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Bajaj Allianz Accidental Death Benefit Rider Plan

Bajaj Allianz Accidental Death Benefit Rider provides an additional layer of life insurance coverage for extra financial protection for the family of the policyholder. The rider offers an additional sum assured in the event of untimely death of the life assured in an accident. The customer can approach an insurance consultant or refer to the Bajaj Allianz website to understand the products with which the Bajaj Allianz Accidental Death Benefit Rider can be used.

Eligibility - Who is the Bajaj Allianz Accidental Death Benefit Rider for?

A customer has to fulfill certain conditions to be eligible to buy the Bajaj Allianz Accidental Death Benefit Rider. These factors are listed in the table below:

Parameter Eligibility
Minimum Entry Age 18 years
Maximum Entry Age 60 years
Maximum Maturity Age 65 years
Rider Term This is according to the base policy, subject to a minimum of 5 years and a maximum of 47 years
Rider Premium Payment Term (PPT) This is according to the base policy, subject to a maximum of 30 years

Sum Assured and Premium Range - What you get and what it costs?

Sum Assured:

The policy offers a death benefit if the life assured dies in an accident. Maturity benefit is not offered under this rider. The limits on the rider sum assured is as shown below:

Minimum Rider Sum Assured As per the base plan.
Maximum Rider Sum Assured Sum assured under the base policy. This is subject to a maximum limit of Rs.1 crore for all the Accidental Death Benefit riders under which the life assured is covered.

Premium:

A policyholder is required to pay an additional premium for the rider coverage. This amount is over and above the base policy premium, and it is dependent on the entry age of the life assured, the rider term, rider sum assured, and rider premium payment term. The premium payment frequency is as per the base policy.

Plan Coverage - What the Bajaj Allianz Accidental Death Benefit Rider covers?

The Bajaj Allianz Accidental Death Benefit Rider works in the following manner:

  • The policyholder has the option to include or exclude the rider under the base policy at the time of policy commencement or at any policy anniversary.
  • Inclusion of the rider is based on underwriting guidelines and availability of the outstanding premium payment term. The rider can be opted for both lives in a joint life plan.
  • The coverage of the Bajaj Allianz Accidental Death Benefit Rider is as detailed below:
Surrender Benefit
  • If the rider is excluded, the rider benefit will terminate immediately and no rider premiums will be payable in the future. After exclusion, the rider can be added back to the base policy, subject to the conditions for rider inclusion mentioned above.
  • When the rider is excluded, the policyholder is eligible to receive a surrender value if the following conditions are met:
    • The rider PPT is less than the rider term, and
    • If the premiums for at least 2 years have been paid for rider term less than 10 years, or
    • If the premiums for at least 3 years have been paid for rider term of 10 years or more.
The surrender value is calculated using the formula mentioned below: Surrender value = 70% * [{(n-t)/n} * {(n-t)/n} * (total rider premium paid], where n is the rider term, and t is the elapsed time in years from the date of commencement of the rider.
Death Benefit If the life assured faces death in an accident during the rider term, the rider sum assured chosen is payable as death benefit. If the rider is taken with a joint life base plan, at the accidental death of any one of the assured lives the rider sum assured for that life assured is paid. The rider and base policy will continue on the life of the survivor.

Exclusions - What the Bajaj Allianz Accidental Death Benefit Rider doesn’t cover?

The benefit under the Bajaj Allianz Accidental Death Benefit Rider is not payable in the following scenarios:

  • Death due to the life assured committing a crime with criminal intent.
  • Death due to the life assured being under the influence of drugs or alcohol.
  • Death due to self-inflicted injuries, irrespective of the sanity of the life assured.
  • Death due to participation of the life assured in military, naval, or air force operations.
  • Death due to participation in dangerous sports or competitions, including riding or driving.
  • Death due to suicide.
  • Death due to gliding, aviation, or any other form of aerial flight, except as a passenger in a commercial aircraft.
  • Death due to invasion, war, rebellion, civil war, or riots.
  • Death that was not a direct result of the accident.
  • Death that is not within 180 days from the date of the accident.

Other Key Features – Freelook Period, Surrender Values, Grace Period etc.

The key features of the Bajaj Allianz Accidental Death Benefit Rider are described below:

Grace Period If the policyholder does not pay due rider premiums, then he/she is allowed a grace period that is the same as the base plan. The policyholder is required to pay the outstanding premiums within the grace period to retain the rider benefits. If the life assured dies in an accident during the grace period, the rider benefit is payable after deduction of the outstanding premiums as on the date of death.
Discontinuance of premiums If the policyholder does not pay due premiums during the rider PPT, the rider cover will lapse at the end of the grace period. No rider benefits shall be paid, except the surrender value. The rider can be revived on the basis of conditions that are applicable to the base policy.
Free-look Period Within 15 days of receipt of the rider, the policyholder can review the terms and conditions mentioned therein. If he/she does not agree to these terms, then the rider can be returned back to Bajaj Allianz, stating relevant reasons. The policyholder is then liable to receive a refund of the paid rider premiums minus the insurer’s expenses. The free-look period for policies that were purchased through distance marketing channels is 30 days.
Rider termination The rider will automatically terminate when the following conditions are met:
  • Discontinuance of premiums
  • Request for termination of the rider
  • Death of the life assured
  • On the policy anniversary when the life assured reaches 65 years of age
  • When the base policy is terminated
  • When the rider reaches maturity

Tax Benefits – How you can save with the Bajaj Allianz Accidental Death Benefit Rider?

The Bajaj Allianz Accidental Death Benefit Rider does not offer any specific tax benefits. Direct and indirect taxes will be charged on the paid premiums, as applicable.

Other Benefits – How you can save with the Bajaj Allianz Accidental Death Benefit Rider?

  • Bajaj Allianz has a comprehensive website with an online customer portal through which customers can check their insurance details easily.
  • They can also renew their policies online using credit cards, debit cards, Netbanking, e-Wallets, or Bill Junction.
  • Through the website, a policyholder can chat with a customer care representative for clarifications to queries or resolution of issues.
  • Customers can also request for a callback from the customer service team using the SMS Support facility of the insurer.
  • Alternatively, customers can also request for a callback through the Bajaj Allianz website.

Why you should buy the Bajaj Allianz Accidental Death Benefit Rider from Bajaj Allianz?

Bajaj Allianz Life Insurance Company Ltd. is a joint venture between Bajaj Finserv and Allianz SE, two leading players in the financial market on a global scale. The partner companies in the venture have immense global exposure and local expertise.

Bajaj Allianz has a comprehensive suite of insurance products that cater to the needs of customers across various age groups and income brackets. The insurance plans offered by the company range from child plans to ULIPs, group insurance and pure term plans.

Bajaj Allianz is known for the competitive pricing of their products and the quick turnaround time they observe for claim settlement. The claim settlement ratio of the insurer was a commendable figure of 98.07% in the financial year 2015-16. The individual products had a ratio of 91.3% while the ratio for group products was 98.87%. The company has grown to be one of the top insurers in India within a short span of time. Bajaj Allianz is now focussing on the propagation of insurance in the rural segments of the country.

The insurer has received several awards and recognitions for its marketing initiatives, customer centricity, and use of technology. Some of the awards that the company was honoured with include:

  • The ABP News award in 2016 for the “Best Life Insurance Company in the Private Sector”.
  • The “Financial Inclusion and Deepening Award 2015” by SKOCH in 5 categories for the 4th consecutive year.
  • Excellence in Direct Benefit Transfer with the ASSOCHAM Awards on ICT for Development 2015.
  • The “Best Corporate Brand 2016” award from Economic Times.

The insurer also has several customer-friendly policies, some of which include the following:

  • Although unlikely, if the insurer has failed to settle a claim within 30 days, it will pay the claimant a daily interest of 10.5% for the delay.
  • The insurance company also settles majority of its claims through the direct electronic transfer mode. This ensures that the delays experienced in claim payouts are reduced to a great extent.