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Knowledge Base Life Insurance Term Plan Bajaj Allianz iSecure Insurance Plan
Tuesday, 21 August 2012 16:30

Bajaj Allianz iSecure Insurance Plan

Written by  Yashish Dahiya
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Bajaj Allianz iSecure Insurance Plan 


Plan Name: iSecure

Insurer: Bajaj Allianz Life Insurance

Category: Term Life Insurance Plan

Objective: Financial Protection of family

 

iSecure is the latest addition in the online term insurance segment. iSecure offers financial protection to the dependents in case of untimely demise. You pay relatively small premium to the insurer for the comprehensive cover and get your family secured. If policyholder passes away, Sum Assured will be given to the nominee. Since iSecure is a pure risk plan, there are no survival benefits.

 

Who can buy iSecure Plan? 


iSecure term life insurance plan is for any individual who is at least 18 years or below 60 years. iSecure policy term is minimum of 10 years and maximum of 30 years. So if you are 50 years old the maximum term you can opt for is 20 years. That is because iSecure plan maturity age cannot exceed 70 years.

 

How Much Cover: The minimum Sum Assured is Rs 2.5 lacs. iSecure allows you to take as much high cover as you want. However you have to meet underwriter’s requirement to get the cover you want, which depends on your annual salary, age etc.

 

So how much cover should you get?

Rule of Thumb: The typical cover should be ten times your annual income.

 

Summarized Table:

Entry Age

18 years-60 years

Maturity Age

Maximum – 70 years

Sum Assured

250,000-unlimited( subject to underwriting)

Policy Term

10, 15, 20, 25, 30 years

Premium Pay Term

Same as policy term

Premium Frequency

Monthly, Quarterly, Half Yearly, Yearly

 

 

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What do I get?


Death Benefit:

Individual Life:

The predetermined Sum Assured is paid to the beneficiary who could be your parents, wife, son or daughter. The policy should be active to receive the benefit.

 

Joint Life: On death of either of the life covered, the Sum Assured relevant to the deceased life will be paid. The policy will continue and cover the surviving person. If the surviving member also passes away, the Sum Assured will be paid and policy will terminate.

 

Tax Benefits:  Section 80C, 10 (10D) of the Income Tax Act, 1961 are applicable.

Under Section 80C you can avail tax benefit, yearly premium (not more than 1lac) will be deducted from taxable income.

Under Section 10(10D) death claim is completely tax free.

 

The following example will make the plan crystal clear.

 

Illustration:

Mr. Chawla is 35 years old with wife and 2 kids. His yearly salary is Rs 6 lacs and makes savings of one lac per year.

Suppose he dies after 5 years, he will have left paltry 5 lacs to his dependents. Under same scenario, he buys Bajaj Allianz iSecure with Sum Assured equal to Rs 50 lacs and policy term of 25 years.

 

He would have to pay a paltry premium of Rs 9,240.

With just around Rs 9250 yearly, you can get sum assured of 50 lacs which will financially secure your family. Additionally most of the savings stay intact.

 

Your family gets = Rs 50 lacs (Sum Assured) + 4-5lacs (Your Savings)

 

Consider these Scenarios:


Scenario1: Mr. Chawla dies in the 4th policy year- his family will get 50 lacs. Same is true for all policy years.

Scenario 2: Policy is in grace period and he dies, Sum Assured minus renewal premium will be paid.

Scenario 3: Policy lapses on the 22nd year, life insured dies, nothing will be paid. If policy lapses, there is option to revive it within 30 days from date of renewal.

 

What Else?


How to buy: iSecure plan can be bought online. Buying Online is very easy and hassle free process.

 

Free Look Period: iSecure plan can be cancelled within 15 days of receiving the policy contract. A written application can be submitted to any branch for the same. The premium will be paid back minus some charges like stamp duty, medical reports.

 

Grace period: iSecure can be paid within 30 days from the date of renewal (15 days for monthly modes). Policy terms will remain unchanged during grace period. However in case of death during grace period, renewal premium will be deducted from Sum Assured payable. After 30 days, if the renewal premium is not paid the policy will cease to exist.

 

Reinstatement- iSecure can be revived within 2 years from the premium due date. However all outstanding premiums are to be paid.

 

Maturity: There are no maturity benefits in Bajaj Allianz iSecure as it’s a pure term life insurance plan.

 

Payment Method: Net banking, credit/debit card are accepted by Bajaj Allianz.

 

Exclusion: During the first policy year or the year of reinstatement of policy, if policyholder commits suicide then Sum Assured will not be paid.

 

Death Claim: The nominee can request for the death claim (Sum Assured) after filling claim forms along with submitting list of documents which will prove authenticity of the claim.

 

Policybazaar take on Bajaj Allianz iSecure:


 

iSecure is Bajaj Allianz first online term insurance plan. It provides many options to customers. There is the option to buy policy on individual as well as joint life basis. By paying nominal additional amount, you can add riders- Bajaj Allianz comprehensive accidental protection benefit, critical illness benefit, hospital cash benefit. You can also opt for taking death benefit in annual installments instead of lump sum.

 

Compare with other term plans now!

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