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  • Tata AIA iRaksha TROP Online Term Plan

    Tata AIA Term Plan

    Tata AIA iRaksha TROP is a term insurance plan that provides the dual benefit of life insurance cover and return of premium. It is a non-linked non-participating term plan that can be applied for online. Having a dual offer, this policy can provide for financial assistance to the family in the case of the untimely demise of the insured or it can return the premiums paid in a lump sum adding to the funds of the policyholder.

    Eligibility Criteria for Tata AIA iRaksha TROP

    Age - The age mentioned is the one at the last birthday

    1. Age at entry - Minimum 18 years and maximum 65 years
    2. Age at maturity - Maximum 75 years

    Features and Benefits of Tata iRaksha TROP

    Entry age

    18 years to 65 years

    Plan validity/term

    • Minimum: 10 years

    • Maximum: 35 years

    Renewability

    If the policy lapses, then it can be reinstated within 2 years from the date it lapsed

    Sum assured

    • Minimum: Rs. 50 lakhs

    • Maximum: No limit

    Premiums

    • Minimum annual premium: Rs. 17,854

    • Maximum annual premium: depends on the sum assured

    • The premium is different for both men and women

    • It also differs for smokers and non-smokers

    • It will also depend on the age of the applicant and will be higher for those closer to the maximum maturity age

    • The premium will also depend on the payment frequency (regular, single pay or limited pay)

    Premium payment frequency/mode

    The premium can be paid in multiple ways:

    • Single pay: pay the entire premium in a lump sum

    • Regular pay: pay the premium annually or semi-annually for policy term

    • Limited pay 5 years: pay premiums only for 5 years if policy term is between 10 years and 30 years

    • Limited pay 10 years: pay premiums only for 10 years if policy term is between 15 years and 30 years

    • The premium can be paid annually or semi-annually

    Coverage

    • The policy will provide life insurance cover for the term selected

    • Once the policy matures, the premium paid towards it will be returned

    • If you chose a higher coverage amount, then you may get a discount on the premiums

    • The cover is calculated taking the highest of basic sum assured, 10X annual premium, 105% of premiums paid and the maturity benefits

    • The cover will lapse if the premium is not paid within the grace period of 30 days

    Riders / Add-on covers

    Accidental Death and Dismemberment Long Scale Rider

    • The minimum sum assured is Rs. 50,000 or the minimum sum assured under the parent plan

    • The max sum assured depends on the sum assured of the parent plan

    • Premiums are paid along with the premium for parent policy

    • Premium paying term is the same as that of the parent plan

    Surrender period/value

    The policy does offer surrender benefits which are paid if:

    • 3 years premiums are paid if the policy is a regular pay or limited pay for 10 years

    • 2 years premiums are paid if the policy is a limited pay for 5 years

    • If it’s a single pay policy, then it can be surrendered at any time

    Free look period

    30 days

    The salient features of Tata AIA iRaksha TROP Online Term Plan can be mentioned as follows

    1. Policy Term
      1. Minimum - 10 years
      2. Maximum - 30 years
    2. Premium Payment Terms
      1. Single Pay - One time payment in a lump sum for coverage for the entire policy period
      2. Limited Pay - Payment for a period of 5-10 years and coverage for a longer period
      3. Regular Pay - Payment of premium till the end of the policy period
    3. Sum Assured - The minimum sum assured will be Rs. 50,00,000 and there is no maximum limit for the same
    4. Premium Payment Frequency - The premiums under regular and limited pay options can be paid in annual or semi-annual modes

    The Benefits Offered by Tata iRaksha TROP are

    1. Death Benefit - Upon the untimely death of the insured, the nominee shall receive the higher of Basic Sum Assured, 10 times the Annualised Premium, 105% of the Total Premiums Paid or the Maturity Benefit
    2. Maturity Benefit - Upon the survival of the insured till the end of the policy period, the total of all the premiums paid will be given back to the policyholder
    3. Surrender Benefit - In case the policy can’t be continued and is surrendered, a surrender value is submitted to the policyholder
    4. Tax Benefit - As per the Income Tax Act of 1961, the premiums paid are eligible for tax benefits under Section 80C and the insurance proceeds avail tax benefits under Section 10D

    Example Scenario – How The Tata AIA iRaksha TROP Online Term Plan Works?

    Ankit, aged 26 years, landed a great paying job at an MNC and shifted along with his parents into a bigger house. Planning for tax savings and also to ensure there is a buffer amount to provide for his parents in case if anything unfortunate happened to him, he applied for Tata iRaksha TROP.

    Being in pristine health and a teetotaler, his salary allowed him a sum assured of Rs. 2.5 crore for a policy period of 25 years at an annual premium amount of Rs. 20,000. As per section 80C of the Income Tax Act of 1961, he avails tax benefits on Rs. 20,000 per year for the next 25 years.

    Case 1

    Going forward 25 years, Ankit, now 41, is married to Anjana and has a son Pulkesh studying in a prestigious private school. The policy with Reliance has now matured and Ankit is still hale and hearty, so he receives an amount of Rs. 5,00,000 as the maturity value. The family of three plans a vacation to Seville.

    Case 2

    Five years have passed and Ankit passes away in an unfortunate accident. His parents now have to deal with the last of the payments for the house while dealing with the loss of their son. The policy’s terms come into effect and Reliance pays a cheque of Rs. 2.5 crore. Though the loss is hard to deal with, Ankit ensured his parents won’t be under any kind of financial trouble.

    Tata AIA iRaksha TROP Online Term Plan - Frequently Asked Questions

    1. What are the exclusions to the policy?
    2. If the insured commits suicide within 12 months of the commencement or revival of the policy, the nominee shall receive a sum equal to 80% of all the premiums paid and no insured benefit will be provided.

    3. What happens if I do not pay the premiums on time or discontinue payment completely?
    4. A grace period of 30 days will be allowed to continue the payment of premiums, but if in case payments are not done within that time, the policy will accumulate a Paid-Up value after a maximum of 3 years’ premiums have been paid in full. If it’s less than 2 years of premium payment, the policy will lapse. The Paid-Up Sum Assured will be of a reduced value while the Paid-Up Maturity Value will be the Total Premiums paid (except in Single Pay).

    5. Can the policy be revived?
    6. The policy can be revived within 2 years from the date of the last paid premium after it has lapsed. All outstanding premiums along with the interest as applicable need to be paid for a successful policy revival.

    7. What if I decide not to go ahead with the plan?
    8. A free look period of 30 days is allowed after the policy is availed, and the policy can be returned within the same time frame.

    Other TATA AIA Online Term Plans

  • Tata AIA Life Insurance iRaksha Supreme
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