Bajaj Allianz Retire Rich Plan is a unit-linked pension plan that enables you to live worry-free after retirement. The plan offers the customer the advantage of a Guaranteed Vesting Benefit of 101% of the total paid premiums. The policyholder also receives a Guaranteed Death Benefit of 105% of the total premiums that have been paid. The customer can choose from regular, single, or limited premium payment options, and can even change the premium payment term, if required. The plan also provides the flexibility to pay a top-up premium, if the customer desires to enhance the coverage.
Eligibility - Who is the Bajaj Allianz Retire Rich Plan for?
In order to be able to buy the Bajaj Allianz Retire Rich Plan, a customer should fulfill the following eligibility criteria:
|Minimum Entry Age
|Maximum Entry Age
|Minimum Vesting Age
|Maximum Vesting Age
|Minimum Policy Term
|Maximum Policy Term
Deferment period of 7 to 30 years is available
|Minimum Premium Payment Term*
|Maximum Premium Payment Term*
||Equal to policy term chosen
The minimum and maximum premium payment term is applicable only if regular and limited premium payment options are chosen
Sum Assured and Premium Range - What you get and what it costs?
The sum assured at vesting is the higher among the Fund Value or the Guaranteed Vesting Benefit under the policy as on the vesting date.
The Fund value is equal to the number of units multiplied by the respective unit price as on the date of valuation. The unit price of each fund is determined by dividing the Net Asset Value (NAV) by the number of units in the fund as on the date of valuation.
The policyholder will have to pay single/regular/limited premiums as per the decision made at the time of policy inception.
For Limited and Regular Premium Payment options:
|Premium Payment Term
||Yearly installment (Rs.)
||Half-yearly installment (Rs.)
||Quarterly installment (Rs.)
||Monthly installment* (Rs.)
|Below 7 years
|Between 7 and 10 years
|11 years and above
*The monthly mode of premium payment is only allowed under ECS and salary deduction scheme.
For Single Premium Payment option:
|Between 7 and 10 years
|11 years and above
There is no limit on the maximum regular premium. The minimum top-up premium limit is Rs.5,000 and there is no limit on the maximum top-up premium.
Plan Coverage - What the Bajaj Allianz Retire Rich Plan covers?
The Bajaj Allianz Retire Rich Plan works in the following manner:
- At the time of policy inception, the customer chooses between Single, Regular, or Limited premium payment options.
- The premium paid by the policyholder is allocated to the Pension Builder Fund after the deduction of the premium allocation charge. Units will then be allocated to the policy account based on the existing unit price of each fund.
- On a monthly basis, the policy administration charge is deducted through the cancellation of units. Guarantee charge and fund management charge are adjusted in the unit price.
- The company may add non-negative claw-back additions to the policy fund, after the first 5 years of the contract.
- When the policy reaches the vesting date, the vesting benefit is paid out. This amount is equal to the Fund Value, subject to a Guaranteed Vesting Benefit that amounts to 101% of all premiums and top-up premiums paid till the date of vesting.
The investment fund available under the plan is the Pension Builder Fund with a medium risk profile. Portfolio Allocation under the plan is as follows:
- Equity and related instruments - 0% to 50%
- Fixed deposits, debt, and debt-related instruments - 25% to 100%
- Money market instruments and mutual funds - 0% to 40%
- A loan cannot be availed under the policy.
- The coverage of the Bajaj Allianz Retire Rich Plan is as detailed below:
- If the life assured faces death before the date of vesting, the death benefit paid to the nominee is the highest among the Guaranteed Death Benefit and the total Fund Value as on the date of intimation of death.
- The Guaranteed Death Benefit is 105% of all the premiums and top-up premiums paid till death.
The nominee can use the death benefit in any of the ways mentioned below:
- Take the whole death benefit as a lump sum amount
- Utilise a part of the death benefit to buy an annuity plan from Bajaj Allianz.
Any one of the above options will have to be selected before the vesting date.
- The Vesting Benefit under the policy is the higher of the total Fund Value or the Guaranteed Vesting Benefit as on the date of vesting.
- The Guaranteed Vesting Benefit is 101% of the total premiums and top-up premiums paid till the date of vesting.
On the vesting date, the policyholder can choose to avail the vesting benefit in any of the following ways:
- He/she can take up to 1/3rd of the vesting benefit as a lump sum amount and buy an immediate annuity from the insurer with the remaining amount.
- He/she can buy a single premium deferred pension plan from Bajaj Allianz using the entire vesting benefit.
He/she may extend the deferment period to any available date, provided his/her age at the time of vesting is less than 55 years.
- The Guaranteed Vesting Benefit, Guaranteed Death Benefit, and the option to pay top-up premiums will remain as is during the extended deferment period.
- The Guaranteed Vesting Benefit will not be paid on the original vesting date.
- There is no need to pay premiums during the extended deferment period.
- All charges are deducted as usual during the extended deferment period.
The Fund Value will be enhanced with Loyalty Additions on the original vesting date of the policy. Loyalty Additions are a percentage of the annualised or single premium, as described below:
For Limited/Regular premium payment option:
When policy term is between 7 and 10 years
- For premium less than Rs.10 lakh, the Loyalty Addition is nil
- For premium of Rs.10 lakh and above, the Loyalty Addition is nil
When policy term is between 11 and 15 years
- For premium less than Rs.10 lakh, the Loyalty Addition is 8.5%
- For premium of Rs.10 lakh and above, the Loyalty Addition is 25.5%
When policy term is between 16 and 20 years
- For premium less than Rs.10 lakh, the Loyalty Addition is 9%
- For premium of Rs.10 lakh and above, the Loyalty Addition is 27%
When policy term is between 21 and 25 years
- For premium less than Rs.10 lakh, the Loyalty Addition is 10%
- For premium of Rs.10 lakh and above, the Loyalty Addition is 30%
When policy term is between 26 and 30 years
- For premium less than Rs.10 lakh, the Loyalty Addition is 11%
- For premium of Rs.10 lakh and above, the Loyalty Addition is 33%
For Single premium payment option:
- When policy term is between 7 and 10 years, Loyalty Addition is nil
- When policy term is between 11 and 15 years, Loyalty Addition is 3%
- When policy term is between 16 and 20 years, Loyalty Addition is 3.5%
- When policy term is between 21 and 25 years, Loyalty Addition is 4%
- When policy term is between 26 and 30 years, Loyalty Addition is 4.5%
Exclusions - What the Bajaj Allianz Retire Rich Plan doesn’t cover?
If the life assured faces death due to suicide within one year from the policy inception date or the date of last revival, the insurance contract will be void. The liability of the insurer in that case will be limited to the fund value and the top-up premium fund value, as on the date of death.
Other Key Features – Freelook Period, Surrender Values, Grace Period etc.
The salient features of the Bajaj Allianz Retire Rich Plan are described below:
A policyholder can surrender the Bajaj Allianz Retire Rich Plan at any time.
If the policy is surrendered during the lock-in period of 5 years:
- The risk cover under the plan terminates immediately.
- The Fund Value minus the surrender/discontinuance charge plus the top-up premium Fund Value as on the date of surrender/discontinuance will be moved to the discontinued pension policy fund.
- The discontinuance value at the end of the lock-in period is paid out as surrender value.
- A policy that is surrendered cannot be revived again.
- If the policy is surrendered after the lock-in period of 5 years, the total Fund Value on the surrender date will be available to the policyholder as surrender value. The policy terminates following the payout.
The surrender value can be availed in any of the following ways:
- The policyholder can purchase a single premium deferred pension plan from Bajaj Allianz using the entire surrender benefit amount.
- The policyholder can take 1/3rd of the surrender value as a lump sum amount and buy an immediate annuity from the insurer with the remaining amount.
|Change in premium payment frequency
This option is relevant only for regular/limited premium payment policies.
- The policyholder can change the premium payment frequency under the plan at any time. This is dependent on the existing and requested frequencies being in alignment.
- The alteration will attract a miscellaneous charge.
|Choice to make a lump sum investment
||The policyholder can make a lump sum investment at any time during the policy tenure, except the last 5 years of the plan. This can be done by paying unlimited top-up premiums that enhance the fund value of the policy.
|Alteration of premium payment term
This choice is available only for limited and regular premium payment options.
- The policyholder can change the premium payment term, provided all premiums have been paid.
- The change should be made before the expiry of the existing premium payment term.
- The change will attract a miscellaneous charge.
|Discontinuance of premiums
If regular premiums are discontinued during the first 5 policy years:
A notice is sent to the policyholder within 15 days of expiry of the grace period. Within 30 days of receipt of the notice, he/she will have to inform the insurer about any of the following:
- Revive the policy immediately or within a period of 2 years
Surrender the policy without any risk cover and avail the discontinuance value in either of the following ways:
- Receive the amount at the end of the lock-in period of 5 years
- Receive the amount at the end of the revival period if the lock-in period expires before the expiry of the revival period
- If the policyholder does not take any action regarding the options mentioned above, the policy will be converted to a discontinued policy. The regular premium fund value plus the top-up premium fund value minus discontinuance charges will be moved to the Discontinued Pension Policy Fund. Following this, the life cover is terminated. The amount in the Discontinued Pension Policy Fund is paid out as surrender value.
If regular premiums are discontinued after the first 5 policy years:
- A notice is sent to the policyholder within 15 days of grace period expiry.
The policyholder is required to inform the insurer about any one of the following 3 options:
- Revive the policy within 2 years
- Surrender the policy
- Convert the policy to paid-up, where no premiums are payable further
- If the insurer does not receive any confirmation from the policyholder, the policy will be converted to surrendered status. The surrender value is payable and the policy terminates.
||A grace period of 15 days is provided to policyholders with monthly frequency policies and 30 days for other frequencies. The policyholder should pay the premium within this timeframe to maintain the policy benefits.
The Bajaj Allianz Retire Rich Plan will automatically terminate under any of the following circumstances:
- Death of the life assured
- On the date of vesting, if the policy has not been extended. If the plan was already extended, the policy terminates on the revised date of vesting
- On payment of surrender or discontinuance value
||Once the customer receives the policy documentation, he/she can review the terms and conditions therein. If he/she does not agree to the stated provisions, there is an option to return the policy back to the insurer within 15 days. Policies that were bought through distance marketing will have a free-look period of 30 days.
The policyholder will have to state the reasons for the return of the policy. He/she will then be entitled to receive a refund of all the non-allocated premiums plus fund value plus charges for cancellation of units. The expenses incurred by the insurer for medical examination and stamp duty will be deducted from this refund amount.
|Charges under the plan
The charges under the Bajaj Allianz Retire Rich Plan are as follows:
These charges will be levied as applicable from time to time.
- Premium Allocation Charge
- Policy Administration Charge
- Fund Management Charge
- Guarantee Charge
- Surrender/Discontinuance Charge
- Miscellaneous Charge
- Mortality Charge
- Service Tax on Charges
|Revision of charges
||Bajaj Allianz has the right to revise the charges mentioned above, with approval from the IRDAI. The Premium Allocation Charge and Mortality Charge will, however, remain the same throughout the policy tenure. The company will notify the policyholder of the revision in charges 3 months prior to the actual change.
Tax Benefits – How you can save with the Bajaj Allianz Retire Rich Plan?
As per Section 80CCC of the Income Tax Act, the paid premiums are eligible for tax deductions. The commutation amount is also eligible for tax rebates under Section 10(10A) of the Income Tax Act. The customer should refer to the latest provisions of the Income Tax Act for more details.
Other Benefits – How you can save with the Bajaj Allianz Retire Rich Plan?
- Bajaj Allianz has an online customer portal where policyholders can login and access their insurance details easily.
The website also enables customers to renew their policies with minimal effort. The payment for the same can be done through the following channels:
- Debit Cards - Payments through Visa, MasterCard, Maestro, and RuPay cards are accepted
- Credit Cards - Payments through Visa, MasterCard, American Express, Diners Club cards, and Maestro are accepted
- Netbanking - Customers can make premium payments through the Netbanking facility offered by their banks
- Bill Junction - Policyholders can use the Bill Junction website to make premium payments
- e-Wallets - Customers can make payments through e-Wallets such as Airtel Money, ITZCash, Jio Money, iCashCard, PayCash, Oxigen, and Idea Money
- The insurer provides SMS support facility using which a policyholder can receive a callback from the customer service team.
- A callback can also be requested through the website of Bajaj Allianz.
- It is also possible to chat with a customer care representative to get clarification to queries.
Why you should buy the Bajaj Allianz Retire Rich Plan from Bajaj Allianz?
Bajaj Allianz Life Insurance Company Ltd., a joint venture between Bajaj Finserv Limited and Allianz SE, is a leading provider of insurance solutions in India. The company is known for the comprehensive range of insurance products that it offers. The participating members in the joint venture have immense global experience combined with local expertise. Bajaj Allianz has become one of the top insurers in the country within a short span of time.
The suite of insurance products offered by Bajaj Allianz consists of group insurance plans, child plans, term policies, and health insurance, to name a few. The insurer observes quick response times and efficient claim settlement procedures. Bajaj Allianz is currently focussing on the penetration of insurance into the rural segments of the country.
The company observed a competitive claim settlement ratio of 98.07% during the financial year 2015-16. Bajaj Allianz has also been conferred with multiple awards for its technological innovations, customer centricity, and marketing strategies. The insurer also has several customer-friendly policies, such as:
- If a claim is not settled within 30 days, Bajaj Allianz pays the claimant an interest of 10.5% for the delay on a daily basis.
- The insurer also settles majority of the recorded claims through direct electronic transfer, so that the beneficiary receives the claim amount within the shortest time.