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  • Bajaj Allianz Life Principal Gain Plan

    Life Insurance
    • Premiums as low as Rs.17/day for sum assured of Rs.1 crore*
    • Claim up to Rs. 1,50,000 deduction under section 80C**
    • Choose between annual and monthly premium payment options

    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.

    Eligibility - Who is the Bajaj Allianz Life Principal Gain Plan for?

    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:

    Parameter Eligibility
    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

    Sum Assured and Premium Range - What you get and what it costs?

    Sum Assured:

    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.

    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.

    Parameter Yearly Monthly
    Minimum Premium Rs.15,000 Rs.2,000
    Maximum Premium Rs.1 lakh annual premium

    Plan Coverage - What the Bajaj Allianz Life Principal Gain Plan covers?

    The Bajaj Allianz Life Principal Gain Plan works in the following manner:

    • The customer chooses a premium and policy term at the inception of the policy.
    • The premium payment term is also selected.
    • The customer also has the option to choose the premium payment frequency, i.e., annually or monthly.
    • The sum assured under the policy is 10 times the annual premium chosen.
    • The money paid by the customer is invested according to the Guarantee Builder Portfolio Strategy. The premiums paid towards the policy and the net value of the premium allocation charge will be allocated to the Builder Bond Fund and Balanced Equity Fund, based on the outstanding years to maturity.
    • The Fund Value will also be rebalanced on each anniversary of the policy, so that a minimum percentage is maintained in the Builder Bond Fund.
    • It should be noted that money will not be moved from the Builder Bond Fund to the Balanced Equity Fund.
    • The coverage of the Bajaj Allianz Life Principal Gain Plan is as detailed below:
    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.
    Death Benefit 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:
    • Sum assured
    • Fund Value
    • Guaranteed Death Benefit of 105% of the premiums paid till the death of the life assured
    The death benefit is paid when the insurer is notified of the death.
    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:
    • For policy term up to 10 years, the Guaranteed Loyalty Addition is 4% of the annual premium
    • For policy term more than 10 years, the Guaranteed Loyalty Addition is 15% of the annual premium
    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.

    Exclusions - What the Bajaj Allianz Life Principal Gain Plan doesn’t cover?

    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.

    Other Key Features – Freelook Period, Surrender Values, Grace Period etc.

    The salient features of the Bajaj Allianz Life Principal Gain Plan are described below:

    Surrender Benefit The customer can surrender the policy at any time during the tenure.
    • If the policy is surrendered during the 5-year lock-in period, the Fund Value minus the surrender/discontinuance charge is moved to the Discontinued Life Policy fund. The life coverage and Guaranteed Maturity Benefit will cease. The customer will be unable to revive a policy that is surrendered. The discontinuance value at the end of the lock-in period is paid to the policyholder as surrender benefit.
    • If the policy is surrendered after the lock-in period, the surrender benefit paid will be the Fund Value, as on the surrender date.
    Investment Funds The money paid towards the plan is invested according to the Guarantee Builder Portfolio Strategy in two funds:
    • Balanced Equity Fund - The portfolio allocation for this fund is as follows:
      • Equity - 10% to 70%
      • Debt and related securities, including fixed deposits - 0% to 80%
      • Money market instruments and mutual funds - 0% to 50%
    • Builder Bond Fund - The portfolio allocation for this fund is as follows:
      • Debt and related securities, including fixed deposits - 40% to 100%
      • Money market instruments, cash, and mutual funds - 0% to 60%
    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.
    Settlement option
    • The policyholder has the choice to receive the maturity benefit in yearly, half-yearly, quarterly, or monthly installments spread out over a period of up to 5 years.
    • The amount that is paid to the policyholder in each installment will be the outstanding Fund Value divided by the number of outstanding installments.
    • The installment payment is made through the redemption of units from the funds at the applicable unit price.
    • The policyholder will have to bear the investment risk during the settlement period.
    • During the period of settlement, no risk cover, Guaranteed Death Benefit, Guaranteed Maturity Benefit, or Guaranteed Loyalty Addition will be available.
    • The fund management charge is also deducted through the redemption of units from the funds, during the settlement period.
    • The policyholder can completely withdraw the Fund Value anytime during the settlement period. The Fund Value is calculated as the total number of outstanding units under the plan multiplied by the unit price.
    • If the life assured dies during the settlement period, the Fund Value will be paid to the claimant. The policy terminates following this payout.
    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:
    • Bajaj Allianz receives the revival request within 2 years from the discontinuance date.
    • The expenses for the policy revival will be borne by the policyholder.
    • The policy may be revived on terms and conditions that differ from the original, based on underwriting guidelines.
    • The insurer may also refuse the revival of the policy.
    • The discontinuance value of the policy along with the surrender/discontinuance charge will be restored to the funds.
    • The policy administration charge and premium allocation charge during the discontinuance period will be reduced from the fund or premiums paid at the time of revival.
    Charges The following charges are applicable to the Bajaj Allianz Life Principal Gain Plan:
    • Premium Allocation Charge
    • Policy Administration Charge
    • Fund Management Charge
    • Guarantee Charge
    • Miscellaneous Charge
    • Surrender/Discontinuance Charge
    • Mortality Charge
    • Service Tax
    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:
    • The units in the plan are fully surrendered
    • When the insurer is intimated of the life assured’s death
    • On the date of maturity of the policy, if the settlement option has not been chosen
    • When the surrender benefit or discontinuance value is paid out
    • When the settlement option expires
    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.

    Tax Benefits – How you can save with the Bajaj Allianz Life Principal Gain Plan?

    • Premiums paid towards the Bajaj Allianz Life Principal Gain Plan are eligible for tax benefits under Section 80C of the Income Tax Act.
    • The policy benefits, such as maturity benefit, death benefit, etc. are eligible for tax benefits under Section 10(10D) of the Income Tax Act.

    Since tax rules are subject to change, the customer should consult a tax advisor for the latest provisions prior to investing.

    Other Benefits – How you can save with the Bajaj Allianz Life Principal Gain Plan?

    • Bajaj Allianz Life Insurance Company Ltd. has an online customer portal where policyholders can login and access their insurance details easily.
    • The website also enables the policyholder to renew his/her insurance easily.
    • Premium payments can be done through credit cards, debit cards, Netbanking, e-Wallets, or Bill Junction.
    • A policyholder can also chat with a customer care representative for resolution of issues or to get clarification to queries.
    • The SMS Support facility provided by Bajaj Allianz is useful in requesting for a callback from the customer service team of the insurer.
    • A callback can also be requested for through the insurance company’s website.

    Why you should buy the Bajaj Allianz Life Principal Gain Plan from Bajaj Allianz?

    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:

    • If a claim is not settled by the company within 30 days, the claimant is paid an interest of 10.5% for the delay each day.
    • Bajaj Allianz also settles 96.82% of all registered claims through direct electronic transfer. This ensures that the time delay in claim settlement is reduced to a large extent.