I am looking for a term insurance cover of ₹50 lakh. I need advice about the TATA AIA Life iRaksha Supreme policy. Is this a good policy? Or is there any other policy better than this one? This insurance policy term is of 40 Years with regular pay.
- Ashish W
The TATA AIA Life iRaksha Supreme policy is an online term insurance plan with return of premium option. This policy is costlier than a pure term insurance plan because of the return of premium feature. Here return of premium means there will be no interest accumulation on these premiums.
The annual premium of the TATA AIA life iRaksha supreme policy will be 5.74 lakhs for a sum assured of ₹50 lakhs (age group 35-40). On the other hand, if you choose even an expensive pure term plan, the annual premium will not be more than ₹27,000-35,000 (for age group 35-40). This means you will pay 16 times more premium only to get the premium back.
Let say you if you choose this plan, at the end of 40 years you will get ₹2.30 crores (assuming you get all the premiums). On the other hand, you choose the pure term plan with annual premium of ₹35,000 and if you invest the surplus (5,74,000-35000) in a fixed bank deposit that pays 8 per cent, you will get 15.08 crores the end of 40 years .
You should go for a pure term plan and choose an insurer with a good claim settlement ratio. Based on these factors, Aegon Religare iTerm Plan, HDFC Life Click2Protect, Max Life Online Term Plan, Bharti AXA Life eProtect, are recommended to you. All these plans are online term plans. Find the premiums applicable to your age under all these policies and select the one that suits your budget. Disclose all the details while filling proposal form to avoid any inconvenience in future while making a claim.