FAQs

Here are some frequently asked questions and the responses for your reference. This content will updated as and when required.

Term insurance provides financial protection for your family in case of unforeseen events. Tata AIA’s Param Raksha Supreme offers high coverage at affordable premiums, making it ideal for young professionals and families seeking security.

Savings & Protection Plans like Smart Income Plus and Fortune Guarantee Supreme combine life cover with guaranteed returns. They help you build wealth while ensuring your family’s financial safety, along with tax‑saving benefits under Section 80C.

Retirement plans such as Shubh Retirement and Smart Annuity Plan provide steady income post‑retirement. They offer flexible annuity options, lifetime payouts, and spouse protection, ensuring financial independence in your golden years.

Tata AIA’s Smart Kid Plan helps parents save for their child’s education while offering life cover. Even in unforeseen circumstances, the plan ensures that your child’s education goals remain secure.

Yes, most Tata AIA Life Insurance policies provide tax benefits under Section 80C and 10(10D) of the Income Tax Act. However, tax laws are subject to change, so consult your advisor for the latest updates.

You can purchase Tata AIA policies through an IRDAI registered agent like us, or via Tata AIA’s official website. We provide personalized guidance, documentation support, and claim assistance to make the process simple and transparent.

Yes, the premium amount paid for investing in these plans qualifies for tax deduction under Section 80C of the Income Tax Act. An individual can claim the deduction for the ULIP plan purchased for self, spouse or children. The deduction is also applicable for HUF and any member of the HUF. However, the deduction is based on the capital sum assured. The premium payable for the ULIP plan should be less than 10% of the sum assured.
It is also important to note that the total allowable deduction under Section 80C for all investments such as fixed deposits, equity-linked savings schemes, etc., including the ULIP income tax deduction, is ₹1,50,000.

ULIP plan has a lock-in period of 5 years. Therefore, the deduction will be applicable for the taxpayer only when he has paid the premium for five consecutive years.

For all policies issued before 01-02-2021, the plan qualifies for tax* exemption if the premium is less than 10% of the capital sum assured under Section 10(10D) of the Income Tax Act, 1961.

The Finance Bill, 2021, proposed an amendment for the tax exemption on ULIP plans. For all plans issued on or after 01-02-2021, the premium payable for the ULIP policy should be less than 10% of the sum assured. In addition, the premium should not exceed ₹2,50,000 for any year during the policy tenure.

And, if a taxpayer has multiple ULIP plans, the aggregate premium for all the policies in any year should be less than ₹2,50,000. Therefore, the exemption of tax on the ULIP maturity amount is allowable on lesser premium ULIP plans whose aggregate is under the threshold limit of ₹2,50,000.

In the case of the policyholder’s death, the exemption under Section 10(10D) will not be denied on the excess premium plan (premium is greater than 10% of the sum assured) or more premium (premium is greater than ₹2,50,000).

When the plan does not qualify for the tax exemption under Section 10(10D), the sum received is considered a capital asset defined under Section 2(14) and is taxable under the head ‘Capital Gains’. 

Excess premium policies are taxable at applicable rates for short term capital gains and 20% with indexation for long term capital gains depending on the tenure of the policy and redemption of units.
The tax rate on premium ULIP policies will be based on the nature of the capital assets, whether short term or long term. If the period of holding the plan is greater than 36 months, the proceeds are treated as long term gains, if period is less than that it is treated as short term gains.
The Finance Bill, 2021, defined the 'Equity Oriented Fund' for ULIP plans invested in the equity funds (65% of the total proceeds are from equity shares of domestic companies listed in recognised stock exchanges). The holding period to determine the nature of the capital asset is 12 months instead of 36 months for such funds.
Therefore, if the plan is equity-based and chargeable to STT (Securities Transaction Tax), the tax calculation is as follows:Rate of 15% charged on short term capital gains (Section 111A)Rate of 10% charged on long term capital gains (Section 112A)And, for other ULIP plans based on debt and hybrid funds, the taxability will be based on the general tax provisions.

The Finance Act, 2021 proposed STT be levied on these plans at the rate of 0.001% on the transaction value if the following conditions are satisfied:

ULIP plan is issued after 01-02-2021.
The taxpayer has transferred the units of the equity-based funds issued by the insurance provider.
An amount is received due to surrender, sale or redemption of the units due to maturity or partial withdrawal.

Citizens and NRIs with incomes up to or below ₹ 2.5 Lakh.
Senior citizens with incomes up to ₹ 3.5 Lakh.
Individuals engaged in certain practices such as farming.
Income earned on life insurance policies upon maturity (provided there is no other source of income). However, this may not apply to a term policy.

Renewal premiums are the subsequent payments made by policyholders to keep their policy active and continue enjoying its benefits. We deeply appreciate your continued trust and commitment. Please know we are always here to support you in maintaining your coverage.
We understand the importance of convenience when it comes to paying your premiums. Here are the various options available to you:

Online Payment Options: You can pay using net banking, credit cards, debit cards, Paytm, wallets, and more through our secure online portal.
Mobile Apps: Conveniently make payments using PAYTM, HDFC PAYZAP, JIO MONEY, and Amazon Pay directly from your mobile device.
Bank Sites: Utilize the 'Bill Pay' feature on your bank’s website for a seamless payment experience.
Bank Branches: Visit branches of State Bank of India, Axis Bank, IndusInd Bank, and others to make your payment in person.
Retail Outlets: You can also pay at Suvidhaa, Andhra Pradesh Online, and Common Service Centres near you.
E-Mandate / NACH / Online Standing Instruction: Set up automatic payments using Visa, MasterCard, or American Express cards through electronic mandates or standing instructions.
Branches: Visit any Tata AIA Life Insurance Company Ltd. branch nationwide to make your payment in person.
IVR: Call our Customer Care number and use our Interactive Voice Response system to conveniently make your payment over the phone.

You can pay the premium through any of the above options.

Enrolling in our Standing Instruction facility ensures your premiums are paid on time, hassle-free. Here’s how you can set it up:

Visit Our Website: Go to https://www.tataaia.com/, navigate to the ‘Customer Service’ menu, and select 'Set Standing Instruction'.
Choose Your Option: Select either Credit Card or Bank Account based on your preference and convenience.
Provide Details: Enter the required information as prompted. This may include your Credit Card details or Bank Account information.
Authorization: Log in to your Net banking account or provide your Debit card details to authorize the Standing Instruction setup.

Please complete this process at least 7 days before your premium due date to ensure timely activation of the Standing Instruction. We appreciate your proactive approach in maintaining your policy active and ensuring peace of mind.

If you have opted for the Standing Instruction facility, the instruction is sent to your bank 7 days in advance, and the premium will be debited on the due date. We thank you for your trust and commitment to timely payments.

Yes, you can pay the premium through various options while you’re Standing Instruction is pending. 

After your premium is paid, you will receive an instant 'premium acknowledgement statement' via your registered email. This can be used for investment proof or tax filing purposes.
The premium is applied to your policy on the due date as per insurance laws. Once processed, you will get the 'Premium Receipt' via your registered email. You can also download it from:

Download Statements: Log in to your 'Online Policy A/C'
WhatsApp Services: Click here to receive your premium receipt directly via WhatsApp.

We are grateful for your prompt payments and strive to make your documentation needs as convenient as possible. Thank you for choosing us to safeguard your financial future.

Premium status updates typically occur in real-time. However, if you don't see the updated status immediately, we recommend waiting for 24-48 hours and checking again. In some rare cases, delays may occur due to processing times between banks and our systems.We appreciate your patience and understanding as we ensure your payment is processed accurately.
If you still have concerns after this period, please contact our customer support team for further assistance. 

If you have paid more than the required premium amount, here’s what you can expect:

Refund Process: Any excess premium paid will be refunded to your registered bank account promptly.
Adjustment for Future Premiums: If the next renewal premium is due within the same financial year, the excess amount may be adjusted towards your next premium payment.
Request a Refund: If you prefer to receive a refund or have any questions, you can easily raise a Service Request & writing to us.

We appreciate your flexibility and understanding in these matters.