Experience with Tata AIA Term Insurance: Claims and Rider Benefits

Tata AIA is a well-regarded insurance provider that offers a variety of term insurance policies, one of which is the Sampoorna Raksha term insurance policy I have been a part of for the past two years. This policy comes with a base amount of 2 crores and an additional 40 lakh for hospital care benefit, a rider that I considered essential despite my initial hesitation.

Initial Decision and Rider Addition

Initially, I was hesitant about adding riders to my term plan. Hesitation stemmed from the added cost of the rider; for an annual premium of 8000 for 10 years, I could have opted for a pure term plan without additional coverage. However, after thorough consideration, I deemed the hospital care benefit a reasonable addition. I decided to opt for a term plan until the age of 80, with the hospital care benefit covering me until the age of 75.

Claim Experience and Rider Utilization

After 18 months, I fell ill with influenza and was hospitalized for four days. It was then that I recalled the importance and utility of the hospital care benefit. Upon submission of my claim, I was pleasantly surprised to discover that the amounts paid for hospital care were calculated as percentages of my base term insurance amount of 2 crores, not the total rider amount. As a result, I received an amount of 80,000, which covered my hospital care expenses for 10 years, making this benefit truly valuable.

My initial estimate for the hospital care benefit turned out to be overestimated. A careful calculation showed that 20 lakh would have been more than sufficient to cover potential hospitalizations throughout my lifetime. This experience led me to realize that precise calculation is key in choosing the right amount of hospital care benefit.

Claim-wise Experience with Tata AIA Term Insurance

Over the years, I have worked on four claims with Tata AIA term insurance.

60 Lakhs - Death due to Sudden Heart Attack: This claim was paid 12 years after the commencement of the policy, acknowledging the death of a 39-year-old lady due to a sudden heart attack. The claim was settled on the 13th day. 2 Crores - Murder: Another claim worth 2 crores was processed two months after the policy commencement, following a murder incident. The claim was settled approximately three weeks after submission. 1 Crore - Cancer Investigation: This claim, amounting to 1 crore, was received 15 months after the policy began, following a diagnosis of cancer. The claim was investigated for three months before being paid. 1 Crore - Accident with Nominees Deceased: The final claim, also worth 1 crore, was related to an accident. The nominee was already deceased, and the court was yet to issue a letter of succession, leading to a pending claim for nearly a year.

Recommendations

In summary, my experience with Tata AIA term insurance has been positive. For individuals in their middle age earning around 15 lakh per annum, I would recommend taking a minimum of 2 crores term insurance and the additional 20 lakh for the hospital care benefit, covering a 100-year term. If you believe you will live to 80, consider opting for returns after the policy expires. By making these choices early, you can ensure that your loved ones are financially secure should you pass away or suffer a serious illness or injury.

Conclusion

My experience with Tata AIA term insurance has been enlightening. The importance of adding riders for hospital care benefits and the quick and accurate handling of claims have shown the value of their services. Whether you are young or in the middle of your career, it is crucial to evaluate your needs and make informed decisions when choosing your term insurance policy.

Social Proof and Customer Reviews

Readers and potential customers can also peruse the customer reviews available on the Tata AIA website and other online platforms to gain further insights and make well-informed decisions.