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Bajaj Term life CI rider

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03 Jun, 2021 by  Sarath

I have 2 questions on Bajaj's term insurance policy which I was thinking of taking.


1. Bajaj Allianz in their CI rider under their smart term insurance policy document says that the premium for CI rider is subject to change every 5 years. Is this common?


2. CI rider premium under this policy for 55 diseases costs only about 1/3rd of that of what max (64 diseases) or ICICI (34 diseases) or Kotak (34 diseases).

What am I missing?

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1 Answer

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04 Jun, 2021

Normally the premium of a CI rider attached to a base life insurance policy remains same through out the term of the policy / rider . This is called level premium method. It simply means that the premium charged initially is more than required & in later phase less than required. To my understanding the answer to of the 1/3 premium is related with this concept. Since they hv the provision of raising the premium at 5 year interval BALIC is charging less to begin with.

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04 Jun, 2021
Sarath
All four (BALIC, Kotak, Max, ICICI) are riders to their respective term insurance policies and not independent CI policies
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04 Jun, 2021
Sarath
Also BALIC rider premium is only fixed for 5 year.
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