Life Insurance vs Health Insurance vs Term Insurance

Life Insurance vs Health Insurance vs Term Insurance

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Get ₹1 Crore Life Cover at ₹502/month 1

Up to 15% discount on first premium 2

99.13% Individual Death Claim Settlement Ratio 3

Get 15% digital discount on first year premium

Insurance plays a role in providing stability and reassurance in the face of unexpected events in our lives. It is important to grasp the distinctions among insurance policies to ensure that you choose the most suitable option for your individual requirements. Each form of insurance serves a function.

Let's delve into the distinctions between these three insurance types and consider how they can collaborate to protect your future.

Term Insurance is a form of protection that offers peace of mind to your family in the event of your unexpected passing, within the specified policy duration. It serves as an affordable means to safeguard your loved one's economic well-being should you no longer be there to support them.

Get ₹ 1 Cr Life Cover at ₹ 502/month*

Upto 15% discount on first year premium 14

Get 100% premium back ~

Non-Linked, Non-Participating, Pure Risk, Individual Life Insurance Product (UIN:110N176V04)

Get ₹ 2 Cr Life Cover at ₹ 813/month

Enhance protection with Education Secure for your children

Non-Linked, Non-Participating, Pure Risk, Individual Life Insurance Product (UIN: 110N171V07)

Life insurance falls under a range of protections that mix life coverage with savings or investment advantages. These policies offer a payout upon the policyholder's passing. The policy may also include a maturity benefit if they live through the policy duration.

Key Aspects of Life Insurance;

Offers advantages in terms of both security and personal growth based on the plan you choose.

There are multiple choices such as endowment policies, whole-life coverage and ULIP schemes.

Assists in building wealth and planning finances for objectives such as retirement savings or funding children's education and weddings.

The costs for premiums tend to be higher with life insurance, compared to term insurance, because of the advantages included.

Health insurance is created to help with costs so you can get healthcare without worrying about money issues. These plans pay for treatments directly. They reimburse you for expenses, like hospital stays, surgeries and serious illnesses.

Important Aspects of Health Insurance;

Hospital bills are taken care of - from admission to any costs before and after the hospital stay.

Assists in easing the strain caused by increasing healthcare expenses.

Offers tax advantages as per Section 80C of the Income Tax Act.

Provides financial security to dependents

Combines life cover with savings/investment

Covers medical and healthcare expenses

Death benefit + maturity/savings benefit

Reimbursement/payment of medical costs

Limited to policy term

Can be lifelong or for a specific term

Covers health-related expenses

Higher (due to added benefits)

Varies based on age, health, and coverage

Under Section 80C and 10(10D)

Protecting family’s financial future

Long-term financial planning and wealth creation

Managing healthcare costs

Your choice of insurance depends on your financial needs and life stage:

if your primary goal is to provide financial security for your dependents at an affordable cost.

if you’re looking to combine life cover with wealth creation for long-term goals.

if you want to safeguard yourself and your family against rising medical costs.

For a well-rounded financial plan, it’s often beneficial to invest in a combination of these policies to ensure comprehensive protection.

Knowing the distinctions between term insurance and life insurance as health insurance is essential for establishing a stable financial foundation for the future ahead of you and your loved ones. Each type of insurance serves a role and collectively, they provide a strong safety cushion to safeguard you and your family's well-being. At TATA AIA, we aim to assist you in making well-thought-out choices that lead to a sense of security by being ready for circumstances life may bring your way.

Discover the variety of insurance options we offer and start paving the way to a stable tomorrow now!

Tata AIA Sampoorna Raksha Promise - Non-Linked, Non-Participating, pure risk, Individual Life Insurance Product (UIN:110N176V04)

Tata AIA Maha Raksha Supreme Select - Non-Linked, Non-Participating, Pure Risk, Individual Life Insurance Product (UIN: 110N171V07)

*Illustrated Premium is the monthly premium excluding taxes for 20 yr. old female, Standard Life, Non-Smoker for ₹ 1 Cr. Sum Assured with Policy Term of 20 yrs. (Regular Pay) under Life Promise Option with first year premium discount for digital purchase and salaried person. Please refer Benefit Illustration for more details. Premium is subject to applicable taxes, cesses & levies which will be entirely borne/ paid by the Policyholder, in addition to the payment of such Premium. Tata AIA Life shall have the right to claim, deduct, adjust, recover the amount of any applicable tax or imposition, levied by any statutory or administrative body, from the benefits payable under the Policy. Kindly refer the sales illustration for the exact premium.

+ Tax benefits of up to ₹46,800 u/s 80C is calculated at highest tax slab rate of 31.20% (including cess excluding surcharge) on life insurance premium paid of ₹1,50,000. Tax benefits under the policy are subject to conditions laid under Section 80C, 80D,10(10D), 115BAC and other applicable provisions of the Income Tax Act,1961. Good and Service tax and Cess, if any will be charged extra as per prevailing rates. The Tax-Free income is subject to conditions specified under section 10(10D) and other applicable provisions of the Income Tax Act,1961. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on above.

14 This product offers first year digital discount of 10% and first year Salaried discount of 5% for Limited Pay/Regular Pay. For Single Pay, 1% digital discount and 1% salaried discount will be provided in the first year

# Illustrated Premium is the monthly premium excluding taxes for 20 yr. old female, Standard Life, Non-Smoker for 2 Cr. Sum Assured with Policy Term of 15 yrs. (Regular Pay) with Life Secure plan option. Please refer Benefit Illustration for more details. Tata AIA Life shall have the right to claim, deduct, adjust, recover the amount of any applicable tax or imposition, levied by any statutory or administrative body, from the benefits payable under the Policy. Kindly refer the sales illustration for the exact premium.

~ Under Life Promise Plus Option, an amount equal to the 100% of the Total Premiums Paid (excluding loading for modal premiums) shall be payable at the end of the Policy Term, provided the life assured survives till maturity and the policy is not terminated earlier

2 Individual Death Claim Settlement Ratio is 99.13% for FY 2023-24 as per the latest annual audited figures.

8 Tata AIA Sampoorna Raksha Promise offers first year digital discount of 1% for Single Pay, 10% for Limited Pay/Regular Pay.

11 This product offers first year discount of 5% for Limited Pay/Regular Pay and 1% for Single Pay to salaried customers.

The plan is not a guaranteed issuance plan, and it will be subject to company’s underwriting and acceptance.

Insurance cover is available under this product.

For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale. The precise terms and condition of this plan are specified in the Policy Contract.

Buying a Life Insurance Policy is a long-term commitment. An early termination of the Policy usually involves high costs, and the Surrender Value payable may be less than the all the Premiums Paid.

In case of non-standard lives and on submission of non-standard age proof, extra premiums will be charged as per our underwriting guidelines.

In case of POS variant, the product is available with/without medical underwriting as per BAUP (Board Approved Underwriting Policy)

Premium will vary depending on the option chosen

L&C/Advt/2025/Mar/1017

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