Bajaj Allianz Term Insurance Vs. Kotak Term Insurance

Bajaj Allianz Term Insurance Vs. Kotak Term Insurance

Imagine. Mr. and Mrs. Singh are a middle-class couple residing in a metropolitan city in India. Mr Singh works as an IT professional and is the primary breadwinner of the family. They have two children, a daughter in high school and a son in college. The family has a home loan, and Mr Singh also contributes to his children’s education expenses. But suddenly, Mr. Singh met with a car accident and lost his life. So, now the question is- Who will beat the expense of Mr Singh’s family? Who will pay for the home loan? This is where the importance of term insurance comes in!

In the unfortunate event of Mr Singh’s demise during the policy term, the family would receive a death benefit of Rs. 1 crore or more (depending on the coverage). This amount can be used to cover daily expenses, repay the home loan, and fund the children’s education. Since the market is bombarded with many options, choosing the right term insurance is daunting.

Bajaj Allianz Term insurance and Kotak Term insurance are two of the popular options on the market. If you want to choose between the two, you should know every detail about them in detail!

Comparison Between Bajaj Allianz Term Insurance vs. Kotak Term Insurance

Let’s take a look at the in-depth comparison between Bajaj Allianz Term Insurance and Kotak Term Insurance.

ParametersBajaj Allianz term InsuranceKotak Term Insurance
Claim Settlement Ratio (Individual Death Claims) Life insurance)93.45% (As per IRDAI Report 21-22)95.53% (As per IRDAI Report 21-22)
No. of Plans9 plans3 plans
1cr. Term PlanRs. 1 Crore Term Plan @ Rs. 583 / MonthGet 1 Cr. Sum Assured @Rs.17/day
Tax BenefitsYesYes


Bajaj Allianz Life: Life Assist


HappyYou by Kotak

  • Accidental death benefit rider, critical illness rider
  • Accidental permanent total/partial disability rider
  • Waiver of premium benefit rider, and family income benefit rider
  • Accidental Death Benefit Rider
  • Accidental Total and Permanent Disability Benefit Rider
  • Critical Illness Cover
  • Premium Waiver
Claim payout timeEligible claims being settled with 1-day claim approval% on certain eligible policies.Within 7 working days
Entry Age18 Years18 Years
CoverageUp to 99 or 100 years of ageLife Cover till 85 years for Life & Life Secure Option
DiscountUpto 11% Discount on a first-year premium8.9% discount on buying term plans online
Payment FlexibilityFlexible Payment termsFlexibility in premium payment and benefits payout

What is Bajaj Allianz Term Insurance?

Bajaj Allianz Term Insurance plans provide a safeguard for your loved ones in the face of uncertainties. In the unfortunate event of the life assured’s demise, the nominees of term life insurance plans receive a death benefit. Those seeking to ensure the future financial security of their dependents can opt for term plans from Bajaj Allianz Life Insurance. These term insurance plans come with a range of features and benefits, such as offering financial protection for the policyholder’s family, flexibility in selecting the coverage amount, and the availability of riders or add-ons to augment the overall coverage.

Features and Benefits of Bajaj Allianz Term Insurance

Listed below are the salient features and benefits of Term Insurance by Bajaj Allianz Life Insurance. 

  • Financial Protection for Your Family

As the primary earner or a significant contributor to your household, your family likely relies on your income for a comfortable life. If something were to happen to you, the financial well-being of your family could be at risk. Bajaj Allianz term insurance serves as a financial safety net for your loved ones in your absence. The death benefits provided by the term insurance offer crucial financial support, helping your family maintain a secure and stable future even when you are no longer there to provide for them.

  • An optimum Life Cover at affordable Premiums

Term insurance plans by Bajaj Allianz Life Insurance focus solely on providing life insurance coverage for a predetermined duration. As a result, premiums for Bajaj Allianz term insurance are generally lower compared to other types of life insurance that include investment elements. This cost-effectiveness allows you to select a life cover that adequately addresses your family’s financial requirements and can settle your outstanding liabilities in the unfortunate event of your absence.

  • Increasing Death Benefit

By choosing an increasing death benefit term insurance plan by Bajaj Allianz Life Insurance, the sum assured can grow progressively over time. Instead of acquiring extra policies to cope with escalating living expenses, opting for an increasing-term insurance plan might be a more practical solution.

  • Long-Term Coverage

With Bajaj Allianz term insurance, customers can tailor the duration of their term insurance to align with their extended financial goals. It typically offers coverage up to 99 or 100 years of age, depending on the specific plan. Opting for a long-term policy guarantees financial security for your loved ones throughout your working years.

  • Tax Benefits

When purchasing Bajaj Allianz term insurance, you may qualify for various tax advantages. Premiums paid for term insurance are eligible for tax deductions under Section 80C of the Income Tax Act, 1961, subject to the provisions outlined therein. The maximum deduction limit under this section is Rs. 1, 50,000 per year. It’s important to note that the exemption benefit is applicable exclusively to taxpayers opting for the old tax regime.

  • Protection Against Liabilities

As you embark on building a family and advancing in your career, you might find the need to avail types of loans to meet your financial requirements. For instance, imagine an individual who has secured a 30-year home loan, paying their EMIs comfortably with their regular income. Unfortunately, in the event of an unforeseen accident resulting in the loss of their life, the family left behind may now face the responsibility of settling the outstanding home loan and any other debts incurred by the deceased individual.

  • Enhanced Benefits with Add-On Riders

In addition to the primary life cover, term insurance plans provide various riders that you can select based on your needs. These riders offer extra benefits for which you must pay nominal additional premiums. Depending on your specific requirements, you have the flexibility to choose riders that suit you. Common riders for term plans may encompass options such as accidental death benefit rider, critical illness rider, accidental permanent total/partial disability rider, waiver of premium benefit rider, and family income benefit rider.

  • Survival Benefits

While a typical term insurance plan may not provide survival benefits upon maturity, there is an alternative known as the Term Insurance Return of Premium (TROP) plan that includes this feature. With a TROP benefit by Bajaj Allianz Term insurance, you receive survival benefits when your term insurance matures. The plan entails a refund equivalent to the total premiums you paid to your insurance provider over the policy period, although this amount might be subject to charges and deductions.

What is Kotak Term Insurance?

Kotak Term Insurance plans are designed to offer financial protection to the policyholder’s family in the unfortunate event of the policyholder’s death. These plans often come with various features such as flexibility in choosing the sum assured, options for riders or additional coverage, and sometimes return of premium options. When you buy a term insurance plan, you also get tax benefits under Section 80C and Section 10 (10D) of the Income Tax Act, 1961, thus reducing your taxable income.

What Distinguishing Features Kotak Term Insurance Does Offer?

Here is the list of the distinguishing features and benefits of Term Insurance by Kotak Life. 

  • Affordable Premiums

The term insurance plans by Kotak Life entail a modest premium cost that buyers need to pay in exchange for a significantly substantial coverage amount. This allows individuals with diverse income levels to attain financial protection for their families without putting undue strain on their budgets.

  • Multiple Payment Modes

The attractiveness of Kotak Term Insurance is further heightened by its low premiums, and the various payment methods not only enhance the benefits but also cater to a broader spectrum of policy buyers. Depending on their preferences, individuals can opt to pay premiums regularly, half-yearly, or annually.

  • Tax Benefits

Individuals who earn and manage household responsibilities often contend with tax-related considerations. Nonetheless, investing in a term plan assists them by providing tax benefits under Section 80C of the Income Tax Act of 1961.

  • Satisfactory Sum Assured

Term plans are straightforward and affordable, enabling you to secure the necessary sum assured with minimal premium payments. With term insurance by Kotak Life, you can get the maximum sum assured.

  • Flexibility in paying premiums

Term insurance by Kotak Life provides flexibility in premium payment options, allowing you to choose from yearly, quarterly, or monthly payments. This versatility enables you to select a premium payment frequency that aligns with your comfort and financial preferences.

Who is the Winner: Bajaj Allianz Term Insurance or Kotak Term Insurance?

Determining the “winner” between Bajaj Allianz Term Insurance and Kotak Term Insurance depends on individual preferences, financial needs, and specific requirements. Both Bajaj Allianz and Kotak Mahindra term insurance are reputable insurance providers in India, and each may offer a range of term insurance plans with distinct features. If you are looking to buy term insurance with a greater number of term plans along with faster claim payout time, then you should choose Bajaj Allianz term insurance. On the other hand, if you want to buy insurance with a higher claim settlement ratio, then consider term insurance by Kotak Life.

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