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Bajaj 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.
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 this 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.
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.
If the insured chooses a policy without return of premium, 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.
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.
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.
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.
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.
Death due to an external accident within 180 days of the occurrence of the event and confirmed by autopsy.
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.
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 CIB 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
If this add-on cover is opted for, future premiums will be waived off after the diagnosis of first major 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.
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 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.
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 illness is diagnosed, but that amount would be deducted from the overall sum insured (death benefit), in case the 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.
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
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.
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.
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.
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
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.
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