• Term Life
  • Investment

Tata AIA iRaksha TROP

Tata AIA iRaksha TROP is a term insurance plan that provides the dual benefit of life coverage and return of premiums paid. It is a non-participating, non-linked term insurance policy that can be purchased online. The policy offers financial assistance to the family in case of the untimely death of the policyholder.

Features of Tata AIA iRaksha TROP Plan

Following are some of the key features of Tata AIA iRaksha TROP plan-

  • The policy offers the dual benefit of coverage against unfortunate demise, and in case the policyholder survives till the end of the policy term, it returns the premiums paid.
  • The policy offers choices to pay the premiums as per the convenience of the policyholder. It offers three different options of regular pay, limited pay and single pay.
  • The policy offers preferential premium rates for female lives and non-smokers.
  • It also offers discounted premium rates for higher sum assured.
  • Policyholders can avail tax benefits under Section 80C and 10(10D) of the Income Tax Act, 1961.

Benefits of Tata AIA iRaksha TROP Plan

Following are the benefits paid under the Tata AIA iRaksha TROP plan.

Death benefit: In case of an unfortunate demise of the policyholder during the policy term, the death benefit payable is the highest of:

  • Basic sum assured
  • 10 times the annual premium
  • 105% of the total premiums paid
  • Maturity benefit

Maturity benefit: When the policy attains maturity, the policyholder will receive the sum of all premiums paid till maturity provided all due premiums have been paid.

Eligibility Criteria

Customers are required to meet the following eligibility criteria in order to avail Tata AIA iRaksha TROP plan

ParameterEligibility criteria
Entry age18 years to 65 years
Maturity ageMaximum 75 years
Sum assured
Minimum: Rs. 50 lakhs
Maximum: No limit, subject to underwriting policy
(Sum assured has to be in multiples of Rs. 1 lakh)
Policy term / Premium paying termPolicy termPremium paying term
10 to 30 years
Regular pay
Single pay
Limited pay – 5 years
15 to 30 yearsLimited pay – 10 years
Premium paying modesYearly, half-yearly.

Premium Details

Following are the sample annual premiums for healthy, non-smoker male policyholder for sum assured of Rs. 1 crore.

AgePolicy termRegular payLimited pay (10 years)Limited pay (5 years)Single -pay
30 years20 yearsRs. 19,200Rs. 30,000Rs. 53,500Rs. 1,82,600
30 years25 yearsRs. 19,200Rs. 33,600Rs. 61,600Rs. 2,18,500
35 years20 yearsRs. 26,800Rs. 42,800Rs. 75,900Rs. 2,64,000
35 years25 yearsRs. 24,400Rs. 48,700Rs. 88,800Rs. 3,20,100

Preferential premium rates: The company believes in rewarding a healthy lifestyle and offers special premium rates for non-smokers. Moreover, it also offers preferential premium rates to female customers as well as to those who opt for a higher sum assured.

The higher sum assured discount is as mentioned below:

For regular and limited pay

PremiumDiscount
Sum assuredDiscount per Rs. 1000 sum assured
Rs. 75 lakhs to 1 crore0.2
Rs. 1 crore and above0.3

For single pay

PremiumDiscount
Sum assuredDiscount per Rs. 1000 sum assured
Rs. 75 lakhs to 1 crore1.5
Rs. 1 crore and above2

Additional features and benefits of Tata AIA iRaksha TROP

Surrender benefit: Policyholders are advised to continue the policy until the end of the chosen policy term. However, due to any unfavourable circumstances, if the policyholder needs to surrender the plan, the company will pay the surrender benefit as mentioned below:

Surrender benefit = the guaranteed surrender value or cash surrender value, whichever is higher, where Guaranteed surrender value (GSV) = Total premiums paid till date x guaranteed surrender value factor Cash surrender value (CSV) = Total premiums paid x cash surrender value factor (The guaranteed surrender value factor and cash surrender value factor will be given in the policy document)

Paid-up benefit: If the premiums are not paid within the grace period anytime during the policy term, then policyholders are eligible to avail paid-up value of the policy. The paid-up benefit structure is as given below:

Reduced death benefit

Paid-up sum assured of the policy= (Number of premiums paid / total number of premiums payable) x Basic sum assured Reduced maturity benefit Paid-up value = Total premiums paid

Rider: Tata AIA iRaksha TROP plan offers add-on rider to the policyholders to enhance the basic coverage of the policy. Accidental Death and Dismemberment Long Scale Rider: Rs. 50,000 is the minimum sum assured under this rider, and the maximum limit depends on the sum assured under the base policy. Premiums need to be paid along with the premium for the base policy. Grace period: Policyholders are given additional time to pay the premium after the premium due date when the insurance policy is in force. Tata AIA iRaksha TROP policy offers a grace period of 30 days for policies with yearly and half-yearly premium payment mode. The policy remains in force during the grace period, and the insurance company is liable to honour the policy claim, if it arises. The policy will lapse from the due date of the first unpaid premium.

Policy revival: In case the life insured fails to pay the due premium within the grace period, the policy is subject to lapse. However, the policyholder has an option to restore a lapsed policy. A lapsed policy can be revived within two years from the date of first unpaid premium. The company may charge additional fees to process the revival. The plan can be restored by paying all the due premiums along with interest rate as prevailing from time to time. The revival period may change as specified by regulations. Once the policy is restored, policyholders are entitled to receive all contractual benefits as specified in the policy document.

Free-look period: In case the policyholder is not satisfied with the terms and conditions of the policy, he/she has an option to return the same to the insurance company, stating the reason for such cancellation. However, such cancellation should be made within 30 days from the date of receipt of the policy document. This period is termed as free-look period. The customer needs to return the original policy document to the insurer, and the company will refund the premium, if paid. It is important to note that once the policy is returned, it cannot be revived, restored, or reinstated again.

Tax benefits: Premiums paid towards Tata AIA iRaksha TROP Plan are eligible to receive tax benefits under Section 80C of the Income Tax Act, 1961. Additionally, maturity benefits and death benefits received against the policy enjoys tax benefits under Section 10(10D) of the Income Tax Act, 1961.

Assignment: Assignment of Tata AIA iRaksha TROP is allowed Under Section 38 of the Insurance Act, 1938.

Nomination: Nomination of Tata AIA iRaksha TROP is allowed under Section 39 of the Insurance Act, 1938.

Policy details of Tata AIA iRaksha TROP

Tata AIA iRaksha TROP plan at a glance.

ParameterCriteria
Entry age18 years to 65 years
Policy term
Minimum 10 years
Maximum 35 years
RenewabilityIn case of the policy lapse, it can be revived within 2 years
Sum assured
Minimum: Rs. 50 lakhs
Maximum: No limit
Premiums
  • The premium rates are different for male and female lives
  • Premiums also differ for smokers and non-smokers
  • Premium depends on the age of the life insured and are higher for those closer to the maximum entry age
  • Premium payment frequency is regular, single pay or limited pay.
  • Premium payment mode
    The premium can be paid in different ways:
  • Single pay: Pay the entire premium once in a lump sum
  • Regular pay: pay the premium on a regular basis, i.e. yearly or half-yearly
  • Limited pay 5 years: Pay premiums for five years when the policy term is between 10 years and 30 years
  • Limited pay 10 years: Pay premiums for 10 years when the policy term is between 15 and 30 years.
  • Coverage
  • The policy will offer life insurance cover for the selected term
  • Upon maturity, the premium paid towards it will be returned to the policyholder
  • If the policyholder chooses higher coverage amount, discounted premiums are offered
  • The cover is calculated as the highest of the basic sum assured, 10 times annual premium, 105% of all premiums paid and the maturity benefits
  • The cover will lapse if due premiums are not paid within the stipulated timeframe.
  • Riders/add-on coverageAccidental Death and Dismemberment Long Scale Rider
    Policy surrenderAllowed
    Free-look period30 days

    Documents required to apply for Tata AIA iRaksha TROP

    In order to purchase Tata AIA iRaksha TROP Policy, the customer needs to provide some documents.

    Age proof: Birth certificate, driving license, passport, school or college certificate, and PAN card can be submitted as a valid age proof.

    Identity proof: Passport, Aadhaar card, PAN card, Voter ID, or driving license can be submitted as a valid identity proof.

    Address proof: Utility bill, Aadhaar card, or bank account statement, bank passbook can be submitted as an address proof.

    Along with the photocopies of the documents listed above, the customer has to fill up an application form and also provide self-attested photocopies of the mentioned KYC documents.

    Exclusion of Tata AIA iRaksha TROP

    In case the policyholder whether sane or insane, commits suicide within one year from the date of risk commencement of the policy, the nominee is entitled to 80% of the total premiums paid till the date of demise, provided the policy is in force. In case the policyholder, whether sane or insane, commits suicide within one year from the date of revival of the plan, the nominee is entitled to the amount higher of the following, provided the policy is in force.

    • The total premiums paid till the date of death
    • Surrender value on the date of death

    Reviews of Tata AIA iRaksha TROP

    Tata AIA iRaksha TROP is a term insurance plan that offers the dual benefit of coverage and return of premiums to the policyholders. The policy offers coverage against unfortunate demise, and in case the policyholder survives till the end of the policy term, it returns the premiums paid. It provides choices to pay the premiums as per the convenience of the policyholder. It offers three different options of regular pay, limited pay and single pay. Premium payment modes offered under this plan are yearly and half-yearly with a grace period of 30 days.

    Tata AIA iRaksha TROP offers surrender value if the policyholder has paid two full years' premiums. The policy can be purchased through online mode and offers a free look period of 30-days within which the policyholders can review the plan and return if not satisfied with the terms and conditions. In case the life insured dies due to suicide within one year from the date policy commencement or policy revival date, all benefits under the plan cease to exist, and the policy will be terminated. Upon such event, the nominee is eligible for 80% of the total premiums paid till the date of death. Additionally, the policyholders can avail tax benefits for premiums paid and benefits received against the policy under Section 80C and 10(10D) of the Income Tax Act, 1961.

    In India, there are not too many term insurance plans which offer guaranteed sum assured to the family of the life insured and return of premiums on maturity. Considering the present times, having such a term insurance policy is of utmost importance. Tata AIA iRaksha TROP is one of the term insurance plans that offer the double benefit of life coverage and return of premiums. While the former is applicable throughout the policy tenure, the latter helps at the time of maturity.

    FAQs on Tata AIA iraksha Trop

    What happens if I don't pay the due premiums on time or discontinue premium payment altogether?

    Policyholders are given a grace period of 30 days to make payment of due premiums. However, in case the premium payment is not made within the grace period, the policy will acquire a paid-up value if a minimum of three years' full premiums has been paid. If the required premiums have not been paid for at least 2 years, the policy will lapse. The paid-up sum assured will be calculated on the basis of the paid-up value of the policy, whereas the paid-up maturity value will be the total premiums paid.

    Can the policy be revived?

    The policy can be restored within two years from the date of last due premium after it has lapsed. The policyholder needs to pay all outstanding premiums along with the applicable interest in order to restore a lapsed policy.

    What if I decide not to go ahead with the plan?

    The policy offers a free-look period of 30 days from the date of receipt of the policy document. This period is given to the policyholders to review the terms and conditions of the plan. If not satisfied with the policy, they can return the policy within the same time frame.