Should I close my Tata-AIG Level Term Insurance Plan (with ROP) with a eath benefit as low as 4 Lakhs?

POSTED BY [email protected] ON March 22, 2012 10:51 am COMMENTS (8)

Hi Experts,

Going through your blog, I realised that I am having a very useless policy from Tata-Aig that I took in 2007.

I am paying 6884 per year for next 15 yrs.
If the policy holder survives, then the base premium amount will be returned after 20 years (that is in 2027).
If something unfortunate happens, then the nominee would be getting 4 Lakhs(and 8 Lakhs in case of accidental death).

My queries are:
– Should I discontinue this and invest the same amount in a good term plan?
-Please suggest me a good term plan.
-Is it better to take 2 term plans one in my name and one in my spouse name?

Thanks Much in Advance!!

8 replies on this article “Should I close my Tata-AIG Level Term Insurance Plan (with ROP) with a eath benefit as low as 4 Lakhs?”

  1. TATA AIG LIFE says:

    Dear Sir,

    This has reference to your query posted on JagoInvestor website in regards to Tata AIG Life policy.

    With reference to your concern, we request you to kindly provide us with your ten digit policy number along with your contact details to enable us to assist you further.

    You shall contact me on 022 – 67608166 from Monday to Friday between to 9am to 6pm alternatively write to us on

    We assure you of our best services always.

    Yours sincerely,
    Naresh S Chugh
    Tata AIG Life – Customer Services Team.

  2. CJ says:

    I think you should opt for online term plans like Aviva i-life which will are available at a cheaper rate.

  3. Sajna Vinosh ,

    Surrendering the exiting policy makes sense.

    My two Cents : I too was in similar situation like yours. Both me and my wife wanted to go for Term policy.

    Logic i used for choosing the insurance provider : I wanted in case of my untimely death,i wanted there shoudl be easy settlement. i went with LIC term policy. I already had few vima kiran policies.

    For my wife: i wanted to go with Kotak or some other where the premiums are competative. i have some idea about settlement etc etc. My wife does not. We are yet to go for Term plan for my wife. Reason for postponing is, i dont have liablities and my salary should be good enough.If i go for home loan, i will be going for term plan for my wife too.

    Note: Lic premiums are very high

  4. Sajna Vinosh says:

    Thanks for the advise guys :))

    I am also told that I will be getting bak 30% of the premium paid till date. Which means out of around 32 K paid, I will be getting back around 12K roughly.

    But anyways planned to close it .. Thanks once again guys.. Opting for Aegon Religare for myself and Bharti AXA for my spouse. :))

    1. Dear Sajna, is your wife working? Please purchase term plans at least 10 times of your yly income + any loan liabilities.



  5. says:

    Please note when I said “YOU can utilize same money” — i meant the 6000 odd payment per year…not the 4 lacs you get

  6. says:

    Yes please surrender this even if the return is only around 4 Lacs. You can utilize the same money to get a term policy of 50+ lacs.

    Term policy should be taken on the earning member’s name. If both you and your wife are working, then it means house is running on both your earnings, so need to take on both your names. Otherwise just take in your name

  7. Dominic Prakash says:

    Yes. You should get any online Term plan with a sum assurance of about 40 lakhs. (You didn’t mention your age)

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