Is Bajaj Life Term Insurance Good?

If you're searching for "Is Bajaj Allianz Life Insurance good?", there's one important update. Bajaj Allianz Life Insurance Company Limited is now called Bajaj Life Insurance Limited. Allianz exited the joint venture, and the Bajaj Group acquired its stake. 

So, is Bajaj Life Term Insurance good?

For most term insurance buyers, yes, it is one of the insurers worth shortlisting. But let’s review it in more detail by looking at its plan offerings, strengths, and drawbacks. We will also answer who should opt for the insurer.

Bajaj Life Insurance Term Plans

eTouch II

Bajaj Life eTouch II is the insurer's flagship term insurance policy. You can enter the policy between 18 and 65 years, while the maximum maturity age can extend to 99 years (for whole life). The sum assured starts at ₹50 lakh with no predefined upper limit, subject to Bajaj Life's underwriting guidelines. 

Key Features

• Three Plan Variants: Life Shield provides straightforward term protection, Life Shield Plus adds an Accidental Death Benefit, while Life Shield ROP returns eligible premiums at maturity if you survive the policy term.
• Terminal Illness Benefit: If you're diagnosed with a qualifying terminal illness, the plan accelerates the death benefit. For covers above ₹2 crore, up to ₹2 crore can be paid immediately, while the remaining life cover continues with future premiums waived, subject to policy conditions.
• Waiver of Premium: Future premiums are waived if you suffer an Accidental Total Permanent Disability or are diagnosed with a qualifying terminal illness. The underlying life cover continues.
• Premium Holiday: You can choose at inception to skip premiums for one, two, or three policy years while keeping the life cover intact, subject to eligibility conditions. The first holiday is available after five completed policy years.
• Auto Cover Continuance Benefit: Eligible policyholders can defer premiums for up to 12 months while keeping their life insurance cover active.
• Early Exit Value: Under Life Shield and Life Shield Plus, eligible policyholders can exit after completing 25 policy years and reaching age 60 and receive a refund of the applicable premiums paid. 
• Life Stage Upgrade: Life Shield and Life Shield Plus allow eligible policyholders to increase their life cover following events such as marriage, childbirth or adoption, a home loan, or a child's education loan, subject to prescribed limits.

Riders

• Critical Illness Benefit Rider: Provides a lump-sum benefit on diagnosis of covered critical illnesses. The Comprehensive option can cover up to 60 specified critical illnesses, subject to the rider terms.
• Accidental Death Benefit Rider: Pays an additional benefit if death occurs due to a covered accident within 180 days of the unfortunate event. Availability depends on the base plan variant selected.
• Accidental Permanent Total/Partial Disability Benefit Rider: Provides additional financial protection following a qualifying accidental disability.
• Family Protect Rider: Adds family-focused protection options, subject to the chosen rider variant.
• Care Plus Rider: Provides additional health-related protection based on the selected benefit and rider conditions.

These riders can improve the overall protection, but we'd recommend selecting them based on your actual needs rather than adding every available rider. 

Smart Secure ROP

Bajaj Life Smart Secure ROP is available for ages 18 to 65 years, with coverage extending up to age 85. Life cover starts at ₹50 lakh, while the maximum is subject to underwriting. However, this isn't a conventional pure term policy. It combines life, terminal illness, accidental death, and disability protection with market-linked investment returns. At maturity, eligible protection premiums are returned along with the accumulated fund value. 

iSecure II

Bajaj Life iSecure II is a term plan available to ages 18 to 65, with coverage extending up to age 85. Under the Life and ROP variants, the sum assured starts at ₹25 lakh with no predefined upper limit, subject to underwriting, while the Easy variant offers ₹10 lakh to ₹30 lakh of cover. The Life variant offers pure protection, the ROP variant returns eligible premiums at maturity, and the Easy variant focuses on simpler issuance. 

Diabetic Term Insurance Plan

The Bajaj Life Diabetic Term Plan II Sub 8 HbA1c is a specialized pure-risk term plan for eligible people with Type 2 diabetes or pre-diabetes. It is available between 30 and 60 years, with maturity up to age 75, and life cover starts at ₹25 lakh, subject to underwriting. Eligible Type 2 diabetics need an HbA1c level of up to 8%, while pre-diabetics with HbA1c between 5.7% and 6.4% can also qualify. Policy terms range from 5 to 25 years.

Superwoman Term

Bajaj Life Superwoman Term is a women-focused protection solution built around the eTouch II Life Shield base plan, so the underlying life cover starts at ₹50 lakh, with entry broadly available from 18 to 65 years, subject to underwriting and individual rider eligibility. You get life cover along with critical illness protection covering up to 60 specified illnesses, including women-specific conditions.

The above data has been sourced from IRDAI annual reports and insurers’ public disclosures. To compare with other insurers, refer to Ditto Data Lab.

For this example, we've considered healthy, non-smoking, salaried individuals living in a tier-1 city such as Delhi (pincode: 110010), covered for ₹2 crore until age 65. These premiums are indicative and can vary based on your age, sum assured, medical history, lifestyle, riders, occupation, and underwriting. 

Pros and Cons of Bajaj Life Insurance

Pros of Bajaj Life Insurance

• Exceptional Financial Strength: Its three-year average solvency ratio of 3.52x is the highest in the industry.
• Strong Claim Settlement Performance: A 99.32% three-year average CSR comfortably clears the 97% benchmark.
• Very Low Complaint Volume: At only 2.77 complaints per 10,000 claims, Bajaj performs significantly better than the industry median.
• Competitive Term Insurance Premiums: eTouch II is priced very competitively across several healthy salaried profiles.
• Strong Product Diversity: Bajaj offers dedicated options for Non-Resident Indians (NRIs), conventional buyers, self-employed customers, women, and people with Type 2 diabetes.

Cons of Bajaj Life Insurance

• ASR Trails the Industry: Its three-year Amount Settlement Ratio of 93.42% is below the 94.83% industry mean and behind several leading peers.
• Smaller Scale Than Some Competitors: Its business volume is healthy and well above the industry median, but it remains smaller than some insurers such as Life Insurance Corporation of India (LIC), SBI Life, and HDFC Life.

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Conclusion: Is Bajaj Life Term Insurance Good?

Bajaj Life Term Insurance is a strong option for buyers who value financial stability, competitive pricing, and feature-rich term plans. Its high solvency ratio, strong claim settlement metrics, low complaint volume, and competitively priced eTouch II plan make it worth considering alongside other leading insurers.

However, Bajaj Life may not suit everyone. Buyers who prioritize the highest possible amount settlement ratio or prefer insurers with a larger business scale may want to compare alternatives before deciding. 

Before buying a Bajaj Life term plan, compare the issued premium, policy features, exclusions, and insurer metrics based on your profile.