The Bima Sanchay Yojana is a micro variable life insurance plan offered by Bajaj Allianz focusing on providing financial protection in an event of unfortunate circumstances at reasonable prices. The premiums under this plan are as low as Rs.1,800 and policyholders will benefit with tax returns according to the income tax laws.
This plan is the combination of life insurance and savings plan with Guaranteed Investment Returns (GIR) as well as Additional Investment Returns (AIR). Policyholders will also have the option to partially withdraw from their policy in an event of financial emergency.
Eligibility – Who is the Bajaj Allianz Life Bima Sanchay Yojana for?
In order to apply for this life insurance policy, applicants have to meet certain eligibility criteria. The following criteria have to be met to apply for the Life Bima Sanchay Yojana policy:
|Minimum Entry Age
||18 years old
|Maximum Entry Age
||55 years old
||65 years old
||Choice of 10 years and 15 years
- Regular Term – This will be equal to the policy term.
- Limited Term – Choice of 5 years, 7 years and 10 years.
- Single Premium.
Sum Assured and Premium Range - What you get and what it costs?
The following Sum Assured will be provided according to age and policy term:
||Single Premium Term
||Regular Term and Limited Term
|Below 45 years
||1.25 times the Single Premium
||10 times the Annual Premium
|45 years and above
||1.1 times the Single Premium
||7 times the Annual Premium
Note: The Sum Assured per life assured under any given policy is limited to a maximum of Rs.2 lakh.
Premium refers to the amount that needs to be paid in order to avail a certain policy. Under the Life Bima Sanchay Yojana, the following premiums are applicable:
Note: Premiums are allowed in multiples of Rs.100 only.
For the Regular Term and Limited Term policies, the premiums shall be paid on a yearly basis.
Disclaimer: Premiums vary based on age, location, plan term and other factors.
Plan Coverage – What the Bajaj Allianz Life Bima Sanchay Yojana covers?
This plan offers both Maturity Benefit as well as Death Benefit. If the life assured survives until the policy term ends, they will receive a Policy Account Value (PAV) when the policy matures.
Death Benefit is applicable in case the life assured passes away on account of an unfortunate circumstance before the policy term ends. A benefit higher than the Sum Assured + Policy Account Value will be paid after Bajaj Allianz has been intimated regarding the life assured’s death.
||The maturity benefit that is payable is subject to a minimum value of 100.1% of the life assured’s total premium paid minus any partial withdrawals made during the term of the policy.
||This policy offers a Guaranteed Death Benefit which is 105% of the premiums paid until the untimely death of the life assured.
Exclusions – What the Bajaj Allianz Life Bima Sanchay Yojana doesn’t cover?
In an event of suicide of the life assured within a year from the commencement date of the policy or the most recent revival date of the policy, the PAV offered by Bajaj Allianz will be limited. Furthermore, the death benefit offered under the policy will also cover the GIR as well as the AIR that have been credited or any charges that have been recovered after the death of the life assured.
Other Key Features of Bajaj Allianz Life Bima Sanchay Yojana Plan:
Bajaj Allianz offers certain additional features to policyholders under the Bima Sanchay Yojana policy. Additional key features under this policy include the following:
||Partial withdrawals can be made under this policy starting from the 5th policy year and are subject to:
- At any given time, the PAV should be at least 3 times the annual premium for all Regular and Limited premiums after any partial withdrawal made.
- At any given time, the PAV should be at least one-fifth of the Single Premium after any partial withdrawals made.
- The minimum amount for partial withdrawal for all policies is Rs.1,000.
- The maximum amount of withdrawal for Single Premium is one-tenth of the premium.
- Bajaj Allianz has the right to revise their minimum and maximum partial withdrawal limits as well as the amount of PAV that must be maintained after such withdrawals by seeking prior approval from the IRDAI. The same will be communicated to policyholders in writing, 3 months in advance.
- The total withdrawals made cannot exceed 50% of the premium paid at any given time during the term of the policy.
- Policyholders can make 1 partial withdrawal per year.
- PAV will be reduced when partial withdrawals are made, however, the sum assured will remain unchanged.
||Policyholders can surrender their policies at any time.
- If the policy is surrendered during the lock-in period of 5 years, the discontinuance charge will be subtracted from the PAV and the balance will be transferred to the policyholder’s Life Policy Fund. After the transference, any risk cover under the policy will be immediately terminated.
- A surrendered policy cannot be revived. After the lock-in period elapses, the discontinuance value will be paid as the surrender value, post which the policy will be terminated.
- If the policy is surrendered after the end of the lock-in period, the PAV will be the surrender value that is available on the date the policy has been surrendered and will be immediately paid. The policy will be terminated after this.
||During the lock-in period of 5 years:
After lock-in period:
- The discontinuance charge will be subtracted from the PAV and the balance will be transferred to the policyholder’s Life Policy Fund.
- The policy will be terminated immediately after the grace period expires.
- The policy account containing the Discontinued Policy Fund will continue either until the lock-in period or the revival period elapses, whichever occurs later.
- In case the policyholder dies during the lock-in period, the PAV balance will be paid.
- If a discontinued policy has been revived, the policy along with the cover will only be restored after all dues as well as unpaid premiums have been paid.
- PA will be continued along with the life cover until the revival period elapses. Charges will be deducted during this period.
- GIR and AIR will be transferred to the policyholder’s account according to the terms and conditions of the contract.
- In case the policyholder dies before the elapse of the revival period, death benefit will be paid.
- If the policyholder does not revive the policy during the revival period, PAV will be paid and the policy will be terminated.
- If a discontinued policy has been revived, the policy along with the cover will only be restored after all due as well as unpaid premiums have been paid.
||A policyholder can revive their policy if:
- They apply for revival within 24 months from when the policy was discontinued or from the date the premium was first unpaid if the policy has not been terminated.
- After revival of the policy, the risk cover will be restored and unpaid premiums without an interest/fee will be collected.
- Bajaj Allianz can allow or refuse the revival of a policy according to the underwriting policy approved by the prevailing Board and under certain terms and conditions. The same will be intimated in writing to the policyholder.
- After the discontinued policy has been revived, the Discontinuance Value and the discontinuance charge (without interest) which was deducted on the discontinuance date will be restored into the PAV.
- GIR and AIR will not be applicable on the Discontinuance Fund.
||A policy will be terminated under the following circumstances:
- The policyholder’s death has been intimated to Bajaj Allianz.
- The discontinuance value or the surrender benefit has been paid.
- When the policy matures.
|Free Look Period
- After the policyholder has received the policy, they will have 15 days to review the policy’s terms and conditions.
- The policyholder can return the policy to Bajaj Allianz if they disagree with the terms and conditions by stating their reason for disagreement.
- The policyholder will receive a refund which will comprise of the premium paid minus the proportionate amount of the risk premium for the time the policyholder was covered and the expenses Bajaj Allianz incurred on medical examination and stamp duty.
Tax Benefits of Bajaj Allianz Life Bima Sanchay Yojana Plan:
- Premium payments are tax deductible under Section 80C.
- Death Benefits and Maturity Benefits are tax deductible under Section 10 (10D).
Other Benefits – How can you save with the Bajaj Allianz Life Bima Sanchay Yojana?
Bajaj Allianz offers a comprehensive range of services to customers via phone, email and online on their website that includes:
- Online Customer Portal
- BALIC – Doctor Portal
- Doctor Locator Pre-policy Medicals
- Hospital List
- Online Renewal Premium Payment
- Sales Executive Home Visit
- Live Chat
- SMS Support
- NAV Details
- Branch Locator
- Online Grievance
Why you should buy the Life Bima Sanchay Yojana from Bajaj Allianz?
Bajaj Allianz is renowned for its customer centric policies. For the Financial Year 2016-17, Bajaj Allianz had a claim settlement ratio of 99.16% in private life insurance, the highest ratio the company has had. This won the insurer, the “Claims Initiative of the Year” Award at Golden Globes Tigers Award in 2017. It hinges greatly on the direct electronic transfer mode through which claims are settled, thereby reducing any delays.
In an event that a claim has not been settled within a period of 30 day, Bajaj Allianz pays its policyholders 10.5% daily interest for the delay in settlement.