Tata AIA Life Maha Raksha Supreme

Objective

This is an offline term insurance policy with two variants. Both variants aim at providing financial security to family members of insured person. The second variant- Extra protection cover provides waiver-of-premium benefit if insured develops total permanent disability.

What does it do?

This policy offers two variants- Pure protection cover and Extra protection cover. Pure protection cover is a simple term policy where the nominees receive death benefit on death of the policyholder and the policy ends. Extra protection cover is an enhanced version with a waiver-of-premium option which will continue to provide protection in case of total permanent disability of the insured, without future premiums. Once a claim is admitted under the waiver-of-premium benefit, all rider benefits will terminate.
Both variants offer an additional life stage plus option which allows policyholders to increase cover at future milestone events such as marriage or birth of a child. The sum assured can be increased by 10 to 50 per cent of basic sum assured, subject to maximum of Rs 50 lakh, for additional premium. The sum assured should be increased within a year of the milestone event and it cannot be availed after 50 years of age and in the last 10 years of the policy. This option needs to be selected at the time of policy purchase.
This policy also features a payout accelerator benefit that pays 50 per cent of basic sum assured if insured person is diagnosed with any of the covered critical illnesses, and he is not expected to survive longer than 6 months.
Death benefit under both variants of the policy will include basic sum assured and additional sum assured from the life stage plus option and exclude the payout accelerator benefit if paid earlier.
Apart from above benefits, this policy offers riders like accidental disablement benefit, critical illness and surgical benefits which can be bought by paying extra premiums.

Pros

The policy offers premium discount for opting sum assured above Rs 1 crore.
Riders can be added or deleted anytime during the policy term.
Terminal illness benefit is an advantage.
Women enjoy lower premium rates.
Premiums paid under this policy qualify for tax benefits.

Suited for

Both variants of the policy are useful. The waiver-of-premium rider is suitable for all as it allows the cover to continue without paying premiums if insured person gets permanently disabled.

Our View

This policy is worth buying if you are looking to buy a traditional pure term insurance policy through intermediaries. Although it is a bit expensive  compared to online term policies, it offers many benefits. Inbuilt waiver-of-premium benefit, payout accelerator benefit, optional riders, optional life stage plus option make this a comprehensive policy.