Which life insurance to buy? Term insurance – pure life insurance

eTouch Online Term and Health Cover Plan – a comprehensive solution for all #IfsOfLife


Why to buy a life insurance? The answer is to have peace of mind. If unforeseen situation abruptly end your journey of life, your loved ones need not face a financial crunch in addition to mental agony. Financial planning is a must, but what if it ends in the middle of your wealth creation, if an accident breaks the life thread when your toddler just started talking and has a complete life ahead without one parent? Few things are very difficult to plan but planning for these emergencies is now possible in with the #Term insurance plans. 
#Term insurance is a pure life insurance product without a string of saving or investment attached with it. What it simply means is that if the policy holder dies within the policy term, insurance company is liable to pay the sum assured. In case of survival during the term, insurance company has no liability towards policy holders. As the younger generation is warming up to this insurance product, companies are bringing in additional features to include some more additional risks to give a comprehensive solution to policyholders with a little extra premium. 
Recently I attended the launch of eTouch Online Term Plan by Bajaj Allianz LIC, and interacted with the team as well. In the question answer session, I actually came to know about certain facts about term insurance, which we don’t think deeply but is essential to know. 

5 ultimate features of eTouch Online Term and Health Cover Plan
1. Complete online product which can be bought in few minutes with online chat support. A dedicated call centre is also available to walk you through the whole process, it reduces the agent interference and reducing the premium for the product
2. This product takes care of the scariest #IfsOfLife untimely death, permanent disability due to accident and 34 critical illnesses, one has an option to choose from – Shield, Shield Plus, Shield Super, Shield Supreme gives the policy holders flexibility to choose from
3. A minimum cover of 50 Lakh can by bought but anybody who has a yearly income of Rs. 3 lakh, the premium for the same could be as low as Rs. 5 Thousand, for a healthy 30 year old. 
4. The plan also offers an inbuilt waiver of premium rider applicable in case of accidental total permanent disability or on critical illnesses, depending on the variant opted for. 
5. Apart from the flexible options for policy holder, Bajaj Allianz Life eTouch Online Term and Health Cover Plan also allows for the nominee to receive the policy benefits in a lump-sum amount or in monthly instalments. Option 1 – lumpsum, option 2- 50% lumpsum and rest in increasing monthly instalment, option 3 – monthly level or increasing instalments.
Click here 
Step 1- Calculate your premium
Step 2- Generate your quote
Step 3- Choose your plan

Important features of the plan 
1. Tax benefits under 80C
2. Minimum entry age 18 years
3. Maximum age at entry 65 years
4. Minimum age at maturity – 28 years
5. Maximum age at maturity – 75 years
6. Minimum and maximum policy term – 10 – 40 years
7. Premium payment frequency – yearly, half yearly, quarterly and monthly
8. Minimum sum assured = Rs. 50 lakhs
9. On non-payment of premium before the expiry of the grace period, then, the policy will lapse at the expiry of the grace period, and no benefit under the policy will be paid.
10. HSAR Benefit – The plan offers a premium discount for all policies based on smoker categorization, variant, sum assured slab for each age and policy term. The HSAR will be applied for every additional `1lac increase in sum assured above the base sum assured.
11. Free look period – 30 days
12. Grace period – 15 days
B-Fit wellness app 
With the new policy, Bajaj Allianz LIC also launched wellness app, B-Fit, for its employees and policy holders. Equipped with features like a food guide for Indian cuisine, a health score tracker, expert recommendations basis health score and personalized health articles curated to the user’s interests to make the app engaging. Providing a multitude of other exciting services, B-Fit is an assured and reliable app to help one achieve one’s fitness goals.
So, take care of your health, wealth and family by buying a right term plan. Stay fit with B-Fit app. Do post your queries on financial planning or worries, would love to help you out. 

Bajaj Allianz is all set to bring an ultimate inclusive term insurance plan for all

Term insurance is making its place in India with its own right. The beauty of the pure insurance product has charmed the savvy Indian investors and steadily catching up with all. 

What is a term insurance ?
Term insurance is the purest form of life insurance with no strings of savings or investment attached to it. It is known for providing a lump sum benefit incase of unfortunate death of policyholder. It is an ultimate protection plan for the claimant.

Who should buy term insurance policy? 
Term insurance is one of the most important financial instrument for every earning individual who has dependants to look after. The tenure can vary from 10 to 40 years. However, generally the cover is extended till upto 70 years of age.
Affordable premium for high coverage 
The benefit which make it most attractive to the younger generation is it’s low-cost pricing. The pricing is extremely affordable compared to the other forms of life insurance with a high monetary coverage for the policyholder ensuring unforeseen situation doesn’t cause financial distress. It’s best to buy the insurance policy early to lock-in a low premium for the entire term. With every passing year, the premium cost increases, entering early has it’s own advantage. So, with increased age of the policy holder, premium increases significantly. Two other important factor which affects the premium are the lifestyle of the policyholder (smoking/drinking habits) and nature of profession, individual with life risk exposure in the job, will fetch higher premium.
What do we expect from a friend? To be flexible, helping and being around through ups and downs and sail through the #IfsOfLife. This product aims to be just that. This product aims to protect you and your family like that best friend, who will help you in sail through all tough times.

What is so special about the new product by Bajaj Allianz Life Insurance company?
Looking at the growing interest on term insurance plans, Bajaj Allianz has designed an inclusive product which will not only provide death benefit but also extend a caring hand incase of critical illness or permanent disabilities.

Isn’t it great if an insurance product is committed to you for life, like your best friend, staying around and helping during the toughest phase of your life. Many a times it is not untimely death, but a critical illness or permanent disability caused by an accident which leaves the family morally and financially down and distressed. This product will be an answer to these unforeseen circumstance. And all these can be done with few clicks! Starting from choosing the right protection amount and tenure, term, and additional benefits which is a flexible choice. It also will encourage the buyers to do a thorough check on inclusions and exclusions.

Bajaj Allianz, a joint venture between Allianz SE, the world’s leading insurer, and Bajaj Finserv Limited an established name in the life and non-life insurance segment. It has done an extensive research to develop the insurance plan keeping in mind the changing lifestyle of the progressive Indians. The gen Y is now aware and accept the concept of pure insurance and increasingly opting for term plans which offers adequate cover at rational pricing. 
I am eagerly waiting for the launch of the new life insurance product by Bajaj Allianz @BajajAllianzLIC, on 23rd of December 2016 in Mumbai. #IfsOfLife

Term Life Insurance in India – essentials

Term insurance is the pure form of life insurance, wherein the policyholder pays a premium to cover his/her death risk for a particular sum of money for a particular term i.e.15, 20, 25, 30 years and so on . On demise of the policy holder within the term, the nominee (the beneficiary) is entitled to get the sum assured in lump sum or deferred manner as mentioned the policy contract. If the policy holder survives the term he is entitled to no payment/ #maturity benefits. This policy is highly recommended for the earning members of the family with dependants.
What is an ideal life insurance amount for you?
While choosing an ideal #insurance product, one need to do basic calculation of future monetary requirements based on the laid out financial goals, it cannot be a guess work.
Please write down the present costs you would incur for the following purpose
  • Elderly parents to look after
  • Present age of children and their future needs for education
  •  Do you have a working spouse? If not, her lifelong expenses on health and living

Though exact cost you may not be able to arrive at, please click to find the future costs (inflation) and expenses of education, marriage, living standards etc.Adding up these costs would help you arrive at the right amount, your ideal insurance cover. Still, if you are confused, multiply your yearly income with 10. This should be your ideal sum insured.
Ex – If your yearly income stands at 10 lakh, sum insured should be Rs. 1 crore.
What is the premium you need to pay for this insurance product?

The premium of a term insurance is calculated on few factors.
1. Age of the applicant – With each passing birthday you would need to shell out extra money as premium to buy a new policy, however, it remains the same through the term. So, early entry gives you a good deal. Buy a term plan before your next birthday to save on premium
2. Health of the applicant – It plays an important role too. Two persons of same age may get different quotes for premium depending on the medical history and current health of the applicant. 
3. Lifestyle – For example there shall be significant difference in premium for Smoker and a non-smoker of same age and health.
4. Policy term – You may chose the policy term depending on the offer and your needs, usually 10 -40 years, higher the policy term , higher will be the premium
The reasons why you should buy term Insurance is peace of mind. It buys you a adequate protection at a very low cost.
Parameters to chose the right insurance plan

For the same amount of sum assured, different insurers would quote different pricing. The points we should look at –

1. Inclusions and exclusions – This means, what are the exact conditions to be satisfied by the policy holders to receive the claim amount. Reason of death is one point insurers look at very closely for the payment of claims. Insurers may not cover unnatural deaths, suicide, death due to drug/alcohol etc.
2. Claim settlement ratio of the insurers – While comparing premiums, one must not ignore the CSR. It indicates the percentage of claims honoured on death of the policy holders in the particular year. A high percentage makes the insurers more dependable
3. Additional benefits – In addition to the basic life cover, insurance companies have added many additional features like accidental death benefit, permanent disability benefit, critical illness cover and deferred payment options to ease the burden of the policy holders

Tax Benefits on term insurance
On premiums paid and benefits received as per section 80C and 80D of Income Tax Act,1961.

Disadvantages of term plans
1. No maturity benefit on survival
2. Policy may lapse on not honouring 30days grace period for premium payment. And ou have to buy  new policy all together
Top insurance companies based on claim settlement ratio 2015-16
Insurance Provider
Death claims received
Claim settlement ratio
Death claims paid
Claims pending
Per  claim average value (Rs)
LIC
755,901
98.19%
742,243
0.5%
120,654
Max Life
9,223
96.23%
8,804
0.1%
278,816
ICICI Prulife
12,309
96.20%
11,546
0.8%
305,612
HDFC Std
12,189
95.02%
11,031
2.3%
238,890
SBI Life
14,876
95.70%
13,303
3.2%
229,572
Tata AIA Life
3,873
94.47%
3,659
1.0%
241,241
Star Union Daichi
1,266
94.08%
1,191
0.3%
285,306
PNB MetLife
2,466
92.90%
2,290
1.5%
448,821
Bajaj Allianz
20,661
91.30%
18,978
3.0%
183,291
Kotak Mahindra Life
2,686
90.73%
2,437
3.2%
296,143
AegonReligare
460
95.30%
413
0.2%
744,068
Top 5 basic online term insurance plans in India for #non-smoker, healthy female, age 30 years, Cover for 1 crore based on CSR, term and premium cost

Insurer
Policy Name
Policy Term
Premium
Max life Insurance
Online Term Plus plan
35 years
Rs. 8970/-
Aegon Religare
(No. of policies claimed is very less)
Aegon Life iTerm Insurance Plan
35 years
Rs. 8395/-
ICICI Prudential
iProtect Smart Lumpsum Plan
35 years
Rs. 11,900/-
HDFC Life
Click 2 Protect Plus
35 years
Rs. 11,630/-
PNB Metlife
Mera Term Plan-Full Lumpsum payout Plan
35 years
Rs. 9258/-

The chart data source: Policybazaar
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