Bajaj Allianz Life Secure Plan is a non-linked whole life term insurance product that offers you protection till the age of 100 years, so that you can live worry-free. The plan offers term assurance coverage, critical illness cover, and accidental death protection, based on the plan variant/option you choose. A key advantage of the plan is the choice of 4 premium payment terms, i.e., 5, 7, 10, or 15 years. The plan also offers a High Sum Assured Rebate to customers who opt for larger coverage. Attractive premium rates for female customers constitute another distinct advantage of the policy.
Eligibility - Who is the Bajaj Allianz Life Secure Plan for?
For a customer to be able to purchase the Bajaj Allianz Life Secure Plan, he/she will have to fulfill certain eligibility conditions set by the insurer. These factors are based on the tenure of insurance and the age of the customer. These eligibility conditions have been defined in the table below:
|Minimum Entry Age
|Maximum Entry Age
||For coverage options I and II, 55 years
For coverage option III, 50 years
|Maximum Maturity Age
|Policy Term (years)
||(100 - age at entry)
|Premium Payment Term (PPT)
||Choice of 5, 7, 10, and 15 years
Sum Assured and Premium Range - What you get and what it costs?
The policy offers various benefits such as Death Benefit, Surrender Benefit, High Sum Assured Rebate, etc. The minimum sum assured under the policy is Rs.20 lakh, while there is no limit on the maximum sum assured. It should be noted that the sum assured is opted for in multiples of Rs.50,000.
The policyholder will pay regular premiums at specific intervals, chosen at the start of the policy coverage. The premium amount and payment frequencies are as shown below:
|Minimum Premium (Rs.)
|Maximum Premium (Rs.)
*The monthly mode of premium payment is only allowed under ECS and salary deduction scheme.
Plan Coverage - What the Bajaj Allianz Life Secure Plan covers?
The plan works in the following manner:
- The customer first chooses the coverage option. This option, once chosen, cannot be changed during the policy tenure.
- The next step is the choice of sum assured.
- The customer then selects the premium payment term.
- The premium paid towards the policy depends on the age of the life assured, gender, coverage option chosen, premium payment term, sum assured, and premium payment frequency.
- There are no maturity benefits under the plan.
- It is not possible to take a loan under the Bajaj Allianz Life Secure Plan.
The Sum Assured at Death is determined as follows:
For entry age less than 45 years, it is the highest among the following:
- 10 times the annualised premium
- 105% of the total paid premiums till the death of the life assured
- Sum assured
For entry age of 45 years and above, it is the highest among the following:
- 7 times the annualised premium
- 105% of the total paid premiums till the death of the life assured
- Sum assured
- The coverage of the Bajaj Allianz Life Secure Plan is as detailed below:
The policy terminates after the payout.
The critical illnesses covered under Option III of the policy are:
For Option I - Only Death Benefit
- If the life assured dies during the policy tenure, the Sum Assured at Death will be paid to the nominee. The policy will terminate following the payout.
For Option II - Death Benefit plus Accidental Death Benefit
- If the life assured faces death during the policy term, the Sum Assured at Death is paid out to the nominee. The policy terminates after the payout.
- If the life assured dies in an accident before reaching 65 years of age, the Sum Assured at Death plus an additional sum assured is paid, subject to a maximum of Rs.2 crore. After the payout, the policy terminates.
For Option III - Death Benefit or Accelerated Critical Illness Benefit plus Waiver of Premium Benefit
- If the life assured is diagnosed with a critical illness before attaining the age of 65 years, and during the first 30 years of the plan, the payout will be 50% of the Sum Assured at Death. This is, however, subject to a cap of Rs.50 lakh. Also, all future premiums under the plan will be waived off. The policy will continue to be in-force till the death of the life assured. Any future critical illnesses of the life assured will not be covered by the plan.
- If the life assured dies during the policy term after the critical illness benefit is paid, the remaining Sum Assured at Death is payable. Following this, the policy terminates.
- If the life assured faces death during the policy term before the critical illness benefit is paid out, the Sum Assured at Death is paid. The policy terminates after the payout.
If the death benefit has not been paid, and the life assured reaches 100 years of age, the following benefits are payable:
- In case the critical illness benefit is not paid, the payout is the sum assured.
- If the critical illness benefit is paid previously, the payout is the sum assured minus the amount of critical illness benefit paid.
- Cancer of specified severity
- First heart attack of specified severity
- Open Chest CABG
- Kidney failure resulting in regular dialysis
- Stroke with permanent symptoms
- Bone marrow/major organ transplant
- Paralysis of limbs that is permanent in nature
- Multiple sclerosis with permanent symptoms
- Aortic surgery
- Primary Pulmonary Hypertension
- Alzheimer’s disease
Exclusions - What the Bajaj Allianz Life Secure Plan doesn’t cover?
If the life assured commits suicide within 1 year from the start of the coverage, the policy is terminated after paying the highest amount among the following:
- 80% of the paid premiums
- Surrender value of the policy at death
If the life assured has opted for the death benefit under the policy, it will not be paid in the following instances:
- The death occurs as the life assured commits any criminal activity.
- Death as a result of being under the influence of drugs or alcohol.
- Death due to self-inflicted injuries, whether the life assured was sane or not.
- Death as a result of participation in military, navy, or air force operations.
- The life assured faces death due to participation in a hazardous competition or sport.
- Death due to a flying activity, apart from being a passenger in a commercial aircraft.
- Death that results from war, civil war, riots, invasion, or rebellion.
- Death due to nuclear contamination.
If the life assured has opted for the Accelerated Critical Illness benefit, it will not be payable if the critical illness arises from any of the following conditions:
- Diseases due to HIV infection.
- Any disease with symptoms occurring within 180 days from the start of the risk coverage.
- Any disease that causes death of the life assured within 30 days from the diagnosis of the illness, i.e., the survival period.
- Any condition that is congenital before the start date of the coverage.
- Suicide attempt or self-inflicted injury whether sane or not.
- The life assured being under the influence of narcotics or alcohol.
- Hostilities, invasion, war, mutiny, rebellion, riots, civil war, etc.
- The life assured participating in any flying activity, apart from travelling in a commercial aircraft as a passenger.
- The life assured participating in a criminal activity.
- Participation of the life assured in a dangerous sport such as underwater activities, riding, martial arts, parachuting, hunting, bungee-jumping, mountaineering.
- Nuclear contamination.
- Any ailment for which the life assured had received treatment within 48 months before the policy was issued.
Other Key Features – Freelook Period, Surrender Values, Grace Period etc.
The salient features of the Bajaj Allianz Life Secure Plan are described below:
|High Sum Assured Rebate (HSAR)
The Bajaj Allianz Life Secure Plan offers premium discounts if the customer opts for a high sum assured. The discount will be applied on the annual premium for each additional Rs.1 lakh sum assured over and above the minimum sum assured of Rs.20 lakh.
- For Coverage Option I, the HSAR is applicable above the minimum sum assured of Rs.20 lakh.
- For Coverage Option II, the HSAR is applicable above the minimum sum assured of Rs.20 lakh and up to the sum assured of Rs.2 crore.
- For Coverage Option III, the HSAR is applicable above the minimum sum assured of Rs.20 lakh and up to the sum assured of Rs.1 crore.
|Change in premium payment frequency
||If needed, the life assured can change the premium payment frequency at any policy anniversary, provided that the existing and requested frequencies are in alignment. The availability of the requested frequency and the minimum modal premium criteria are other significant factors that govern the switch.
The policyholder can surrender the policy at any time. This is subject to the following conditions:
The surrender value paid to the policyholder is the highest amount between the Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV). Following the payout of the surrender value, the policy terminates.
- For a PPT less than 10 years, the premium for at least the first two years is paid.
- For a PPT equal to 10 years or more, the premium for at least the first three years is paid.
SSV = Surrender factor * (Paid-up Sum Assured - Critical Illness Benefit)
- The GSV is calculated as a fraction of the premiums paid till date, and is guaranteed throughout the policy tenure.
The SSV is determined as follows:
- For a policy in paid-up status or an in-force policy during the PPT,
SSV = Surrender factor * (Sum Assured - Critical Illness Benefit)
- For an in-force policy that is beyond the PPT,
- SSV factors are not guaranteed values and may change based on IRDAI guidelines.
|Discontinuance of Premium
At the expiry of the grace period, a policy will lapse if the policyholder has not paid the following:
A lapsed policy is not eligible for any benefits. In case the life assured faces death or critical illness during the grace period, the benefit payable is based on the coverage option chosen. In this situation, the outstanding premiums will be deducted from the sum assured under the policy.
- The premium for the first two years for a policy with PPT less than 10 years.
- The premium for the first three years for a policy with PPT equal to 10 years or more.
If the policyholder has paid at least:
- The premium for the first two years for a policy with PPT less than 10 years, or,
- The premium for the first three years for a policy with PPT equal to 10 years or more,
In case the death of the life assured occurs before a critical illness, the Paid-Up Sum Assured is paid and the policy terminates.
If the life assured survives till the age of 100 years, the benefits mentioned below are paid out and the policy terminates:
- The policy will move into the paid-up status.
- The Sum Assured and Sum Assured at Death will be reduced to the Paid-Up Sum Assured and the Paid-Up Sum Assured at Death, respectively.
Under a paid-up policy,
For coverage option I - Only the Paid-Up Sum Assured at Death is paid and the policy terminates.
For coverage option II - The Paid-Up Sum Assured at Death is paid. If the death is due to an accident before the life assured reaches 65 years of age, then an additional Paid-Up Sum Assured is payable. Following the death, the policy terminates.
For coverage option III - If the life assured is diagnosed with a critical illness before reaching 65 years of age and during the first 30 policy years,
- 50% of the Paid-Up Sum Assured at Death is payable.
- The policy will continue for the remaining Paid-Up Sum Assured at Death, if the death occurs during the remaining term of the policy.
- If the critical illness benefit has not been paid, the Paid-Up Sum Assured is payable.
- If the critical illness benefit has already been paid, the Paid-Up Sum Assured minus the critical illness benefit is payable.
|Revival of Policy
If the policy is in lapsed or paid-up status, it may be revived, subject to the following conditions:
The revival of the plan is based on terms that are different from those that were applicable at the inception of the policy.
- The revival request is made within 2 years from the due date of the unpaid premium.
- All dues premiums and interest are paid by the policyholder.
- The life assured submits evidence of good health and insurability.
- The revival will be effective only after the insurer has communicated the same to the policyholder.
- Bajaj Allianz may refuse to revive a policy, based on underwriting guidelines.
The Bajaj Allianz Life Secure Plan will terminate if any of the following conditions are fulfilled:
- Payment of the surrender value.
At the end of the revival period,
- If the premiums for the first 2 years have not been paid for PPTs less than 10 years.
- If the premiums for the first 3 years have not been paid for PPTs equal to 10 years and above.
- At the death of the life assured and payment of the death benefit.
- When the life assured attains 100 years of age.
||If the policyholder has not paid the due premiums, he/she will be allowed a grace period of 30 days for policies with premium payment frequency other than monthly. If the policy has monthly frequency of premium payment, the grace period is 15 days. The policyholder can pay the due premiums within the grace period and reinstate the policy benefits.
If the life assured faces death or critical illness during the grace period, the appropriate benefit is paid out. This is usually the sum assured minus the due premiums under the policy.
||After purchase of the policy, if the life assured does not agree to the terms and conditions in the policy document, he/she can return the policy back to the insurer within 15 days. This interval is known as the free-look period. The free-look period for policies that were bought through distance marketing is 30 days. The life assured is expected to state relevant reasons for the return of the policy. He/she will then be eligible to receive a reimbursement of all paid premiums minus the expenses incurred by the insurer on medical tests and stamp duty.
Tax Benefits – How you can save with the Bajaj Allianz Life Secure Plan?
- Premiums paid towards the policy are eligible for tax benefits under Section 80C of the Income Tax Act.
- The payouts from the policy, such as death benefit, accidental death benefit, critical illness benefit, and surrender benefits are eligible for tax rebates under Section 10(10D) of the Income Tax Act.
Since tax rules are subject to change, it is advisable to consult a tax advisor for the latest provisions before investing.
Other Benefits – How you can save with the Bajaj Allianz Life Secure Plan?
Bajaj Allianz has an online customer portal through which customers can easily access their policy details. The website of the insurer also enables a customer to renew his/her insurance policies online. Premium payments can be done through the following methods:
||Visa, Maestro, American Express, MasterCard, and Diners Club cards are accepted
||Visa, MasterCard, Maestro, and RuPay cards are accepted
||Customers can register at Bill Junction and authorise their premium payments online
||A customer can use the Netbanking facility at his/her bank’s online portal to pay insurance premiums
||It is possible to pay premiums through e-Wallets like Jio Money, Airtel Money, iCashCard, ITZCash, PayCash, Oxigen, and Idea Money
- The Bajaj Allianz website also provides the facility for the customer to initiate an online chat with a customer service representative. The competent customer service team of the insurer will assist the customer in resolving any issues or provide clarifications to queries.
- Additionally, Bajaj Allianz offers the SMS Support facility through which customers can request for a callback from the customer service team.
- A callback can also be requested for from the website of Bajaj Allianz.
Why you should buy the Bajaj Allianz Life Secure Plan from Bajaj Allianz?
Bajaj Allianz is a joint venture between Bajaj Finserv Limited and Allianz SE, incorporating the advantages of global exposure and local expertise. The insurance company offers a bouquet of insurance solutions to customers to suit their varied needs. The plans offered by the insurer range from child plans to health insurance. Bajaj Allianz also offers savings plans and ULIPs for long-term financial planning.
The quick response time and attractive pricing of the products offered makes Bajaj Allianz stand out from the other players in the Indian insurance market today. The company has also been focussing on insurance penetration into the rural segments of the country.
Bajaj Allianz has observed a healthy claim settlement ratio of 98.07% in the financial year 2015-16. The ratio for the group products is 98.87%, while that for the individual product range is 91.3%.
The insurer has received several awards and recognitions in the past, some of which 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.
- The “Best Corporate Brand 2016” award from Economic Times.
The insurer was also recognised for excellence in Direct Benefit Transfer with the ASSOCHAM Awards on ICT for Development 2015. These awards emphasize the strengths of the insurer, i.e., excellence in customer service activities, creative marketing techniques, and technological expertise.
If the insurer has not settled a claim within 30 days, the beneficiary is paid an interest of 10.5% for each day’s delay. The insurer also settles 96.82% of all claims through direct electronic transfer, hence ensuring timely payouts.