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TATA AIA Life Insurance iRaksha TROP Plan

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TATA AIA Life Insurance iRaksha TROP Plan Review

TATA AIA Life Insurance iRaksha TROP is a traditional, term insurance plan which returns the premiums paid on maturity. This is an online plan which simplifies the buying process and makes it easy.

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Highlights of the TATA AIA Life Insurance iRaksha TROP Plan

  • This is a traditional Term Assurance plan which is available online.
  • Other than the lump sum death benefit, the plan also returns the premiums paid on maturity if the insured survives the term of the plan.
  • 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 TROP 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.
  • When the plan matures, the premiums paid are returned.


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Benefits and Features of TATA AIA Life Insurance iRaksha TROP Plan

  • Maturity Benefit – When the plan attains maturity and if all due premiums have been paid the maturity benefit would be the sum of all premiums paid till maturity.
  • 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
    • Maturity Benefit
    • 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.


Eligibility Criteria of TATA AIA Life Insurance iRaksha TROP 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 65 years
Maturity Age (Last Birthday) NA 75 years
Plan tenure 10 years 30 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


COMPARE THIS PLAN WITH OTHER TERM PLANS
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Additional Benefits of TATA AIA Life Insurance iRaksha TROP 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 0.2
Rs.1 crore and above 0.3

For Single Premium Payment Option
 
Sum Assured Range Premium Discount per Rs.1000 Sum Assured
Rs.75 lakhs to Rs.99,99,999 1.5
Rs.1 crore and above 2
 
  • 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 are the specimen premium rates chart for a non-smoker male life at different combinations of age and premium paying terms. The Sum Assured is taken to be Rs.1 crore.


Here is also a tabulated representation of the premium rate -
Age Regular Pay Limited Pay 10 years Limited Pay 5 years Single Pay
Term - 20 years Term - 25 years Term - 20 years Term - 25 years Term - 20 years Term - 25 years Term - 20 years Term - 25 years
30 years 19,200 17,100 30,000 33,600 53,500 61,600 182,600 218,500
35 years 26,800 24,400 42,800 48,700 75,900 88,800 264,000 320,100



Exclusions in TATA AIA Life Insurance iRaksha TROP 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 TROP Plan

Premiums have to be paid for 2 years (if the premium paying term is 5 years) or 3 years (for regular premium plans or 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.

Making the policy Paid-up

One can make the policy paid-up only if 2/3 years’ premiums have been paid. On making the policy paid-up, the death benefit would be reduced while the maturity benefit would remain same. The benefits payable would be as follows:

Reduced Death benefit – Paid-up Sum Assured where Paid-up Sum Assured = (total premiums paid/total premiums payable)*Sum Assured 

Maturity Benefit – total premiums paid under the plan would be returned as maturity benefit.


Surrendering the policy

The plan acquires a Surrender Value provided at least 2 years’ premiums have been paid if the premium paying term is 5 years or 3 years’ premiums have been paid, if the premium paying term is 10 years and above. For single premium plans, the Surrender Value is available from the first policy year itself. On surrendering the plan, higher of the Guaranteed Surrender Value (GSV) or the Cash Surrender Value (CSV) would be paid to the policyholder. 
  • GSV = GSV Factor * total premiums paid till the date of surrender 
  • CSV = CSV Factor * total premiums paid till the date of surrender.


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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