Term Plan Insurance: LIC Amulya Jeevan vis-à-vis Bajaj Allianz New Risk Care II Plan

Term Plan Insurance: LIC Amulya Jeevan vis-à-vis Bajaj Allianz New Risk Care II Plan

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A term insurance plan is a pure life cover which pays lump sum amount (Sum Assured) on the death of life insured.

Amulya Jeevan is the term insurance plan of Life Insurance Corporation of India.

New Risk Care II plan is the term insurance plan of Bajaj Allianz.

Age Eligibility:

For LIC Amulya Jeevan, person aged between 18 years to 60 years can buy the term insurance plan. Amulya Jeevan plan maximum maturity age is 70 years.

For Bajaj Allianz New Risk Care II, person aged between 18 years to 60 years can buy the term insurance plan. Bajaj Allianz New Risk Care II term plan maximum maturity age is 65 years.

Life Cover:

The minimum life cover that can be opted with LIC Amulya Jeevan is Rs 25 lacs and for Bajaj Allianz New Risk Care II, minimum cover is Rs 2 lacs. The maximum cover in LIC Amulya Jeevan and Bajaj Allianz New Risk Care II is very high and can be opted as long as it is approved by insurer’s underwriter. The underwriter decides life cover on basis of age, annual salary, medical condition etc.

Policy Term:

The policy term for Amulya Jeevan is from 5 years to 35 years. The policy term available with Bajaj Allianz New Risk Care II plan is from 5 years to 40 years.

Riders:

There are no riders available with LIC Amulya Jeevan.

Bajaj Allianz New Risk Care II term plan has Comprehensive accident protection, critical illness and hospital cash benefit rider.

Premium Comparison:

The premium payment frequency available with Bajaj Allianz New Risk Care II is single premium only. Single premium payment frequency is not available with LIC Amulya Jeevan and as such premium comparison is not possible.

Reinstatement:

On policy lapse, LIC Amulya Jeevan can be reinstated within 5 years and Bajaj Allianz New Risk Care II plan can be reinstated within 2 years from the date of unpaid premium. All the due premiums have to be paid and medical tests might be taken again.

Claim Settlement Ratio:

CSR is the claim settlement ratio. Claim settlement data has been taken for all the death claims made with the insurer and not for a particular policy. Claim settlement ratio is calculated by the formula- claim settled/total claims.

For the period Q2, 2011, the claim settlement ratio of Life Insurance Corporation of India is 77% whereas for Bajaj Allianz, claim settlement ratio is 74%.

End Note:

LIC Amulya Jeevan is a good plan which has minimum life cover of Rs 25 lacs and has long policy terms available. Bajaj Allianz New Risk Care II is a good term insurance plans which is suitable for individuals looking for particular Sum Assured. Riders can be added with Bajaj Allianz New Risk Care II plans by paying additional premium to increase financial security. However you can opt for single premium payment option only with New Risk Care II.