Bajaj Allianz Life
eTouch II
Bajaj Life eTouch II is a solid term plan with several valuable riders. It includes a Zero Cost Option, a waiver of premiums in case of total permanent disability, and the flexibility to increase coverage upon significant life events. Additionally, the plan offers a comprehensive critical illness rider covering up to 60 illnesses, similar to those provided by Axis Max Life and HDFC Life. Another positive aspect is its respectable claim settlement record, affordability, and various discounts for salaried individuals and first-time insurance buyers.
If you are a woman and a non-smoker, looking for an affordable term plan, then you may notice that Bajaj Life offers one of the most competitive rates in the market.
Good Claim Settlement Ratio
Bajaj Allianz Life settles 99.11% of claims of the total number of claims it receives as compared to the industry average of 97%. A pretty good number overall.
Good Complaints Ratio
Bajaj Allianz Life receives 4.4 complaints (per 10,000 claims registered) as opposed to the industry median of 17 complaints. Pretty good figure overall.
Good Amount Settlement Ratio
Some insurers pay out the smaller claims while declining to pay out the few higher-value claims in a bid to improve the claim settlement ratio. So you will need to look at the total amount settled as a percentage of the total amount claimed. Bajaj Allianz Life meanwhile has an amount settlement ratio of 93% as opposed to the industry average of 87%. Pretty good figure overall.
The aforementioned ratios have been averaged over three years for every insurer and the industry as a whole.
What's good here?
Good Critical Illness Benefit
If you’re ever diagnosed with a debilitating illness, you would want your insurance policy to pay a fixed sum so that you can deal with any monetary obligations you may have. eTouch II extends top notch critical illness protection and pays up to undefined so long as you are diagnosed with 60 illnesses listed in the policy brochure.
Prompt Payouts:
Payouts for critical illnesses may not be made immediately. Instead, insurers expect you to survive for a certain duration before they make the payment. And eTouch II will pay out the benefit 14 days after the diagnosis is confirmed.
Payout on top only:
Some policies will pay out the critical illness (CI) benefit from the total term cover available, i.e. Accelerated payout, while also offering you the option to avail it on top of the total term cover available. eTouch II however doesn’t offer the accelerated option and pays out the benefit on top.
Short waiting period:
Most policies impose a waiting period before they make the Critical Illness Benefit available. And eTouch II imposes a 90 days waiting period before they can process any claim related to critical illnesses. This is shorter than the industry average.
Accidental Death Benefit Available
Some policies offer you the option of adding extra protection for accidental deaths. And while we recommend customers choose a comprehensive cover without worrying about the specifics of death precisely, eTouch II offers accidental death benefit nonetheless.
Zero Cost Option Available
Some insurers will return all your premiums if you forego your policy before maturity, during a period specified by the insurer. Meaning you get all your premiums back, while also being protected under the term plan during this time. And eTouch II extends this option.
What's okay here?
Decent Terminal Illness Benefit
Certain policies will disburse the entire cover amount the moment you are diagnosed with a terminal illness. So even in the absence of death, you can still get the money and use it any way you wish. And while eTouch II does not disburse the entire sum assured, you do have the option to receive a portion of your cover if you are diagnosed with a terminal illness.
Top-Up Option available (As Life Stage Benefit)
Some policies extend the option of increasing your total term cover even after you buy the policy. And while eTouch II doesn’t offer you a blanket option to increase your cover, it does extend the provision to increase your cover during significant life events i.e. when you get married, when you have kids etc. The feature is called life stage benefit.
You can recover your premiums after policy matures
Some policies return your premium after the policy matures if you don’t make a claim. However, we don’t recommend this option actively considering the option can be expensive. In any case, eTouch II extends this option to those considering it.
Premiums waived only after permanent disability (due to accident)
Some policies waive all future premium payments if you are ever disabled (due to accident) or diagnosed with a critical illness. And while eTouch II doesn’t extend the waiver-of-premium option if you are diagnosed with a critical illness, you have the option to waive off all premiums if you are disabled for life (due to accident).
What's lacking here?
No option to increase your cover with inflation
Some policies automatically increase your cover by a certain amount (usually inflation) to always provide you with the necessary protection. Unfortunately eTouch II doesn’t extend this option.
No payouts in the event of total permanent disability
Some policies offer you a monthly income or a large lumpsum in the event you are disabled totally for life. Unfortunately eTouch II doesn’t extend this option.
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