Bajaj Allianz Life eTouch II: UIN 116N198V03 Benefits, Exclusions, Claims and 2026 Tax Treatment

Summary: Bajaj Allianz Life eTouch II (UIN 116N198V03) is a non-linked, non-participating individual term insurance plan offered in Life Shield, Life Shield Plus and Life Shield with Return of Premium variants. All variants provide contractual death protection, while terminal illness, accidental death, permanent disability, waiver of premium, maturity and rider benefits depend on the selected option, policy schedule and applicable definitions. The stated minimum sum assured is ₹50 lakh, with acceptance, premium and available terms subject to underwriting. Buyers should examine the issued schedule, proposal disclosures, customer information sheet, endorsements and full wording rather than rely on sales illustrations alone. The return-of-premium variant can provide a defined maturity benefit and, subject to conditions, paid-up value, surrender value and a policy loan; the protection-only variants should not be assumed to have these facilities. Missed premiums can lead to lapse or reduced cover, and revival within the stated five-year window is subject to arrears, interest and insurer approval. Claimants should preserve medical and other supporting records, and policyholders should disclose material information accurately. The 30-day free-look facility and grievance channels offer additional procedural protections. For tax, eligibility for the life-insurance premium deduction under Section 123 and Schedule XV of the Income-tax Act, 2025 depends on the taxpayer, applicable regime and statutory limits. Qualifying individual life-insurance services are covered by the GST exemption effective 22 September 2025. The current insurer documents and invoice remain essential for confirming cover and charges.

Executive Summary of Bajaj Allianz Life eTouch II

Bajaj Allianz Life eTouch II is a non-linked, non-participating individual life insurance term plan issued by Bajaj Allianz Life Insurance Company Limited under UIN 116N198V03. It offers three variants—Life Shield, Life Shield Plus and Life Shield with Return of Premium. All three provide a death benefit, while additional features depend on the selected variant and the policy schedule. The contract is not a mutual fund, deposit or market-linked investment. Its principal purpose is insured risk protection, and the return-of-premium variant adds a defined maturity feature subject to its contractual conditions.

This guide separates the product page from the enforceable contract. Entry ages, policy terms and payment choices are sales-stage parameters; the issued policy schedule, customer information sheet, proposal disclosures, endorsements and policy wording together determine the actual cover. The policy document also governs terminal illness, accidental benefits, premium default, revival, free-look cancellation, claims, exclusions, surrender and loan availability. Readers should compare quotations only after matching the same sum assured, variant, term, premium-paying term, health disclosures, smoking status and benefit options.

Three eTouch II Variants and the Benefit Trigger

Life Shield: protection-first structure

Life Shield is the basic protection variant. The policy document states that death benefit is available under every variant. On a covered death, the contractual sum assured is payable to the claimant, reduced by any terminal-illness sum assured already paid where the policy wording so requires. The schedule records the chosen sum assured, dates, premium frequency, term and any selected instalment option. No maturity benefit should be assumed merely because the policy survived to the end of term; maturity treatment depends on the variant shown in the issued schedule.

Life Shield Plus: additional insured-event features

Life Shield Plus adds product-defined protection features that may include accidental death and accidental total permanent disability components, as recorded in the schedule and subject to definitions, cover periods and exclusions. These benefits are not triggered simply by an accident occurring. The event must meet the wording’s definition, documentary evidence must support it, and the cover must be in force. A buyer should check the accidental-death percentage, accidental-death sum assured, disability conditions, benefit interaction and whether any selected rider is separate from the base-plan feature.

Life Shield with Return of Premium: maturity and non-forfeiture mechanics

The return-of-premium variant combines death protection with a contractual maturity benefit. It is not the same as an investment return: the maturity amount is determined by the policy terms, and taxes, rider premiums or other excluded amounts should not be assumed to be refundable. This variant can acquire surrender value after the conditions in the wording are met. If at least one full policy year’s premium has been paid, later non-payment may convert the policy to paid-up status rather than producing the same result as a protection-only variant. Paid-up benefits are reduced in proportion to premiums paid versus premiums due, and waiver-of-premium benefit is unavailable to a paid-up policy.

Eligibility, Term and Premium-Payment Choices

The official product page states a minimum entry age of 18 years and a general maximum entry age of 65 years. For the pay-till-60 option, the stated maximum entry age is 55. The stated minimum maturity age is 28 years. The general maximum maturity age is 85 years, while a cover-to-age-99 option can extend maturity to 99 where available and accepted. The policy term starts at 10 years; its maximum is linked to the selected maturity age less the entry age. These are product boundaries, not an assurance that every applicant will receive the maximum term or amount.

Regular-pay and limited-pay structures affect cash-flow risk. Limited-pay choices shown on the official page include 5, 6, 10, 12, 15 and 20 years and pay till age 60, subject to eligibility and the selected term. Premium frequencies include yearly, half-yearly, quarterly and monthly. A lower-frequency instalment is not necessarily a pro-rata division of the annual premium because modal factors and underwriting terms may apply. The quotation and schedule must be used for the payable amount.

Underwriting can take account of age, occupation, income, medical history, family history, tobacco use, hazardous activities and the relationship between requested cover and financial profile. The minimum stated sum assured does not create a right to acceptance. The insurer may seek medical tests, offer modified terms, charge an extra premium, restrict benefits or decline the application. Full, accurate disclosure is central because the proposal form becomes part of the contractual basis.

Terminal Illness, Waiver and Accidental Benefits

The schedule identifies whether a terminal illness sum assured is selected and its amount. The policy wording treats a terminal-illness payment as an acceleration that can reduce the later death benefit. The exact medical definition, survival requirement, certification and evidentiary conditions must be read before relying on the feature. A severe diagnosis in ordinary language is not automatically a qualifying terminal illness under the contract.

Waiver-of-premium and accidental total permanent disability provisions also depend on the selected variant and schedule. The insured event must satisfy the policy definition, occur during the applicable cover period and be supported by records. An accidental injury that causes temporary disability or partial impairment may not meet a total-and-permanent threshold. If a benefit causes future premiums to be waived, the base policy continues only in accordance with the wording; it does not convert every unselected rider or optional benefit into paid-up cover.

The policy schedule can also record separate riders, such as the Bajaj Allianz Life Family Protect Rider or New Critical Illness Benefit Rider, where offered and purchased. A rider has its own UIN, premium, term, insured events and exclusions. Base-plan descriptions must not be used to infer rider cover, and rider benefits must not be described as included unless the schedule shows them.

Premium Default, Grace Period, Revival and Exit

Grace period and lapse are different stages

The grace period gives additional time after an instalment due date. The precise duration depends on premium frequency and the wording. Cover consequences during grace and after lapse should be checked in the issued contract. Allowing an auto-debit to fail without confirmation is risky: a policyholder should obtain the current premium status and receipt from the insurer rather than assume that a bank instruction preserved cover.

Revival is underwritten restoration, not an automatic reset

A lapsed eTouch II policy may be considered for revival within five years from the date of non-payment. The policy document requires arrears with interest and applicable taxes, and the insurer may require medical evidence. Revival can be accepted on the same terms, accepted on changed premium terms, or refused under underwriting rules. The policy document describes the revival-interest benchmark as the 10-year government-security rate plus two percentage points, rounded upward, while the actual current rate must be confirmed at the time of revival.

Free-look cancellation and return-of-premium exit

The wording provides a 30-day free-look period from receipt of the policy document, whether electronic or otherwise, except where a policy term below one year makes the rule inapplicable. If no claim has been made, the policyholder may return the policy with reasons. The refund is subject to proportionate risk premium for the covered period, medical-examination expense if incurred and stamp duty. The wording states that the free-look refund should be processed within seven days of receipt of the request.

For the return-of-premium variant, surrender value and policy loans are contract-dependent. The wording states that a loan may be available up to 50% of accrued surrender value, with interest under the stated benchmark. Any outstanding loan and interest can be deducted from a death, terminal-illness, maturity or surrender payment. This facility does not apply to Life Shield or Life Shield Plus.

Exclusions, Disclosure and Claim Documentation

Exclusions must be read in the complete policy wording, including annexures and any endorsement. The suicide clause is especially important because its consequence depends on the timing prescribed in the contract and can differ from a normal death claim. Accidental-death, disability, critical-illness and rider exclusions may also address intoxication, unlawful acts, self-inflicted injury, hazardous activities, war or specified medical conditions. This article does not replace the clause text.

Section 45 of the Insurance Act and the policy’s disclosure framework do not make incomplete answers harmless. The proposal asks questions so the insurer can price and accept the risk. A proposer should disclose diagnoses, tests, symptoms under evaluation, medicines, prior policies, adverse underwriting decisions, tobacco or nicotine use, occupation, travel and hazardous pursuits when asked. If an intermediary fills the form, the proposer should read every answer before signing and promptly correct omissions in writing.

The insurer may request further records for investigation. Claimants should use official channels, keep copies and note dates. If service is unsatisfactory, the escalation sequence should begin with the insurer’s grievance officer and published grievance process. Depending on eligibility and the nature of the dispute, the policyholder or claimant may use IRDAI’s Bima Bharosa grievance platform and the Insurance Ombudsman mechanism. Limitation periods and jurisdictional thresholds should be checked at the time of filing.

Income-Tax Deduction, Death Benefit and GST in 2026

From 1 April 2026, the Income-tax Act, 2025 applies. Section 123 retains an aggregate deduction ceiling of ₹1,50,000 for specified savings and payments, with qualifying life-insurance premiums placed in Schedule XV. Eligibility is not automatic: it depends on the taxpayer, the insured person, the chosen tax regime, the premium-to-capital-sum-assured condition and other statutory requirements. Schedule XV generally limits the qualifying amount for policies issued on or after 1 April 2012 to 10% of actual capital sum assured, with a 15% rule for specified disability or disease cases. A taxpayer using a regime that does not allow the deduction cannot claim it merely because the premium appears on an insurer certificate.

Death-claim tax treatment should be checked under the current Act and facts of the policy. Life-insurance death proceeds ordinarily receive specific statutory protection, but readers should not extend that statement to interest for delayed payment, assignment transactions, employer arrangements or amounts that do not meet the relevant provision. The nominee should retain the policy, claim settlement letter, tax deduction certificate if any and bank evidence and obtain tax advice for unusual facts.

For GST, the 56th GST Council recommended exemption for all individual life-insurance policies, including term, ULIP and endowment policies, with service-rate changes effective from 22 September 2025. Accordingly, a qualifying individual eTouch II policy issued or renewed under the implemented exemption should not carry the earlier 18% GST on the insurance service. The policy document predates this reform and contains a general clause allowing applicable taxes to be charged. The current premium illustration and tax invoice therefore remain the controlling transaction records, especially where a rider, group arrangement, fee or other supply may be classified separately.

Questions to Resolve Before Paying the First Premium

• Which of the three variants is printed on the quotation and proposed schedule?
• Is the terminal-illness amount an acceleration of death cover, and how much cover remains after payment?
• Are accidental benefits part of the base variant, an optional selection or a separate rider?
• What premium-paying term, frequency, due date and grace-period rule will apply?
• Which disclosures and medical reports form the underwriting record?
• What amount is refundable at maturity or surrender, and which charges or rider premiums are excluded?
• Does the latest invoice treat the individual policy as GST-exempt, and are any separate supplies charged differently?

Frequently Asked Questions on eTouch II

1. Is Bajaj Allianz Life eTouch II a market-linked plan?

No. UIN 116N198V03 is described as non-linked and non-participating. Its benefits arise from the insurance contract, not fund NAV performance or declared participating bonuses.

2. Does every variant return premiums at maturity?

No. Return of premium is associated with the specifically named Life Shield with Return of Premium variant. The issued schedule and wording determine the maturity amount; taxes, rider premiums and other components should not be presumed refundable.

3. Is terminal illness cover additional to the full death benefit?

Not necessarily. The policy wording treats the terminal-illness amount as capable of reducing the death sum assured later payable. The schedule and benefit clause must be read together.

4. Can a policyholder borrow against eTouch II?

A loan is not available under Life Shield or Life Shield Plus. Under the return-of-premium variant, a loan may be available after surrender value accrues, within the contractual percentage and interest terms.

5. What happens if a premium is missed?

The result depends on grace-period status, variant and premiums already paid. Protection variants may lapse, while the return-of-premium variant can become paid-up after the stated condition. Revival is possible within the contractual window but remains subject to arrears, interest and underwriting.

6. Is GST charged on an individual eTouch II premium in 2026?

The GST Council’s 2025 reform exempted qualifying individual life-insurance policies from 22 September 2025. The current insurer quotation and tax invoice should still be checked because product components or the legal character of a supply can matter.

7. Does buying the plan guarantee an income-tax deduction?

No. Section 123 and Schedule XV impose conditions, the ₹1.5 lakh ceiling is aggregate, and the chosen tax regime matters. The insurer itself does not guarantee tax relief.

Key Takeaways

• Bajaj Allianz Life eTouch II is a current non-linked, non-participating individual term product under UIN 116N198V03.
• Life Shield, Life Shield Plus and Life Shield with Return of Premium differ materially; the schedule must identify the selected variant and options.
• Terminal illness, accidental and rider benefits are definition-driven and may interact with the later death benefit.
• Missed premiums can cause lapse or reduced paid-up cover; revival is not automatic.
• Full proposal disclosure and documentary claim preparation are central to enforceable cover.
• Current tax treatment depends on the Income-tax Act, 2025, the taxpayer’s regime and policy facts; qualifying individual life insurance is covered by the post-22 September 2025 GST exemption framework.

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Disclaimer: This article is a general educational analysis of Bajaj Allianz Life eTouch II, UIN 116N198V03, based on official material reviewed for 5 November 2026. It is not the policy contract, a premium quotation, an invitation to buy insurance, a suitability assessment, tax advice, legal advice or a representation that any claim will be admitted. Product pages, underwriting standards, benefit options, medical definitions, tax rules, grievance procedures and regulatory requirements can change. The issued policy schedule, customer information sheet, proposal form and disclosures, full policy wording, rider wording, endorsements, premium receipt and the insurer’s written communications control the rights of the parties. Eligibility, pricing, sum assured and acceptance depend on personal facts including age, income, occupation, health, family history, tobacco use, existing cover and medical evidence. Terminal illness, accidental death, disability, waiver, maturity, surrender, paid-up, loan and claim outcomes depend on precise definitions, exclusions, dates and evidence; readers must not infer cover from a short description. Income-tax deductions and exemptions depend on the Income-tax Act, 2025, the applicable tax regime, premium-to-sum-assured conditions, ownership and other individual circumstances. GST treatment should be confirmed from the latest insurer illustration and tax invoice, particularly for riders or separately classified supplies. Before acting, obtain the current official documents, answer every proposal question accurately, compare the schedule with the application, and consult an independent licensed insurance adviser, tax professional or lawyer where appropriate. TaxGuru accepts no responsibility or liability for any loss, claim rejection, lapse, tax consequence, cost, delay, omission or decision arising from reliance on this article or from a reader’s failure to verify current documents and reader-specific facts.