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TATA AIA Life Insurance iRaksha Supreme Plan

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This plan has been withdrawn by the insurance company and is no longer available for sale.

TATA AIA Life Insurance iRaksha Supreme Plan Review

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.

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Highlights of the TATA AIA Life Insurance iRaksha Supreme Plan

  • This is a traditional Term Assurance plan which is available online.
  • Higher Sum Assured levels attract rebates in premium rates.
  • Females and non-smokers are also charged a lower rate of premium.


Working of the TATA AIA Life Insurance iRaksha Supreme Plan

  • The policyholder chooses the Sum Assured, plan tenure and the premium paying tenure based on which the amount of premium payable is determined. 
  • Premiums can be paid either in one lump sum as a Single premium, for a limited tenure of 5 years as Limited Premiums or for the entire duration of the plan as Regular Premiums. 
  • In case of death, the death benefit available under the plan is paid.


Benefits and Features of TATA AIA Life Insurance iRaksha Supreme Plan

  • Maturity Benefit – Being a pure term plan, maturity benefit is not paid under the plan. 
  • Death Benefit – If the life insured dies during the tenure of the plan and if the policy is in-force, the death benefit payable would be highest of the following:
    • Basic Sum Assured
    • 10 times the annual premium
    • 105% of the total premium paid
  • Bonus – This is a non-participating plan and as such, bonuses are not declared. 
  • Loan –Loans are not available under the plan.
  • Tax benefit – Premiums paid under the plan would be exempt from tax under Section 80C up to a limit of Rs.1.5 lakhs. The death benefit or the maturity benefit received would also be tax exempt under Section 10(10D) of the Income Tax Act.
 

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    Eligibility Criteria of TATA AIA Life Insurance iRaksha Supreme Plan

    The plan can be bought only by Resident Indians. The other eligibility criteria of the plan includes:
      Minimum Maximum
    Entry age (Last Birthday) 18 years 70 years
    Maturity Age (Last Birthday) NA 80 years
    Plan tenure 10 years 40 years
    Premium payable Depends on Sum Assured, age, plan tenure and premium paying term
    Premium Paying Term 5 years, 10 years, equal to plan term or Single Pay
    Sum Assured Rs.50 lakhs No limit
    Premium payment mode Yearly and half-yearly


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    Additional Benefits of TATA AIA Life Insurance iRaksha Supreme Plan

    • Riders – The plan has no additional riders. 
    • High Sum Assured Rebate – For choosing high levels of Sum Assured, the policyholder can enjoy discounts in premium rates. The discount is as follows:

    For Regular and Limited Premium Payment Option
     
    Sum Assured Range Premium Discount per Rs.1000 Sum Assured
    Rs.75 lakhs to Rs.99,99,999 0.1
    Rs.1 crore to Rs.1,99,99,999 0.15
    Rs.2 crores to Rs.4,99,99,999 0.2
    Rs.5 crores and above 0.25
     

    For Single Premium Payment Option
     
    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.

     
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