Term Insurance

1.Do any Tata AIA Life Insurance term plans offer a return on premium?
Yes, Tata AIA Sampoorna Raksha Promise (A Non-Linked Non-Participating Individual Life Insurance Plan)) Life Plus Option offers a 100% return of premium** on the total premiums paid at the end of the policy term if the policy stays in effect until then.

2.Do Tata AIA term plans offer whole-life coverage?
Yes, Tata AIA Sampoorna Raksha Promise (term insurance plans) have options that offer whole life insurance coverage till the age of 100 years$.

3.Why is term insurance plan more affordable than other life insurance plans?
Term insurance plans is considered more affordable primarily because it has lower premiums than other insurance plans for the coverage it provides.

4.Can I avail of tax benefits under a term insurance plans?
Yes, term plans offer tax benefits#. Term insurance premiums paid towards the policy are eligible for tax deductions, and the death benefits qualify for tax exemptions as per applicable tax laws.

1.What are the premium payment frequencies for term plans?
The term insurance premium payment frequencies under Tata AIA Life Insurance term plans are annual, half-yearly, quarterly, monthly and Single Pay.

2.How do I calculate the premiums of my term insurance plan online?
You can conveniently calculate the premiums of your term insurance plans online by using the term insurance premium calculator on our website. Simply enter a few basic details into the online calculator and get your policy quote without any manual calculation.

3.Are there lower term plan premiums for women policyholders?
According to various studies, women have a longer life expectancy than men. Therefore, the term plan premiums are lower for women policyholders. Tata AIA Life Insurance offers term plan for women policyholders.

4.Will my term insurance premium amount increase with optional riders?
Yes, rider benefits added to the term plan come at an incremental premium and help by providing very comprehensive protection. By choosing the riders@ wisely, you can enhance the policy coverage without increasing the policy cost unnecessarily.

5.Does the premium increase with age for term insurance plans?
Yes, the premium for term insurance increases with age. This is because the risk of developing health problems also increases as we age.

6.How much income do I need to purchase term insurance?
Term insurance plans do not have a specific minimum income requirement. However, bank statements and salary slips are often requested to assess your financial situation and determine appropriate coverage. Your income level also helps the insurer gauge your ability to consistently pay premiums.

1.Can a person above 50 years of age can buy term insurance?
Yes, a person over 50 years of age can certainly buy term insurance plan. However, due to increased health risks associated with age, the premiums may be higher compared to younger individuals. Additionally, the coverage options and sum assured may be limited.

2.Is it mandatory to provide income proof for buying term insurance?
Yes, it is mandatory, as it helps the insurer assess your risk profile and determine appropriate premium rates. If you have a stable income source, providing proof can help secure a competitive premium.

3.What is the minimum annual income required for a ₹1 crore term insurance policy?
A general rule of thumb suggests that term insurance coverage should be at least 15 times your annual income. So, if you earn somewhere around ₹ 7 lakhs annually, a coverage of ₹ 1 crore or more is recommended to safeguard your family's financial well-being.

4.Is ITR (Income Tax Return) mandatory for term insurance applications?
Yes, Income Tax Returns (ITRs) are required for term insurance applications. Apart from salary slips and Form 16, ITRs are used as income proof to determine your financial situation and eligibility for the policy. This helps insurance companies assess your coverage needs.

5.Can I take a short-term insurance plan for 5 or 10 years?
Yes, you can take short-term insurance plans for 5-10 years. With term plans, you always have the flexibility of choosing the tenure and coverage amount so that the plan suits your needs and preferences.

6.What if I become an NRI after purchasing a term plan?
If you become an NRI after purchasing a term plan in India, you can continue paying the premiums through a Non-Resident Ordinary (NRO) account in Indian currency while the policy offers life insurance coverage. In case of your demise, whether abroad or in India, your nominee can file the claim, and the death benefits will be paid out to your family.

7.Does term insurance premium depend on salary or occupation?
Yes, salary and occupation can both influence the premium for a term insurance policy. A higher sum assured generally leads to higher premiums. Additionally, individuals in riskier occupations, which increase the likelihood of death, may have higher premiums.

8.Who can apply for term insurance in India?
To apply for term insurance in India, applicants must be at least 18 years old, an Indian citizen/NRI/PIO, and have a steady income. They must also pass the required health examination and disclose accurate health and lifestyle information.

1.Can I cancel my term insurance policy during the free-look period?
Yes, you can cancel your term insurance policy during the free-look period (15-30 days, depending on the policy). If cancelled within this time, any premiums paid will be refunded. You can also revive the policy within two years if needed.

2.What happens if you stop your premium payments?
If you stop your term insurance premium payments and cross the expiry date, Tata AIA Life Insurance offers a grace period of 15 days (for monthly frequencies) and 30 days (for yearly and half-yearly frequencies). If you cannot make the payment within this period, the policy will lapse, and you and your family will not be able to gain any benefit from the plan.

3.Is there a cancellation fee for terminating a term insurance policy?
Yes, a cancellation fee applies when surrendering a term insurance policy after the free-look period. Typically, 30% of the premium amount is returned as the surrender value. The exact amount can vary based on the policy term and premiums paid.

4.Will my nominees get any benefits if I cancel the term policy before death?
No, if you cancel the term insurance policy before death, your nominees won’t receive any payout. Term insurance provides a death benefit only, and once cancelled, the coverage ends, and no further benefits are provided.

5.What happens to the money I paid if the term policy expires and I am alive?
If you outlive your term insurance policy, the coverage ends, and you won’t receive any payout. However, if you have a Return of Premium (ROP) option, you can get back your premiums, though this typically incurs higher charges than standard term policies.

1.What documents are needed while filing a term insurance claim?
To learn about all the term life insurance policy documents needed for the claim intimation and settlement process, please click here.

2.What is the process of raising a term insurance death claim?
If you want to file a claim with us, you can choose any of the options below:
● Send us an email at: customercare@tataaia.com
● Call our helpline number - 1860-266-9966 (local charges apply)
● Visit any of our Tata AIA Life Insurance Company branch offices.

3.What types of claims can be filed?
Some of the term plan claims that can be filed are:
● Death claim
● Cashless and reimbursement claim
● Hospitalisation and dismemberment claim
● Natural calamity claim
● Death of Payor claim
● Critical illness and disability claim

4.Can a claim be processed if the nominee does not live in India?
Yes, if a nominee from outside India wants to file a claim, they can upload attested copies of their documents through email or online. To file the claim online, they will need to courier the documents to a representative in India who can come to our office and file the claim on their behalf.

5.Why can the insurer deny my term insurance claim?
An insurer can deny your term insurance claim if you fail to submit the required information to process the claim. Additionally, if any of the documents or information you provided at the policy inception are found to be fraudulent, your insurance claim can be denied.

6.What types of deaths are not covered by term insurance?
While term plans cover natural deaths and deaths due to health conditions and illnesses, such a policy will not cover death by suicide within a year. Please refer to the exclusions as mentioned under a term plan for details before opting for the policy.

7.Will having multiple term policies affect my claim settlement?
Multiple insurance policies do not hinder your claim settlement process, provided you adhere to the terms and conditions of each policy. You can have coverage from various insurers without it affecting your ability to receive compensation when a claim arises.

1.What is the difference between a term plan and a term plan with a return of premium?
A term plan offers pure life cover protection to your family in the event of the untimely demise of the life assured. If you survive the policy term and once the policy term is over, no other benefits are payable after the coverage ends.

In the case of a term plan with a return of premium, your loved ones can avail of a death benefit from the term plan sum assured in case of your untimely demise. And if you survive the policy term, the term plan will offer a return of the total premiums paid on maturity.

2.What is the difference between between term insurance and whole life insurance?
The choice between term insurance and whole life insurance depends on your individual needs and circumstances. Term insurance is often more suitable if you require coverage for a specific period, such as while raising children, due to its lower premiums. On the other hand, if you seek lifelong coverage and the additional benefits that come with it, whole life insurance may be the better option.

3.What is the difference between term insurance and ULIPs?
Term insurance is primarily designed to provide financial protection to your loved ones in case of your untimely demise, making it a cost-effective option for securing a substantial sum assured. In contrast, Unit Linked Insurance Plans (ULIPs) combine life insurance with investment opportunities, offering the potential for wealth creation alongside life coverage.

4.What is the difference between term insurance and endowment plans?
Term insurance offers pure life coverage at a lower premium, ensuring financial security for your beneficiaries in case of your untimely death. On the other hand, endowment plans provide a combination of life cover and savings, allowing you to accumulate a cash value that can be accessed if you survive the policy term. If your primary objective is affordable life coverage, term insurance may be preferable, while endowment plans are suited for those looking to combine insurance with savings.

5.What is the difference between a term plan or a market-linked insurance plan?
Deciding between a term plan and a market-linked insurance plan depends on your financial goals and risk appetite. A term plan is ideal if you are primarily looking for affordable life coverage to secure your family’s financial future in the event of an untimely death.

On the other hand, market-linked insurance plans (such as ULIPs) combine life insurance with investment options, providing potential returns based on market performance.

6.What is the difference between term and health insurance?
Term insurance provides life cover, paying a sum assured to beneficiaries in case of the policyholder's death during the term. Health insurance covers medical expenses, including hospitalisation and treatments. While term insurance protects dependents financially, health insurance ensures coverage for medical costs, reducing healthcare-related financial burdens.