Loading factor of 0.51 for Tata AIA iRaksha term insurance

[samkapoor77]

I am interested in investing in TATA AIA term insurance (IRaksha supreme) policy for 30 years. In its contents, it was written that if I pay premium in semi-annual mode, annual premium will be multiplied by 0.51 loading factor. I couldn’t understand meaning of this statement. Can you please explain the same to me?

[samkapoor77]

Let us understand with the help of an example ? say, your annual premium is Rs. 1,000 and you opt for a semi-annual mode then your premium will be calculated as 1,000 * 0.51, i.e. Rs. 510. Instead of Rs. 1,000 you will pay Rs. 1020 annually.

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