Two in one concept has entered insurance now. Bajaj Allianz Life Insurance and its general insurance counter part Bajaj Allianz General Insurance have jointly launched a ‘combi’ product — ‘Bajaj Allianz Total Health Secure Goal’, which combines both life and health insurance.
Total Health Secure Goal – a comprehensive insurance policy – removes the hassles of maintaining two separate policies. While the two-in-one concept is good, interested buyers must examine whether the policy is value for money. RupeeIQ takes a closer look at the product and tells you what is good and bad.
As explained, Bajaj Allianz Total Health Secure Goal is a combination of two existing plans – Health Guard policy by Bajaj Allianz General Insurance and Bajaj Allianz iSecure from Bajaj Allianz Life Insurance. Term insurance is extremely vital and having a health cover is a necessity today. We will not argue against that. As an interested buyer of a combi product, what you actually need to know is whether the combination gives a better offering than the individual products.
If 1 +1 = 2, then buying ‘2’ does not make sense. The only benefit by buying ‘2’ is you do not need to buy ‘1’ and ‘1’ separately.
As a composite insurance plan, when you buy Bajaj Allianz Total Health Secure Goal you will need to decide how much ‘Sum Insured’ you want under Health Guard plan and how much ‘Sum Assured’ & what policy term will be for Bajaj Allianz iSecure Term plan.
For a single product, you had to choose one ‘sum assured/insured’. But, since this a combo plan, you will need to choose two amounts.
As per the company’s online document, there are two illustrations given.
Illustration 1 – Here the policyholder chooses a combination of Health Guard (Silver) & Bajaj Allianz iSecure. In case of Bajaj Allianz iSecure, the policy term and premium payment term is 10 years.
You can see the premium table below. As you will notice, there is a 5% clear discount on premium across all age-groups. Premium shown is exclusive of GST.
Illustration 2 – Here the policyholder chooses Health Guard Gold & Bajaj Allianz iSecure (10 years premium and policy term). The 5% discount benefit is available even here. Premium shown is exclusive of GST.
Graphic 2 Health Guard Gold plus Bajaj Allianz iSecure.bmp
Entry age – For the combo product, minimum age of entry is 18 years and maximum age of entry is 60 years.
If you only bought Bajaj Allianz iSecure from Bajaj Allianz Life Insurance, these are the same minimum (18 years) & maximum (60 years) age of entry.
If you buy Bajaj Allianz Health Guard standalone, the entry age for proposer is 18 years and maximum is 65 years. Since this a combo offering, the companies decided to fit the minimum and maximum age in one single range.
Policy term – Bajaj Allianz Total Health Secure Goal being a combo product offers a term insurance policy term of 10 to 30 years (in a block of 5 years) while the health insurance policy is renewable for life.
Sum Insured & Sum Assured – The minimum sum insured/assured in case of the term insurance component is Rs 2.5 lakh. The minimum sum insured/assured for health policy is Rs 1.5 lakh and maximum is Rs 50 lakh.
Do remember that the difference between silver and gold options under Health Guard policy is in the expanded coverage of Ayurvedic / Homeopathic hospitalisation expenses, Maternity expenses, New Born Baby cover, Bariatric surgery cover in gold plan. Plus, in silver plan there is room rent sub-limit.
Company speak on combo plan
Tapan Singhel, MD & CEO, Bajaj Allianz General Insurance said, “I strongly believe that it’s important to have an appropriate health insurance plan and a term insurance plan to have a secured life and a life of dignity. While a health insurance plan ensures financial security in case of any medical exigency, a term insurance plan takes care of financial needs of the family if the insured were to unfortunately pass on.”
Tarun Chugh, MD & CEO, Bajaj Allianz Life Insurance said, “The idea is to offer customers two essential insurance products in one. Both health and life cover is a must in every one’s portfolio, and by offering a discounted rate we hope to incentivise customers to take care of their healthcare expenses in a planned manner and secure the life goals of their loved ones, without derailing their journey towards the life goals in case something unplanned were to happen.”
RupeeIQ take – Interested buyers of the combi product must understand that you will purchase two policies, 1) Health Guard & 2) Bajaj Allianz iSecure as part of this combo solution. You will receive the policy benefits as applicable for all the two polices as per standard terms & conditions of the respective individual policy/plan. The company says combi plan gives you an additional discount of 5% on the total premium payable. While buying a term insurance is a relatively easy job because it’s the cheapest way to protect your family’s financial future in case you die, health insurance is a tricky subject. There is very little servicing element involved in term insurance. But, health insurance usually has claims once in 2/3 years and even more frequently when your age rises. From a customer perspective, a combi plan gives you one single touchpoint, which will be majorly used for health claims when they arise.
We believe that interested buyers of Bajaj Allianz Total Health Secure Goal have to pay a lot more attention to the health insurance component. Do not be blinded by the 5% discount alone. The claim servicing of medical insurance of Bajaj Allianz General Insurance Company becomes vital. The combi plan is best for customers who prefer taking a single cover for fulfilling their life and health goals. You would not have to think of paying two premiums and keeping two separate set of documents like premium receipt.
Disclaimer: The article is only for informational purposes. Investors are requested to consult their financial, tax and other advisors before taking any investment decision.