When assessing a term insurance plan, such as Bajaj Allianz Touch II, I generally ask myself the following questions to see if it’s good or not:
- Does the insurer provide comprehensive coverage?
- How affordable is the premium?
- Does the insurer have a good claim settlement ratio?
- Is the insurer’s complaint volume lower than its peers? etc
Based on these factors, Bajaj Allianz has earned a solid reputation in the Indian insurance market and is known for offering affordable yet comprehensive insurance products. Among their offerings, the Bajaj Allianz E-Touch II Term Insurance Plan is a new entrant, which is one step above its predecessor – Bajaj Allianz E-Touch. With improved features that address previous gaps, this plan aims to provide policyholders with better coverage. So, if you're considering term insurance in 2025, this plan deserves your attention — particularly for its added Critical Illness (CI) rider, a feature missing from the original E-Touch plan.
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Bajaj Allianz E-Touch II: Brief Overview
Bajaj Allianz Life Insurance Company is a joint venture between Bajaj Finserv and Allianz SE, with Bajaj holding a 74% stake and Allianz holding 26%. The insurer began operations in 2001 and currently offers a vast portfolio of financial products, including term insurance policies, ULIPs, retirement policies, savings plans, etc. The insurer’s average annual (2021 to 2024) business stands at ₹10,456 crores, and its numbers across the metrics board reflect its solid credibility -
| Metric | Bajaj Allianz Life Insurance Company | Industry |
|---|---|---|
| Claim Settlement Ratio (Avg 2021-24) | 99.11% | 98.13% |
| Amount Settlement Ratio (Avg 2021-24) | 93.54% | 94.17% |
| Complaint Volume (Avg 2021-24) | 4.4 per 10,000 claims | 71.7 per 10,000 claims (Avg 2021-24) 15 per 10,000 claims (Median) |
| Average Annual Business Volume (Avg 2021-24) | ₹10,456 crores | ₹16,037 crores |
| Average Annual Business Volume excluding LIC (Avg 2021-24) | ₹6,672 crores |
However, Bajaj is now set to acquire Allianz’s entire stake, making it a fully Indian-owned company. This comes at a time when the company’s market share is steadily improving, increasing its operating revenue in recent years. This is definitely a positive sign for policyholders.
Bajaj Allianz has also gained a strong foothold among NRIs since it allows medical tests to be conducted in foreign countries and reimburses the amount. This makes it a preferred insurer for Indians living abroad who want good term insurance coverage.
Turning to the product itself, the original Bajaj Allianz E-Touch was a solid plan. However, one drawback was that it lacked a Critical Illness Rider, something that we recommend to our customers. The newly introduced Bajaj Allianz E-Touch II addresses this gap by introducing a well-structured critical illness rider. This is one of the main highlights of this new policy.
The E-Touch II plan offers three levels of CI coverage — Critical, Enhanced, and Comprehensive — which cover 10, 25, and 60 critical illnesses, respectively. It also has a short waiting period of 90 days before this rider kicks in and a survival period of just 14 days post-diagnosis when making a critical illness claim.
Apart from this, this rider has a non-accelerated payout. While this sounds like a downside, it certainly is not. This just means the critical illness payout will not come from the base cover amount. Instead, the insurer pays an amount over and above the base cover amount, ensuring that your nominees still get the full death benefit.
Let me explain this with an example:
Imagine you purchase a term insurance policy with ₹1 crore base cover amount and ₹20 lakhs critical illness rider (with non-accelerated payout). Now, let’s assume you are diagnosed with a critical illness. The insurer will pay you the ₹20 lakhs without reducing your base cover amount.
However, with an accelerated payout, the insurer will deduct the ₹20 lakhs critical illness amount from the ₹1 crore base cover. As a result, your nominee will get only ₹80 lakhs as a death benefit.
Features of Bajaj Allianz E-Touch II Term Insurance Plan
The table below outlines some features of the plan:
| Feature | Details |
|---|---|
| Variants | Life, Life Plus, Life Goal |
| Cover Amount | ₹50 lakh - No limit (Subject to underwriting) |
| Entry Age | Minimum: 18 years / Maximum: 65 years |
| Maximum Coverage Age | Up to 99 years |
| Documents Required | Bank details Proof | PAN Card | Permanent and Current Address Proofs | Income Proof | NACH if applicable | Medical History Documents |
| Available Riders | Accidental Death Benefit | Premium Holiday | Return of Premium on Maturity | Family Protect Rider | Critical Illness Benefit Rider |
Should You Buy a Bajaj Life E-Touch II Plan?
- Bajaj Life as an insurer: Founded in 2001, Bajaj Life is currently one of the most well-known life insurance companies in the country. The insurer has been offering various diverse financial products, including term insurance policies, retirement plans, children's insurance plans, ULIPs, retirement policies, investment plans, and more. Term insurance plans from this stable are usually affordable and come with multiple variants based on the benefits offered.
- In-Built features of the plan: The Bajaj Life eTouch II Plan is a comprehensive policy this insurer offers. It has three variants – Life Shield, Life Shield Plus, and Life Shield ROP. All the three variants offer features such as –
- Death benefits: The insurer pays the entire cover amount to the nominee in the event of a death.
- Terminal illness: The insurer pays the policyholder their death benefit sum immediately (up to ₹2cr) if they are diagnosed with a terminal illness. Two doctors – your treating doctor and the insurer’s doctor must agree that the policyholder will live for at most 180 days, even after all available treatment is done.
- Zero Cost: The 2X Early Exit Value (Zero Cost) option allows you to exit your insurance plan early and receive a full refund of all the premiums you paid (excluding rider premiums and GST). To be eligible, your policy duration must be at least 35 years, and your age at maturity should be 70 or older. You can only use this option within five years after turning 60. However, if you've opted for the Life Stage Benefit (LSB) option, you won't be able to opt for this early exit feature.
The 2X Early Exit Benefit allows you to leave your policy early and receive more than what you've paid as premiums. To qualify, your policy must have a term of at least 40 years, and you should have selected a premium payment term of either 5, 6, 10, 12, or 15 years (this isn't available if you're paying premiums only until age 60). If you decide to exit early between ages 60 to 64, you'll get between 100% and 200% of the premiums you've paid, depending on your age at exit—the older you are within this range, the higher the payout.
Life-Stage Benefit: While it is true that the Bajaj Life eTouch II plan doesn’t offer Increasing Cover features (in-built or rider), the policy provides Life Stage Benefits as an in-built feature. Under this feature, when the policyholder has major life stages like marriage, childbirth/baby adoption, higher education, or home loan, the insurer offers to boost the sum assured by a fixed amount.
| Life Event | Capping |
|---|---|
| Marriage | 50% up to ₹50 lakh |
| Birth or adoption of 1st child | 25% up to ₹25 lakh |
| Birth or adoption of 2nd child | 25% up to ₹25 lakh |
| Home Loan | 25% up to ₹50 lakh |
| Education Loan for children | 25% up to ₹25 lakh |
Note: You can avail of multiple Life Stage Upgrades. However, the total increase in Sum Assured will be capped at 100% of the original cover amount.
- Waiver of Premium: If you are diagnosed with a terminal ailment or are left totally and permanently disabled following an accident and opt for this rider, all future premiums towards your policy will be waived. Subsequently, your policy stays active despite paying no premiums toward the plan. This is a value-worthy rider for any term plan, considering it acts as an income replacement for cases when you have issues with your source of income (in case of a terminal ailment or when left permanently disabled). However, do note that this is not there for critical illnesses, something that other insurers offer.
- Auto Cover Continuance Benefit: The Auto Cover Continuance benefit allows you to pause your insurance premium payments for up to 12 months without losing any policy benefits. After the deferment period, when your renewal is due, you'll need to pay the missed premium along with the next scheduled premium. You can start using this benefit after completing the first three policy years, and you can use it multiple times as long as there's at least a 5-year gap between each use. However, it can't be used in your policy's final premium-paying year. There's no extra interest or late fee charged for using this benefit, but you must notify the insurer at least 30 days in advance (or 15 days if you're paying premiums monthly).
- Premium payment frequency: You can decide the interval you prefer to pay the premium. Most insurers offer yearly, half-yearly, quarterly, and monthly payment options. You can also choose regular or limited pay options. A Regular Pay plan is financially more lucrative in the long run, as the premium amount remains fixed while its relative value diminishes over time due to inflation.
On the other hand, a Limited Pay plan offers greater convenience and peace of mind, making it an attractive choice in today's era—especially for those pursuing F.I.R.E. (Financial Independence, Retire Early) or those uncertain about their ability to afford premiums in later years when family dependencies and expenses are likely to be higher. - Health Management Services: Only a few term insurance policies offer health management services to their policyholders. Bajaj Life eTouch plan is one of the few in the market that extends this perk through their app. Under this feature, the insurer offers coverage to its policyholders for medical second opinions, medical case management, medical consultation, etc. Such privileges ensure you stay updated with your health status and catch up with any required medical treatments.
- Riders Available with the Bajaj Allianz E-Touch II Term Insurance Plan:
- Accidental Death Benefit Rider: The insurer pays an additional amount to the nominee in case the death of the policyholder is caused by an accident. This amount is over and above the base cover amount.
- Return of Premiums: The insurer pays back the premiums in full after rider premiums, and GST is deducted at maturity or if you want to exit the plan beforehand. However, I do not recommend purchasing this rider, as it increases the premiums exorbitantly. Here’s a detailed explanation as to why.
- Premium Holiday: This feature allows you to temporarily stop paying premiums for 1, 2, or 3 years during your policy term, which can help you manage financial difficulties like job loss, pay cuts, or unexpected medical expenses. At the beginning of your policy, you must decide how many premium holidays you might want. Your first premium holiday can be used after completing five policy years, and if you've chosen more than one year of premium holiday, there must be at least five years between each break. If you don't use the premium holiday at all during your policy term, the insurance company (BALIC) will automatically waive the premiums for the last 1, 2, or 3 years, based on your initial selection.
- Family Protect Rider: The Family Protect Rider gives your parents a monthly income in your absence or ATPD. Here's how it works: if the rider is activated, your parents immediately receive a lump sum equal to 105% of all the rider premiums you've paid up to that point. Apart from this, they will start getting a regular monthly income for the rest of their lives, calculated as a percentage of the Rider Sum Assured.
- Critical Illness Rider: Finally, here’s the most awaited feature of this plan. The Critical Illness Benefit offers extra financial protection if diagnosed with certain critical illnesses. This rider will be active for the first 20 years of your policy and pays an amount separate from your base cover amount. You can choose from three options based on how many illnesses you would like to cover: Critical (10 illnesses), Enhanced (25 illnesses), or Comprehensive (60 illnesses). After diagnosis, you must survive at least 14 days for the insurer to pay the cover amount. You can choose coverage from as low as ₹50,000 up to ₹1.5 crore, but your rider coverage cannot exceed your base plan's coverage or premium amount. Comparable to Critical Illness cover offered by players like Axis Max Life and HDFC Life.
| Feature / Variant | Life Shield | Life Shield Plus | Life Shield Return of Premium |
|---|---|---|---|
| Death benefits | ✔ | ✔ | ✔ |
| Terminal illness | ✔ | ✔ | ✔ |
| Inbuilt Waiver of Premium | ✔ | ✔ | ✔ |
| Accidental Death Benefit Rider | ✘ | ✔ | ✘ |
| Return of Premiums | ✘ | ✘ | ✔ |
Pros and Cons of Bajaj Allianz E-Touch II
Like any insurance plan, Bajaj Allianz E-Touch II has strengths and drawbacks that you should consider:
Pros of Bajaj Allianz E-Touch II
- Nationwide Coverage Without Restrictions:Bajaj Allianz E-Touch II offers one of the most accessible coverage options in India. Unlike some insurers that exclude specific pin codes or regions, Bajaj Allianz imposes no geographical limitations within the country. This ensures you can get coverage regardless of your location — a feature that is available only with HDFC Life, apart from Bajaj Allianz.
- Affordable Premiums:Bajaj Allianz offers some of the lowest premiums, especially for women. While the exact premiums are subject to underwriting guidelines, you can generally expect lower premiums compared to other insurers, especially for smokers.
Cons of Bajaj Allianz E-Touch II
- Restricted Waiver of Premium (WOP) Coverage:While Bajaj Allianz E-Touch II does include a Waiver of Premium feature, it applies only in the event of Accidental Total Disability. Unfortunately, this excludes the waiver for Critical Illnesses, which could leave some people vulnerable to financial strain during extended illness recovery periods.
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Conclusion
The Bajaj Allianz E-Touch II Term Insurance Plan builds on the strong foundation of its predecessor by addressing one of the most notable gaps — good Critical Illness Coverage. If you’re looking to get term insurance in 2025, Bajaj Allianz E-Touch II stands out as a strong contender. However, as always, it's wise to compare plans based on your unique requirements using trusted tools like Ditto’s free term insurance comparison tool to make an informed decision.
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