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Features of Life Insurance
Give your family the financial security they
deserve with Tata AIA Term Insurance plans
Features of Life Insurance
Give your family the financial security they deserve with Tata AIA Term Insurance plans
Get life cover up to 100 years of age*
Increase life cover at important milestones~
Save tax# up to Rs 46,800++
Get 1 Crore life cover
@Rs. 424/month$$
Get 1 Crore life cover
@Rs. 424/month$$
Our experts are happy to help you!
It is necessary to secure your family and ensure that all their needs are fulfilled at every stage of life. This is why life insurance holds an important place in planning your life. With a good life insurance policy, it is possible to meet all your financial goals and obligations, protect your family’s financial future and also prepare for medical emergencies.
Most people look at life insurance only as a financial planning tool and a tax-saving investment. However, the main goal of a life insurance plan should always be to provide financial security to your loved ones in the event of any unfortunate events such as death of the life assured. However, it is important to know in detail the various features of a life insurance policy and how they can help you achieve financial protection for your family.
Table of Content
A life insurance plan is an agreement between an individual and a life insurance company. The insurance company offers a sum of money to your nominated beneficiaries in case of your death during the policy term. In exchange for this financial security, you pay a premium to the insurance company as per the payment terms and mode of your choice.
Life insurance plans offer financial security to your family in the event of your death. The death benefit, or the amount your family will receive in case of your demise, can help them cover outstanding debts, provide funds for future needs such as education and retirement, and meet their other needs. Another one of the features of life insurance is the optional riders. You can add these to your policy to enhance the policy coverage. Riders^ such as critical illness cover, accidental death benefit riders and others pay out a financial benefit if the events or risks covered under the policy affect you and your family.
Here are some of the key features of life insurance:
Life insurance provides financial protection to the policyholder's family in case of their untimely demise. It helps your family to cope with the loss of income and maintain their standard of living.
The sum assured is the amount the insurance company pays to the nominee in case of your death. The sum assured can be chosen by you based on your needs and financial goals.
The policy term is the duration of the insurance coverage. It can range from a few years to several decades, depending on the policy chosen by the policyholder.
The premium is the amount that you pay to the insurance company in exchange for insurance coverage. The premium can be paid in different modes, such as monthly, quarterly, half-yearly, or yearly.
Some life insurance policies offer investment benefits, such as unit-linked insurance plans (ULIPs), which can help you create wealth over the long term.
The policyholder can assign a nominee who will receive the death benefit in case of the policyholder's demise. You can change or update the nominee details as needed.
A Non-Linked Non-Participating Individual Life Insurance Plan (UIN:110N160V03)
Tata AIA
Get life cover up to 100 years of age*
Increase life cover at important milestones~
Save tax up to Rs 46,800++
There are various types of life insurance plans, and you can choose from them, based on the features of the life insurance policy. Some of the common types of life insurance plans in India are:
Term Insurance
A term plan offers coverage for a specific term or period, up to the policy term you choose. With a high sum assured at an affordable premium, it is suitable for people who want to ensure the financial well-being of their dependents in case of any unfortunate events.
Whole Life Insurance Plans
This type of policy provides coverage for your entire life, up to the age of 100 years. If you want to ensure lifelong financial security for your family without worrying about renewing the policy after a certain period, this policy can be a good fit.
Endowment Plans
An endowment plan is a savings plan that offers life cover and savings. It provides a lump sum maturity at the end of the policy term. Those who want to build a financial corpus for their long-term financial goals and ensure their family's financial protection can opt for this plan.
Unit Linked Insurance Plans (ULIPs)
ULIP is a type of policy that offers life coverage and investment benefits. The premiums paid towards the ULIPs are invested in investment funds of your choice, based on your risk appetite. The other portion of the premium secures your family with a life cover.
Money Back Plans
A money-back plan is another type of savings’ plan that provides regular payouts during the policy term after some years into the policy. This can be a suitable plan if you need to fulfil short-term goals with regular payouts and also need a maturity benefit at the end of the policy.
Group Life Insurance
A group life insurance plan is offered by employers to their employees as a part of their employee benefits package. It provides a life cover to a group of individuals under a single policy. The premiums for group plans are quite affordable but provide life cover protection.
The different characteristics of life insurance can help you decide which type of life insurance plan you should choose.
Purchasing a life insurance plan in India is important for several reasons:
Financial Security
Debt Repayment
Children's Education
Retirement Planning
Tax Benefits
Peace of Mind
These are some of the benefits of buying a life insurance policy:
Pick a policy of your choice and decide the coverage and sum assured as per your needs. After considering all your needs, you can determine a sum assured that will suffice for your family. The amount should enable them to lead a financially secure future.
Many life insurance policies offer premium payment as a lump sum under Single Pay or to pay regular premiums throughout the policy term. The premium payment term can also be shorter than the policy tenure under the Limited Pay option.
The death benefit is the amount paid to your nominee in case of your untimely demise during the policy term. This payout can be a lump sum payment or a regular income for a specified number of years, as per your choice.
The maturity benefit is paid out to you when the policy matures if you survive the policy term and if all the policy premiums have been paid. It can be a lump sum payment or a regular income, depending on the type of policy and your choice of benefit payout.
The life insurance premiums offer tax# deductions under Section 80C of the Income Tax Act, 1961, for every financial year. The death benefit is also tax-free under Section 10(10D). The maturity benefit can also be tax-free, subject to policy terms and conditions.
If needed, you can choose from various optional riders^ to enhance your policy coverage. These can secure you against hospitalisation costs, accidental death and disability, critical illnesses and more. Some riders can also waive off future policy premiums.
Choosing the best life insurance plan need not be challenging, even with so many options available. Here are some tips to help you select the right plan for your needs:
Start by assessing your financial needs and your family’s requirements. Consider your current and future financial obligations, such as outstanding loans, education expenses, and retirement plans, and choose a suitable policy.
There are various types of life insurance policies available in India, such as term insurance, endowment plans, ULIPs, and whole life insurance. Each type of policy has its own features, benefits, and exclusions.
Premiums for life insurance policies can vary significantly depending on the coverage and the type of policy you choose. So, compare the premium number of different policies to find a plan that is affordable and within your budget.
Many policies come with a range of riders^, such as accidental death benefit, critical illness cover, and waiver of premium, which can enhance your policy’s coverage. Check if these riders are available under the policy of your choice and if they suit your needs.
The claim settlement ratio is an important factor to consider when choosing a life insurance policy. It is the percentage of claims settled by the insurance company out of the total claims received. A high claim settlement ratio indicates the insurer’s efficiency in settling claims.
Compare all the policies you come across to find the one that offers the best coverage at a reasonable premium. You can use online comparison portals to compare different policies easily.
Since life insurance can be an important part of your financial planning, be sure to understand all the features of your life insurance policy in detail before deciding on a plan. By following these tips, you can choose a life insurance plan in India that provides comprehensive coverage and meets your financial needs.
Our experts are happy to help you!
Can I purchase the optional add-on riders without a base life insurance cover?
It is only possible to opt for a rider^ with a base life insurance plan. These riders cannot be purchased as standalone coverage. When you buy a life insurance policy, you can choose from different riders that can enhance your policy. However, do note that optional riders come at a nominal but additional premium over and above the base policy’s premium.
How to make a life insurance claim with Tata AIA Life Insurance, and how long does it take to receive the amount?
Your claim settlement is our priority. To file a claim with Tata AIA Life Insurance, you can get in touch with us or visit any of our office branches. We will settle the claims under 4 hours**.
**T&C apply
How long does my life insurance plan stay active?
Your life insurance plan will stay active for the entire policy term as chosen by you. However, all the premiums should be paid on time and in full as per the selected premium payment term and mode. Moreover, the policy should not have been surrendered or terminated.
How can I customize my life insurance policy?
Your life insurance policy can be easily customized since you can choose the sum assured, the policy term, the premium payment term and amount, and also the premium payment mode and frequency. You can further customize your life insurance plan with optional riders^ that can be added to the policy for additional coverage at an additional premium cost.
How many riders can I purchase on one life insurance plan?
You can add multiple riders^ to your life insurance plan from the selection offered under the policy. However, every rider comes with an additional premium charge. If you choose only the riders you need, depending on the risk or event you may be most susceptible to, you can keep your policy premiums reasonable and affordable.
How many nominees can be added to a life insurance policy?
You can add multiple nominees to your life insurance policy and also specify the percentage of the sum assured that each nominee will receive in case of your demise. Be sure to update the nomination details of your policy regularly, especially in case of changes in your family situation, to ensure that the benefits of the policy are paid out to your beneficiaries.
Will I get a return for my life insurance plan at the end of the policy tenure?
Whether you can receive a return on your life insurance plan will depend on the type of life insurance policy you choose. For instance, in the case of pure protection plans like term insurance, there are no maturity benefits paid out at the end of the policy term. But if you buy a term plan with a return of premium, you will get the total of all the paid premiums at the end of the policy term.
In the case of savings plans, you receive a maturity benefit which comprises your saved financial corpus in the plan as well as any applicable bonuses. With Unit-Linked Insurance Plans, the maturity benefit is the total fund value of your investment.
Who should opt for a life insurance plan?
Here are some categories of people who should consider opting for a life insurance plan in India:
What are the various premium payment options?
The premium payment options can vary from one policy to another. There are three premium payment modes, and they are:
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