DECODED: Tata AIA Life Insurance iRaksha Supreme
Jan 25 2013 , FC Research Bureau
PRODUCT FEATURES: It is a pure term plan that pays the whole sum insured to the nominee in case the policyholder dies during the tenure of the policy. However, there is no maturity benefit payable if the policyholder survives till the end of tenure. Minimum sum insured is Rs 50 lakh, while there is no limit on maximum sum assured that may be opted by policyholders.
PREMIUM: Policyholders have an option to pay premium half-yearly or annually if they opt for regular or limited pay option. While for a 35-year-old man, with basic sum assured of Rs 1 crore and tenure of 40 years, annual premium comes to Rs 12,360, the premium for a 35-year-old woman, with basic sum assured of Rs 1 crore and tenure of 40 years, it comes to Rs 10,674.
ENTRY AGE AND TENURE: You need to be minimum 18 years and maximum 70 years of age to buy this policy. Maximum maturity age at which the policy terminates is 80 years. Minimum tenure for which the policy can be bought is 10 years, while maximum is 40 years.
PAID-UP POLICY: In case, you stop premium payment after three and seven years’ premium have been paid for five and 10 pay policies, the policy would remain in-force for the remaining tenure with reduced sum assured.
SURRENDER: Under regular pay policies, surrender is not allowed. However, in case of limited pay and single premium option, surrender benefit is applicable as per policy terms.
FC VERDICT: The premiums rates are competitive with other similar term plans available in market. There is no limit on sum insured if the insurance company does not have any concerns about medical condition and income, which is an additional benefit. Since maximum maturity age has been kept at 80 years, it would cover policyholders throughout the age of 60 till 80, when the probability of death is actually highest.
However, policyholders are not allowed to choose any of the term insurance riders, like accidental death and dismemberment rider or critical illness rider or waiver of premium rider, which are available in other similar term plans. The options of sum insured also starts from Rs 50 lakh, which is too high for someone who requires lower sum insured. Policyholders are also not allowed to increase or decrease their chosen sum insured during the policy tenure.
This is a good plan for those looking for a longer-tenure term cover, as most plans available in market restrict the tenure to 30 years.
— Sagar Sen