Tata AIA Life Insurance iRaksha Supreme – what is annual premium loading factor?

POSTED BY Bhanu Prakash ON February 12, 2014 2:42 pm COMMENTS (6)

Hi,

I was reading http://www.tataaia.com/iraksha-supreme/pdf/iRaksha-supreme.pdf. I came across below statement…

For Semi Annual mode, Annual premium is multiplied by a loading factor of 0.51. Can you please explain above line meaning?

TIA, Bhanu

6 replies on this article “Tata AIA Life Insurance iRaksha Supreme – what is annual premium loading factor?”

  1. ashalanshu says:

    Dear Bhanu, the basic prem. for live cover ‘ll remain same for whole term. The tax part is not under control of Insurance company, hence you need to pay the service tax or any other levy as per applicable rate.

    Thanks

    Ashal

  2. Bhanu Prakash says:

    Talked to TATA AIA and they said it will be constant for entire term only subject to gov. taxs.

    //Bhanu

  3. ashalanshu says:

    Dear Bhanu, if you are comfortable with TATA name, opt the policy.

    Thanks

    Ashal

    1. Bhanu Prakash says:

      Thanks.
      expecting reply for “In general, term insurance annual premiums are constant for the entire term?”

  4. ashalanshu says:

    Dear Bhanu, in case of 1/2 yly prem. the annual prem. ‘ll be multiplied by 0.51.

    So for example if your annual prem. is 100 Rs. the 1/2 yly prem. ‘ll be 100*0.51 = 51 Rs. Hence combined yly prem. in 1/2 yly prem. mode ‘ll be 102 Rs. not 100 Rs.

    Thanks

    Ashal

    1. Bhanu Prakash says:

      Thanks Ashal for example for better understanding.

      One more clarification.
      In general, term insurance annual premiums are constant for the entire term?

      —————————-
      Please advice also,
      What is your advice/opinion on TATA AIA term insurance (IRaksha Supreme)
      Term = 40y term, SA=50L, Age=35+, No Smoking.
      I chose becasue of TATA name and lowest premium. Regarding Claim Settlement Ratio it is low (83%, Total claims=5k+), but in my opinion if i declare all true details then there should not be any problem.

      //Bhanu

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