Bajaj Allianz Retirement/Pension Plans

• 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

A retirement/pension insurance plan is an assurance for the future so that you do not need to worry about a stable income source post retirement. A good retirement plan enables you to maintain your current living standards without having to compromise on anything in the future.

Bajaj Allianz offers retirement planning solutions that help you adhere to a savings strategy, accumulate wealth, and make it grow throughout your employment years, so that you can retire rich. The amount that you invest in a pension plan will be further invested in financial mediums so that you receive the best returns.

Benefits of Bajaj Allianz Retirement/Pension Plans:

• Free look cancellation facility is available for the Bajaj Allianz retirement/pension plans.
• Customers also get the option to change their premium payment frequency.
• Some of the retirement plans from Bajaj Allianz provide you the flexibility of paying a top-up premium.
• Some plans offer regular, single, or limited premium payment facility.
• Guaranteed maturity and death benefits are provided by the Bajaj Allianz retirement solutions.

List of Retirement/Pension Plans Provided by Bajaj Allianz:

The Retirement/Pension Plans provided by Bajaj Allianz are the following:

Bajaj Allianz Pension Guarantee:

This is a non-linked non-par immediate annuity plan that gives you a guaranteed income after retirement, so that you can live worry-free. Customers can choose from a range of annuities, based on their requirements. Annuity payment frequency can also be selected by the customer, i.e., monthly, quarterly, semi-annually, or annually.

Benefits and Features of Bajaj Allianz Pension Guarantee Plan:

• The first annuity payment will be made one/three/six months or one year after the policy commences. This also depends on the annuity payment mode that the customer chooses.
• The Bajaj Allianz Pension Guarantee plan offers the following range of immediate annuities that the customer can choose from:
  1. Life Annuity
     • The annuity is paid out as long as the annuitant is alive.
     • At the death of the annuitant, any outstanding annuity installment will be paid to the legal heir or nominee.
  2. Life Annuity with Return of Purchase Price
     • The annuity is paid out as long as the annuitant is alive.
     • At the death of the annuitant, the outstanding annuity installments and the purchase price will be paid to the legal heir or nominee.
  3. Annuity Certain for period 5 years, 10 years, 15 years, 20 years, and life thereafter
     • The annuity is paid out as long as the annuitant is alive.
     • At the death of the annuitant before the expiry of the chosen certain period, the annuity is paid to the legal heir or nominee for the rest of the chosen certain period.
     • At the death of the annuitant after the expiry of the chosen certain period, any outstanding annuity installment is paid to the legal heir or nominee.
  4. Joint Life Last Survivor with 50% of annuity to spouse
     • The annuitant and his/her spouse are covered under the policy.
     • The annuity is paid out to the annuitant as long as he/she is alive.
     • At the death of the annuitant, if the spouse is alive, any outstanding annuity installments are paid out. 50% of the annuity installment will be paid to the spouse till his/her death.
     • At the death of the spouse, if the annuitant is alive, there will be no change in the annuity payment.
     • At the death of the spouse after the death of the annuitant, any outstanding annuity installment will be paid to the legal heir or nominee.
  5. Joint Life Last Survivor with Return of Purchase Price on Death of Last Survivor (100% annuity to spouse)
     • The annuitant and his/her spouse are covered under the policy.
     • The annuity is paid out to the annuitant and/or spouse as long as they are alive.
     • At the first death, there will be no changes in the annuity payments.
     • At the death of the last survivor, any outstanding annuity installments plus the purchase price will be paid to the legal heir or nominee.
  6. Joint Life Last Survivor with 100% of annuity to spouse
     • The annuitant and his/her spouse are covered under the policy.
     • The annuity is paid out to the annuitant and/or spouse as long as they are alive.
     • At the death of the annuitant, if the spouse is alive, any outstanding annuity installments are paid. 100% of the annuity installment will be paid to the spouse till his/her death.
     • At the death of the spouse, there will be no change in the annuity payout if the annuitant is alive.
     • After the death of the annuitant and the spouse, any outstanding annuity installment is payable to the legal heir or nominee.

Bajaj Allianz Retire Rich:

This is a unit-linked pension plan that can be purchased to financially secure your retirement years in the future. The plan provides the option of limited, single, or regular premium payment. Customers can also change the premium payment term, if needed.

Benefits and Features of Bajaj Allianz Retire Rich Plan:

• The plan provides Guaranteed Death Benefit and Guaranteed Vesting Benefit.
• The plan offers the flexibility to pay a top-up premium, if needed.
• The payouts offered by the plan are as follows:
  1. Death Benefit - At the death of the policyholder before the vesting date, the death benefit is the higher of the total Fund Value or the Guaranteed Death Benefit. The Guaranteed Death Benefit is 105% of the sum of all paid premiums and top-up premiums. The nominee can either take the death benefit in the form of a lump sum amount or use the proceeds to buy an annuity from Bajaj Allianz.
  2. Vesting Benefit - This is the higher of the total Fund Value or the Guaranteed Vesting Benefit as on the vesting date. The Guaranteed Vesting Benefit is 101% of the sum of all premiums and top-up premiums paid till the vesting date. Customers can use the vesting benefit in the following ways:
     • Take 1/3rd of the vesting benefit in the form of a lump sum amount. Use the remaining amount to buy an immediate annuity from Bajaj Allianz.
     • The entire proceeds can be used to buy a single premium deferred pension plan from the insurer.
     • The prevailing deferment period can be extended to any available date, provided the age of the policyholder is less than 55 years as on the vesting date.
  3. Surrender Benefit - The policyholder can surrender the Bajaj Allianz Retire Rich policy at anytime.
     • When the policy is surrendered during the lock-in period of 5 years:
       1. Death benefit under the policy will terminate instantly.
       2. The Fund Value minus the surrender charges plus the top up premium Fund Value as on the date of surrender will be moved to the discontinued pension policy fund.
       3. At the end of the lock-in period, the discontinuance value will be paid out to the policyholder.
       4. The policy, once surrendered, cannot be revived.
     • When the policy is surrendered after the lock-in period of 5 years, the total Fund Value will be provided as the surrender value. The policy terminates after the payout.
     • The surrender value should be utilised in any of the following ways:
       1. Purchase of a single premium deferred pension plan from Bajaj Allianz using the entire proceeds.
       2. 1/3rd of the surrender value can be taken as a lump sum payout and the remaining amount can be used to purchase an immediate annuity from the insurer.
  4. Loyalty Additions - Loyalty Additions that equate to a percentage of the annualised/single premium will be added to the Fund Value on the vesting date of the policy.

Why do you need Bajaj Allianz Retirement/Pension Plans?

Bajaj Allianz pension plans provide you life insurance protection and investment benefits to financially secure your retirement years. These plans also provide tax benefits, as mentioned below:

• Premiums paid towards the policies get tax benefits under Section 80CCC of the Income Tax Act.
• The commutation amount is also eligible for tax rebates under Section 10(10A) of the Income Tax Act.

In addition, it is possible to alter the premium payment frequency of the policy, as long as the existing and requested premium frequencies are in alignment.

The Bajaj Allianz Retire Rich plan enables the customer to make lump sum investments in the last five years of the policy tenure through top up premiums. This enhances the fund value if all regular premiums have also been paid on time. The minimum top up premium amount is Rs.5,000, and there are no limits on the maximum value.