Life Insurance
Bajaj Allianz Life
Bajaj Allianz is a joint venture between two notable entities, Bajaj Finserv, a major NBFC in India and Allianz SE, one of the largest financial services companies in the world. The company provides a diverse range of life insurance products like term plans, ULIPs, savings plans and retirement plans.
| Annual Business | ₹10,456 cr. |
| Claims Settled | 99.11% |
| Claims settled within 30 days | 94.92% |
Term Insurance offered by Bajaj Allianz Life
Smart Protect Goal
A popular plan from Bajaj Allianz, Smart Protect Goal offers plan options that suit your life goals and needs. Also, with this plan you have the option to cover your whole life till 99 years and avail a return of premium option as well.
This plan has four variants:
- Life Cover:
This is the most basic plan. Sum assured is paid on death.
- Child Education Extra Cover:
An extra sum assured chosen by you is paid on the demise of the insured to ensure that you leave behind sufficient money for your child’s future.
- Life Cover with Joint Life:
This option covers both you and your spouse. If the spouse dies, respective death cover is paid to you, cover continues, and on your demise the nominees receive the death benefit. However, if you (primary life) pass away before your spouse, the death benefit is paid to the nominee and the policy terminates.
- Increasing Cover:
Your sum assured increases by a certain quantum (5-10%) every year up to a maximum of 100% of the base sum assured.
Riders you can select with this policy:
- Accidental Death Benefit:
An additional lump sum amount is paid over and above the base death benefit if the cause of death is an accident.
- Accidental Total Permanent Disability Benefit:
If you get permanently disabled following an accident, this rider pays out an additional lump sum amount.
- Waiver of Premium Benefit on CI:
In case you are diagnosed with any of the listed critical illnesses, all your future premiums will be waived off. Meaning you don’t have to pay the premiums but your policy will still be active.
- Critical Illness Benefit:
An additional lump sum amount is paid if you are diagnosed with any of the listed critical illnesses
eTouch Online
A simple term plan that provides financial protection against uncertainties like developing a chronic disease, getting disabled in an accident and even allowing you to skip your premium payments altogether following a tragedy
There are four plan options available in this policy:
- Shield:
Sum assured is paid on the death of the life insured and if during the policy term you get permanently disabled due to an accident all your subsequent premiums will be waived off. Meaning you don’t have to pay any premiums and your policy still remains active
- Shield Plus:
Sum Assured is paid on death, an additional amount equal to the sum assured (up to a maximum of 2 crore) will be paid if you get permanently disabled due to an accident and future premiums will be waived off for the same
- Shield Super:
This variant has an Accidental Death Benefit wherein an additional amount equal to the sum assured (up to a maximum of 2 crore) will be paid in case the cause of death is an accident. Besides, during the policy term, if you get if you get permanently disabled due to an accident all future premiums will be waived off and an additional amount is also paid
- Shield Supreme:
This is the most comprehensive plan as it has all the benefits of the aforementioned plans and also has an Accelerated Critical Illness Benefit. Meaning you get a lump sum amount in case you’re diagnosed with any of the listed critical illnesses. However, keep in mind this lump sum amount is part of your base cover itself. So your death cover gets reduced by the amount of Critical Illness benefit paid.
You also have the options to select riders:
- ABSLI Accidental Death and Disability rider:
An additional lump sum amount is paid over and above the base death benefit on death or disability because of an accident.
- ABSLI Critical Illness rider:
A lump sum amount is paid if you are diagnosed with any of the 4 critical illnesses listed in the rider.
- ABSLI Waiver of premium rider:
In case you are diagnosed with any of the listed 14 critical illnesses, all your future premiums will be waived off. Meaning you don’t have to pay the premiums but your policy will still be active.
iSecure
This is the most basic type of term plan. A lump sum death cover is paid to the nominee on your demise. You can also choose a Joint Life cover where both you and your spouse are covered and both of you have separate sum assured. On death of either of the two, respective sum assured is paid to the surviving partner and policy continues until their death.
Riders you can buy with this policy:
- Accidental Death Benefit Rider:
An additional lump sum amount is paid over and above the base death benefit if the cause of death is an accident.
- Accidental Permanent Total/ Partial Disability Benefit Rider:
If you get permanently or partially disabled following an accident, this rider pays out an additional lump sum amount.
- Waiver of Premium Benefit Rider:
In case you are diagnosed with any of the listed critical illnesses or get permanently disabled, all your future premiums will be waived off. Meaning you don’t have to pay the premiums but your policy will still be active.
Bajaj Allianz Life Term Insurance plan details
| Plan Name | Entry Age | Sum Assured | Policy payment options |
|---|---|---|---|
Smart Protect Goal | 18-65 | ₹50,00,000-unlimited | Annually, Half yearly, |
eTouch Online | 18-65 | Min: | Annually, Half yearly, |
iSecure | 18-65 | ₹25,00,000-₹50,00,000 | Annually, Half yearly, |
ULIP Plans
Unit Linked Insurance Plans or widely known as ULIPs are part insurance, part investment plans. So the premium that you pay, some of it is allocated towards providing a death cover and the rest is invested in equity and debt funds, whichever you choose. So if something were to happen to you, your family either gets death cover or the fund value, whichever is higher at that time.
Say you’re paying a premium of 1 lakh every year for 20 years and for a death cover of 10 lakhs. You die after 15 years and your family naturally gets 10 lakhs. However if at that time the value of your invested premiums is 13 lakhs, your family gets this 13 lakhs. But if the fund doesn’t earn good returns and values at 8 lacs, then you get the death cover. So 10 lacs, i.e., your death cover is the minimum payout. But if you survive after 20 years, then you get all those invested funds back, whatever the value is at that time. That’s your maturity payout.
But there are other things to look for as well. Firstly, there is a lock-in period of 5 years, meaning you won’t be able to get back your premiums before 5 years. It’s only after 5 years that you’re allowed to withdraw some funds and even that is partial withdrawal. You can never withdraw the entire amount. Also, there are different charges that are deducted from your premium every year like premium allocation charge, policy administration charge, fund management charge, etc. So the entire 1 lakh is never invested.
Make sure you read the policy document diligently. And remember ULIPs are largely dependent on how the market is performing, both stocks and bonds.
ULIP Plans offered by Bajaj Allianz Life
| Plan Name | Entry Age | No. of Funds |
|---|---|---|
| Goal Assure | 0-60 | Total: 8 Equity: 6 Debt: 2 |
| Smart Wealth Goal | 0-60 | Total: 8 Equity: 6 Debt: 2 |
| Future Gain | 1-60 | Total: 7 Equity: 5 Debt: 2 |
| Fortune Gain | 1-63 | Total: 7 Equity: 5 Debt: 2 |