TATA AIA Term Insurance Vs. SBI Term Insurance

TATA AIA Term Insurance Vs. SBI Term Insurance

Everybody’s life revolves around their level of financial security. Furthermore, providing for the present and future financial needs of your family usually comes first. And a term insurance plan is the easiest way to provide your family with complete financial security. COVID-19 highlighted the importance of protecting your family even though term plans have long been a popular option for life insurance. Your family will be responsible for paying off your outstanding debts, including personal, auto, and house loans, in the event of your death. By helping your family pay off these debts, term insurance can keep them out of financial trouble.

Tata AIA term insurance and SBI term insurance are two of the best options currently on the market, offering financial security to your loved ones in case of your absence. Both the term insurance has its own set of benefits, choosing the right one is not a cakewalk.

Listed below is the in-depth comparison between Tata AIA term insurance and SBI term insurance.

Comparison between Tata AIA Term Insurance & SBI Term Insurance

Let’s take a look at the point-by-point comparison between Tata AIA term insurance and SBI term insurance.

ParametersTata AIA Term InsuranceSBI Term Insurance
Claim Settlement Ratio (Individual Death Claims) Life insurance)94.65% (As per IRDAI Report 21-22)94.55% (As per IRDAI Report 21-22)
Term plan With Health CoverYesYes
Cashless ClaimYesYes
No. of Plans106
Annual Health Check-upCovered (1 Health check-up per annum)NA
Wellness Program DiscountEnrolling on the Wellness Program (Tata Vitality Membership), you can get an upfront discount of up to 10% on rider premiums.NA
Entry Age18 Years18 Years
Multiple payout options
  • Lump-Sum Payout
  • Monthly Income
  • Lump-Sum and Income
  • Income for Fixed Period
Life CoverUp to 100 yearsUp to 100 years
Coverage AmountUp to 5 cr.It also offers a good coverage amount.
Rider Options
  • Tata AIA Vitality Health
  • Tata AIA Vitality Protect
  • Tata AIA Non-Linked Comprehensive Protection Rider
  • Tata AIA Non-Linked Comprehensive Health Rider
  • SBI Life – Accidental Death Benefit Rider
  • SBI Life – Accidental Total & Permanent Disability Benefit Rider
Express Claim Settlement4 HoursTerm insurance plans by SBI life insurance ensure claims are settled quickly.
Income Tax Benefitup to 46,800+Tax benefits
Return on MaturityYesYes

Understanding Tata AIA Term Insurance

Tata AIA term insurance is one of the best life insurance products for people who want to safeguard their family’s financial future. Offering a wide selection of term insurance plans to its clients, Tata AIA ensures each plan is designed to meet each person’s unique needs and protects their loved ones in case of an emergency. Term insurance plans by Tata AIA Life Insurance include a number of features and benefits that take care of your loved ones’ financial needs after you pass away.

The customer can obtain a large life cover (Sum Assured) at a reduced premium with a term insurance plan. The nominee receives the amount assured as specified in the policy in the event of an unfavourable occurrence, such as the death of the life assured in your family.

Features and Benefits of Tata AIA Life Term Insurance Plans

Here is the list of the major features and benefits of Tata AIA term insurance.

  • Get Protection for Up to 100 years

Obtain life insurance that can last up to 100 years to provide your family with financial security for a longer amount of time. In the unfortunate event of an unfortunate event, longer-term insurance by Tata AIA Life Insurance guarantees that you won’t have to worry about your financial future.

  • Flexible Choice of Plans

Depending on your needs, select from a variety of online term insurance plans by Tata AIA Life Insurance with features and benefits. Then, in order to safeguard your family for many years to come, select the amount assured in accordance with your needs and financial constraints.

  • Increase coverage at Important Milestones

By using the Life Stage option, you can raise your coverage at significant life events like marriage, having a child, and taking out a home loan, allowing your Tata AIA term insurance to keep up with your expanding financial obligations.

  • Inbuilt Payor Accelerator

If a terminal illness occurs and the associated medical costs threaten to deplete your savings, the Inbuilt Payor Accelerator benefit protects your family. With this feature, you can receive 50% of the basic/effective sum assured in the event that a terminal illness is diagnosed.

  • Tax Benefits

Get tax breaks on your term insurance policy premiums under Section 80C of the Income Tax Act, as well as tax exemptions under Section 10(10D) on the death benefit amount assured that is distributed to your beneficiaries. The policyholder can get tax benefits up to INR 46,800.

  • Lower Premiums for Women

With Tata AIA term insurance, you are eligible for discounted premium rates if you are a female policyholder. You can contribute less to the cost of your term plan by paying preferential rates.

  • Optional Riders

Customers can simply enhance the coverage of their term insurance with additional riders that provide benefits like waiver of premiums, income replacement, and coverage against critical illnesses, cancer, heart conditions, and hospitalization costs.

  • Affordable Premiums

It’s common knowledge that term insurance policies have cheap premiums despite the high sums guaranteed. You can easily decide to provide your family with the best insurance without having to worry about money if you select the appropriate Tata AIA term insurance.

  • Choice of Payout

Depending on their needs, your family can receive the death benefit as a lump sum, a regular income, or a combination of both. You can choose the payout method based on what they might require in the future.

SBI Term Insurance: What Is It?

Term insurance plans by SBI Life Insurance enable you to fulfil your dream of providing a guarantee that will shield your family’s financial needs in the event of an unfavourable circumstance. If the life assured passes away during the policy term, a death benefit is given to the plan beneficiary. Term insurance plans by SBI Life Insurance include an integrated terminal illness coverage that offers protection against critical illness in addition to life insurance. Its term insurance plans allow the critical illness coverage to grow as the life assured ages, all without requiring the payment of an additional premium.

What Makes Term Insurance Plans by SBI Life Insurance Company Different?

Listed below are the key features and benefits of SBI term insurance.

  • Invest Early and Pay Low Premiums

The best thing you can do when purchasing a term plan is to buy it as soon as possible because the premium will be lower the earlier you purchase one. You can start investing in term insurance plans by SBI Life Insurance as soon as you turn 18, thanks to their term plans.

  • Availability of Riders

SBI term insurance allows you to add multiple riders to your basic term plan, enhancing the overall protection for you and your family. These riders assist you in obtaining additional protection for your loved ones from life’s uncertainties.

  • Increasing Cover Benefit

There is no denying that your responsibilities grow with time and that’s the case with inflation. Thus, it is wise to choose insurance that caters to your needs. One of the term insurance plans by SBI Life Insurance, e-Shield Next, has an increasing cover benefit that allows you to put your insurance coverage on “Increase” mode, enhancing your security over time without requiring you to handle it yourself.

  • Multiple Premium Payment Option

SBI term insurance allows you to select the premium payment option that works best for you. Regular Pay, Single Pay, and Limited Pay are the available options. It allows you to select from a range of death benefit payout options based on your needs, assisting you in covering both your ongoing daily expenses and your immediate liabilities.

  • Flexible Payout Option

Term Insurance plans by SBI Life Insurance provide you the freedom to decide how the sum assured will be distributed to your family. Depending on the needs, the payout can take the form of a lump sum, a monthly or yearly income, or a combination of income and lump sum.

  • Additional discount of 5% on Health and Life insurance premiums

Your health and life insurance premiums will likely be discounted by 5% when you purchase term insurance plans from SBI Life Insurance, ensuring that you won’t have to break the bank. You can rest easy knowing that, in the event of your death, your family will be taken care of if you have SBI term insurance.

  • Tax Benefits

Moreover, term insurance plans by SBI Life Insurance offer tax advantages. According to current income tax laws, payouts from term plans are tax-exempt, but premiums paid for the plan are deductible.

Which is Ideal: Tata AIA Term Insurance or SBI Term Insurance?

Choosing between Tata AIA Term Insurance and SBI Term Insurance depends on various factors, including your specific needs, budget, and preferences. Both Tata AIA and SBI are reputable insurance providers in India, and each has its own set of features and benefits. To help you out, if you are looking for express claim settlement along with higher tax benefits and a greater number of term insurance plans, then considering Tata AIA will be an ideal choice. On the other hand, if you are looking for the best customer support, then considering SBI term insurance will never disappoint you.

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