Tata AIA Term Insurance Vs. LIC Term Insurance

Tata AIA Term Insurance Vs. LIC Term Insurance

Life is highly unpredictable and it’s impossible to know what the future will bring. Having said that, it’s very crucial to purchase a term insurance plan to ensure that all family members will have enough money in the event of the policyholder’s demise or unavailability. 

Term insurance is the most basic, affordable, and simple life insurance plan that can safeguard a family’s financial future without breaking the bank. Though there are a multitude of term insurance providers across the nation, Tata AIA Life and LIC are two of the strong brands with a customer-centric approach to delivering term insurance solutions. 

However, selecting whether to go for Tata AIA Term Insurance or LIC Term Insurance plans can be highly confusing. Thus, this post will help the readers in making a wise decision!

Comparison Between Tata AIA Term Insurance & LIC Term Insurance

ParametersTata AIA Term InsuranceLIC Term Insurance
Claim Settlement Ratio (FY 2021-22)
  • Individual Death Claims: 94.65%
  • Group Death Claims: 99.18%
  • Individual Death Claims: 96.02%
  • Group Death Claims: 98.47%
Entry Age18 To 70 Years18 To 65 Years
Express Claim SettlementWithin 4 HoursNot Available
CoverageUp To Rs. 2 CroresRs. 5 Lakhs To No Limit
Number Of Plans64
Whole Life Cover OptionAvailableNot Available
Return Of Premium OptionAvailableNot Available
Rider Options
  • Tata AIA Life Insurance Non-Linked Comprehensive

Protection Rider

  • Tata AIA Life Insurance Non-Linked Comprehensive Health


  • Tata AIA Life Vitality Protect Rider
  • Tata AIA Life Vitality Health Rider
  • Tata AIA Life Insurance Accidental Death & Dismemberment Long-Scale Rider
  • LIC’s Accident Benefit Rider
  • LIC’s Accidental Death & Disability Benefit Rider
Death BenefitAvailable With All Plans
Maturity BenefitAvailable With Some PlansAvailable With Only LIC Jeevan Kiran Sales Plan
Annual Health CheckupAvailableNot Available

Note: The CSRs (Claim Settlement Ratios) have been taken from the latest IRDAI report.

About Tata AIA Term Insurance

Tata AIA Life term plans are the best options for anyone who wants to safeguard their family’s financial future. The company provides its clients with an extensive selection of term insurance policies that are made to meet each person’s unique demands and protect their loved ones in case of an emergency. 

The solutions are named Sampoorna Raksha Supreme, SRS Vitality Protect, InstaProtect Solution, Maha Raksha Supreme, Saral Jeevan Bima, and Bharat Suraksha Cover Micro Insurance Plan. Protection against illnesses, income alternatives in the event of an unexpected death, long-term coverage, survival, and tax benefits are some of the key elements of the Tata AIA Life term insurance plans.

Why To Choose Tata AIA Term Insurance?

One should go for the term insurance plans from Tata AIA Life because they offer the following benefits:

Whole Life Cover:

Term insurance policies such as the Tata AIA Life Sampoorna Raksha Supreme provide coverage up to age 100. This guarantees that the financial security of the policyholder’s loved ones is protected for the entire duration of their lives, even in the absence of the policyholder.

Affordable Premiums:

In comparison to other term insurance options, Tata AIA Life term insurance is affordable. This allows the policyholders to have maximum coverage within their budget limits. 

Return Of Premium:

Pure term insurance typically doesn’t offer a money-back feature or premium return option. Because of this, the Sampoorna Suraksha Supreme plan from Tata AIA Life provides ROP benefits, which is a very alluring choice for anyone seeking a return of any kind. As long as the policyholders have lived out the insurance term and have paid all of their premiums, the plan reimburses the policyholders for the full amount of their premiums. Up to 105% of the premiums may be paid to the insured on a regular basis or in one lump sum.

Express Claim Settlement:

Term insurance claims can be delayed by various insurance companies due to incorrect claim processes, missing documentation, and several other reasons. Therefore, Tata AIA Life offers term insurance plans with a 4-hour claim settlement process. This simply means that life insurance claims, including term insurance, will be settled more quickly than ever. 

Rider Options:

Tata AIA Life term insurance plans offer rider options to enhance the coverage. These options include various important benefits, such as accidental death and disability benefits, among others.

Health Cover:

One can also take advantage of health-focused combo plans and health-based term insurance options available under Tata AIA Life term insurance plans. For example, Tata AIA Life SRS Vitality Protect can help policyholders get discounts on rider premiums based on their wellness status. 

Terminal Illness & Life Stage Benefit:

The policyholders can also get a 50% accelerated payout in the event of a terminal illness diagnosis to assist in covering medical costs and offer financial support during difficult times. Tata AIA Life term plans also provide benefits based on life stages, meaning that they can be adjusted to reflect changes in the policyholder’s situation, such as getting married, having a child or adopting one, or taking out home loans.

Flexibility & Customisation:

The term insurance plans from Tata AIA Life can be tailored to the policyholder’s specific needs. For example, one can choose any suitable rider for enhancing their policy, enjoy flexibility in premium payments (monthly, quarterly, or annually), and customize the way of receiving payouts (as a regular income, lump-sum, or a combination of both).

About LIC Term Insurance

LIC term insurance plans are designed to secure a family against any type of loss of income that may arise in the absence of the policyholder. Even though a majority of these plans don’t offer any maturity, people still like them. 

LIC provides 4 term insurance options, namely Saral Jeevan Bima, Jeevan Kiran, New Tech Term, and New Jeevan Amar, all of which are conventionally available for purchase through LIC branches. This range of products from LIC is also referred to as ‘Term Assurance Plans’. Some plans can also be purchased via LIC’s portal for individuals who want them quickly.

Why To Choose LIC Term Insurance?

The following are excellent benefits of choosing LIC term insurance policies:

Flexibility In Policy Term:

LIC term insurance plans allow policyholders to select a flexible policy term, ranging from a minimum of five years to a maximum of forty years, contingent upon the particular plan. One can choose a period that corresponds with their financial objectives and the amount of time they have to fulfill their financial obligations.

Significant Coverage Amounts:

LIC’s term insurance plans provide significant coverage amounts to ensure that the policyholder’s family is adequately supported in the event of their unfortunate demise. The coverage amounts offered range from ‘Rs. 5 Lakhs to No Limit,’ allowing policyholders to select an amount that aligns with their specific needs and financial capacity.

Death Benefit:

In the unfortunate event of the insured person’s demise during the active policy period but before the maturity date, LIC term insurance plans provide a specific amount called the ‘Sum Assured on Death.’ This death benefit is payable if the policy is active and the claim is valid. The actual value of the death benefit depends on the type of policy selected by the individual.

Flexible Premium Payment Options:

Term insurance plans from LIC offer various premium payment options to suit the preferences of policyholders. These options include regular pay, limited pay, and single pay. 

With regular pay, premiums are paid throughout the policy term. Limited pay involves paying premiums for a specific period, after which no further payments are required. Single pay allows policyholders to make a one-time lump sum premium payment at the beginning of the policy. 

This flexibility in premium payment options allows individuals to choose a method that aligns with their financial circumstances and convenience.

Special Premiums For Women:

Certain term insurance plans offered by LIC provide special premium rates for women. This feature serves as a valuable financial tool empowering women to plan for their future needs and goals. 

The funds can be utilized to support various purposes, such as funding their children’s higher education, providing security to their families, or planning for retirement. By offering tailored benefits and affordable premiums, these plans cater specifically to the financial aspirations and requirements of women policyholders.

Amazing Rebates:

LIC term insurance plans offer two types of rebates based on specific factors and conditions:

High Sum Assured Rebate:

When policyholders choose a higher sum assured or coverage amount, they may qualify for a rebate on the premium. The rebate percentage typically ranges from 5% to 50%. This incentive encourages individuals to opt for higher coverage amounts, while simultaneously reducing the premium amount they need to pay.

Rebates On Mode Of Premium Payment:

LIC term insurance plans also provide a rebate on the premium based on the chosen payment frequency. Policyholders who opt for a half-yearly or monthly premium payment mode can qualify for a rebate. On the other hand, selecting an annual premium payment mode may result in a higher premium compared to other payment frequency options.

Tata AIA Life Term Insurance OR LIC Term Insurance: What To Buy?

Tata AIA Life and LIC are both esteemed insurance companies in India, each offering unique features and benefits with their term insurance plans. 

LIC stands out by providing unrestricted maximum sum assured limits, comprehensive coverage, attractive rebates, and special rates for women. If you prioritize flexibility in choosing the sum assured and seek higher coverage or you are a woman, LIC term insurance plans can be an excellent choice for you. 

On the other hand, Tata AIA Life specializes in offering a wide range of rider options, return of premium benefits, whole life cover, and express claim settlement. If you value money-back benefits and wish to settle your claims within a few hours, Tata AIA Life term insurance plans may be more suitable for your needs. 

Ultimately, selecting the best term insurance plan depends on your individual requirements and preferences. It is also advisable to consult a financial advisor or an insurance agent, whose expertise will help ensure that you make an informed decision that aligns with your financial goals and provides adequate protection for you and your loved ones.

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