Tata AIA Life Insurance introduces iRaksha Supreme, one of the most competitive online term insurance plans available in the market and probably the only one providing protection up to 80 years of age. Leena D Joshi, assistant vice president and head, product management group, Tata AIA Life Insurance, speaks to tata.com about the plan
What makes iRaksha Supreme a unique proposition for India?
According to a recent Swiss Re study, India has an enormous ‘protection gap’ of over $6.67 trillion (approximately Rs374 lakh crore); an average Indian spends only Rs7.4 for every Rs100 that needs to be spent on life insurance cover, leading to a gap of 92.6 percent in a family’s financial protection.
We launched our first pure online term plan, Tata AIA Life Insurance iRaksha Supreme, to provide customers an option for bridging their protection gap with the ease and comfort offered by the internet.
With increasing life expectancy, people need financial protection for longer periods of time. To meet this need in India, iRaksha Supreme provides life insurance protection up to age 80, probably the only term plan currently in the market to do so. In addition, we have provided a wide range of policy terms starting from 10 years to as high as 40 years. The plan also offers customers a wide range of premium paying options to suit individual customer needs.
Tell us about the plan’s focus on women and non-smokers.
As a responsible life insurer, helping people lead healthier lives is a natural concern to us. In order to give our customers the tangible benefits of healthy living, in this plan, non-smoking customers can avail of preferential premium rates.
How do online term plans differ from conventional ones?
One of the key issues facing insurers in their attempt to bridge the protection gap in India, is the ability to reach out to customers in a cost-effective manner in our large and diverse country. The online medium has helped to address this issue to an extent by providing access to a large section of a growing category of customers.
Are they more attractive to urban / youth segments or is the objective to increase penetration into non-metro markets?
What are some of the other innovative schemes offered by Tata AIA Life Insurance?
One interesting plan is the Tata AIA Life Insurance MahaLife Supreme. It was recently launched with long-term guaranteed benefits along with financial protection – it is a limited premium paying, non-linked endowment plan. In this plan, the customer has the option to pay premiums for a limited period and receive guaranteed incomes for a longer period of time.
Another recent innovation is a unit-linked plan called Tata AIA Life Insurance Suraksha Kosh Supreme, with life cover that starts high and automatically reduces with attained age. It’s a one-of-its-kind plan in the market with very high protection elements.
We will continue to develop solutions that suit customers’ changing needs.