individuals aged 30 years for different premium paying terms. The policy term and the Sum Assured are assumed to be 25 years and Rs.1 crore respectively.
Here is also a tabulated representation of the premium rate:
| Age |
PPT 5 years |
PPT 10 years |
Regular Pay |
Single Pay |
| Smoker |
Non-Smoker |
Smoker |
Non-Smoker |
Smoker |
Non-Smoker |
Smoker |
Non-Smoker |
| Male |
37,600 |
21,900 |
18,800 |
11,900 |
11,900 |
7,000 |
153,700 |
100,300 |
| Female |
31,800 |
18,900 |
15,900 |
10,200 |
9,300 |
6,300 |
129,000 |
85,900 |
Exclusions in TATA AIA Life Insurance iRaksha Supreme Plan
- If the policyholder commits suicide within a year of policy issuance or revival, total premiums paid would be returned and no death benefit would be payable
- If suicide is committed within 12 months of reviving a lapsed policy, higher of total premiums paid or the Surrender Value acquired would be paid.
Non-Payment of premium in TATA AIA Life Insurance iRaksha Supreme Plan
Premiums have to be paid for 3 years (if the premium paying term is 5 years) or 7 years (for limited pay plans of 10 years) failing which the policy lapses and no benefits are payable. If the premiums have been paid for the minimum specified duration and thereafter the premiums are discontinued, the policy can be surrendered, made paid-up or revived. Non-payment of premiums in regular premium plans would result in a policy lapse where no benefits would be payable.
Making the policy Paid-up
One can make the policy paid-up only if 3/7 years’ premiums have been paid for limited premium paying plans. Regular and Single Premium plans do not acquire any paid-up value. On making the policy paid-up, the death benefit would be reduced and would be as follows:
Reduced Death benefit – Paid-up Sum Assured where Paid-up Sum Assured = (Total premiums paid/total premiums payable) x Sum Assured
Surrendering the policy
Only Limited Pay Plans can be surrendered when they acquire a paid-up value. Single Pay Plans can be surrendered anytime during the plan tenure while Regular Pay plans cannot be surrendered at all. On surrendering the plan, the
Guaranteed Surrender Value (GSV) would be paid to the policyholder.
GSV = GSV Factor x (Remaining policy term/total policy term) x Total premiums paid till the date of surrender
You will need to contact Tata AIA Life Insurance Company for the GSV factors. It will depend on the number of years that the premiums have been paid.
Revival
Revival is allowed within 2 years from the date of the first unpaid premium. The policyholder would be required to pay the outstanding premium and any interest charged by the insurer to revive his policy.
