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Knowledge Base Life Insurance Term Plan Tata AIG Life Raksha Term Plan Review
Friday, 21 January 2011 18:05

Tata AIG Life Raksha Term Plan Review

Written by  Yashish Dahiya
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Tata AIG Life Raksha


Plan Name: Raksha
Insurer: Tata AIG Life Insurance Co Ltd
Category: Term Life Insurance Plan
Objective: Financial protection of Family


Tata AIG Life Raksha is simple term life insurance policy which financially protects your loved ones if something happens to you. Raksha provides comprehensive cover at low premium. In case Life Assured passes away, Sum Assured is given to the nominee. There are no maturity benefits in Tata AIG Life Raksha as it’s a pure risk plan.


Who can buy Tata AIG Life Raksha?


Anyone who has attained age of 18 years can buy the Tata AIG Raksha. The maximum age at entry is 55 years and the policy term available is fixed at 10,15,20,25 years. The policy expires at age of 60.

How much cover: The minimum cover one can get is Rs 5 lacs and the maximum depends on your requirements. The issuance of cover is subject to underwriter’s conformity.


What cover is suitable for you?

Rule of Thumb: The typical cover should be ten times your annual income.


Summarized Table:

Entry Age

18 years - 50 years

Maturity Age

Maximum – 60 years

Sum Assured

Rs 5 lacs - unlimited( subject to underwriting)

Policy Term

10,15, 20, 25 years

Premium Mode

Yearly, Half Yearly, Quarterly, Monthly

 

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What do I get?


Death Benefit: In the event of policyholders unfortunate demise (during policy term), the sum assured is paid to the nominee (example- parents, wife or children) if the term insurance policy is valid.

 

Tax Benefits- Tax benefits can be availed under 80C and 10(10D) of the Income Tax Act, 1961.

80C- the yearly premium you pay (maximum: 1 lac) is deductible from taxable income.

10(10D) - Death claim is tax free. The Sum Assured which the nominee will receive is not subject to tax.

 

Illustration:
Kapil aged 32, to financially cover his family buys Tata AIG Raksha with policy term of 25 years.

With yearly premium of just Rs 12927 he gets cover of Rs 40 lacs.

 

Consider these Scenarios:

Scenario1: Kapil dies in the 5th policy year- Kapil’s family will get 40 lacs. Same is true for all policy years.

Scenario 2: Policy is in grace period and Kapil dies, Sum Assured minus renewal premium will be paid.

Scenario 3: Policy lapses on the 22nd year, Kapil dies, nothing will be paid. However policy can be revived within 31 days from the date of renewal.


What Else?


How to buy: Contact Policybazaar and we will assist you in buying the product without any problem.

Free Look Period: Tata AIG Life Raksha policy can be returned within 15 days of receiving the policy contract. The policy document can be returned to the nearby branch along with letter of cancellation. The premium will be paid back minus some charges like medical examination, stamp duty.

Grace period: Tata AIG Life Raksha premium can be paid within 31 days from the date of renewal. In case of quarterly and monthly modes payments, grace period is 15 days. However in case of death during grace period; renewal premium will be deducted from Sum Assured payable. After the grace period, if the renewal premium is not paid the policy will cease to exist.

Reinstatement: Tata AIG Life Raksha policy can be revived within 5 years from the premium due date. Also beyond 6 months, proof of good health will be required. All the unpaid premiums plus relevant interest have to be paid to revive the policy.

Maturity: There are no maturity benefits since Tata AIG Life Raksha is a term life insurance plan.

Payment Method: cheque subject to clearance, credit/debit card is accepted by Tata AIG Life.

Exclusion: During the first policy year or the year of reinstatement of policy, if policyholder commits suicide then Sum Assured will not be paid.

Death Claim: The nominee can apply for the death claim (Sum Assured) after filling claim forms along with submitting list of documents which will prove legitimacy of the claim.

Close Competitors:


Aviva LifeShield Plus, Bajaj Allianz New Risk Care II, Bharti AXA Elite Secure, HDFC Term Assurance, Kotak PreferredLIC Amulya Jeevan-I, Met Suraksha Plus, Max New York Life Platinum Protect, Reliance Term Plan.

 

Policybazaar take on Tata AIG Life Raksha:


Tata AIG Life Raksha is basic term plan with usual benefits though there are no riders. Tata AIG Raksha is economical term plan. 

 

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