Bajaj Allianz Life’s eTouch Online Term Insurance Plan: Should You Opt For It?   Dec 20, 2016


Benjamin Franklin, one of the founding fathers of the United States, supposedly once said, "If you fail to plan, you are planning to fail."

Sir Winston Churchill, former prime minister of the United Kingdom, is credited with another, often repeated, saying: "Those who fail to learn from the past are doomed to repeat it."

As caring family members we yearn to provide safety and financial security to our loved ones long after we are gone. It’s better to plan now when the going is good, before it gets tougher!

To address life’s uncertainty Bajaj Allianz Life Insurance has recently launched a new online term insurance plan called as “eTouch”.

Bajaj Allianz Life eTouch Online Term is a regular premium payment, pure term and health cover plan. The plan provides life cover combined with benefit on accidental death, accidental total permanent disability (ATPD), critical illness (CI) and benefit of waiver of premium (WOP), depending on the variant you opt for.


(Note: The table is for illustration purpose only)
(Source: Product Brochure of Bajaj Allianz Life eTouch Online Term)


How does the plan work?


(Note: The table is for illustration purpose only)
(Source: Product Brochure of Bajaj Allianz Life eTouch Online Term)


Here is a brief overview of the four variants offered under Bajaj Allianz Life's eTouch online term insurance:

Variants3 Life Benefit1 Accidental Total Permanent
Disability (ATPD) Benefit5
Waiver of Premium
(WOP) Benefit2
Accidental Death
(AD) Benefit6
Accelerated Critical Illness
(ACI) Benefit4
Shield
Shield Plus
Shield Super
Shield Supreme
(Note: The table is for illustration purpose only)
(Source: Product Brochure of Bajaj Allianz Life eTouch Online Term)
Notes:
  1. Life Benefit is the sum assured under the plan that will be payable on death of the life assured.
  2. Waiver of Premium (WOP) benefit is paid only on the occurrence of Accidental Total Permanent Disability (ATPD).
  3. The variant once chosen at inception cannot be changed during the policy term.
  4. Accelerated Critical Illness (ACI) means the benefit payable on diagnosis of any specified critical illness wherein such benefit if paid will be deducted from the sum assured on death.
  5. ATPD benefit will not be payable if accident happens before the expiry of the policy term and disability happens within 90 days of the date of accident but after expiry of policy term.
  6. Accidental Death (AD) benefit:
    1. If ATPD happened first and the insured expired within 90 days of accident, two separate benefits will be given; first, for ATPD and then (second)  for ADB.
    2. ADB benefit will not be payable if accident takes place before the expiry of the policy term followed by the demise of the insured within 90 days of the date of the accident but after expiry of policy term.

Let us understand this term plan with the help of an example…

Samir (age 30) is married and has a daughter who is 4 years old. He works for a private construction firm. Samir has purchased a house recently on loan. He is aware that incase of his death, accidental disability or critical illness; his family would be burdened with financial liabilities. He decides to buy Bajaj Allianz Life's eTouch Online Term insurance plan to ensure a worry-free future. Let's see what benefit options are available to him under each of the variants of this term insurance plan…

Variants Sum Assured (Rs) Policy Term Annual Premium* (Rs)
Shield 1 crore 20 years 5,813
Shield Plus 3 crore 20 years 17,273
Shield Super 3 crore 20 years 26,890
Shield Supreme 3 crore 20 years 28,419
*Note: Annual Premium is after adjusting for High Sum Assured Rebate (HSAR) and
exclusive of service tax, cess and any extra premium for a non-smoking male.


Case 1: Assuming at age 40, Samir meets with a road accident and suffers a total permanent disability. He will receive the following benefits under different variants:

Variants Benefit on account of Accidental Total Permanent Disability Benefit (ATPD)
Shield All the future premiums will be waived under the policy and the policy continues
Shield Plus All the future premiums under the policy will be waived, and the policy will continue with life cover. He will receive an amount equal to the sum assured (subject to a maximum of Rs 2 Crore) as ATPD benefit
Shield Super All the future premiums under the policy will be waived, and the policy will continue with life cover. He will receive an amount equal to the sum assured (subject to a maximum of Rs 2 Crore) as ATPD benefit
Shield Supreme All the future premiums under the policy will be waived, and the policy will continue with life cover. He will receive an amount equal to the sum assured (subject to a maximum of Rs 2 Crore) as ATPD benefit
(Note: The table is for illustration purpose only)
(Source: Product Brochure of Bajaj Allianz Life eTouch Online Term)


Case 2: Assuming at age 35, Samir is diagnosed with Critical Illness (CI). He will receive the following benefits under different variants:

  1. No Accelerated Critical Illness (ACI) benefit is payable under Shield, Shield Plus and Shield Super.
  2. The following ACI benefits would be payable under the Shield Supreme variant:
    1. If the diagnosed CI requires Angioplasty - fixed ACI benefit of Rs 5 lakh will be paid. Waiver of Premium (WOP) benefit is not applicable, if Angioplasty is conducted for CI. No further ACI benefit will be paid for any future occurrence of Angioplasty. But, the policy will continue for other benefits, including the remaining amount of ACI benefit for the remainder CIs covered, subject to payment of all due premium.
    2. If the CI is other than one requiring Angioplasty
      1. If no prior ACI benefit has been paid for Angioplasty, then, ACI Benefit of 75% of Sum Assured, subject to a maximum of Rs 75 lakh will be paid.
      2. If any prior ACI benefit for Angioplasty has been paid, then, the remaining ACI Benefit will be paid, which is 75% of Sum Assured (subject to maximum of Rs 75,00,000) minus Rs 5,00,000 (paid for Angioplasty).
  3. All the future premiums under the policy will be waived once ACI Benefit is paid. The policy will continue with all its remaining benefits.

Case 3: Assuming at age 47, Samir meets with a road accident and dies. He will receive the following benefits under different variants:

Variants Death Benefit
Shield Samir's nominee gets Rs 1 crore (Sum Assured on Death) and the policy terminates
Shield Plus Samir's nominee gets Rs 3 crore (Sum Assured on Death) and the policy terminates
Shield Super If Samir dies due to road accident, his nominee will receive:
Rs 3 crore (Sum Assured on Death) plus Rs 2 crore (amount equal to the sum assured up to maximum of Rs 2 crore as Accidental Death Benefit) = Rs 5 crore and the policy terminates
If Samir dies of natural causes, his nominee will receive:
Rs 3 crore (Sum Assured on Death) and the policy terminates
Shield Supreme If ACI benefit has been paid earlier, his nominee will receive:

Without Angioplasty - Rs 3 crore (Sum Assured on Death) minus Rs 75 lakh (ACI benefit paid) = Rs 2.25 crore and the policy terminates
With Angioplasty - Rs 3 crore (Sum Assured on Death) minus Rs 5 lakh (ACI benefit paid) = Rs 2.95 crore and the policy terminates

If ACI benefit has not been paid earlier, his nominee will receive:
Rs 3 crore (Sum Assured on Death) and the policy terminates
(Note: The table is for illustration purpose only)
(Source: Product Brochure of Bajaj Allianz Life eTouch Online Term)
 

Who is eligible to opt for this term plan?


(Source: Product Brochure of Bajaj Allianz Life eTouch Online Term)

To Conclude…

Overall, an e-Term plan is a good option for life insurance seekers as it offers indemnification of risk to life with an appealing cost-to-benefit. In case of Bajaj Allianz eTouch Online Plan, opting for any variant other than Shield would not be a worthwhile proposition, even though the premiums are competitive, because the ultimate aim of a term insurance plan is offering a pay-out to the beneficiaries / nominees, for their financial wellbeing in the absence of the insured or the bread winner of the policy. Hence, make sure you make a prudent choice while insuring yourself and securing the future your loved ones.

When addressing insurance needs prudently assess your life insurance requirement, taking into account the scientific concept called Human Life Value (HLV). Also, compare policies for the benefits/feature vis-à-vis the premium before finalizing. Online Term plans are worthwhile, but you ought to thoroughly read the terms and conditions, while you have the convenience of buying it at a click of mouse or smartphone.



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