Term Insurance

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Overview Savings and Investments Term Insurance

Term Insurance Plans

TERM INSURANCE

Tata AIA Life Insurance Sampoorna Raksha Supreme

Flexibility to choose option
Option for Whole Life Coverage (upto 100 years)
Option to increase cover at important milestones with Life Stage Option

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Overview

Let not the unpredictable future pose a hurdle in your family's wellbeing. A Term Insurance can help you withstand the uncertainties of life and secure your family's future. Commend your milestones with a term plan to safeguard your loved ones' tomorrow.

Disclaimer: Tata Capital Limited (“TCL”) bearing License no. CA0896 valid till 21-Jan-2027, acts as a Composite Corporate Agent for TATA AIA Life Insurance Company Limited, HDFC Life Insurance Company Limited, BAJAJ Allianz Life Insurance Company Limited, Kotak Mahindra Life Insurance Company limited, TATA AIG General Insurance Company Limited, IFFCO Tokio General Insurance Company Limited & Star Health and Allied Insurance Co Ltd. Please note that, TCL does not underwrite the risk or act as an insurer. For more details on the risk factors, terms & conditions please read sales brochure carefully of the Insurance Company before concluding the sale. Participation to buy insurance is purely voluntary.

The Registered office of TCL is Tata Capital Limited, 11th Floor, Tower A, Peninsula Business Park, Ganpatrao Kadam, Marg, Lower Parel, Mumbai-400013

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What is Term Insurance?

Term insurance policies provide the predefined amount of money to the policyholder’s family, only if the policyholder dies during a specified term. No claim if the insured person survives till the end of the policy period. This policy essentially remains active for a predefined time and is one of the affordable policies available in the market.

Key Features and Benefits

Affordable Premiums

According to the nature of the coverage provided under a term insurance policy the premiums of a term insurance policy are quite affordable. An individual can avail high coverage at nominal premiums rates. It is also advised to purchase a term insurance policy at a young age because older people are more prone to diseases and require more coverage which increases the premium.

Helps in Tax Savings

A major advantage of purchasing a term insurance plan is that it can help you save taxes. Premium paid for a term insurance policy qualify for tax benefits under Section 80C of the Income Tax Act for up to Rs. 1.5 Lakh. Death/Maturity under a term insurance policy are also tax free according to the Section 10(10D) of the Income Tax Act.

Option to Add Riders

Under a term insurance policy you can add additional coverages known as riders which help in increasing the scope of coverage under a term insurance policy. The riders can be added to the term insurance policy in exchange of additional premium. Some commonly opted life insurance riders are Accidental Death Benefit, Accidental Total and Permanent Disability, Critical Illness Rider, Waiver of Premium Rider etc.

Provides Financial Security

A term insurance policy is known as pure protection plans which help in providing financial security to the family of the life assured in case of an unforeseen demise of the life assured during the coverage period. The death benefit shall be provided to the nominee in case of untimely demise of the life assured which can help the family members of the life assured to fulfil their financial requirements in case the life assured is not around.

Note* The features above may or may not reflect in the plans sourced by our corporate agents. Please check our plans and their features to know more.

Difference between Term and Savings and Investment Life Insurance

In terms of life insurance, most people are aware that both term insurance, as well as investment plans, offer a life cover. However, they both cater to different needs. While term plans fulfill the need for protection, investment plans fulfill the need for savings. You will be able to choose the right plan for yourself once you identify the differences, the features, and your needs pertaining to each category of life insurance. These factors can help you arrive at the best term insurance policy or make a comparative analysis of term insurance vs an investment plan.

Here are the main points of difference between the two:

Cover

A term life insurance plan offers a pure life cover. It is a simple life insurance plan that promises to pay a sum assured if the policyholder dies within the policy period. If he outlives the term, there is no maturity benefit. An investment plan offers a life cover as well as a savings option. Your nominee gets the death benefit in case of your unfortunate demise. If you outlive the policy period, you get a maturity benefit.

Price

Since a term plan doesn’t offer any return and only provides risk cover, it is less expensive. On the other hand, an investment plan provides a maturity benefit, along with loyalty additions. These additional features make an endowment policy more expensive.

Sum Assured

The sum assured in a term insurance plan is the highest. This is because it provides only risk cover, fulfilling your need for protection. The sum assured is not as high in an investment plan as compared to a term insurance plan. This is because an endowment plan fulfills the need for saving. You get a lower sum assured, but you are also offered a maturity benefit.

Aim Of Cover

Term life insurance aims at only providing financial help to your nominees in case of your demise. The amount can work as an income replacement to manage your household expenses and outstanding EMIs. It is essential to buy a term insurance plan if you have dependent family members. The Investment plan aims to help you save for your future goals. It provides guaranteed returns and caters to the need of future savings. Learn more about investment plans here.

Payout Options

In a term insurance, the nominee receives the sum assured in lump sum or equal installments or a combination of both on the death of the insured during the policy period The policyholder has the option to customize the payout option based on his/her family needs it can be lump sum, monthly or a combination of both. In an investment plan, the payout is a lump sum either on the death of the policyholder during the policy term or as a maturity benefit on completion of the policy term.

Types of term plans

The default life insurance coverage provided by most insurers in India is a level term plan. It is the most common type of term insurance plan. In this type of plan, the sum assured selected at the beginning of the policy remains constant throughout the policy term. The lower your age while buying a level term plan the lower will be your premium.

This type of plan offers the facility to increase your sum assured at specific points in the policy term. The rate of this increase is predetermined. This type of plan is a great choice for keeping up with rising prices and ensuring that your family has enough funds to sustain after inflation. An increasing term policy is best suited for you if you predict a considerable rise in your financial liabilities in the future. The tenure for this kind of term plan is usually more than that of other types of term insurance.

As opposed to increasing term insurance, in this case, the sum assured decreases at a predetermined rate as your age increases. It works on the idea that as your age increases, your liabilities might decrease and the need for a higher sum assured too might decrease. It is well suited for you if you have taken a loan or a mortgage and expect to pay it off in the near future.

A new and very popular type of term plan, a return of premium plan, provides you with a savings component, which is generally not offered by term plans. In the event that you outlive your policy term, all paid premiums till the maturity date are returned to you. The return of premium is made only if you haven’t made any claim during the policy term.

A convertible term insurance plan is a policy that can be converted into another type of insurance plan at a later stage; for example, a whole life plan or an endowment plan. If you expect your financial priorities to change in the coming years, you can opt for this type of term plan. For instance, if you are currently risk-averse, but expect to become more flexible in that regard, you can opt for a term plan that can be converted into a whole life plan.

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Term Insurance

Term Insurance Plans

Tata AIA Life Insurance Sampoorna Raksha Supreme

Overview

What is Term Insurance?