Term insurance in India has followed a fairly predictable path for decades. For years, the standard was a simple structure: pay a premium, get life cover, and if the policy term ends without a claim, that money is gone.

It served its purpose, but it also meant families had to choose between pure protection and getting their money back. Over time, insurers moved beyond basic life cover by introducing return of premium3 options, riders, value-added services, enhanced insurance coverage features and flexible payout structures, giving buyers more control over how their cover actually works for them.

The Bajaj Life eTouch II Term Plan sits within this shift, and today we'll look at how its coverage, premium structure, and claim settlement process are built.

What Coverage Options Does Bajaj Life eTouch II Offer?

The Bajaj Life touch II Term Plan is available in three variants, each built around a slightly different coverage combination.

What Key Features are Offered in the Bajaj Life eTouch II Term Plan?

In addition to financial protection, the plan offers a range of features designed to provide enhanced flexibility, convenience, and long-term value throughout the policy term.

Auto Cover Continuance

The plan offers an Auto Cover Continuance feature that helps keep your life cover active if you are temporarily unable to pay premiums. Your base cover can continue for up to 12 months, subject to the policy terms. If a claim arises during this period, any unpaid premiums are adjusted from the claim amount before it is paid. There is no additional premium that needs to be paid for availing this benefit and also no interest shall be levied on the premium.

Premium Holiday

With the Premium Holiday feature, you can take a planned break from paying premiums for 1, 2 or 3 years, depending on your chosen option and eligibility, provided all premiums are paid up to date. During this period, your life cover continues as per the policy terms, providing added flexibility to manage temporary financial commitments without immediately discontinuing the policy.

Early Exit Value1

The plan also offers an Early Exit Value1 option forLife Shield & Life Shield Plus variant.. This feature allows the policyholder to discontinue the policy once their insurance protection needs have reduced, subject to the conditions specified under the plan.

If the option is exercised after the policy has acquired the Early Exit Value1, the policy terminates, and the policyholder receives 100% of the total premiums2 paid under the base product, along with any underwriting extra premiums paid, excluding taxes, as applicable under the policy terms and conditions.

Flexible Death Benefit Payout Options

You can also decide how the death benefit reaches your family.

1. It can be paid as a one-time lump sum.
2. Partly as a lump sum and partly as a monthly income over 5, 10, 20, 30 or 40 years.
3. Entirely as a monthly payout over 5, 10, 20, 30 or 40 years.

Tax Benefits

The plan also provides tax benefits~ on Total premiums2 paid and benefits received, subject to the applicable provisions of the Income Tax Act. Since tax laws and individual eligibility may change, it is advisable to consult a tax advisor before making any financial decisions.

What Determines the Premium?

There is no single premium figure that applies to everyone for most term insurance policies, since it depends on factors such as age at entry, gender, the variant chosen, sum assured, policy term, premium payment term, and premium payment frequency.

The plan offers some flexibility on how premiums are paid. You can pay throughout the full policy term, for a limited number of years, or until retirement (age 60).

Since the premium depends on factors such as your age, gender, chosen sum assured, policy term, premium payment term, and selected variant, using a term insurance calculator tends to give a more accurate picture than relying on a generic figure.

Eligibility and Plan Details at a Glance

The table below provides a quick overview of the key plan parameters for each variant.

Additional Protection Beyond Life Cover

Life insurance protects your family's financial future, but unexpected health events can also create financial stress. Bajaj Life eTouch II lets you enhance your coverage with optional rider such as the Bajaj Life Care Plus Rider Non-Linked, a Non-Participating, Non-Linked, Individual, Pure Risk Health Rider.

This rider provides living benefits by supporting you health, wellness, and fitness benefits, through features such as an annual wallet, doctor teleconsultations, diet and nutrition consultations, and psychologist consultations. It can be added to the base policy at a nominal extra cost to support your overall well-being alongside your financial protection, helping you manage everyday health needs while staying covered.

By combining life cover with rider benefits, the Bajaj Life eTouch II term plan offers comprehensive protection tailored to different life stages and financial needs.

What is the Claim Settlement Ratio and how important is it while considering to buy a term plan?

Claim settlement is where an insurer's promises are actually put to the test, since it's the point at which a family finds out whether the cover they paid for holds up when it's needed most. This is typically measured through the claim settlement ratio, the percentage of claims an insurer settles out of the total it receives in a financial year.

Bajaj Life Insurance reported an individual death claim settlement ratio* of 99.33% for FY 2025-26, with a large share of non-investigative claims processed within a single day.

Wrapping Up

Bajaj Life eTouch II provides several variants, payment terms and payout options, enabling the policyholder to select a coverage plan that suits their financial obligations and protection requirements.

However, the suitable choice depends not only on the features offered but also on ensuring that the sum assured, policy term and variant are suitable for your income, financial commitments, financial aims, etc.

Before buying, it is important to be aware of these elements and compare them to make sure the policy will provide adequate protection for your dependants when it is needed most.

Frequently Asked Questions

1. Can the plan variant be changed after the Bajaj Life eTouch II policy starts?

No, the variant selected at the time of policy purchase cannot be changed during the policy term.

2. Is the Accidental Death Benefit an inbuilt feature of every Bajaj Life eTouch II variant?

No, it is specific to the Life Shield Plus variant; the other variants do not include this benefit.

3. Are premium frequencies other than yearly available on Bajaj Life eTouch II?

Yes, half-yearly, quarterly, and monthly frequencies are available, though these require an auto-debit process as allowed by RBI to financial institutions.

4. What is the minimum sum assured for Bajaj Life eTouch II?

The minimum sum assured in this plan is ₹50,00,000, and the maximum is unlimited, subject to the underwriting policy.

5. What is the entry age for Bajaj Life eTouch II?

Entry age ranges from 18 to 65 years (max 55 for Pay till 60) for all variants. However, if the Pay Till 60 premium option is selected under Life Shield ROP, the minimum entry age is 25 years.

6. How can the death benefit be received under Bajaj Life eTouch II?

The nominee can receive the payout as a lump sum, as a mix of lump sum and monthly income, or entirely as monthly instalments over a chosen period.

7. Does Bajaj Life eTouch II offer a return of premium on survival?

Yes. Under the Life Shield ROP variant, the total base premiums2 paid are returned if the life assured survives the policy term and all due premiums have been paid, subject to the policy terms.

8. What is the Early Exit Value1 option in Bajaj Life eTouch II?

It allows eligible policyholders to exit the plan after it acquires an Early Exit Value1 and receive 100% of the total premiums paid2, subject to the policy terms.

9. Does Bajaj Life eTouch II waive future premiums on disability?

If the life assured suffers an Accidental Total Permanent Disability (ATPD) or is diagnosed with a Terminal Illness, whichever event occurs first, then future premiums are waived, subject to the policy terms.

10. What premium payment terms are available under Bajaj Life eTouch II?

Premiums can be paid for the full policy term, for a limited number of years, or up to age 60, subject to the variant and entry-age conditions.