Bajaj Allianz Life Income Assure Plan is a non-linked, participating, limited premium payment, monthly income scheme. The key features of the plan include the provision of a guaranteed monthly income to the life assured. The plan is also available in 2 life cover variants, i.e., Income and Assure.
The life assured gets to choose from 4 policy terms, based on his/her insurance requirements. The plan offers bonuses to enhance the savings of customers. The insurance coverage can also be amplified through the use of riders that can be purchased from Bajaj Allianz at an additional nominal cost. Similar to most of the insurance policies offered by the company, the Bajaj Allianz Life Income Assure Plan also provides reduced rates of premium for female customers.
A customer is required to fulfill certain eligibility conditions to be able to buy the Bajaj Allianz Life Income Assure Plan. These criteria are based on the customer’s age and the level of insurance coverage he/she seeks. These eligibility details are shown below:
|Minimum Entry Age*||0 years|
|Maximum Entry Age||50 years|
|Minimum Maturity Age||18 years|
|Maximum Maturity Age||74 years|
|Premium Payment Term (PPT)/Policy Term||
The risk cover will start when the policy is issued. If the life assured is a minor, the policy will vest at the earlier occurrence of either of the following events:
The Bajaj Allianz Life Income Assure Plan provides Maturity Benefit, Death Benefit, and Surrender Benefit to the policyholder.
The plan also offers Guaranteed Monthly Income as indicated below:
|Parameter||Premium Payment Term (years)|
|5 years||7 years||10 years||12 years|
|Minimum Guaranteed Monthly Income (GMI)||Rs.1,100||Rs.1,400||Rs.1,800||Rs.2,100|
There is no limit on the Maximum Guaranteed Monthly Income.
The minimum sum assured under the plan is Rs. 144* (Minimum GMI chosen). There is no limit on the maximum sum assured.
The customer pays premiums towards the policy at intervals decided at the time of policy commencement. The minimum premium differs according to the variant of the plan, as shown below:
|Income||21,965 per annum or 1,977 monthly|
|Assure||22,058 per annum or 1,985 monthly|
The monthly mode of premium payment is only allowed under ECS and salary deduction scheme.
The maximum premium varies according to the maximum sum assured. The premium payment frequencies allowed under the Bajaj Allianz Life Income Assure Plan are monthly and yearly.
The Bajaj Allianz Life Income Assure Plan works in the following manner:
|Survival Benefit||If the life assured survives the premium payment term, the Guaranteed Monthly Income (GMI) will be paid on a monthly basis for 144 months, irrespective of the plan variant chosen. The payment will start from the end of the premium payment term. If the life assured dies during the installment period of the survival benefit, the GMI is not paid anymore.|
|Maturity Benefit||If the policy is in-force at the time of maturity, the terminal bonus plus the vested bonus will be paid out.|
If all the premiums are paid, and the life assured faces death during the policy tenure, the death benefit is paid. This amount is the higher of the following:
|Additional Rider Benefit||
The policyholder can choose to enhance the policy using riders that can be purchased from Bajaj Allianz at an additional nominal cost. The riders available with Bajaj Allianz Life Income Assure Plan are as follows:
Suicide Exclusion - If the life assured commits suicide within the policy tenure, whether he/she was sane or not, the liability of Bajaj Allianz will be limited to the following:
The salient features of the Bajaj Allianz Life Income Assure Plan are described below:
The policyholder has the option to surrender the policy at any time, provided that:
|High Sum Assured Rebate (HSAR)||
HSAR is provided on the annual premium for every additional Rs.1,000 sum assured bought above the minimum sum assured. The HSAR varies with the minimum sum assured and premium payment term as follows:
|Option to alter the premium payment frequency||At any policy anniversary, the policyholder can change the premium payment frequency to another mode. This is, however, subject to the availability of the requested frequency and the minimum modal premium criteria.|
|Discontinuance of premiums||
If the policy is in lapsed or paid-up status, it can be revived subject to the following conditions:
The policy will terminate at the occurrence of any of the following events:
|Grace period||If the policyholder has not paid the due premiums, he/she will be provided a grace period within which the premiums will have to be paid to reinstate policy benefits. The grace period for policies with yearly premium payment frequency is 30 days, while that for monthly premium payment frequency is 15 days. If the life assured dies during the grace period, the death benefit is paid after deduction of the unpaid premiums.|
|Free-look period||If the policyholder receives the policy and finds that he/she is not in agreement with the terms and conditions specified therein, the policy can be returned to the insurer, stating relevant reasons. The policy should be returned within 15 days. Policies that were bought through distance marketing have a free-look period of 30 days. The policyholder will then be entitled to a refund of all the paid premiums minus the costs incurred by Bajaj Allianz on medical examination and stamp duty.|
However, these tax rules are subject to change from time to time. So, it is advisable to consult a tax advisor to understand the latest provisions.
Bajaj Allianz has an online customer portal where the policyholder can login and access his/her insurance details easily. The Bajaj Allianz website also enables customers to renew their policies and make payments online. Payments through the following channels are accepted by the insurer:
|Netbanking||The policyholder can use the Netbanking facility provided by his/her bank to pay insurance premiums|
|Debit Cards||Payments through Visa, MasterCard, Maestro, and RuPay cards are accepted|
|Credit Cards||Payments through Visa, MasterCard, Maestro, American Express, and Diners Club cards are accepted|
|Bill Junction||Customers can register at Bill Junction and authorise their premium payments online|
|e-Wallets||Premiums can be paid through e-Wallets like Airtel Money, ITZCash, Jio Money, Oxigen, iCashCard, PayCash, and Idea Money|
Bajaj Allianz is a top insurance provider in India, offering a wide range of products for the varied needs of customers. The company is a collaboration between Bajaj Finserv Limited and Allianz SE, and it boasts of global expertise with local experience. The products offered by the insurer cater to various income and age groups of the customer demographic.
The insurer is notable for its competitively-priced products and the quick turn-around time with which it operates. Bajaj Allianz has grown to be one of the leaders in the Indian insurance domain within a short span of time. The products it offers range from child plans to health insurance policies, group plans and Unit-Linked Insurance Plans. The company is now focussing on insurance penetration into the rural segments of the country.
The claim settlement ratio of the insurer is a commendable 98.07% for the financial year 2015-16. The company has also been conferred with many awards, highlighting its customer service excellence, creative marketing initiatives, and technological innovations.
Although unlikely, if Bajaj Allianz fails to honour a claim within 30 days, the claimant will be paid an interest of 10.5% for each day’s delay. The insurer also settles majority of the claims received through direct electronic transfer, hence, ensuring minimal delays in the payout process.