TATA AIA Life Insurance “iRaksha Supreme” is a non-linked and non-participating, term insurance plan. Its an affordable and attractive online pure term plan which can be bought online. This is TATA AIA‘s first online plan. The policy term ranges between 10 to 40 years. Anyone between age 18-70 years can buy this plan online, while the maximum maturity age is 80 years.

Tata AIA iRaksha Supreme online term

Features at glance:

  • Buy at your convenient time and place using internet.
  • Premium starts from Rs.12/day *
  • Preferential Premium Rates for non-smokers
  • Lower premiums for females.
  • Tax benefits u/s 80C & 10(10D) of the Income-Tax Act, 1961

*Rs.12/day For a healthy non-smoker male aged 30 years for term of 25 years, Sum Assured of 50 Lacs and Regular Pay option.

Death Benefit: Nominee will get the sum assured, if policyholder expires within policy term.

Maturity benefit: Since this is pure term plan, policyholder wont get anything on survival.

Premium Options:

  1. Regular: pay regular premium for entire policy term
  2. Limited: pay premium for 5 or 10 years.
  3. Single : pay single premium.

Sample premiums for 30 year old Sum Assured of Rs.1 Crore:

Gender Smoker/non-smoker Term (yrs) Regular pay Limited pay 5 Limited pay 10 Single Premium
Female Non-smoker 25 Rs.6300/- Rs.10,200/- Rs.18,900/- Rs.85,900/-
Female Smoker 25 Rs.9300/- Rs.15,900//- Rs.31,800/- Rs.1,29,000/-
Male Non-smoker 25 Rs.7000/- Rs.11,900/- Rs.21,900/- Rs.1,00,300/-
Male Smoker 25 Rs.10,900/- Rs.18,800/- Rs.37,600/- Rs.1,53,700/-

Eligibility conditions and restrictions for iRaksha Supreme:

  • Entry Age: 18-70 years
  • Maturity Age: 28-80 years
  • Sum Assured: 50 lacs to No limit
  • Policy term: 10-40 yrs (for limited pay 10 yrs plan 15-40 yrs)

If you are non-smoker TATA AIA’s iRaksha Supreme is best online term insurance as you can easily save on your premium.

Term insurance means only your nominee gets the benefit on your death and in case you survive, you wont get a dime. If you don’t like pure term insurance then Aviva has a plan for you that gives financial protection to your family, in case of your death and if you survive till the maturity you get the 110% of your premiums back. Aviva i-Shield is an online term insurance plan that returns the premium paid as survival benefit and protects your family in case you are not around.

Features at glance:

  • High protection cover at reasonable cost
  • Guaranteed, 110% of the premium return on survival.
  • Premium rebate: on Sum Assured of Rs. 20 Lacs and above.
  • Free Medical examination on start of the policy.
  • Plan can be bought online

Death Benefit:
In case of policy holder’s death, nominee will get sum assured as mention below.

  • 1st – 10th year:  100% of Sum Assured
  • 11th – 20th year: 110% of Sum Assured
  • 21st – 25th year: 120% of Sum Assured

Maturity Benefit:
If policy holder survive till maturity and policy is in force, policy holder will get 110% of all premiums paid, excluding taxes and extra premium, if any.

Tax Benefits:
The premiums you pay will be eligible for Tax Benefits as per prevailing tax laws.

Eligibility conditions and restriction of Aviva i-Shield :

  • Entry Age: 18-55 years (last birthday)
  • Max Maturity Age: 65 years (last birthday)
  • Policy Terms: 10-25 years
  • Min. Sum Assured: Rs.15 lakhs
  • Max. Sum Assured: Rs.5 crores

Premium Example:
For a 30 year old male, the premium for Aviva I-Shield would to around Rs.36,803/- annual or Rs.3205/- Monthly for 1 cr. cover and 25 years policy term.

Pro: Good plan, if you don’t want to waste your money and do not want to go for a pure term insurance.
Cons: Aviva i-Shield Premiums are little higher than pure term plan.

LIC of india has modified its existing pure pension plan Jeevan Akshay- VI to make it LIC’s online policy. The new online pension plan can be purchased from LIC’s official website www.licindia.in Jeevan Akshay – VI can also be booked through an LIC Agent.

Before you jump on buying the online insurance, keep in mind:

  • You can not surrender the policy.
  • You can not get loan on this policy.
  • You wont get tax benefit.
  • Minimum Premium for online policy is Rs.1.5 lac and 1 lac if you buy from agent.
  • Insurance policy will attract service tax as per current financial law.
  • Your agent will make 2% commission, if you prefer to buy it offline.
  • You will get 1% rebate if you buy it online
  • You will get rebate, if you buy policy for 2.5 lacs or above
  • Pension will depend on the plan you choose and your age.
  • You can buy the policy, if you are in 30-85 age group.
  • You will have 15 days cooling off period to return the policy and get refund if you are not satisfied.
  • This is single premium pension plan.

7 Types of annuity available:

  1. Annuity for life
  2. Annuity guaranteed for 5, 10, 15 or 20 years and for life thereafter
  3. Annuity for life with return of purchase price on death
  4. Annuity for life increasing at a simple rate of 3% p.a.
  5. Annuity for life with a provision for 50% of the annuity to the spouse of the annuitant for life on death of the annuitant.
  6. Annuity for life with a provision for 100% of the annuity to the spouse of the annuitant for life on death of the annuitant.
  7. Annuity for life with a provision of 100% of the annuity payable to spouse during his/her life time on death of annuitant with return of purchase price on the death of last survivor.

Pension:
Annuity can be paid in yearly, half-yearly, quarterly or monthly installments.

Benefits:

Your first pension will start as early as next month. Further, pension will be paid during the lifetime of the annuitant with following provisions on death of the annuitant for different options:

(a) Under option (1) – payment of annuity ceases.
(b) Under option (2)
i. On death during the guarantee period – annuity is paid to the nominee till the end of the guaranteed period after which the pension ceases.
ii. On death after the guarantee period – payment of annuity ceases.

(c) Under option 3) – payment of annuity ceases and the purchase price is returned to the nominee.
(d) Under option (4) – payment of annuity ceases.

(e) Under option (5) – payment of annuity ceases and 50% of the annuity is paid to the surviving named spouse during his/her life time. If the spouse predeceases the annuitant, nothing is payable after the death of the annuitant.

(f) Under option (6) – payment of annuity ceases and 100% of the annuity is paid to the surviving named spouse during his/her life time. If the spouse predeceases the annuitant, nothing is payable after the death of the annuitant.

(g) Under option (7) – payment of pension ceases. 100% of the annuity is paid to the surviving named spouse during his/her life time and purchase price is returned to the nominee after the death of the spouse. If the spouse predeceases the annuitant, the annuity ceases and purchase price is paid to the nominee. The pension will be assured throughout the period for which it is payable.

Eligibility Conditions and Features of LIC’s Jeevan Akshay- VI (Plan No. 810) :

Minimum Age at entry: 30 years last Birthday
Maximum Age at entry: 85 years last Birthday
Minimum Purchase Price:

  • Rs.1,00,000/- for all distribution channel except online sale.
  • Rs. 1,50,000/- for online sale.

Sample annuity table prepared by Vinay Gupta Development Officer, LIC of India