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Bajaj Allianz Term Insurance

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Baja Allianz life insurance provides insurance cover for more than 3.5 Crore lives and is currently one of the leading players in the Indian general insurance sector. It boasts of over 56,000 assets under management (AUM). It was rated as one of the top 75 most valuable Indian brands in 2019.

What is Bajaj Allianz Insurance Term Plan?

Term insurance is a type of life insurance that covers the life of insured only for a particular term as against whole life insurance that covers a life for 100 years.

The advantages with term insurance include low premiums and death benefits, which will be paid to the nominee as a lump sum or as a monthly income in case of an unexpected event of death of the insured within the policy period.

One can use the term insurance to cover any liabilities or mortgage loans in their absence or to accumulate savings for themselves or their loved ones.

Broadly considered, there are 2 types of term insurance plans.

With Return of Premium (RoP)

You may choose your term insurance plan with return of premium, where you will be guaranteed to receive the amount you paid as premium for the entire term, if the insured lives till the end of the policy term.

Without Return of premium

If the insured chooses a policy without return of premium option, he will not be entitled to receive any benefit if he lives through the policy term.

For example, a policy of 10 years at a premium of ₹ 10,000 per year for a sum insured of ₹ 10 lakhs, the insured would get no benefit if he is alive till the policy ends. But, if the member chooses ‘return of premium’ option at the start of the policy, he will be entitled to receive the premiums he had paid i.e., ₹ 1 lakh.

Premium rates will be higher for return of premium option, but it would turn out to be a savings plan if the insured outlives the policy.

Why should you choose Bajaj Allianz Insurance Plan?

  • Low premiums
  • Flexibility to choose or switch between plans
  • Spouse can be enrolled too in a joint life cover
  • Wide range of policy term periods and premium payment frequencies
  • Other benefits such as permanent total disability benefit, critical illness cover etc. apart from life insurance
  • Return of premium facility
  • A variety of term insurance policies tailor made to meet the needs of the insured

Features and Benefits of Bajaj Allianz Insurance Plan

  • Free look period

    A free look period of 15 days (30 days in case of policies obtained online or through distance mode) is provided for the insured to go through the policy terms and conditions, review, discuss and decide to continue the policy or terminate.

    If the policy holder decides that he does not want to continue with the policy, the premium amount paid will be refunded after deducting any taxes and proportionate premium for the number of days for which the insured was covered under the policy.

  • Level cover and Reducing cover

    When the insured is covered for the same amount throughout the policy period, it is termed as level cover.

    Alternatively, in a reducing cover insurance, the amount the insured’s life is covered decreases with every passing year. The premiums are less in case of reducing covers and are usually preferred for repayment of mortgages.

    The insured will have the choice to set the reducing cover in line with his loan repayment. For example, if a person has taken a loan of ₹ 3 lakhs at 15% annual interest, the amount to be repaid at the end of 5 years would be nearly ₹ 4.3 lakhs, at a rate of ₹ 86,000 every year. So he will opt for a reducing cover life insurance for ₹ 4.5 lakhs for a 5 year term, which goes down by ₹ 86,000 each year. This means his life will be covered for ₹ 3.64 lakhs in the 2nd year, for ₹ 2.78 lakhs in the 3rd year and so on.

  • Single, Limited or Regular premium

    You may choose to pay premium once or for a limited period of time or for as long as the duration of the policy. In limited premium payments, you pay premium for a period of 5 or 10 years and avail cover for 15 or 20 years.

    You may be paying less as a lump sum single premium. If the regular premium for 10 years at ₹ 15000 per year would amount to ₹ 1.5 lakhs in total. For a single premium you may have the option of paying only ₹ 1.1 lakhs in one go. But it will be a burden on the pocket of many and will minimize the chances to change your plan or insurer at a later date. Limited and regular premiums, depending on the duration of your term are easier on the pocket and offer more flexibility.

  • Calculation of premium

    Premium to be paid is calculated based on the age of the insured at the time of inception of the policy, total sum insured, term period of the policy and frequency of premium payment.

  • Accidental death benefit (ADB)

    Death due to an external accident within 180 days of the occurrence of the event and confirmed by autopsy.

  • Accidental total permanent disability benefit (ATPDB)

    A bodily injury resulting in at least one permanent disability such as loss of both hands, arms, legs, feet, one hand/arm and one foot/leg, both eyes or/ and ears (total loss of vision/ hearing), paralysis of limbs etc.

    The disability must be certified by a registered medical practitioner and should exist for a continuous period of 6 months.

  • Critical illness benefit (CIB)

    A list of diseases are provided by the insurer which qualify as minor and major critical illnesses separately.

    To be considered as a critical illness, the signs and symptoms must appear for the first time after 90 days of inception of the policy and the disease should have been diagnosed for the first time.

    Standard health insurance exclusions such as a waiting period of 4 years, alcohol related diseases, congenital diseases, self-inflicted injuries, psychiatric illnesses, illness due to war like actions, flying accidents, participation in hazardous activities or a criminal activity apply for the critical illness benefit and are not covered.

    Some of the diseases classified under critical illness benefit are

    Minor Critical Illness (CI) Conditions Heart valve repair, angioplasty, carotid artery surgery, early cancer, removal of kidney, ulcerative colitis, cardioveter defibrillator implantation, liver cirrhosis etc.
    Major Critical Illness (CI) Conditions Cancer (severity specified), heart attack, stroke resulting in permanent damage, open heart surgery, coma, end stage liver and kidney disease. Major head injury, Alzheimer’s disease, Parkinson’s disease, muscular dystrophy etc.

    *For a full list of these conditions, please refer to the policy document

  • Waiver of premium benefit (WoPB)

    If this add-on cover is opted for, future premiums will be waived off after the diagnosis of first major critical illness or 4th minor critical illness, whichever is earlier, for the purpose of reducing the burden on the insured.

    Riders or add-on covers Riders have to be opted for at the start of the policy.

Eligibility Criteria

  • The applicant should be 18 years of age.
  • Maximum age of entry varies from 60-65 years, depending on the policy

Types of plans

  • Smart protect goal
  • eTouch Online Term
  • iSecure
  • iSecure More
  • iSecure Loan
  • Lifestyle Secure

Bajaj Allianz Life Smart Protect Goal 

Description:  Savings, Life and Health cover insurance
Options: Single/ Limited/ Regular premium payments with/without RoP.

Basic features

Age of entry

18 – 65 years

Type of cover

With or without returns on premium

Sum Insured

Minimum of ₹ 50 lakhs; Maximum – subject to approval

Policy term

5 - 30 years (in multiples of 5)

Premium payment period

Single, Regular, Limited

Premium payment frequency

Monthly, Quarterly, Half-yearly and Annual

Maturity age limits

28 – 85 years

*CIB (critical illness benefit) is not available in single premium option

Annual premium payments under this plan for a 25 year term policy (non-smoker)

Without Return of premium 

Sum Insured: ₹ 1 crore

Age

Premium per year (life cover)

Add-on Covers for this policy 

Total Premium paid per year (life insurance + 3 add-ons)

ADB for

 ₹ 1 crore 

ATPD for

 ₹ 1 crore

CIB  for 

₹ 10 lakhs

30 yrs/ Male

₹ 6250

₹ 5379

₹ 4459

₹ 3448

₹ 19536

50 yrs/ Male

₹ 27281

₹ 21519

₹ 4464

₹ 19195

₹ 72459

With Return of premium

Sum Insured: ₹ 1 crore

Age

Premium per year (life cover)

Add-on Covers for this policy 

Total Premium paid per year (life insurance + 3 add-on covers)

ADB for

 ₹ 1 crore 

ATPD for

 ₹ 1 crore

CIB  for 

₹ 10 lakhs

30 yrs/ Male

₹ 13969

₹ 11645

₹ 8031

₹ 8269

₹ 41914

50 yrs/ Male

₹ 61796

₹ 49061

₹ 7762

₹ 34686

₹ 153845


Add on covers for this policy

Accidental death benefit (ADB), Accidental total permanent disability benefit (ATPDB), Critical illness benefit (CIB) & Waiver of premium benefit (WoPB).
Maximum amounts payable for add-on covers will be respective sums assured.

Bajaj Allianz eTouch Online Term

Description:  Life insurance and Health cover plan

Options

Types of eTouch Online Term plans

Coverage

Shield

Life Insurance cover + WOPB

Shield Plus

Life Insurance cover + ATPD + WOPB

Shield Super

Life Insurance cover + ADB + ATPD + WOPB

Shield Supreme

Life Insurance cover + ACI + ATPD + WOPB

WOPB – Waiver of premium benefit (on occurrence of ATPD); ATPD – Accidental total permanent disability

ADB – Accidental death benefit; ACI – Accelerated critical illness

Basic features of the eTouch Online Term Plan

Age of entry

18 – 65 years

Type of cover

Reducing; Individual/ Joint life

Sum Insured

Minimum of ₹ 50 lakhs; Maximum of ₹ 2 crore for ADB or ATPDB and ₹ 75 lakhs for ACI benefit

Policy term

10 - 40 years

Bajaj Allianz Term Insurance

₹ 5000* per year

Premium payment period

Regular 

Premium payment frequency

Monthly, Quarterly, Half-yearly and Annual

Maturity age limits

28 – 75 years

*Premium rates are revised every 5 years for Shield supreme policy

Other features of this plan

An additional amount equal to the sum insured (up to a maximum limit of ₹ 2 crore) will be paid in the event of ATPD. For example, a person insures his life for ₹ 2 crore and meets with an ATPD, he will be paid ₹ 2 crore plus all his future premiums for the term would be waived off (WOPB) and in case of his death at a later date within the policy, the nominee is entitled for full death benefits i.e, ₹ 2 crore in this case.

ATPD or ADB will not be payable if the accident occurs in the policy term and disability or death happens after the term has expired.

If an accident results in ATPD first and subsequent death within 90 days, benefits will be paid for both, separately.

Accelerated critical illness benefit is paid after the critical illness is diagnosed, but that amount would be deducted from the total sum insured (death benefit), in case the critical illness leads to death.

The eTouch online term policy offers the choice of receiving benefits in lump sum or as a level or increasing monthly income for a period of 120 months (10 years).

For level monthly income, each monthly installment = Benefit due * 1.1022%
For increasing monthly income, each monthly installment = Benefit due * 0.7861%.
In case of increasing income, the installments will increase by a rate of 10% annually on the first monthly installment of each year.

For a sum insured of ₹ 1 crore:

 

1st  Month

At the end of 10 years

Monthly Income (Level)

₹ 1,10,220

₹ 78,610

Monthly Income (Increasing)

₹ 1,32,26,400

₹ 1,36,78,140


Add-on covers

The add-on covers are similar to the Smart Protect plan, but the member gets to choose a plan variant instead of individually opting for standalone add-on covers.

Bajaj Allianz iSecure Loan Term Insurance Plan

Description: Mortgage cover Term insurance plan

Bajaj Allianz iSecure loan is designed to cover the repayment of any loans the insured might have taken while he was alive. The insured can select the sum assured as per his loan repayment schedule at a particular interest rate for a particular period of time.

In case of the insured’s unexpected demise, the loan gets paid off by the insurer. In case the insured outlives the policy, he can terminate the policy, renew for another term or convert it into a whole life plan.

Basic features of iSecure Loan policy

Age of entry

18 – 60 years

Type of cover

Reducing; Individual/ Joint life

Sum Insured

Minimum of ₹ 3 lakhs; No maximum limit

Policy term

5, 10, 15, 20 and 25 years

Minimum Installments for Premium

Yearly - ₹ 1500

Half-yearly - ₹ 750

Quarterly - ₹ 400

Monthly* - ₹ 150

Premium payment period

2/3rd of the policy term; rounded 

Maturity age limits

28 – 65 years

*In case of monthly premiums, installments for 3 months need to be paid at the start of policy

Premium payment term would be 2/3rd of the policy term, rounded off to years. For a policy term of 10 years, premium needs to be paid for 7 years.


Rider benefits under this plan

Accidental Death Benefit Rider (ADB)

Accidental Permanent Total/ Partial Disability Benefit Rider (ATPD)

Waiver of Premium benefit Rider (WoPB).

iSecure Term Insurance Plan

Description: Mortgage cover Term insurance plan

Description: Individual/ joint Level term life insurance cover at low premium cost

Regular payment term life insurance plan with no return of premium option (no maturity benefit).

Options: Smokers, Non-smokers and Preferred Non-smoker categories for payment of premium, if sum insured is above ₹ 20 lakhs.

If a non-smoker is in perfect physical health, is not any risky occupation which may cause him to smoke at a later date would be classified by the insurer as ‘Preferred Non-smoker’.

Basic features

Age of entry

18 – 60 years

Type of cover

Smoker, Non-smoker, Preferred Non-smoker

Sum Insured

Minimum of ₹ 2.5 lakhs; No maximum limit

Policy term

10, 15, 20, 25 and 30 years

Minimum Installments for Premium

Sum Insured

Monthly

Quarterly 

Half-yearly

Annual

< ₹  20 lakhs

₹ 100

₹ 250

₹ 500

₹ 1000

₹  20 lakhs

₹ 250

₹ 750

₹ 1500

₹ 3000

Premium payment period

Regular 

Maturity age limits

28 – 70 years

*In case of monthly premiums, installments for 3 months need to be paid at the start of policy

Other features of this plan

Frequency of premium payments can be changed at the start of any policy year during the term and the death benefits can be chosen to be received as lump sum or in equal monthly installments for a period of 5 or 10 years.

Riders available under this plan

Accidental Death Benefit Rider (ADB)

Accidental Permanent Total/ Partial Disability Benefit Rider (ATPD).

Waiver of Premium benefit Rider (WoPB).

iSecure More Term Insurance Plan

Description: Mortgage cover Term insurance plan

Description: Individual/ joint Increasing cover term life insurance

How does the policy work?

In this policy, sum insured increases by 5% every policy year till the sum insured gets doubled.

This plan also offers the flexibility to join the spouse at a later date and you can choose for death benefits in lump sum or monthly installments, for a period of 5 or 10 years.

Basic features

Age of entry

18 – 60 years

Type of cover

Increasing; Individual/ Joint life

Sum Insured

Minimum of ₹ 2.5 lakhs; No maximum limit

Policy term

10, 15, 20 and 25 years

Minimum Installments for Premium

Yearly - ₹ 1500

Half-yearly - ₹ 750

Quarterly - ₹ 400

Monthly* - ₹ 150

Premium payment period

Regular 

Maturity age limits

28 – 70 years

*In case of monthly premiums, installments for 3 months need to be paid at the start of policy

All 3 riders, ADB, ATPD and WoPB can be takn under this policy.

  • LifeStyle Secure Plan

    Description: Individual term life insurance with an inbuilt accelerated terminal illness (ATI) cover

    How does the policy work?

    Medical tests are not required to be enrolled in the Lifestyle secure plan and there is an option of receiving the death benefit in lump sum or monthly installments equivalent to the policy terms. In case of 5 year policy term, monthly income would be paid in 60 installments while it would be 240 for a 20 year policy term.

    The plan also offers discounts on premiums for female lives.

    Terminal illness is defined as any illness resulting in a life expectancy of less than 6 months and the insured is receiving treatment only for symptomatic treatment (palliative care).

    The terminal illness has to be diagnosed by 2 separate medical specialists in the field and should be intimated to the insurer within 3 months of diagnosis.

    In case an insured is diagnosed with a terminal illness, the benefits would be same as those for a death benefit and the insured can opt for a lump sum option and use it for any advanced treatment.

    Important feature of LifeStyle Secure Plan

    Age of entry

    18 – 50 years

    Type of cover

    Level cover; Individual

    Sum Insured

    ₹ 3 lakhs - ₹ 15 lakhs

    Policy term

    5, 7, 10, 15 and 20 years

    Minimum Installments for Premium

    Yearly - ₹ 1466 - ₹ 20458

    Half-yearly - ₹ 748 - ₹ 10434

    Quarterly - ₹ 381 - ₹ 5319

    Monthly* - ₹ 132 - ₹ 1841

    Premium payment period

    Regular 

    Maturity age limits

    23 – 60 years

    *In case of monthly premiums, installments for 3 months need to be paid at the start of policy No riders are applicable for this policy. 

Exclusions of Bajaj Allianz Insurance Plan

Suicide clause

In case, the insured commits suicide within the first 12 months of buying the policy, the nominee is entitled for an amount that totals to 80% of the total premiums paid till date, provided the policy is active.

Other exclusions for accidental death benefits, permanent total disability, critical and terminal illness apply as discussed above.

Claim Process of Bajaj Allianz Insurance Plan

Process for claiming the payment

A written notice has to be furnished to the insurer within 180 days about the death and the circumstances leading to the death of the insured for the claim to be valid.

The following documents have to be submitted to the insurer for successful payment of the claim by the policy holder or the nominee

Original policy document

Original death certificate issued by a competent authority

Certificate stating medical cause of death issued by the treating physician or the hospital where the death has occurred

FIR copy and Post mortem report (PMR) - if death is due to unnatural causes (PMR is mandatory if the death has occurred due to an accident).

Proof of entitlement for claiming the payment (any document that declares beyond doubt that you are the nominee and designated recipient of the policy benefit)

Any other document that the insurer may deem necessary for successful processing of the claim, depending on the circumstances (on a case-by-case basis).

Renewal Process of Bajaj Allianz Insurance Plan

Most of the term policies come with an in-built feature of renewing the policy for the same term period that has expired.

Renewal of policy can be done online or offline.

Remember to renew the policy before the grace period ends, to avail continued and maximum benefits.

How to buy Bajaj Allianz Insurance Plan?

There are options to buy the plans online or offline.

Documents required to apply for the plan

The requisite documents required in most cases would be

  • Proof of age, identity, address and income
  • Recent passport sized photographs.

It is always safe and recommended to buy the policy after visiting the insurer’s office, talking in persona and in detail with the agent and clarifying all doubts.

The agent would be better placed to help you choose the best policy plan that meets your needs and get the most benefits.

It is wise to disclose all the facts and not to hide or misrepresent any detail pertaining to you or any of the person mentioned in the policy. Furnishing false details would be subject to section 45 of the Insurance Act 1938 and result in immediate and automatic termination of the policy.

FAQs

  • Q: What happens if the nominee also expires?

    Ans: In case of an unlikely event of the nominee also expiring along with the insured or before he receives the claim payment, the next legal heirs of the insured will be entitled to receive the benefits.
  • Q: What happens if one person dies in a joint life cover?

    Ans: In a joint life cover, each life is covered to a certain amount and only that amount will be payable on the death of a single member. However, the premium to be paid will go down on death of one of the members and the reduced premium will be based on the age, life style category, chosen policy term and frequency of premium payments.
  • Q: Can the riders be opted for one person in the joint life?

    Ans: Yes. One or both members in the joint life cover can opt for a rider. In case of death of a single member, if the ADB rider was opted for, additional accidental death benefit for that member will be payable along the sum assured.
  • Q: What happens if I fail to pay the premium?

    Ans: If the policy holder fails to pay the premium by the end of the policy term or during the grace period, life cover for the insured gets terminated and no death benefit or cash benefit if alive, will not be payable.

    However, the policy can be revived within a certain time period called the ‘Revival period’ (usually 5 years from the due date of first unpaid premium), only after payment of certain additional charges/ penalties (such as interest).

    The grace period is a period of 30 days (15 days in case of monthly premium payers), the insurer grants the insured to pay the premium after the expiry of present policy. The policy will continue to be active with same benefits even if it is renewed during grace period. Policy will lapse if it is not renewed before the end of grace period.
  • Q: If the insured dies during the grace period, is the claim liable to be paid?

    Ans: Yes. The claim is payable minus the premium that is to be paid for the current year in case of death during grace period on the due date of premium payment.
  • Q: What is High Sum Assured Rebate?

    Ans: The insurer offers the buyer a discount on premiums to be paid, if he chooses a high sum assured. The discounts will go up as the sum assured goes up and will vary according to the age of the insured. A 30 year individual would get more discount for the same sum assured than a 50 year old. The rebates will be offered in blocks (e.g., ₹ 5-7.5 lakhs; ₹5-10 lakhs etc.). The blocks and percentages of discount vary from plan to plan.
  • Q: What is the Revival period for Bajaj Allianz Term insurance plans?

    Ans: The revival period for most policies is 5 years.
  • Q: What are surrender benefit conditions for the policy?

    Ans: Surrender benefit is available in case of following scenarios:

    Single premium (with/without RoP) – Can be surrendered anytime
    Regular & limited premium with RoP – if at least 2 annual premiums are paid
    Limited premium without RoP – Can be surrendered only at the end of premium payment term
Written By: Paisawiki - Updated: 09 September 2020