There aren’t too many financial instruments like a term insurance policy which offers guaranteed sum to a person insured’s family in case they meet an untimely death. Considering the present times, owning such a policy is of paramount importance. The TATA AIA Life Insurance iRaksha TROP is one of those which offers the dual benefit of coverage and return of premium for a policyholder. While the former is available throughout the policy term, the latter kicks in at the time of maturity.
This plan allows policyholders to choose a term that is suitable to them and also receive the benefits based on their financial needs. Also, female customers can opt for the same benefits while paying a slightly lower premiums.
People looking to buy this policy need to meet the following criteria. This is as follows:
|Minimum Age at Entry||18 years|
|Maximum Age at Entry||65 years|
|Maximum Age at Maturity||75 years|
|Plan Type||Term plan|
Sum Assured: Here’s what the Sum Assured looks like:
|Minimum Sum Assured||Rs.50 lakh|
|Maximum Sum Assured||No limit Note that Sum Assured will be in the multiples of Rs.1,00,000|
Premium Range: Here’s what the premium range looks like:
|Premium Payment Term||10 to 30 years*|
|Premium Payment Term||15 to 30 years*|
|Payment Mode||Regular/ Single/ Limited premium payment up to 5 years for 10 to 30 year terms. Limited pay of 10 years for 15 to 30 year terms.|
Here’s what the sum assured and premium payment looks like for a regular, non-smoking person.
|Age at Entry||Sum Assured Chosen||Policy Term||Single Pay||Regular Pay||Limited Pay (10 years)||Limited Pay (5 years)|
|35 years||Rs.1 crore||25 years||Rs.3,20,100||Rs.24,400||Rs.48,700||Rs.88,800|
|35 years||Rs.1 crore||20 years||Rs.264,000||Rs.26,800||Rs.42,800||Rs.75,900|
|30 years||Rs.1 crore||25 years||Rs.218,500||Rs.17,100||Rs.33,600||Rs.61,600|
|30 years||Rs.1 crore||20 years||Rs.182,600||Rs.19,200||Rs.30,000||Rs.53,500|
This plan comes with some extensive coverage features. They are as follows:
|Maturity Benefit||Upon maturity of the policy, all the premiums paid will be returned to the person insured.|
|Death Benefit||If the person insured succumbs, the beneficiaries will receive the higher of the following:
If the policyholder commits suicide, whether insane or sane, within 12 months of the policy’s initiation, the nominees will be paid the total premiums paid. The payout can only be done if the policy is active. On the other hand, if the person insured commits suicide after 12 months of reinstating or reviving the policy, the nominees will be paid the higher of either the total premiums paid and the acquired surrender value at the time of death of the person insured.
Other key features - Free Look Period, Policy Loan, Nomination etc,.
|Free Look Period||A policyholder can opt to return the policy in case he/she doesn’t like the terms and conditions. However, the return of the policy must be completed within 15 days by submitting the policy document along with the reason for doing the same. The company will deduct proportionate risk premiums and cost it has incurred towards stamp duty and medical expenses before refunding the premium.|
|Assignment||Assignment facility is available based on Section 38 of the Insurance Act|
|Nomination||Nomination facility is available based on Section 39 of the Insurance Act|
|Policy Loan||This policy does not offer a policy loan.|
|Grace Period||A Grace Period of 30 days is offered if a policyholder does not pay the pending premium on a due date. After the completion of these 30 days the policy will lapse.|
|Policy Revival||A lapsed policy can be revived provided that the policyholder submits a request within 2 years of the last unpaid premium. Upon receiving such a request, the company will ask the policyholder to pay all the due premiums along with a penalty for not paying them within the set dates.|
|Surrender Benefit||If a policyholder chooses to surrender their policy before its maturity date, the company will pay out a surrender benefit based on this formula: SV = Higher of GSV or CSV Here SV stands for Surrender Value, GSV for Guaranteed Surrender Value, and CSV for Cash Surrender Value GSV = Total premiums paid along with the applicable GSV Factor CSV = Total premiums paid along with the applicable CSV Factor|
The Tata AIA Life Insurance iRaksha TROP Plan comes with a few tax benefits. These are as follows:
There are several aspects related to this plan that allows policyholders to save big. These are some of the key aspects: