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Life Cover + 17% Discount** + Save Tax*!
Under Section 80C & 10(10D) of Income Tax Act, 1961*
Get Life Cover + Save tax up to Rs 46,800*
₹2 Cr Term Plan
@ 25/Day²
Free Health Management Services
upto ₹ 14,000 p.a.^

Disclaimer:

2 Above illustration is for Bajaj Allianz Life eTouch- A Non Linked, Non-Participating, Individual Life Insurance Term Plan (UIN: 116N172V04) considering Male aged 22 years | Non-Smoker Preferred | Annual Income =>Rs. 15,00,000 per annum | Indian Resident | Policy Term (PT)– 30 years | Premium Payment Term (PPT) – 30 years | Sum Assured opted is Rs. 2,00,00,000 | Online Channel | Standard Life | 1st Year Premium is Rs. 8,469. 2nd Year onwards premium is Rs. 9,041. Total Premium Paid is Rs. 2,70,658 | Medical Rates | Yearly Premium Payment Mode | Death benefit opted is lumpsum payout and monthly instalments (Lumpsum Payout Percentage : 45, Income Payout Percentage : 55) | Premium shown above is inclusive of Online Discount only and exclusive of Goods & Service Tax/ any other applicable tax levied, subject to changes in tax laws, and any extra premium and is for illustrative purpose only.

**5% Discount applicable for customer's first individual life insurance policy, applicable only on first year’s premium. 5% Discount for salaried customers, applicable only on first year’s premium. 6% Discount on online purchase is available for regular premium payment and limited premium payment frequency, applicable only on first year’s premium 1% Discount will be available for all policies where premium payment is under auto-debit process (as allowed by RBI from time-to-time) through-out the premium paying term.

*Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy. Above Tax benefit is calculated considering deduction of Rs. 150,000 and applicable tax rate of 31.20%.

^Get Free Benefits up to ₹ 14,000 per year

S No. Value Added Service Frequency Cost (₹)
1 Doctor Teleconsultations Consultation per month
= 24 consultations per year
Average cost per session = ₹500
Total cost per year = ₹500 * 2 * 12 = ₹1200
2 Network Discounts
Medicines (M) - 10%, Lab Booking (L) - 10%,
In-Patient Hospitalization (P)- 5%,
Out-Patient Consultation (O) - 10%
Throughout the year
Assumption - Total
Expenses of these
throughout the Year
Total Discounts that
can be availed
throughout the year
M - ₹5,000 ₹500
L - ₹5,000 ₹500
O - ₹5,000 ₹500
P - ₹10,000 ₹500
Total per year as per assumptions ₹ 14,000

Note: The above mentioned costs are based on estimated average market price for respective services.

Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

BJAZ-OT-EC-08343/24

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Life Insurance Plans

Life is unpredictable, and while we can't foresee the future, we can prepare for it. Life insurance plans are instruments designed to offer financial security for your loved ones when life takes an unexpected turn. With life insurance plans, you ensure that your family is protected, even if you're no longer around to provide for them. Read More

 

There are savings-oriented life insurance plans, too, which not only safeguard against uncertainties but also help with long-term savings. By buying a life insurance policy, you’re making a smart move to secure your family's financial well-being. Life insurance plans are the peace of mind every family needs.  Read Less

 

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Written ByPalak Bagadia
AboutPalak Bagadia
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Palak Bagadia, Associate – Digital Marketing at Bajaj Allianz Life, with experience spanning content and performance marketing, recruitment, employee engagement in the BFSI industry.
Reviewed ByRituraj Singh
AboutRituraj Singh
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Rituraj Singh,With over 6.5 years of experience in the insurance industry, Rituraj Singh, Manager- Product & Brand Marketing at Bajaj Allianz Life Insurance overlooks new product launches, compliance, and brand projects, leveraging artificial intelligence and technology to enhance outcomes.

What is a Life Insurance Plan?

A life insurance plan is an agreement between an insurance company and the policyholder, where the insurer promises to pay a specified amount to designated beneficiaries upon the insured person’s death. In return, the policyholder pays the premiums as and when specified.

Life insurance plans provide financial protection for your loved ones when you're no longer around. If you choose savings-oriented life insurance plans, you can also create a savings corpus. for your financial corpus. A life insurance policy acts as a financial protection tool and is recommended for everyone. You can compare different types of plans available in the market to find the best insurance plans that suit your needs.

How does Life Insurance Work?

Life insurance plans allow you to choose the coverage level, the coverage tenure and the premium payment term and frequency. You pay the life insurance premium over the chosen term. In the case of premature demise of the life assured during the tenure of the insurance policy, the death benefit is paid.

Alternatively, if the life assured survives the policy tenure and the plan matures, a maturity benefit is paid if applicable under the policy. Many life insurance plans offer a maturity benefit which gives you a financial corpus if you survive the policy term.

Life insurance plans might also offer optional riders. These riders are additional coverage benefits which enhance the scope of the insurance policy. You can choose one or more riders based on your coverage needs at the payment of an additional premium. If you suffer any contingency which is covered by the chosen rider, you get an additional benefit.  

Why Should I Buy a Life Insurance Plan?

Life insurance is essential because it offers financial protection for you and your family against life's uncertainties. Life insurance plans are designed to provide support in case of unfortunate events like death, disability, or accidents. Some of the reasons to choose the best insurance plans are mentioned below:

  • One of the main reasons to invest in life insurance is to secure your family’s financial stability in case of an unexpected death.
  • Savings-oriented life insurance plans help cover essential costs like your children’s education, household expenses, and savings for the future. These plans create a savings corpus which can help you meet your financial needs.
  • The best Some insurance plans also act as a savings tool for retirement, providing a steady income after you stop working.
  • Life insurance plans offer financial support if you face serious illness or disability, covering medical bills and lifestyle adjustments. This support is allowed through the optional riders available with life insurance plans. You can choose riders who cover accidental deaths, disablements, critical illnesses, etc. and get a benefit to meet these contingencies.  
  • Choosing the best insurance plans ensures peace of mind, knowing that your family is financially protected no matter what challenges life brings.

Why is Life Insurance Important at Every Stage?

Life insurance is your lifelong shield, securing your loved ones' financial future at every stage. Here’s how it proves relevant at every life stage[3]-

  • When you are young and single, investing in the best insurance plans helps lay a solid financial foundation with affordable premiums, protecting your dependents like your parents in case of unexpected events.
  • As you move into marriage and family planning, choosing the best insurance plans that suits your needs becomes even more crucial. With the added expenses of a family and long-term financial goals, these plans act as a safety net for your family. They ensure that your spouse and children can maintain their lifestyle and meet future goals, even in your absence.
  • Upon homeownership, having the best insurance plans that can safeguards your mortgage and ensures that your family can maintain ownership of the house, even if you are no longer around to repay the loan is important.
  • As you plan for your children’s education, choosing the best child insurance plan that scan act as a safety net, ensuresing that your children’s academic future is financially secured, regardless of unforeseen circumstances.
  • In midlife, adapting to changing needs becomes essential, and having an the best insurance plans can help adjust coverage to meet new financial responsibilities, such as supporting aging parents or paying off debts.
  • For retirement planning, choosing the an best  insurance plans ensure that you have an additional layer of savings, providing financial stability in your golden years and continued support for you and your spouse. er family in case of any life events.

Why Women Should Consider Buying Life Insurance Plans?

Here’s why women should buy life insurance[4]:

  1. Term plans are cheaper for women: Due to longer life expectancy, term plans for women come with lower premiums. Choosing theThe best insurance plans that can cater to their financial needs, offering  them offer women affordable options to secure their future, makesing life insurance a smart investment.
  2. Homemakers need insurance, too: Even if a woman isn’t an income earner, her household responsibilities have economic value. By choosing the best insurance plans that can offer , financial assistance in their absence, homemakers can protect ensure their family's financial stability in case of their absence. Some plans also allow extending coverage to a spouse under one insurance policy.
  3. Joint and individual goals: In dual-income households, both partners should have life insurance. Even if one parent a woman earns less , losing that income can disrupt family goals. Having tThe best insurance plan thats aligns with your life goals, ensures that all family members are protected financially.
  4. Health expenses: Women face unique health risks like breast cancer and pregnancy complications. The bestLife insurance plans can provide coverage for these critical illnesses, helping to manage high medical costs and protect savings.
  5. Financial independence: By buying life insurance, women take control of their financial future, ensuring they are covered in any unforeseen circumstances.

Types of Life Insurance Plans in India

Here are the different types of life insurance plans in India [5] and [8]:

Term Insurance

Term insurance plan

One of the basic life insurance plans that provides coverage for a fixed period. These plans usually don’t offer any maturity benefits, making them more affordable. However, if you choose the refund of premium option, the premiums paid are returned on maturity. Term plans provide life coverage and pay a death benefit if the life assured passes away during the policy term.

Read More

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2. Endowment policy

This is a savings-oriented life insurance plan which covers the risk of premature demise and also has a maturity benefit. If the life assured passes away during the policy term, a death benefit is paid. On the other hand, if the life assured is alive when the policy matures, a maturity benefit is paid.

Read More

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3. Unit Linked Insurance Plan (ULIP)

This plan offers dual benefits—life insurance coverage and wealth building. Premiums are split between life cover and investment, allowing the policyholder to participate in the financial market and earn market-linked returns. There are also the flexible benefits of partial withdrawals and switching.

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4. Money Back Policy

Similar to an endowment policy, but with periodic payouts during the policy term. These survival benefits are distributed over the policy's duration.

Read More

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Annuity Plans

5. Whole Life Policy

This insurance policy offers coverage for the life assured's entire life. The policy covers the life assured up to 99 or 100 years of age. In case of death during the coverage term, a death benefit is paid. However, if the life assured survives the tenure, a maturity benefit is paid.

Read More

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6. Child Plan

: Child plans secure a child's financial future and often include an inbuilt premium waiver, where the insurer covers premium payments if the parent passes away, ensuring the plan continues.

Read More

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7. Annuity/Pension Plan

Annuity Plans accumulates premiums as assets and pays them out as regular income (annuity) or a lump sum after retirement, based on the policyholder's preferences.

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Here's a table explaining the differences between the various life insurance plans:

Type of Life Insurance Plans

Coverage Period

Maturity Benefits

Key Features

Life Cover

Term Insurance Plan

Fixed Term (e.g., 10,20, or 30 or 40 years)

Upto age 85 years or even for whole of life

No except under return of premium term plans

Affordable insurance policy, payout on death during the term

Provides pure life cover

Endowment Policy

Fixed Term

Yes

Combines life insurance with savings; lump sum paid if policyholder survives

Offers Savings + Life cover

Unit Linked Insurance Plan (ULIP)

Flexible

Yes

Combines life cover with investment opportunities; allows partial withdrawals

Split between investment and life cover

Money Back Policy

Fixed Term

Yes (periodic payouts)

Provides periodic survival benefits throughout the policy term

Savings + periodic payouts

Whole Life Policy

Entire life term

Yes

Covers the policyholder for their whole life; and also helps to create wealth

Lifelong protection + Savings

Child Plan

The fixed term generally till the child reaches a specific age between 18-25 years

Yes

Designed to secure a child's financial future, it may include an inbuilt premium waiver if the parent passes.

Life cover + premium waiver

Annuity/Pension Plan

After retirement

Yes (annuity) or lump sum)

Provides regular income post-retirement

Focuses on retirement benefits

 

Features and Benefits of Buying a Life Insurance Plan

Life insurance plans are a comprehensive financial tool for protection, savings, and investment. Here are their key features:

  • Life Cover: The primary function of a life insurance plan is to provide financial security to your loved ones in case of your death, ensuring a payout to your beneficiaries.
  • Premium Payments: Premium payments are required to keep the life insurance plan active. The premium amount depends on factors such as age, health, and the type of policy.
  • Policy benefits: Familiarise yourself with the benefits provided by the insurance policy you're considering. This will help you understand what the plan includes, such as the death benefit, maturity payout, money-back options, bonuses, or guaranteed additions that may be available.
  • Flexibility: These plans are flexible, allowing you to adjust the coverage amount, payment frequency, and policy term based on your financial needs.
  • Riders: You can enhance your life insurance plan with optional riders like critical illness, accidental death, or disability cover for additional protection.

A life insurance policy unlocks a range of valuable benefits that go beyond simply securing your family’s future:

  • Financial security/death benefit: One of the primary advantages of life insurance is the death benefit. If the policyholder passes away, the insurance provides a payout to their family, helping them meet financial needs in the absence of the breadwinner. This ensures long-term financial security for the family.
  • Saving for financial goals: Certain life insurance plans not only offer a death benefit but also help you save for important financial milestones. If the policy matures, the maturity benefit can be used for goals like children's education, weddings, retirement, or purchasing a home.
  • Loan option: Some life insurance plans allow you to borrow against the policy. You can either pledge the policy to a financial institution or take a loan directly from the savings-based plan.
  • Tax benefits: Premiums paid under a life insurance policy are eligible for tax deductions under Section 80C[6] subject to specified terms and conditions under old regime, while both death and maturity benefits[7] (subject to Section 10(10D) conditions) can be tax-free, making it a tax-efficient investment.

Who can Purchase a Life Insurance Plan?

Life insurance serves as a safety net for loved ones during unforeseen events. Various individuals and circumstances can benefit from life insurance plans:

  • Guardians of Young Children: If a parent passes away, the loss of income can lead to a financial crisis. Life insurance ensures that children have the necessary resources for their upbringing and education.
  • Caregivers of Children with Special Needs Adults: For adultchildren children who will need lifelong care, a life insurance policy can provide financial support, functioning like a special needs trust in the event of the parent's demise.
  • Young and Independent Individuals: While often overlooked, securing life insurance at a young age locks in lower premiums, making future coverage more affordable.
  • Recently Married Couples: Newlyweds should consider life insurance plans to protect their spouse and future children from financial hardships in case of an untimely death.
  • Mortgage Holders: If you have a mortgage, life insurance ensures your family can continue making payments without financial strain.
  • Entrepreneurs: With employees and partners depending on them, business owners should have separate life insurance plans to safeguard business obligations.
  • Ageing Parents: As parents age, their financial stability may depend on their children. Life insurance can provide them with security and peace of mind.

How to Buy a Life Insurance Plan?

Buying a life insurance plan is a straightforward process.

  • First, assess your financial needs and determine how much coverage you require.
  • Next, research different life insurance plans available in the market, comparing their features and premiums. In most transactions, you may work with an insurance agent or broker, who acts as a bridge between you and the insurance company.[9]
  • Once you find a suitable insurance policy, fill out an application and provide any required documents, such as medical history.
  • After approval, pay the initial premium to activate your coverage. Always review the terms of the life insurance plans to ensure it meets your long-term goals and needs.

What are the advantages of buying a life insurance plan online vs. offline?

With technology's rise, buying life insurance plans online has become increasingly popular. Here are some key benefits of opting for online purchases:

  • Convenient Comparisons: Online platforms allow you to easily compare various life insurance plans from different insurers, helping you choose the one that best fits your needs.
  • Faster Processing: Online applications are typically processed more quickly, eliminating delays associated with paperwork and underwriting.
  • Transparency: The online buying process is clear, letting you review all features, benefits, and terms before purchasing.
  • Ease of Access: You can buy life insurance from anywhere with just a computer or smartphone and an internet connection, making the process hassle-free.

How to Pay for a Life Insurance Policy?

Paying for a life insurance policy is quite simple, and you typically have several options to choose from. Here’s a simple guide on how to make your payments[26]:

1.Premium Payment Frequency

  • Monthly: You can choose to pay your premiums monthly, which spreads the cost over the year.
  • Quarterly: Some policies allow quarterly payments, making it easier to manage your budget.
  • Half-yearly: You can also pay the premium every six months to suit your budget.
  • Annually: Paying annually can often save you money, as some insurers offer discounts for this payment frequency.

2.Payment Methods

  • Bank Transfer: Many insurers accept direct bank transfers, which allows for automatic payments.
  • Credit/Debit Card: You can use your credit or debit card to make payments online or over the phone.
  • Online Payment Portal: Most insurance companies have a secure online portal where you can log in and pay your premiums directly.
  • Cheque or Money Order : You can pay through bank cheques or demand drafts drawn in favour of the insurance company.

3.Setting Up Automatic Payments

  • Auto-Debit: You can set up an automatic debit from your bank account to ensure your premiums are paid on time without needing to remember each due date.

4.Contacting Your Insurer

  • If you have any questions about payment options or need assistance, don’t hesitate to contact your insurance company's customer service.

By selecting the right payment frequency and method that suits your financial situation, you can easily manage your life insurance policy.

What payout options are available for life insurance?

Life insurance policies typically offer several payout options, allowing policyholders or beneficiaries to choose how they receive the policy benefit. Here are some common payout options[10]:

  1. Lump-Sum Payment: The entire policy benefit is paid out as a single payment upon the insured's death or on policy maturity. This option provides immediate access to the full amount, allowing beneficiaries to use the funds as needed.
  2. Instalment Payments: The policy benefit is paid out in regular instalments over a specified period. This can help beneficiaries manage their finances by providing a steady stream of income instead of a lump sum.
  3. Income Annuity: The payout is converted into an annuity, providing beneficiaries annuitants with guaranteed periodic payments for a set period or for the remainder of their lives. This option offers long-term financial security.

Important Documents to Buy a Life Insurance Policy

When purchasing a life insurance policy, certain documents are essential for the insurance company to underwrite the policy. Here are the key documents required[11]:

1. Proposal Form: This form serves as the foundation of the insurance contract. It collects vital information about you, including personal, financial, and medical details. You must fill it out, sign it, and submit it to the insurance company.

2. Identity Verification: Valid identity proof is necessary, and acceptable documents include:

  • Aadhaar Card
  • Passport
  • Voter ID Card
  • PAN Card
  • Driving License

3. Proof of Age: You can submit various documents to verify your age, such as:

  • Birth Certificate
  • Baptism Certificate
  • School or College Records
  • Employer’s Records
  • Government-Issued Defence ID
  • Marriage Certificate
  • Passport
  • Domicile Certificate

These are standard age-proof documents[12]. Alternative proofs i.e. non-standard age proof, may include:

  • Employer’s Service Records
  • Driving License
  • Self-Declaration
  • Electoral Roll
  • Declaration by Elders
  • Ration Card
  • Certificates from Village Panchayats

4. Address Verification: Commonly accepted address proofs include:

  • Utility bills
  • Rent agreements
  • Property deeds
  • Aadhaar Card

5. Income Verification: For high-value life insurance plans, proof of income may be needed, including:

  • Salary slips
  • Income tax returns
  • Bank statements

6. Medical Information: Medical reports may be required for those above a certain age, seeking high coverage, or with existing health issues. You might need to undergo medical tests or complete health questionnaires detailing your conditions and treatments.

How to Choose a Suitable Life Insurance Policy?

Selecting the right life insurance plans can be simplified with these tips[13]:

  • Identify Your Financial Objectives:

  • Choose a child insurance plan for your child’s future.
  • An endowment policy suits those saving for a home or car.
  • For regular income needs, consider a money-back policy.
  • A term plan provides financial security by replacing lost income.
  • For retirement planning, opt for a pension/annuity plan.
  • Determine the Sum Assured: Select a sum assured that meets your financial requirements effectively.

  • Consider Optional Riders: Explore available riders to enhance coverage and select those that fit your needs.

  • Evaluate Premium Affordability: Ensure the premium is manageable to maintain uninterrupted payments and fully benefit from your insurance policy. If necessary, adjust the payment frequency to make it affordable.

How to Choose a Suitable Life Insurance Plan for a Family?

Choosing a suitable life insurance plan for your family involves several key steps:

Step

Description

Assess Family Needs

Consider your family's financial responsibilities and future needs, such as education and living expenses.

Identify Financial Goals

Determine your goals, like saving for a home or funding your children's education.

Select the Right Policy Type

Choose from term plans, whole life insurance, or endowment policies based on your family's needs.

Evaluate Premium Affordability

Ensure the premium fits within your budget to maintain the insurance policy without financial strain.

Review Policy Features

Check for benefits like riders, maturity benefits, and death benefits to ensure comprehensive coverage.

Factors Affecting Life Insurance Plans & Life Insurance Premiums

The premium of a life insurance plan relies on several factors. They collectively decide the premium of an insurance policy, influencing the cost you will pay.[14] & [15]

Factor

Impact on Life Insurance Premium

Age

Age significantly influences life insurance premiums; as older individuals face higher mortality risks. Thus, premiums increase with age.

Gender

Gender plays a role in premium costs; women typically enjoy lower premiums due to lower mortality risks compared to men.

Coverage Type

The selected policy type affects premium rates; for example, term life insurance generally has lower premiums than endowment or money-back plans.

Health Status

Your medical history impacts premiums. Those with existing health issues usually face higher costs due to increased risk.

Family Health History

A family history of certain illnesses can lead to higher premiums, as it may suggest a hereditary risk for similar conditions.

Lifestyle Habits

Lifestyle choices, such as smoking or excessive alcohol consumption, lead to higher premiums because they negatively affect health.

Profession

Jobs with higher risks, such as those in defence, aviation, or mining, result in increased premiums due to associated dangers.

How Is Life Insurance Premium Calculated?

Apart from the factors covered above, the life insurance premium is calculated by also taking into account the chosen sum assured, policy duration, and payment term. Adding riders will increase the premium, as each rider incurs an extra cost.

Some discounts may be available, particularly for women, such as annual premium payments, online purchases, and more, which can lower the overall premium.[25]

You can estimate your premium using online life insurance calculators by providing details like:

  • Date of birth (for age)

     

  • Gender

     

  • Job title

     

  • Previous medical condition

     

  • Family health background

     

  • Habits related to health (e.g., tobacco use)

     

  • Selected insurance plan

     

  • Coverage amount

     

  • Policy duration

     

  • Premium payment period

     

  • Frequency of payment

     

  • Selected add-ons

     

  • Promotional offers, etc.

     

Should I Buy More Than One Insurance Policy?

Acquiring more than one life insurance policy can be beneficial, especially as your financial responsibilities grow. Initially, a young professional may start with a single, affordable policy. However, life changes such as marriage and family expansion often necessitate additional coverage to ensure adequate financial protection for loved ones.[16]

For example, rather than cancelling an existing policy, it can be wise to purchase a new one with a higher sum assured. Although premiums may rise with age, maintaining an existing policy alongside a new one typically results in lower overall costs for the same coverage.

While having multiple policies can provide better protection, it's crucial to avoid being under-insured or over-insured. Assess the claim settlement ratio of insurance providers to ensure reliability. Balancing insurance with investment is essential, as insurance primarily offers protection, whereas investments build wealth. Products like ULIPs may offer both, but careful research is necessary.

Understanding the Life Insurance Coverage Amount

The life insurance coverage amount, or sum assured, is the financial protection provided to beneficiaries in the event of the policyholder's death. It's essential to choose an adequate coverage amount to ensure that your loved ones are financially secure and can meet their needs after your passing. If the life insurance coverage is inadequate, the family may not receive the essential financial support they require. A limited benefit will only address some of their needs, diminishing the effectiveness of the life insurance plan.

How Much Life Insurance Coverage Do I Need?

When considering how much life insurance coverage you require, various methods can help pinpoint the appropriate amount.

  1. Basic Calculation Method: A straightforward approach suggests that your life cover should be 10 to 12 times your annual income. This gives a solid starting point for determining your needs.[17]
  2. Underwriters’ Rule: This method modifies the basic calculation based on your age. Younger individuals often need a higher multiple of their income, which gradually decreases as they age. For example, someone in their 20s may require 15 times their annual income, while a person over 56 may only need six times.[17]
  3. Here's an overview of the varying income multiples based on different age ranges–

    Age bracket (in years)

    Multiple of annual income

    20 - 30

    15

    31 - 40

    14

    41 - 45

    12

    46 - 50

    10

    51 - 55

    8

    56 and above

    6

  4. Human Life Value (HLV): The HLV method evaluates the financial value you provide through your income. If you earn ₹10 lakhs annually, your family relies on that income. To ensure your family continues to receive ₹10 lakhs each year, a corpus of ₹1.67 crores would be needed, assuming a 6% return. Thus, the ideal life cover should be around ₹1.67 crores.[17]
  5. Income Replacement Approach: This method assesses the total income you’d generate until retirement. If you earn ₹7 lakhs a year and plan to work for another 30 years, the total potential earnings would amount to ₹2.1 crores, which should be reflected in your life insurance coverage.[18]
  6. Expense Replacement Calculation: This approach calculates how much coverage is needed to cover your family's living expenses and any liabilities. By totalling these expenses and subtracting your assets and existing insurance, you can determine the coverage gap.[18]

To simplify the process, consider using an online term insurance calculator. Input your details, and it will provide a tailored coverage recommendation in minutes.

Types of Life Insurance Riders Available in India

In India, various life insurance riders enhance the coverage of standard policies. Here’s a brief overview of the types of riders available[27]:

Rider Type

Coverage Provided

Accidental Death Benefit Rider

This rider provides additional benefits in case the insured dies due to an accident during the policy term, alongside the basic death benefit.

Accidental Death and Disablement Benefit and partial /Ttotal Disability Bbenefit Rider

It refers to disability resulting from a bodily injury sustained in an accident, defined as a sudden, unforeseen, and involuntary event caused by external and visible factors. This injury must lead to the member's disability solely, directly, and independently of any other cause within 180 days of its occurrence. Similar to the previous rider, this option also covers permanent disability resulting from an accident. The benefits are determined by the extent of the disability, and it may include compensation for temporary disabilities, paid weekly for a limited duration.

Critical Illness Rider

This rider pays out a lump sum if the insured is diagnosed with any specified critical illness covered in the policy.

Premium Waiver Rider

With this rider, the premium payments are waived if the insured becomes disabled or if the policyholder dies while the insured is alive. The insurance company continues to pay the premiums, keeping the policy active without disruption.

Term Rider

This rider offers additional coverage against premature death during the policy term, paying out the rider benefits in addition to those from the base policy.

Family Income Benefit Rider

Under this rider, the sum assured is disbursed as regular income for a specified period, providing ongoing financial support to the family.

Terminal Illness Rider

If the insured is diagnosed with a terminal illness, this rider allows access to a portion of the sum assured early, helping to alleviate financial burdens. It’s also known as the accelerated death benefit rider.

These riders help enhance your life cover, providing financial security against unforeseen circumstances.

 

How Can Your Family File for a Life Insurance Claim?

Filing a life insurance claim after losing a loved one can feel overwhelming, but the process is straightforward if you follow a few key steps. Here’s how to do it[19]:

  1. Identify the Life Insurance Company: First, determine which company issued the life insurance policy. Check the deceased’s records, bank statements, or even contact their previous employer if they had a group policy. You can go to Insurance Regulatory and Development Authority of India (IRDAI) to file for complaint or make enquiries.
  2. Obtain the Death Certificate: A certified death certificate is necessary for the claim. You can usually get this from the local health department, or the funeral home may assist you.
  3. File the Claim: Once you have the death certificate, contact the insurance company. Most companies allow claims to be filed online or directly. You’ll need to provide information like the insured's name, date and cause of death, insurance policy documents and your details.
  4. Choose a Payout Option: After the claim is approved, select how you want the payout—either a lump sum, specific income over time, or life income.

Typically, life insurance claims are processed within 7-10 business days, ensuring timely financial assistance during a difficult time.

How Can You Save Tax with a Life Insurance Policy?

Life insurance policies offer multiple tax-saving benefits:

  1. Premium Deduction: You can claim a deduction on the premium paid for life insurance under Section 80C of the Income Tax Act under old regime. The maximum limit for deduction is ₹1.5 lakhs. For example, if you pay a premium of ₹1 lakh and fall under the 20% tax bracket, you could save up to ₹20,000 in taxes.
  2. Tax-Free Death Benefit: The death benefit paid under a life insurance policy is entirely tax-exempt, ensuring your family receives financial support without tax concerns.
  3. Tax-Free Maturity Payouts: If your life insurance plan meets specific conditions of section 10 (10D), the maturity proceeds are also tax-exempt under Section 10(10D).
  4. ULIPs: In Unit Linked Insurance Plans (ULIPs), you can enjoy tax-free partial withdrawals[22] and tax-free switches[21] between investment funds, optimising returns without additional taxes subject to satisfaction of Section 10(10D) conditions.
  5. Pension Plans: Additionally, if you invest in deferred pension plans, the commuted value of the pension is also tax-free under Section 10(10A)[20].

Understanding these terms can help you make an informed decision when choosing the right life insurance plans for your needs.

How To Avoid Claim Rejection?

To avoid life insurance claim rejection, it's essential to follow a few key steps when purchasing and managing your life insurance plans[23].

  1. Complete Documentation: One of the primary reasons for claim rejection is incomplete or incorrect documentation. Make sure to submit all required documents, including a correctly filled claim form, medical reports, and any other necessary paperwork. Keeping documentation up-to-date ensures a smoother claims process.
  2. File a Claim Promptly : In case a claimable incident that is included in the policy occurs, you (or your nominee, as the case may be) should file an insurance claim promptly. The incident may be an accident, illness, or loss of life. Insurance companies usually have specific timeframes within which claims must be reported, and delaying the claim submission may give the insurer grounds to reject it.
  3. Disclose Pre-Existing Conditions: Failing to disclose pre-existing medical conditions can result in claim rejection. When buying a life insurance policy, be honest about your health history. Full disclosure builds trust with your insurer and helps avoid complications later.
  4. Understand Policy Exclusions: Every life insurance plan has exclusions, which are situations the policy does not cover. Review the exclusions carefully so you are aware of the limitations. This knowledge helps you avoid filing claims for conditions that aren't covered.
  5. Pay Premiums on Time: A lapsed policy due to missed premiums offers no coverage. Set up reminders or automatic payments to ensure you don't miss any deadlines.

By staying informed and managing your life insurance responsibly, you can significantly reduce the chances of claim rejection and get the most out of the best life insurance plan.

Bajaj Allianz Life Insurance Plans

  • Term Insurance Plans
  • Unit Linked Insurance Plans
  • Retirement Plans
  • Group Life Insurance
  • Child Plans
  • Investment Plans
  • Savings Plans

Dos and Don'ts of Life Insurance Plans

Life insurance is a crucial step in securing your family's future. To make the most of your life insurance policy, here are some important dos and don’ts to keep in mind[24]:

Dos:

  1. Understand Your Needs: Reflect on why you need life insurance and what you hope to achieve with it.
  2. Seek Advice: Take your time to gather information about different policies. Ask questions about premiums, payment frequencies (like annual or quarterly), and payment methods (like ECS for convenience).
  3. Fill Out Forms Carefully: Complete the proposal form truthfully and thoroughly. Ensure that all information is accurate to avoid issues later. Don't forget to include nomination details and understand every question.
  4. Keep Records: Maintain a copy of your completed proposal form and any agreed-upon terms for your records.
  5. Ask About ULIPs: If considering Unit Linked Insurance Policies, inquire about fees, fund options, switching funds, and benefits for discontinuing the policy.

Don’ts:

  1. Don’t Leave Gaps: Ensure no sections of the proposal form are left blank.
  2. Don’t Let Others Fill It Out: Always fill out the form yourself.
  3. Don’t Conceal Information: Be honest; hiding facts can lead to claim disputes.
  4. Don’t Delay Payments: Always pay your premiums on time to keep your policy active.

Conclusion

In summary, life insurance is more than just a policy; it’s a commitment to your family’s future. By choosing the right insurance policy, you can ensure that your loved ones are shielded from financial hardships, allowing them to maintain their standard of living and pursue their dreams even in your absence. It’s essential to assess your needs, understand the options available, and make informed choices. Investing in a life insurance policy not only provides financial security but also offers peace of mind, knowing you have taken the necessary steps to protect what matters most. Embrace the future with confidence, knowing your family is safeguarded.

Why Bajaj Allianz Life Insurance?

Bajaj Allianz Life, one of India's leading Private Life Insurers, is committed to offering value-packed and innovative products to help you achieve your Life Goals.

99.23%

Claim Settlement Ratio~

1 Day

Get 1 Day Claim Approval%

AAA

Stable Rating by CARE$

₹1,21,338 Cr

Assets Under Management (AUM)**

4.09 Cr

Number of Lives Covered#

432%

Solvency Ratio of 432%^

Disclaimer:~Individual Death Claim Settlement Ratio for FY 2023-2024 | %96.70% of non-investigative individual claims approved in one working day for FY 2023-24. 1 day is counted from date of intimation of claim before 3 PM on a working day (excluding Non-NAV days for ULIP) at Bajaj Allianz Life offices | $For details refer to press release published by CARE | **All figures as on 31 August 2024 | ^Solvency ratio 432% as at 31 March 2024 against IRDAI mandated 150% | #Individual & Group.

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reference:

  1. https://www.investopedia.com/terms/l/lifeinsurance.asp#toc-how-life-insurance-works
  2. https://policyholder.gov.in/why-buy-life-insurance
  3. https://economictimes.indiatimes.com/wealth/insure/other-risk-covers/decoding-the-importance-of-term-insurance-at-every-stage-of-your-life/articleshow/107332072.cms
  4. https://www.forbes.com/advisor/in/life-insurance/what-women-should-know-before-buying-life-insurance/
  5. https://cleartax.in/s/life-insurance#types
  6. https://incometaxindia.gov.in/Tutorials/20.%20Tax%20benefits%20due%20to%20health%20insurance.pdf
  7. https://cleartax.in/s/life-insurance-taxability
  8. https://www.forbes.com/advisor/in/life-insurance/types-of-life-insurance-in-india/
  9. https://policyholder.gov.in/how-to-buy-life-insurance-and-from-whom
  10. https://www.forbes.com/advisor/life-insurance/payout-options/
  11. https://mintgenie.livemint.com/news/personal-finance/5-types-of-documents-you-require-for-a-term-life-policy-151658895726106
  12. https://nios.ac.in/media/documents/VocInsServices/m3-f2.pdf (page 4)
  13. https://www.forbes.com/advisor/in/life-insurance/how-to-select-a-life-insurance-policy-to-protect-yourself/
  14. https://www.fbfs.com/learning-center/8-factors-that-can-affect-life-insurance-premiums
  15. https://incometaxindia.gov.in/Tutorials/20.%20Tax%20benefits%20due%20to%20health%20insurance.pdf
  16. https://www.financialexpress.com/money/insurance-should-you-buy-more-than-one-life-insurance-policy-1880267/
  17. https://economictimes.indiatimes.com/wealth/insure/how-much-life-insurance-do-you-really-need/articleshow/22065416.cms?from=mdr
  18. https://www.livemint.com/money/personal-finance/four-methods-to-calculate-how-much-term-insurance-you-need-11605023306997.html
  19. https://www.forbes.com/advisor/life-insurance/how-to-make-claim/
  20. https://www.livemint.com/Money/5IsLVaWyp2y0e6pt6b3qPN/Commuting-your-pension-money.html#:~:text=As%20per%20rules%2C%20a%20pension,the%20annuity%20income%20is%20taxable
  21. https://cleartax.in/s/unit-link-insurance-plan-ulip
  22. https://economictimes.indiatimes.com/partial-withdrawal-from-life-insurance-policy-reduces-sum-assured/tomorrowmakersshow/74808189.cms
  23. https://www.newsbytesapp.com/news/business/navigating-insurance-claims-rejection-in-india/story
  24. https://policyholder.gov.in/dos-and-don-ts-for-life-insurance
  25. https://www.investopedia.com/terms/i/insurance-premium.asp
  26. https://economictimes.indiatimes.com/wealth/insure/how-to-pay-life-insurance-premium/articleshow/53350701.cms
  27. https://economictimes.indiatimes.com/wealth/personal-finance-news/how-to-enhance-your-life-insurance-policy-through-riders/articleshow/14420001.cms
Disclaimers:
Plus Symbol
Minus Symbol

IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER

The Unit Linked Insurance Products do not offer any liquidity during the first five years of the contract. The policyholder will not be able to surrender or withdraw the monies invested in Unit Linked Insurance Products completely or partially till the end of the fifth year.

ULIPs are different from the traditional insurance products and are subject to the risk factors. The premium paid in ULIPs are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns.

Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.

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I hereby authorize Bajaj Allianz Life Insurance Co. Ltd. to call me on the contact number made available by me on the website with a specific request to call back. I further declare that, irrespective of my contact number being registered on National Customer Preference Register (NCPR) or on National Do Not Call Registry (NDNC), any call made, SMS or WhatsApp sent in response to my request shall not be construed as an Unsolicited Commercial Communication even though the content of the call may be for the purposes of explaining various insurance products and services or solicitation and procurement of insurance business

 

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Disclaimer

Bajaj Allianz Life eTouch- A Non Linked, Non-Participating, Individual Life Insurance Term Plan (UIN: 116N172V04)

*Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.Above Tax benefit is calculated considering deduction of Rs. 150,000 and applicable tax rate of 31.20%.

~Individual Death Claim Settlement Ratio for FY 2023-2024

1Premium Holiday has to be selected at inception to avail this benefit and also depends on other policy terms & conditions


Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

Bajaj Allianz Life Term Insurance with tax benefit up to Rs 46,800

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Bajaj Allianz Life Term Insurance with tax benefit up to Rs 46,800*
99.23% Claim Settlement Ratio~
Premium Holiday1
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