Term Insurance 158 views July 15, 2021

Bajaj Allianz iSecure Loan Plan

Bajaj Allianz iSecure Loan Plan is a non-linked non-participating mortgage cover term life insurance that makes sure your family is free from any financial burden upon your death. Key benefits of the Bajaj Allianz iSecure Loan Plan are shown below:

  1. Death Benefit
  2. Limited premium payment term of 2/3rd of your policy term
  3. Wide range of policy terms based upon your loan tenure
  4. Enhance your coverage with rider benefits

Read this page further to know about the benefits of the Bajaj Allianz iSecure Loan Plan in detail.

Bajaj Allianz iSecure Loan Plan Death Benefit

The insurer will pay a death benefit to your nominee in case of your unfortunate death during the policy term:

For Individual Life

The prevailing sum assured will be payable as a death benefit to the nominee

For Joint Life 

The death benefit is payable on the death of each life assured, provided the policy is in force. The insurer will pay the death benefit in respect of the deceased life assured to the nominee. Upon the death of any one of the life assured, the policy will automatically continue on the surviving life assured with a reduced premium. The reduced premium amount will be calculated based upon the age, policy term and the sum assured in respect of the surviving life.

Note: The policy will terminate immediately on the death of the surviving life assured.

Bajaj Allianz iSecure Loan Plan Policy Term & Premium Payment Option

You can choose from the following policy terms:

  1. 10 years
  2. 15 years
  3. 20 years
  4. 25 years

The premium payment term is 2/3 rd of the policy term, rounded down in years. Check out the example below to understand it better.

Suppose a 30-year old male buy this policy, his premium payment term options would be as follows:

  1. For a policy term of 10 years – 6 years
  2. For a policy term of 15 years – 10 years
  3. For a policy term of 20 years – 13 years
  4. For a policy term of 25 years – 16 years

You can pay your policy premium yearly, half-yearly, quarterly or monthly. If you opt for a monthly installment, you need to pay three installments at the inception of the policy.

Bajaj Allianz iSecure Loan Plan Premium Amount & Sum Assured

The minimum premium amount under Bajaj Allianz iSecure Loan Plan is as follows:

  1. Yearly – INR 1,500
  2. Half-yearly INR 750
  3. Quarterly – INR 400
  4. Monthly – INR 150

The minimum sum assured under Bajaj Allianz iSecure Loan Plan is INR 3 Lakh. Whereas the maximum sum assured has no limit.

Bajaj Allianz iSecure Loan Plan Rider Options

You can enhance this policy coverage by choosing any of the optional rider benefits:

  1. Bajaj Allianz Accidental Death Benefit Rider
  2. Bajaj Allianz Accidental Permanent Total/ Partial Disability Benefit Rider
  3. Bajaj Allianz Waiver of Premium Benefit Rider

You can opt for the riders either individually or jointly at policy inception. If you opt a rider for a joint life, in case of accidental death of the first life assured, an additional accidental death benefit shall be payable and the rider along with the base policy shall continue for the surviving life assured.

Bajaj Allianz iSecure Loan Plan Eligibility Criteria

You can purchase this policy if you meet the following age criteria:

  1. Minimum Entry Age – 18 years
  2. Maximum Entry Age – 60 years
  3. Minimum Age Allowed Till Maturity – 28 years
  4. Maximum Age Allowed Till Maturity Maturity – 65 years

What Happens if You Don’t Pay Bajaj Allianz iSecure Loan Plan Premiums? 

If the premium is not paid before the end of the grace period, your policy will lapse and no death benefit or paid-up value will be payable to you. You can revive this policy within a revival period of five years that starts from the due date of the first unpaid premium. To receive your policy, follow the steps shown below:

  1. Send an application for revival within 5 years from the due date of the first unpaid premium and before the end of the premium payment term
  2. Pay the due premiums along with interest
  3. Submit the evidence of good health at your expenses

The company may decide the late payment charge from time to time. The current revival interest rate is 9.0% per annum, compounded half-yearly. Bajaj Allianz iSecure Loan Plan revival interest rate will be benchmarked to the G-Sec based on the information from Financial Benchmark India Private Ltd (FBIL) and will be equal to [10-year G-Sec yield PLUS 2%] rounded up to the next full interest rate.

The revival interest rate is reviewed on an annual basis, and if there is any change, it is subject to prior approval of the Insurance Regulatory and Development Authority of India (IRDAI).

Note: The revival of the policy is done based on prevailing board-approved underwriting norms of the company framed from time to time. So, the company has the right to refuse to revive the policy, based on its board-approved underwriting norms.

Suicide Clause

In case of death of the life assured due to suicide within 12 months from the date of commencement of the policy or the latest revival, whichever is later, the insurer will pay 80% of the total paid premiums to the nominee or beneficiary, provided the policy is in force.

Free Look Period

You’ll have a free look period of fifteen days from the date of the receipt of this policy to review the terms and conditions. And if you disagree with the same, you can return the policy stating the reasons for your objections, provided you have not filed any claim under this policy. On such cancellation, you’ll be entitled to a refund of the paid premiums (excluding applicable taxes) less the proportionate amount of risk premium for the period on the cover, medical examination expenses and stamp duty charges.

Note: If the policy is obtained through distance marketing mode, the free look period is 30 days.

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