Bajaj Allianz Life Secure Plan
Bajaj Allianz Life Secure Plan Review
Bajaj Allianz Life Secure Plan is a traditional, non-participating Whole Life Term Assurance plan which provides insurance protection for the policyholder’s lifetime.
Key Features
- This is a traditional Whole of Life Term plan which does not provide bonuses.
- It is a Limited Premium Paying plan where the policyholder can choose any tenure from 5, 7, 10 or 15 years.
- There are three options of death benefit to choose from and coverage is provided till the insured reaches 100 years of age.
- The Accidental Death Benefit rider, Accelerated Critical illness Rider and Waiver of Premium Benefit rider are inbuilt in the plan under Death Benefit options II and III
- Females are charged a lower premium rate than males.
Benefits
If the insured attains 100 years and the plan matures, the Sum Assured is paid if any Critical Illness benefit is not paid under Death Benefit option III. If the Critical Illness benefit is paid, then the Sum Assured net of the benefit paid would be paid on maturity and the plan would terminate.
If the insured dies before reaching 100 years of age, the death benefit payable would be dictated by the Death Benefit option selected which is:
- Death Benefit Option I – Only Death Benefit:
Sum Assured on Death - Death Benefit Option II – Death Benefit plus Accidental death Benefit:
Sum Assured on Death is payable if the death occurs due to any causes other than accident. In case of accidental death before reaching 65 years, Sum Assured on Death + Accidental Sum Assured (equal to Sum Assured to a maximum of Rs.2 crores) is paid - Death Benefit Option II – Death Benefit or Accelerated Critical Illness plus waiver ofPremium Benefit:
If the insured suffers a Critical Illness before attaining 65 years of age and within the first 30 years of the policy tenure, 50% of the Sum Assured on death to a maximum of Rs.50 lakhs would be paid. Future premiums would be waived off and the plan would continue. If the policyholder dies subsequently, the remaining Sum Assured on Death would be paid and the policy would end. If any Critical illness has not occurred and the insured dies then full Sum Assured on death would be paid.
The Sum Assured on Death for all the above benefit options would be higher of the following: - 10 times the annual premium is age is lower than 45 years or 7 times the annual premium for ages higher than 45 years
- Sum Assured
- 105% of all premiums paid till death
Loans are not allowed under the plan.
Bonuses are not declared under the plan since it is a non-participating plan.Tax benefit – Premiums paid under the plan would be exempt from tax under Section 80C up to a limit of Rs.1.5 lakhs. The death benefit or the maturity benefit received would also be tax exempt under Section 10(10D) of the Income Tax Act.
No additional riders are available with the plan
If a higher amount of Sum Assured is chosen, the company provides premium rebates. This rebate is allowed per lakhof Sum Assured for Sum Assured levels above Rs.20 lakhs. The rebate offered ranges from Rs.56 to Rs.152 per lakh and depends on the Premium Paying Term and age of the policyholder.
A grace period of 30 days is allowed for payment of premium after the due date for annual, half-yearly or quarterly modes of premium payment. For monthly modes, the grace period allowed is 15 days. The life cover under the policy would continue during the grace period.
A cooling off period or a free look period of 15 days is granted to the policyholder after the policy issuance to review the policy terms and conditions. If found unsatisfactory, the plan can be cancelled within this period and the premium paid would be refunded after deducting the relevant mortality charge, service tax, cess and stamp duty paid.
Variants
The following is the sample premium for a combination of ages and Sum Assured (SA) across all available options. The premium paying term is taken to be 15 years.
The above premium chart is as follows:
| Age | Option 1 | Option 2 | Option 3 | |||
| SA - 20 lakhs |
SA - 30 lakhs |
SA - 20 lakhs |
SA - 30 lakhs |
SA - 20 lakhs |
SA - 30 lakhs |
|
| 30 years | 42,480 | 63,010 | 44,340 | 65,800 | 47,720 | 70,870 |
| 40 years | 58,000 | 86,290 | 59,700 | 88,840 | 67,680 | 100,810 |
- If suicide is committed within a year of policy commencement or revival, higher of 80% of the premiums paid till death or the Surrender Value acquired would be paid provided the policy is in force.
- For Accidental Death Benefits, accidents due to criminal acts, influence of alcohol or drugs, self-inflicted injuries, defense operations, hazardous sports, suicide, aviation, war and nuclear contamination would be excluded.
- In case of Accelerated Critical Illness Benefit, illnesses due to HIV Infection, within 180 days of commencement which cause death within 30 days of diagnosis, illnesses suffered within 48 months prior to policy commencement or any illnesses due to criminal acts, influence of alcohol or drugs, self-inflicted injuries, defense operations, hazardous sports, suicide, aviation, war and nuclear contamination would be excluded.
Non-Payment of premium in Bajaj Allianz Life Secure Plan
Premiums have to be paid for at least 2 years if the Premium Paying Term is lower than 10 years or 3 years if it is higher than 10 years after which the policyholder can surrender the policy or make it paid-up.
Making the policy Paid-up
If at least 2 or 3 full years’ premium has been paid depending on the premium paying term, the policy would become a paid-up policy if future premiums are not paid. The Sum Assured and the Sum Assured on Death would be reduced and would be called the Paid-up Sum Assured and Paid-up Sum Assured on death respectively. The death and maturity benefits under all the three options would be replaced by the Paid-up Sum Assured or the Paid-up Sum Assured on death wherever applicable
- Paid-up Sum Assured - The Paid-up Sum Assured would be calculated as:
Sum Assured * (number of Premiums Paid / total number of premiums payable) - Paid-up Sum Assured on Death–The Paid-up Sum Assured on death would be calculated as:
Sum Assured on death* (number of Premiums Paid / total number of premiums payable)
How it works
- The policyholder chooses the coverage required, the Death Benefit option and the Premium Paying Tenure based on which the premium amount is calculated.
- If the insured dies any time before reaching 100 years of age, the death benefit is paid according to the chosen death benefit option.
- If the policyholder survives till maturity, i.e. after attaining 100 years of age, the maturity benefit would be paid depending on the death benefit option chosen.
Plan Details
You can customize your policy to suit your requirement in the following manner:
Step 1: Choose your coverage option
Step 2: Choose your Sum Assured
Step 3: Choose your Premium Payment Term (PPT)
Your premium will be based on your current age, gender, Sum Assured, coverage option, PPT & premium payment
frequency.
The coverage option chosen at inception cannot be changed during the policy term.
Let's Understand The Plan With An Example:
Vishal aged 35 years has taken a Bajaj Allianz Life Secure-coverage option III for a premium paying term of 15 years. The
Sum Assured chosen by him is Rs.30,00,000 for which he is paying an annual premium of Rs.84,940 after a high sum assured
rebate of Rs.710.
The risk covers received by Vishal are as follows:
- In case of unfortunate diagnosis of any of the critical illness, say, at age 40,
- Vishal will receive Rs.15,00,000 immediately and all the future premiums will be waived
- In case of unfortunate death subsequently, say, at age 80 years, the nominee/claimant will receive Rs.15,00,000 immediately.
In case of unfortunate death, say, at age 50 (no critical illness benefit was paid before), the nominee/claimant will
receive Rs.30,00,000 immediately.
Premium shown above is exclusive of Service Tax &cess, and any extra premium.
For female lives, 3 year age set back is applicable in premium calculation for Coverage Option I and II
Eligibility
The plan can be bought only by Resident Indians. The other eligibility criteria of the plan includes:
| Minimum | Maximum | |
| Entry age (Last Birthday) | 25 years | Coverage Options I & II – 55 years Coverage Option III – 50 years |
| Maturity Age (Last Birthday) | NA | 100 years |
| Plan tenure | (100 – age at entry) years | |
| Premium payable | Yearly – Rs.36,720 Half-yearly – Rs.18,727 Quarterly – Rs.9547 Monthly – Rs.3305 |
No Limit |
| Premium Paying Term | 5, 7, 10 or 15 years | |
| Sum Assured | Rs.20 lakhs | No limit |
| Premium payment mode | Monthly, quarterly, half-yearly and annually or Single Premium | |
Surrender Value
Surrender is allowed only after the policy becomes paid-up. On surrendering the policy, higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV) would be paid.
- GSV = Basic Premium paid excluding taxes * GSV Factor
- The SSV would be declared by the company based on its performance and would be calculated as:
(Paid-up Sum Assured – Critical Benefit Paid) * SSV factors
Revival is allowed within 2 years from the date of the first unpaid premium. The policyholder would be required to pay the outstanding premium and any interest charged by the insurer to revive his policy.
