Bajaj Allianz Life Principal Gain Plan is a guaranteed maturity, unit linked insurance plan that offers capital protection and market-linked investment benefits. The plan provides regular and limited premium payment options. The policyholder receives Guaranteed Loyalty Additions at the maturity of the policy. Customers can choose from multiple premium payment term options and policy tenures. A policyholder can also avail the maturity benefit in the form of installments, if required.
In order to be able to buy the Bajaj Allianz Life Principal Gain Plan, a customer should fulfill certain eligibility conditions. These factors are based on the age of the life assured and the number of years of coverage that he/she seeks. These eligibility conditions are listed below:
|Minimum Entry Age||7 years The risk cover starts at the commencement of the policy. If the life assured is a minor, the policy vests when he/she reaches 18 years of age|
|Maximum Entry Age||60 years|
|Minimum Maturity Age||18 years|
|Maximum Maturity Age||70 years|
|Policy Term||7 years to 15 years|
|Premium Payment Term||5 years to chosen policy term|
The plan offers several benefits, such as Maturity Benefit, Death Benefit, Guaranteed Loyalty Additions, etc. The sum assured under the plan is 10 times the annual premium.
The policyholder will have to pay regular premiums on a yearly or monthly basis. Monthly premium payment is allowed only under the salary deduction scheme and ECS.
|Maximum Premium||Rs.1 lakh annual premium|
The Bajaj Allianz Life Principal Gain Plan works in the following manner:
|Maturity Benefit||When the policy matures, the policyholder receives the higher of the Fund Value (including Guaranteed Loyalty Additions) or the Guaranteed Maturity Benefit of 101% of the paid premiums.|
If the policyholder has paid all premiums, then in the event of his/her demise during the policy tenure, the death benefit payable is the highest amount among the following:
|Guaranteed Loyalty Additions||
If the policyholder has paid at least the premiums for 5 years, Guaranteed Loyalty Additions will be added to the Fund Value of the policy. These will be added in the form of extra units, as mentioned below:
|Claw-back Additions||Non-zero positive additions may be added to the Fund Value by the insurer at the end of every policy year, starting from the 5th policy year.|
Suicide Exclusion - If the life assured commits suicide within 1 year from the date of policy commencement or the last date of policy revival, the liability of Bajaj Allianz is limited to the Fund Value as on the date of death. The charges that are recovered after the date of death will be paid back to the nominee with the death benefit.
The salient features of the Bajaj Allianz Life Principal Gain Plan are described below:
The customer can surrender the policy at any time during the tenure.
The money paid towards the plan is invested according to the Guarantee Builder Portfolio Strategy in two funds:
|Option to alter the premium payment frequency||The policyholder can change the limited/regular premium payment frequency at any policy anniversary. This is subject to the minimum premium under the policy when such a request is received. This alteration will attract a miscellaneous charge.|
|Option to alter premium payment term||The policyholder can change the premium payment term on the date of any policy anniversary. This is subject to the requested premium payment term being available under the plan and all due premiums being paid. The choice should be made before the expiry of the existing premium payment term. This change will attract a miscellaneous charge as well.|
|Discontinuance of premiums||The customer has the choice of discontinuing premium payment during the first 5 policy years or later. The payouts will vary based on the number of policy years completed.|
|Revival of policy||
A policy that is discontinued can be revived as long as the following conditions are met:
The following charges are applicable to the Bajaj Allianz Life Principal Gain Plan:
|Revision of charges||Bajaj Allianz may revise the policy charges from time to time, after receiving approval from the IRDAI. The mortality charge and premium allocation charge will, however, remain the same throughout the policy term.|
|Termination of policy||
The policy will terminate at any of the following instances:
|Grace period||The grace period allowed under the policy is 30 days for yearly premium payment frequency. The grace period for policies with monthly frequency is 15 days.|
|Free-look period||After the policyholder receives the policy documentation, he/she can review the terms and conditions within. If he/she disagrees to these terms, then there is an option to return the policy back to the insurer within 15 days. This interval is referred to as the free-look period. When the policyholder returns the policy, he/she should state relevant reasons for the objection. The policyholder is liable to receive a refund of the paid premiums minus the charges incurred by Bajaj Allianz for medical expenses and stamp duty. The free-look period for policies purchased through distance marketing is 30 days.|
Since tax rules are subject to change, the customer should consult a tax advisor for the latest provisions prior to investing.
Bajaj Allianz Life Insurance Company Ltd. is a collaboration between Bajaj Finserv Limited and Allianz SE. The partner companies in the joint venture have a vast amount of global exposure in the financial domain and in-depth local experience.
The suite of insurance products offered by the company are configured to cater to the varied needs of customers. The plans range from child plans to term insurance plans, group policies and health insurance. The products offered by Bajaj Allianz are competitively priced as well. The insurer is known for its robust claim settlement ratio, the value of which was 98.07% in the financial year 2015-16. The ratio for the individual products was 91.3%, while that for group products was 98.87%.
Bajaj Allianz has risen to the position of one of the leading insurance companies in India within a short span of time. The company is now focussing on insurance penetration into the rural segments of the country. The insurance company has been honoured with several awards and recognitions for its excellence in customer service, technological innovations, and marketing tactics.
Some of the attractive customer-friendly policies of the insurer include: