Bajaj Allianz Life
Bajaj Life eTouch is a decent term plan that offers a few interesting riders. You get the Zero Cost Option, the ability to waive off premiums in the event of total permanent disability and the ability to top up your cover in the event of significant life events. However a big miss here is the critical illness rider and that can be a sore point for many buyers. The upside is that Bajaj Life has been selling sizeable number of policies of late and the company’s claim settlement figures are pretty decent.
Bajaj also markets another plan Smart Protect Goal that offers the critical illness rider and is priced at roughly the same level as eTouch.
Good Claim Settlement Ratio
Bajaj Allianz Life settles 98.85% 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 5 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?
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 extends this option.
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 offers accidental death benefit nonetheless.
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 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 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 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 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 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 doesn’t extend this option.
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