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    Term Insurance Plans From Bajaj Allianz Life

    Term insurance is one of the most affordable way to keep your family’s life goals on track in case you are not around to provide for them or life takes an untoward turn.

    Term insurance plans from Bajaj Allianz Life
    Bajaj Allianz Life Smart Protect Goal

    Bajaj Allianz Life Smart Protect Goal

    Bajaj Allianz Life  eTouch Online Term

    Bajaj Allianz Life eTouch Online Term

    Bajaj Allianz iSecure

    Bajaj Allianz iSecure

    Bajaj Allianz Life Smart Protect Goal

    Bajaj Allianz Life Smart Protect Goal

    Bajaj Allianz Life  eTouch Online Term

    Bajaj Allianz Life eTouch Online Term

    Bajaj Allianz iSecure

    Bajaj Allianz iSecure

    Bajaj Allianz iSecure More

    Bajaj Allianz iSecure More

    Bajaj Allianz iSecure Loan

    Bajaj Allianz iSecure Loan

    Bajaj Allianz Life Secure

    Bajaj Allianz Life Secure

    Bajaj Allianz LifeStyle Secure

    Bajaj Allianz LifeStyle Secure

    What Is Term Insurance Plan

    What Is Term Insurance Plan

    Term insurance is the simplest and one of the most affordable types of life insurance plans. Term insurance provides financial protection in the event of the sudden demise of the policyholder. If you take a detailed look at what is term insurance, it is a formal agreement between the insurer and the policyholder that guarantees a pre-decided amount to the nominee of the policyholder in the event of his/her death. The policyholder has to pay the premiums without fail to keep the term insurance plan active.

    Along with financially securing the policyholder’s family, term insurance plans can also be used to fulfil the future needs of the children like education and marriage. Some term insurance plans offer optional coverage for critical illness and partial or complete disability as these can disrupt the regular income of the life assured. It is important to understand how term insurance plans work. Term insurance doesn’t offer maturity benefits and the plan ceases to exist after the expiry of policy term.

    Why You Should Buy Term Insurance

    With the risk to life rising considerably in the modern world, term insurance plans have become a necessity. Term insurance forms a protective ring around your family. Here is why term insurance plans are important

    Takes care of responsibilities

    Takes care of responsibilities

    The risk to your life makes your family vulnerable. Being an earning member, any unforeseen incident can disrupt the financial stability of your family.

    A term insurance plan ensures that your family does not have to compromise with their lifestyle in your absence. The payout from a term plan can be used to meet the monthly expenses of the household.

    The sum assured can also be utilised to fulfil the crucial life goals of your children like schooling and higher education.

    Protects Assets

    Protects Assets

    The comforts of the modern world may often lead to an accumulation of debt. Home loan, car loan or other forms of debt are easily serviceable but can turn into a liability for your family if you are not around.

    Delay in the payment of instalments could lead to a loss of assets. With term insurance, you can live a stress-free life and have peace of mind with the knowledge that your family will be able to protect the assets even in your absence.

    The sum assured guaranteed by term insurance plans could be used to pay off the debt or make timely payments to service it.

    Mitigates lifestyle risks

    Mitigates lifestyle risks

    Sedentary lifestyle, stress, consumption of unhealthy food and other lifestyle changes have led to a rise in the instances of various diseases and ailments that were not so common earlier.

    Besides being life-threatening, lifestyle diseases can take a heavy toll on your pocket. Along with death benefit, term insurance plans also offer protection against critical illnesses.

    The policyholder is paid a pre-decided sum on the diagnosis of a critical illness.

    Term Insurance Benefits

    1. 1

      Affordable

      Term insurance is one of the most affordable life covers available in the market. It ensures high coverage at low term insurance premiums. A term insurance plan doesn’t have any investment component and the entire premium goes into providing life cover. The simple structure of the term insurance results into a high cover at a relatively lower premium.

    2. 2

      Return of premium option

      Term insurance doesn’t have maturity benefits and only pays on the death of the policyholder. Some term insurance plans, however, return the premium at the end of the policy term. Investors of term insurance with return of premiums get back the premiums paid during the policy term at the end of the tenure as per the conditions mentioned under the product. The amount can be used to achieve life goals like buying a car, dream home or provide for child’s education. One of the term insurance benefits is that you get life cover for the entire policy term and get back the premiums paid at the end of the policy term.

    3. 3

      Flexibility in premium payment

      Paying all the premiums on time is a prerequisite to keep a term insurance plan active. The premiums have to be paid without fail but insurance companies offer ample flexibility in the payment frequency of term insurance premiums. The premiums can be paid on a monthly, quarterly, half-yearly or annual basis as per the product terms and conditions. Term insurance benefits include the option to pay premiums for a limited period as per the product terms and conditions. Limited premium payment term plans offer the option to pay the premiums for a limited period but the coverage continues for a longer period.

    4. 4

      Death Benefit

      Term insurance plans are flexible products and policyholders can choose from multiple options to receive the death benefit . Typically, term insurance plans pay the sum assured as a lump-sum amount, but many plans offer the option to receive the sum assured in instalments. The loss of an earning member can disturb the monthly income inflow. The instalment option can be used for income replacement. It helps the family take care of the daily expenses, protect assets and achieve life goals.      

    5. 5

      Flexible policy terms

      The insurance needs of people vary with occupation, family, liabilities and life goals. Term insurance plans provide protection for a specified term. Some people require cover for a longer period while some need for a shorter duration. Term insurance offers complete flexibility in the tenure of the policy.

    6. 6

      Pays off liabilities

      Achieving life goals could lead to the accumulation of liabilities over a period. For instance, a major life goal such as buying a house on loan can lead to the addition of long-term liability. The repayment tenure of a home loan can stretch to over 25 years. In the event of an unfortunate incident, your family may be stranded with a heavy liability burden. Term insurance plans can help your family pay off all the liabilities with ease and lead a life of dignity. The probability of failure to pay off the liabilities seldom comes to the mind while taking a fresh loan, but it is crucial to protect your family through a term insurance plan. Hence it is wise to plan your cover in a manner that all liabilities are taken care of and your loved ones are secure in your absence.

    7. 7

      Online availability

      With the advent of the internet, a number of products and services have been digitised. Accessing online or buying a financial product through the internet substantially increases the convenience for the customers. In a few clicks, you can buy an online term insurance plan and pay your premium from the comfort of your home. Renewing a term plan has also become extremely convenient and easy. Along with buying a new plan, you can also renew your existing plan online. Primary aim of an online term policy is convenience and affordability. Online term plans are usually cheaper as they do not have any commission costs included. .

    8. 8

      Tax benefits

      Even though the primary aim of buying a term insurance plan is to protect the financial future of your family, it also provides certain tax benefits. Term insurance tax benefits range from a tax deduction for the premiums paid to tax exemption on the sum assured. The premiums paid for term insurance plans are eligible for a tax deduction of up to Rs 1.5 lakh in a year under Section 80C of the Income Tax Act, 1961, subject to provisions stated therein. Additionally, any amount received through the policy maturity, surrender or on the death of the life assured is tax-exempt under Section 10 (10D) of the Income Tax Act, subject to provisions stated therein.

    9. 9

      Critical illness cover

      Term insurance plans generally come with optional riders that provide additional cover for certain incidents at a nominal extra cost. One of the term insurance rider benefits is the optional coverage for critical illnesses. With the rising cost of medical care, the treatment of serious diseases can take a heavy toll on the pocket. The critical illness cover pays a lump-sum amount on the diagnosis of illnesses like heart, kidney, liver and such other diseases as mentioned under rider terms and conditions. The amount received through such a rider cover can be used for various diseases-related expenses. It acts as an income replacement tool as critical illnesses can lead to a temporary or permanent loss of livelihood.

    10. 10

      Disability cover

      Many term insurance plans offer an optional cover for partial or total disability. A disability can disrupt the normal course of life and could lead to a loss of income, which can make paying term insurance premiums difficult for policyholders. The disability rider ensures that the insurance cover for the specific rider is paid in lumpsum to the policy holder during a contingency.

    How To Choose The Best Term Insurance Plan For Yourself?

    Term insurance is not just a financial product but the key to your family’s financial stability. It is important to choose the right term insurance policy. Here are a few points to consider before you buy the suitable term insurance plan for yourself.

    • Insurance cover

      Insurance cover

      The insurance needs of everyone is different. Just because your colleague bought a term insurance policy with a cover of Rs 1 crore, doesn’t mean you will buy a plan with a similar amount. One should take into account all his/her assets and liabilities before deciding the term insurance cover. The primary aim should be to ensure an amount so that your family doesn’t have to modify their lifestyle in your absence.

       

    • Claim settlement ratio

      Claim settlement ratio

      The function of a term insurance policy is to pay the nominee(s) the sum assured in the event of the policyholder’s demise. However, how do you ensure that your family gets the death benefit? The claim settlement ratio of the insurance company can provide vital signs. The claim settlement ratio is the percentage of claims settled by an insurer compared to the total number of claims received by it in a year. Hence higher the claim settlement ratio of the company, better is the chance of your family receiving the claim amount.

    • Premiums

      Premiums

      The insurer is liable to pay the sum assured only if the policyholder pays all the term insurance premiums without fail. It is important to choose a premium that you will be comfortable to pay for the entire premium payment term. The frequency of the premium payment also needs to be decided. Term insurance premiums can be paid on a monthly, quarterly, half-yearly and annually basis the product terms and conditions. The premiums are lower when you are young as the risks involved are less. It is advisable to buy a term insurance policy at a young age to gain from lower premiums and stay protected for a longer term.

       

    • Terms and conditions

      Terms and conditions

      Term insurance plans are relatively simple products but every financial product has certain terms and conditions. When you decide to buy term insurance, do not forget to read the policy document in detail. The policy documents have all the terms and conditions of the term insurance policy. The terms and conditions state all the exclusions of the policy and it is crucial to have an idea of all the exclusions to avoid confusion later.

    • Payout options

      Payout options

      Some Insurance companies offer a variety of payout options with term insurance policies. The flexibility in payout should be taken into account before you buy term insurance. One can opt for a lump-sum payment or a monthly income payout depending on his/her needs. The monthly payout options work as an income replacement tool and could help the family members take care of their daily needs in your absence.

       

    Common Terminologies under Term Insurance

    It is critical to understand what is a term insurance policy, before deciding to buy one. There are certain terms associated with term insurance that may confuse investors. Here are some common terms related to term insurance plans that will help you make informed decisions.

    • Policy Term

      1. Policy Term

      Every term insurance plan has a specific duration which is known as the policy term i.e. the duration till which your policy will be active provided you are paying your premiums on time.

    • Premium Amount

      2.Premium Amount

      The policyholder has to pay a certain amount to the insurer in lieu of  the life cover provided under the term insurance plan. This amount is known as term insurance premium. If the policyholder fails to pay the term insurance premium within the due date, the insurance company provides a grace period. A failure to pay even during the grace period leads to the lapsation of the policy.

    • Premium Payment Term

      3.Premium Payment Term

      Insurance companies provide substantial flexibility in the frequency of premium payment. There are multiple premium payment options depending up on the product terms and conditions.

      • Single premium payment: The entire premium for the policy can be paid as a lump sum amount in one go.
      • Regular premium payment: The term insurance premium payment term stretches for the entire policy term. The premiums have to be paid at regular intervals i.e. monthly, quarterly, half-yearly or annually basis the product terms and conditions.
      • Limited premium payment: Term insurance premiums have to be paid for a specific duration while the coverage under the policy extends for a longer duration.
    • Riders

      4.Riders

      Term insurance plans can offer a number of riders, which enhance the coverage of the plan at an additional extra cost. Some of the common term insurance riders are:

      • Critical illness rider
      • Accidental death benefit rider
      • Waiver of premium
      • An accidental total disability rider
    • Grace period

      5.Grace period

      In case you fail to pay the premium on time, the insurer doesn’t cancel the policy immediately. A grace period is provided to the policyholder to make the payment. Typically, a 15-day grace period is given for regular monthly premium payment, while a policy with annual or other premium payment frequency have a 30-day grace period.

    • The Life Assured

      6.The Life Assured

      The individual who is covered under the term insurance plan is known as the life assured. The insurer pays the sum assured to the nominees on the death of the life assured.

    • Death Benefit

      7.Death Benefit

      The amount paid to the beneficiaries of a term insurance policy in the event of the life assured’s death is known as the death benefit.  For instance, if a term insurance policy has a cover of Rs 50 lakh, then Rs 50 lakh is the sum assured paid as death benefit to the nominee of the policy holder.

    • Maturity Benefit

      8.Maturity Benefit

      Term insurance doesn’t provide any maturity benefits. The policyholder doesn’t get anything if he/she outlives the policy. However, term plans with return of premium benefit pay the total premiums at the end of the policy term as maturity benefit.

    • Free Look period

      9.Free Look period

      As a measure of transparency, insurance companies provide a free look period. During this period you can cancel the policy without paying any penalty. The free look acts as a window of cancellation for the policyholder if he/she doesn’t agree with the terms and conditions of the policy. The free look period for policies sourced through offline mode is 15 days whereas it is 30 days in case of distance marketing.

       

    Who Should Buy A Term Insurance Plan?

    With the threat to human life rising through new types of diseases and accidents, term insurance has become a necessity. Anyone who contributes to the household income should have a term insurance plan as his/ her absence can be damaging for the financial stability of the family. It includes people ranging from youngsters and newly married couples to businessmen. Term insurance also provides a host of tax benefits and is one of the most affordable life insurance product. Term insurance plans offer triple benefits—financial protection, tax benefits and lower premiums. A wide variety of people can gain from buying term insurance.

    1. Newly-Married

      Newly-Married

      Marriage is a commitment based on the bond of love. Both the spouses are responsible for the wellbeing of each other after marriage. Term insurance not just ensures monetary support but guarantees a financially stable future. One should buy term insurance, such as a joint term insurance policy, as soon as he/she ties the nuptial knot. It guarantees financial support in the event of the unfortunate death of a spouse.

    2. Parents

      Parents

      Becoming a parent is a transformative experience. It brings unparalleled happiness in the family. It also increases responsibilities, as parents are the only source of monetary support for the children until they start earning. The loss of a parent is emotionally traumatic but it can also have a negative impact on the financial wellbeing of the child. Children are dependent on their parents from schooling to higher education. As a parent, it is your duty to protect the future of your children. A term insurance plan ensures that your children get a level playing field from financial point of view even in your absence and they are not deprived of any opportunities.

    3. Working Women

      Working Women

      The participation of women in the workforce has increased considerably in the last few decades. It has brought women on par with men when it comes to household finances. In many homes, women are contributing equally to the household income. While it has improved income, it has also increased the importance of women’s income in the household. Working women should consider buying term insurance so that their family doesn’t face financial difficulties in their absence. The payout from a term insurance plan will help take care of regular expenses as well as liabilities like home loan, car loan, etc. Term insurance also offers optional critical illness cover for diseases like breast cancer and heart ailments.

    4. Young Professionals

      Young Professionals

      The first job is always memorable. It marks the starting of a financially independent journey. The responsibilities on young professionals is also low, which can help them save a higher proportion of income. One can get term insurance at lower premiums while one is young. The availability of funds and the affordability of term insurance at a young age makes it a compelling combination. Buying a term insurance policy at a young age can be beneficial as the premiums remain constant once the policy is bought. Buying a term plan with similar coverage at a later stage of life will cost more.

    5. Taxpayers

      Taxpayers

      Every eligible citizen has to pay taxes to the government. While paying taxes honestly is desirable, one can reduce his/her tax liabilities by buying a term plan. Term insurance premiums up to Rs 1.5 lakh in a year is eligible for deduction under Section 80C of the Income Tax Act, 1961. The death benefit of a term plan is exempt from income tax under Section 10 (10D) of the income tax law. These tax benefits are subject to the terms and conditions contained in the Income Tax Act, 1961.

    6. Self-employed

      Self-employed

      The income pattern of self-employed people is vastly different from that of salaried individuals. The income fluctuates according to the business conditions.. They may also have outstanding debt for business or personal loans. Having a term insurance plan becomes more important for self-employed people. It provides financial protection to your family in your absence and helps in taking care of all the outstanding liabilities.

    7. SIP investors

      SIP investors

      Systematic investment plans have become a popular option to create wealth in the long run. SIP investors contribute small amounts at regular intervals to accumulate wealth over a long period. In the event of the sudden demise of the breadwinner, the continuation of SIP instalments becomes difficult. A term plan can help your family members continue SIP payments and achieve planned life goals.

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    Types Of Term Insurance Plans In India

    There are various types of term insurance plans in India to cater to a wide variety of customers.

    1

    Level term plan

    The level term plan is one of the simplest types of term insurance. The sum assured of a level term plan remains constant throughout the policy period. In case of death of the policy holder during the policy term, the nominee receives the benefits.

    2

    Basic term insurance plans

    As the name suggests, the term insurance is the most popular type of term plan and hence the most common. The insurance company promises to pay a sum assured in the event of the life assured’s death. The policyholder has to pay a term insurance premium to receive the benefits. It generally provides protection for a year in return of an annual premium.

    3

    Term plan with return of premium

    The term insurance return of premium plan is like other term plans, but with a major difference. It provides protection for the duration of the policy term and pays all the premiums back at the end of the term if the life assured outlives the policy term. Other term plans terminate at the end of the policy term and do not pay anything. The  premiums that the policyholder gets back at the end of the policy term can be used to achieve financial goals.

    4

    Group term insurance plans

    Among all the term insurance plans in India, the group term insurance plan is the most distinct one. It is designed to cater to the needs of businesses, corporates, associations and societies. A group term insurance provides protection to all the members of a group and ensures similar benefits for all. Group term insurance cover is generally offered by corporates as an incentive to their employees.

     

    5

    Increasing term insurance plans

    Contrary to level term insurance plans, the cover and the premiums of increasing term insurance plans increase over the policy term. The increasing cover is helpful in offsetting the impact of inflation which erodes the value of the sum assured over time. The cover of increasing term insurance increases until it is equal to 1.5 times of the original cover.

    6

    Decreasing term insurance plans

    The insurance cover of a decreasing term insurance plan gradually reduces over the policy term. Decreasing term plans are generally taken to protect against outstanding debt. The rationale behind decreasing term plans is that the debt burden decreases with time and so does the need for a large insurance cover. The premiums of decreasing term plans remain constant over the policy term but are cheaper than other types of term insurance plans in India. Decreasing term insurance provides family members of the policyholder the ability to pay off the debt in his/her absence and offer tax benefits.

    7

    Joint term insurance plans

    A joint term insurance plan covers two members under the same plan. It is cheaper to buy a joint term insurance plan than to buy two separate insurance plans. It provides the same benefits to both the members. Joint term plans are ideal options for couples with children as it provides financial protection to the child in the event both the parents pass away.

    8

    Offline and online term plans

    The distinction between offline and online term plan is on the basis of medium of the transaction rather than the structure of the plan. Offline term insurance plans are sold through traditional mediums like agents and branch offices while online term plans are provided through web portals. Online term plans are cheaper as compared to offline term plans because the cost of intermediaries like agents gets eliminated.

    Why Buy Term Insurance Plans From Bajaj Allianz Life?

    An investment in term insurance is the key to a stable financial future. It is important to have a credible partner for a product as critical as a term plan. Bajaj Allianz Life provides a host of unparalleled advantages.

    1

    High claim settlement ratio

    The claim settlement ratio is an important factor to consider before buying a term plan. Bajaj Allianz Life has a claim settlement ratio of 98.02%. ~

    2

    Vast network

    Bajaj Allianz Life has a vast network of 556 branches1 across the country. The physical branches, along with a user-friendly web portal caters to a large number of customers.

    3

    Product Variety

    Bajaj Allianz Life has a comprehensive product portfolio designed to cater to a wide variety of people. Term plans from Bajaj Allianz Life offer various features like whole life cover, critical illness rider and other optional benefits like accidental disability rider and waiver of premium benefit and many more. You can check out our Term Insurance Plans to know more.

    4

    Prompt Settlement (1 Day Claim Approval2)

    The loss of a family member can be emotionally and monetarily disturbing. A delay in the settlement can be taxing for the family members of the policyholder. Bajaj Allianz Life offers 1-day claim approval on eligible policies.

    ~Individual Claims Settlement Ratio FY 2019-20. | 1Source: Bajaj Allianz Fact Sheet, FY 2019-20. | 287% of non-investigative individual claims approved in one working day for FY 2019-20. 1 day is counted from date of intimation of claim before 3PM on working day (excluding NON -NAV days from ULIP at Bajaj Allianz Life offices.

    How To Buy Term Insurance Online?

    The digitisation of financial services has made it very easy to buy term insurance online. From visiting branches to standing in long queues, online term insurance plans have changed the sector dramatically. In a few simple steps, you can buy term insurance online.

    Step 1

    Step 1

    Start with calculating the term insurance premium of the policy you plan to buy using a term insurance calculator.

    Step 2

    Step 2

    Fill up the application form with all the details like name, date of birth, address, etc.

     

    Step 3

    Step 3

    Submit the required documents and review the application form. If all the details have been correctly filled, make the payment.

    Documents required to buy Term Insurance

    While it is easy to buy term insurance, one nevertheless needs to submit a few documents to complete the transactionHere is the list of documents required to buy term insurance.

    Age Proof

    Age Proof

    You can submit PAN card, Voter ID, driving license, school/college certificate, etc

    Address proof

    Address proof

    Utility bill, passport, Voter ID, Aadhar card, ration card, etc

    Photo Identity Proof

    Photo Identity Proof

    PAN card, Aadhar card, driving license, Voter ID

    Picture

    Picture

    Passport size photographs

    Income Proof

    Income Proof

    You can submit salary slip, income tax return, employer’s certificate or Form 16 as income proof

     

    Medical Reports

    Medical Reports

    The insurance company could also ask for a medical certificate.

    Why choose Bajaj Allianz Life - Smart Protect Goal Term Insurance Plan

    There are a number of term insurance benefits, but not all term plans offer them. Bajaj Allianz Life – Smart Protect Goal Term Insurance Plan is a non-linked, non-participating, pure life term insurance plan. The plan provides a number of benefits under a single plan. Here are some of the term insurance benefits:

    1. Multiple variants

      The Bajaj Allianz Life Smart Protect Goal Term Insurance Plan has four variants to cater to a wide variety of needs. The plan offers life cover, child education extra cover variant, life cover with joint-life variant and increasing life cover variant.

    2. Return of premium

      One can opt for the return of premium option under the life cover variant. At the end of the policy term, you will get back all the premium paid over the term of the policy.

    3. Whole life cover

      The life cover variant also has the whole life cover option that provides coverage for till the age of 99. The whole life version has a limited premium payment term. However, the return of premium is not available with the whole life option.

    4. Critical illness cover

      The critical illness cover with Bajaj Allianz Life Smart Protect Goal Term Insurance Plan provides protection against 55 major and minor critical illnesses.

    5. Multiple add-ons

      The policy gives the option to choose from multiple term insurance add-on covers. The add-on covers available with the policy are an accidental death benefit, accidental total permanent disability benefit and waiver of premium benefit.

    6. Child education extra cover

      Provides additional cover equivalent to 10%-100% of the base cover for child’s educational expenses in case of the life assured’s death.

    7. Spouse cover

      The policy allows the addition of the spouse under the same policy in the life cover with the joint-life variant.

    8. Increasing cover

      The coverage increases gradually over the policy term. The maximum sum assured can increase up to 200% of the base cover.

    Term Insurance - Ideal coverage & Policy period

    While buying a term insurance policy, the highest priority is given to the amount of cover. However, the tenure of the policy is an equally important factor to consider. If you take a policy for a very long time you will be paying a larger amount as premiums over the policy term. If you take a policy for a shorter period it may get over too soon leaving your loved ones vulnerable. To zero in on the ideal term insurance policy term it is important to consider two factors—objective and retirement.

    OBJECTIVE

    • Every decision in life has an objective. The objective gains more importance in the case of financial matters. Investing in a term insurance policy needs to have an objective.
    • The objective of term policy for most of the people is the financial stability of their family members in their absence. Assets, liabilities and savings are critical components of financial stability.
    • One should have enough financial resources to ensure that their dependents do not face any difficulty in meeting regular expenses and future needs.
    • Considering these factors, the ideal policy term should be equal to the time required to meet all the life goals and save enough for retirement.
    • If you have met all the life goals, which would include creating necessary assets, and saved enough for retirement, your family would have enough financial resources to live a comfortable life even in your absence.

    RETIREMENT

    • Retirement is a critical factor to consider while buying a term policy. People generally earn until retirement and so the aim should be to take care of all the major expenditures like children’s education and marriage before retiring.
    • Besides achieving all the life goals, it is also important to save enough for the post-retirement life. The term policy cover is required only until you save enough for retirement and take care of all major expenditures.
    • The ideal policy term should match your age of retirement. At a young age, it is not possible to predict when one will have enough for a comfortable post-retirement life. But it is advisable to buy a term insurance policy at a young age as the premiums are lower when the policyholder is younger.
    • With a rise in income and lifestyle changes one needs to increase the size of the insurance cover. The cover of certain term policies can be enhanced later in life.

    Term Insurance Riders

    A term insurance policy pays in the event of the life assured’s death. The cover can, however, be enhanced to include different scenarios besides death. Term riders are optional benefits that provide protection against specific emergencies and improve the coverage of a term policy. Bajaj Allianz Life offers various types of term riders that can be opted by policyholders.

    Accidental Death Benefit (ADB)

    The accidental death benefit rider pays an additional amount over the sum assured if the policyholder dies due to an accident. The Accidental Death Benefit has a separate sum assured, however it cannot be greater than the base cover and depends on rider terms and conditions of the specific product... The premiums for the accidental death rider remain fixed for the entire policy termThis benefit is paid only in case of death of the policyholder due to an accident, otherwise only the base cover is paid.

    Accidental Partial/ Total Permanent Disability Benefit (ATPDB)

    The accidental partial/total permanent disability benefit protects against partial/total permanent disability caused due to an accident. Permanent total disability can cause a loss of livelihood and the rider works as an income replacement . The riders become active only if the disability is caused due to an accident.

     

    Critical Illness cover

    The critical illness cover is one of the most popular term insurance riders. It pays a lump-sum amount on the diagnosis of a critical illness. The rider covers all the major critical illnesses like heart, liver and kidney diseases.. Depending on the term insurance policy, the base life cover terminates or may even continue after the payment of the lump-sum amount. The details of the critical illness term rider are provided in the policy document. One should read the policy document carefully.

    Waiver of Premium Benefit

    The waiver of premium rider ensures that all the pending premiums are waived off if the policyholder is unable to pay due to a critical illness or accidental total permanent disability. The rider guarantees the continuation of the cover irrespective of the payment of the premiums.

    Factors that will affect your Term Insurance Premium

    Term insurance premiums are decided after an objective analysis of the details of the individual to be insured. Insurance companies deploy various mathematical and statistical models to analyse an individual’s details. Some of the factors taken into consideration while deciding term insurance premiums are:

    Age

    Age

    The premiums of a term plan are cheaper when the policyholder is younger. It is not without reason though. The chances of a young person contracting a life-threatening disease or being subject to death are low which reduces the risk for the insurance company.

    Gender

    Gender

    Women have a higher life expectancy when compared to men, which is why insurers charge lower from female applicants.

    Medical History

    Medical History

    The person with a history of serious ailments in the family has a higher chance of contracting a serious disease. The probability of contracting a critical illness like heart attack and kidney failure considerably increases the risk for the insurer. Therefore, people with a history of diseases in the family have to pay higher premiums.

    Smoking and Drinking

    Smoking and Drinking

    Smoking tobacco and drinking alcohol can inflict serious damage to your health. These are one of the biggest reasons for liver and lung ailments and hence smokers and drinkers are charged more premium by insurers.

    Occupation

    Occupation

    The occupation of an individual too plays a role in deciding the term insurance premium. Some professions are more dangerous than others. For instance, a miner works in a dangerous environment and has greater chances than an IT executive to get hurt. Term insurance premiums are higher for people in dangerous professions.

    Policy Term

    Policy Term

    The policy term is an important factor that influences the term insurance premium. Longer policies have higher premiums as the insurance company has to take the risk of covering the life assured’s life for a longer-term.

    Personal Health

    Personal Health

    Term insurance premiums are higher for people who have pre-existing diseases. Existing ailments or diseases can increase the chances of the individual getting seriously ill later in life, hence, increasing the premiums. The exact term insurance premium can be known by using a term insurance calculator.

    How to renew your Term Insurance Policy

    With the increase in the penetration of the internet, it has become easier to transact online. Term insurance can be renewed online in most cases, however, sometimes you may have to renew it through the offline mode.

    Online Renewal

    • 1
      Visit the official website of the insurer and log in to your account.
    • 2
      Once you are on the website or customer portal page of the respective company, you will get an option to pay the premium.
    • 3
      You will have to provide certain details like the policy number and your date of birth. After the information is entered, the page will display the amount that has to be paid for renewal.
    • 4
      Use the mode of payment provided to pay the premium amount needed to renew the policy. The Receipt number will be displayed on successful payment.

    Offline Renewal

    • 1
      To renew the term policy offline you will have to get in touch with the agent who sold the policy or visit a branch of the insurer.
    • 2
      You will have to provide details like name, policy number and date of birth for the insurance company to fetch the details of renewal.
    • 3
      The insurer’s executive will inform you about the premium you will have to pay to renew the policy.
    • 4
      After you pay the renewal amount, you will be issued a premium payment receipt stating the renewal of the policy. The receipt can be used to avail tax benefits.

    Process for filing a term insurance claim

    A term policy is the most affordable type of life cover available in the market. Term policies pay the nominee in the event of the life assured’s death. There are certain inclusions and exclusions in a term policy.Term insurance claims can be filed in three simple steps.

    • 1

      The first step is to intimate the insurance company. Download the form from the website or collect the death claim intimation form from the nearest Bajaj Allianz Life branch office and fill in the details. The form will have to be submitted along with 5 mandatory documents. The required documents are original policy document, Original death certificate issued by Births and Death registrar or copy of death certificate attested by municipal authorities, NEFT mandate form attested by bank authorities or cancelled cheque leaf with Payee name printed on it, nominee’s identity and address proofs. Some additional documents like copy of the first information report and copy of medical records may be required depending on the type of death.

    • 2

      The form along with the documents have to be submitted at the nearest branch of Bajaj Allianz Life.

       

    • 3

      After the submission, the company will verify the documents and   assess the claim.  You will be kept in the loop through regular messages and emails. The term insurance claim, if it is a genuine claim will be settled within 30 days of the receipt of the documents. In case investigation is required, the investigation has to be completed within 90 days and the claim has to be settled within 30 days after it.

       

    Common Inclusions Under A Term Insurance Policy

    A term policy is the most affordable type of life cover available in the market. Term policies pay the nominee in the event of the life assured’s death. Inclusions of a term policy include the payout of the sum assured in the event of the policyholder’s death, provided all due premiums are paid. The tax benefits allowed under Section 80C and 10 (10D) of the Income Tax Act, 1961 are a part of the inclusions. Any additional amount over the sum assured is paid if the conditions mentioned in the rider are fulfilled. Benefits like loan facilities are included in the terms and conditions. Please refer policy document for details on exclusions.

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    Term Insurance Frequently Asked Questions

    • Are deaths due to coronavirus covered by Bajaj Allianz Life Term Insurance Plans?

      The Covid-19 pandemic has hit the world severely killing lakhs of people. In the initial stage of the outbreak, there was a slight confusion among people regarding deaths due to the novel coronavirus. Death claim due to COVID-19 is covered under all policies of Bajaj Allianz Life and shall be processed as per the terms and conditions of the policy.

      Hospitalisation claim due to COVID-19 is covered under Care First and Family Care First, the health policies offered by Bajaj Allianz Life.

    • How does a term insurance plan work?

      A term insurance plan is a simple form of life insurance. Term plans do not have an investment component and hence provide no maturity benefits. The policyholder pays premiums to the insurance company and the insurer in return promises to pay a pre-decided amount to the nominees in the event of the policyholder’s death. Since term plans do not provide maturity benefits, the plan simply terminates at the end of the policy term.

      Many customers have expressed their concern on losing out of money if there are no claims made during the tenure of the term insurance plan. To address this Life Insurance companies also offer insurance plans with ‘Return of Premium ‘option. It means that if the policy holder survives the policy term then the life insurance company returns all the premiums paid towards the policy.

    • Are there any tax benefits offered by term insurance plans?

      Term insurance plans offer a variety of tax benefits. Term insurance premium up to Rs 1.5 lakh in a year is eligible for tax deduction under Section 80C of the Income Tax Act, 1961. Additionally, any amount received from a term plan is tax-exempt under Section 10 (10D) of the Income Tax Act, 1961. However these exemptions and deductions are subject to the provisions stated in the Income Tax Act, 1961.

       

    • Can I get any maturity benefits in term plans?

      Term plans do not have an investment component and hence do not offer any maturity benefits. However, if you invest in a term plan with a return of premium feature, you will get back the total premium paid at the end of the policy term.

    • What are term insurance riders?

      Term insurance plans provide the option to take up additional benefits that offer protection against certain circumstances. These optional add-ons are known as riders and one has to pay an additional amount towards the riders. There are several types of term riders like accidental death rider, accidental total or partial disability rider and critical illness riders.

       

    • When should I buy term insurance?

      It is ideal to buy a term insurance plan when you are young. The premiums of term insurance are low when the individual is young as young people have a lower chance of contracting life-threatening diseases or being subject to death, thus lowering the risk for the insurer. A lower age decision can help you save a sizeable premium over the years which is fixed for the entire duration simply because you acted on time. The sooner, the better.

       

    • Do I need to buy a term insurance even if I am single?

      A term insurance helps you cover life’s various exigencies be it a sudden death or an unfortunate accident, which may affect your and your family’s life goals. Further, a single person may have student loans, business loans, home loans, and it is important to be insured for the loan amount to ensure your dependents are not liable to repay the loan. Hence, even if you are single you can buy a term insurance plan and the best part is that if you purchase a term insurance cover at a younger age, the premiums are low due to your general good health. In case you get married at a later stage, you can include your spouse as nominee in the term insurance plan.

    • What is the age limit to buy term insurance plans?

      The age limit for term insurance plans varies from insurer to insurer. Typically, the minimum age to buy a term insurance plan is 18 years and the maximum age of 65 years. One can check for terms and conditions mentioned under the specific products to learn about the age limits before they decide.

    • How do I determine my ideal term insurance policy tenure?

      You should take into consideration the objective and your retirement plans into consideration to determine the ideal policy tenure. Term insurance is taken to financially protect your family in your absence. Typically, people are able to accumulate sufficient wealth to lead a comfortable life just before retiring, so the ideal tenure should end at retirement.

    • How do I determine my ideal term insurance coverage amount?

      Term insurance coverage should vary according to age. It should be calculated after taking into account the debt, assets and life goals of the family during that particular time. You can use the term insurance calculator as an indicator to get a better idea of your term insurance coverage requirements. However it is always best to analyse your needs and current lifestyle before deciding the coverage amount required to secure your family’s life goals.

    • Is it advisable to increase the sum assured?

      Our lifestyle changes as we grow in our career and life. It is then advisable to revisit your term insurance plan to consider whether the sum assured is enough to meet the changing requirements of your family. Let us understand this with an example. For instance, an unmarried 28-year old Rahul purchased a term plan with sum assured of Rs 50 lakh. Few years down the line, he got married and was blessed with a baby girl. A term insurance plan of Rs 50 lakh might be inadequate now to ensure a good education and future security for his child in his absence. Our insurance needs change with our changing life situations, so it is advisable to revisit your term insurance plan and increase the sum assured, as and when, required.

    • How do I buy term insurance online?

      You can buy a term insurance plan online through the website of Bajaj Allianz Life in a few simple steps. Just go to the website and choose the online term insurance plan you want to buy. You just have to provide details like name and date of birth and upload identity, address and income proofs in the next step. In the final step, you have to pay the first premium. The insurer will then process the application and issue the policy if all its requirements are met.

    • Can I buy multiple term insurance policies?

      There are no restrictions on having multiple term insurance policies. Yes, you can have multiple policies. But it is advisable to buy multiple policies in consonance with your life goals.

    • Do term insurance plans also offer joint policies for spouses?

      Yes, you can opt for joint term insurance plans depending on your requirement. Bajaj Allianz Life Smart Protect Goal, a non-linked, non-participating, pure life term insurance plan, is one such product that offers joint cover for both you and your spouse.

    • How can I pay term insurance premiums?

      Term insurance premiums can be paid online as well as offline. It is easier and more convenient to pay the term insurance premium online. To pay the premium offline, you will have to visit the nearest branch office of the insurer.

    • Why is the term insurance premium amount for smokers higher than that of a non-smoker?

      Smoking is injurious to health and is the cause of serious diseases like mouth and lung cancer. Smokers are high-risk individuals for insurers since the chances of contracting the disease is high. Considering the risk, the premiums are higher for smokers.

    • What are the documents required for buying term insurance plans?

      You need a recent photo, identity and address proof, age proof and proof of income to buy a term insurance plan.

    • What happens if I can’t pay term insurance premiums on time due to financial issues?

      If you fail to pay the term insurance premium on time, the company will grant you a grace period to make the payment. The grace period is generally 30 days for premium payment frequencies other than monthly & 15 days for monthly frequency is allowed. If you do not pay the premium within the grace period, the company will lapse your term insurance policy. It is always better to check the terms and conditions of the specified policies to know the details better.

    • What happens if the nominee dies?

      If the policyholder and the nominee both die, the legal heir can receive the claim.

       

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    Last Updated By Bajaj Allianz Life on

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    24/Nov/2020