Bajaj Allianz Life Assure Plan

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Bajaj Allianz Life Assure Plan
 
Bajaj Allianz Life Assure Plan is a Unit Linked Insurance Plan (ULIP). It is a market linked plan and policyholder can allocate their funds depending on their risk profile.
 
How it works – In this plan, there are 2 variants of the plan- Bajaj Allianz Life Assure Plan – Sure and Bajaj Allianz Life Assure Plan – More.

In this plan, premium can be paid under limited period or till the end of the entire policy tenure. The premium, net of charges is allocated in the fund chosen by the policyholder as per the plan and the portfolio strategy chosen and among the 7 Investment Funds available.
 
Under Bajaj Allianz Life Assure Plan – Sure option, the returns are guaranteed as the investment is done in Assured Return Fund. There is Guaranteed Maturity Benefit in this option. The Maturity Benefit is the higher of the Guaranteed Maturity Benefit or the regular Fund Value.
 
Under Bajaj Allianz Life Assure Plan – More option, there are 2 unique portfolio strategies available, namely Investor Selectable Portfolio Strategy and Wheel of Life Portfolio Strategy. There are 7 funds available for investment in Investor Selectable Portfolio Strategy and Wheel of Life Portfolio Strategy works on a “Years to maturity” based portfolio management. In this plan, the regular Fund Value is paid to the policyholder on maturity as Maturity Benefit.
 
However, if the Life Insured dies within the policy tenure, 100% of the Sum Assured is paid to the nominee as Death Benefit, subject to a minimum guaranteed amount of 105% of all regular premiums paid.
 
There are 3 additional riders in this plan.
 
 
Key Features of Bajaj Allianz Life Assure Policy
 
  • This is a Unit Linked Insurance Plan
  • There are 2 variants in this plan
    • Bajaj Allainz Life Assure Plan- Sure Option with Guaranteed Maturity Benefit as the investment would be done in a single Assured Fund
    • Bajaj Allianz Life Assure Plan- More Option has 2 portfolio strategies to choose from
      • Wheel of Life Portfolio Strategy
      • Investor Selectable Portfolio Strategy - There is a choice of 7 investment funds to invest in as per your risk appetite
  • There are 3 additional riders that can be taken
  • There is Joint Life Coverage facility in this plan
  • There is an option to decrease Sum Assured and alter premium payment frequency in this plan

 

 

 

Benefits you get from Bajaj Allianz Life Assure Insurance Plan
 
Death Benefit – In case of death of the Life Insured within the Policy Tenure, the nominee would be paid the Death Benefit and the policy would terminate
  • Single Life Plan: The Death Benefit would be Sum Assured + Fund Value
  • Joint Life Plan, where your spouse is also covered under your policy:
    • The Death Benefit for Primary Life Assured would be:
      • The Sum Assured would be paid as Death Benefit and the policy would continue on the life of the spouse
      • If the Primary Life Assured dies after the death of the spouse, then Sum Assured + Fund Value would be paid as Death Benefit and the policy would be terminated.
    • Death Benefit payable on the death of the spouse:
      • If death of the spouse occurs first, the Death Benefit will be the sum assured and the policy would continue
      • If death of the spouse occurs after the death of the primary life assured, the Death Benefit will be the Sum Assured + Fund Value and the policy would terminate
 
Maturity Benefit –On survival till maturity, under plan variant
  • Bajaj Allianz Life Assure Plan – Sure option, the Maturity Benefit =higher of Guaranteed Maturity Value or the Regular Premium Fund Value. Guaranteed Maturity Value is the value of all the base regular premiums paid less guarantee charge, premium allocation charge, policy administration charge, mortality charge less all applicable service tax on the above charges less all partial withdrawals from the regular premium fund, all accumulated at 3% p.a. compounding monthly till the maturity date
  • Bajaj Allianz Life Assure Plan – More option, the Maturity Benefit = Total Fund Value as on the maturity date
 
Income Tax Benefit - Premiums paid under life insurance policy are exempted from tax under Section 80C and the maturity proceeds are exempted from tax under Section 10 (10D) subject to fulfilment of all terms and conditions.
 
 
Eligibility conditions & other restrictions in Bajaj Allianz Life Assure Insurane Policy
 

 
Minimum
Maximum
Sum Assured (in Rs.)
For <45 years: 10 X Annualized Premium
For >45 years: 7 X Annualized Premium
For <50 years: 50 X Annualized Premium
For >50 years: 20 X Annualized Premium
Policy Term (in years)
10, 15 and 20
Premium Payment Term (in years)
For Policy Tenure of 10 years, Premium Paying Term=5, 10
For Policy Tenure of 15 years, Premium Paying Term=10, 15
For Policy Tenure of 20 years, Premium Paying Term=10, 15, 20
Entry Age of Life Insured (in years)
1
65
Age at Maturity (in years)
18
75
Premium (in Rs.)
10,000 for Yearly mode
5,000 for Half Yearly Mode
2,500 for Quarterly Mode
1,000 for Monthly Mode
No Limit
Payment modes
Annual, Half-yearly, Quarterly and Monthly

 
 
Sample illustration of returns in Bajaj Allianz Life Assure Insurance Policy
 

Premium illustration of a Healthy Male of 30 years of age opting to pay Annual Premium of Rs.20,000 for a Policy Tenure of 20 years with Premium Paying Term of 15 years.

 

Bajaj Allianz Life Assure Plan Sample Benefit Ilustration

 

 

Additional Features and Benefits of Bajaj Allianz Life Assure Plan
 
Riders – There are 3 riders available in this policy
  1. Bajaj Allianz Extra Cover Benefit Rider
  2. Bajaj Allianz Super Premium Waiver Benefit Rider
  3. Bajaj Allianz Accelerated Critical Illness Benefit Rider
 
Investment Fund Options - Under this plan there are 2 Variants:
  • Bajaj Allianz Life Assure Plan - Sure : In this option, there is only 1 fund for Investment- Assured Return Fund
  • Bajaj Allianz Life Assure Plan – More: there are 2 portfolio strategies to choose from
    • Investor Selectable Portfolio Strategy- there are 7 funds to choose from under this option:
      • Equity Growth Fund II
      • Accelerator Mid-Cap Fund II
      • Pure Stock Fund
      • Asset Allocation Fund
      • Bluechip Equity Fund
      • Bond Fund
      • Liquid Fund
    • Wheel of Life Portfolio Strategy- There is a fixed strategy of investment with a “Years to Maturity” based portfolio management
 
Top-up - Unlimited Top Up is allowed except in the last 5 years of the policy. Minimum Top Up premium is Rs 5,000. Each top up premium has a lock in of 5 years. Each Top Up premium is accompanied by Sum Assured according to the multiplier:
  • Less than 45 years- SA is 1.25 to 20 times
  • Greater than or equal to 45 years- SA is 1.10 to 20 times
 
Switching - Under Investor Selectable Portfolio Strategy Bajaj Allianz Life Assure Plan – More Option, there is Unlimited Switches are allowed in this plan. Minimum Switching amount is Rs 5,000 or the Fund Value, whichever is lower.
Switch out of plan variant Bajaj Allianz Life Assure Plan – Sure to plan variant Bajaj Allianz Life
Assure Plan – More Option is allowed at any time. However, switching from the plan variant Bajaj Allianz Life Assure Plan- More to plan variant Bajaj Allianz Life Assure Plan- Sure Option is not allowed.
 
Partial Withdrawal - You are allowed to make partial withdrawals in this policy after 5 complete policy years or the life assured is 18 years old, whichever is later. The minimum amount of partial withdrawal should be Rs. 5,000 such that the Fund Value should not fall below 3 times the Annualized Premium.
 
 
Charges in Bajaj Allianz Life Assure Plan
 
Premium Allocation Charge – This charge is deducted from the Premium Paid by you

Policy Year
Premium Allocation Charge
1st
20%
2nd to 5th
4%
6th year onwards
NIL

 
 
Policy Administration Charge— This is the charge for the administrative working of the policy and is deducted by cancellation of units on a monthly basis.

Policy Year
Policy Administration Charge
1st -5th year
NIL
6th year onwards
Rs 10 p.m. which increases at 5% annually

 
 
Fund Management Charge– This charge is deducted by adjusting the NAV of the units on a daily basis.

Type
Charge
Equity Growth Fund II Fund
1.35% of the Equity Growth Fund II Fund Value
Accelerator Mid Cap Fund II
1.35% of the Accelerator Mid Cap Fund II Value
Pure Stock Fund
1.35% of the Pure Stock Fund Value
Asset Allocation Fund
1.25% of the Asset Allocation Fund Value
Bluechip Equity Fund
1.25% of the Bluechip Equity Fund Value
Liquid Fund
0.95% of the Liquid Fund Value
Bond Fund
0.95% of the Bond Fund Value
Assured Return Fund
1.25% of the Assured Return Fund Value

 
 
Discontinuation Charge— This charge is for discontinuing the plan before the end of the Policy Tenure.

Year of Discontinuation
Annual Premium <= Rs 25,000 p.a.
Annual Premium > Rs 25,000 p.a.
1st
Lower of 20% of (Annual Premium or Fund Value) subject to a maximum of Rs 3,000
Lower of 6% of (Annual Premium or Fund Value) subject to a maximum of Rs 6,000
2nd
Lower of 15% of (Annual Premium or Fund Value) subject to a maximum of Rs 2,000
Lower of 4% of (Annual Premium or Fund Value) subject to a maximum of Rs 5,000
3rd
Lower of 10% of (Annual Premium or Fund Value) subject to a maximum of Rs 1,500
Lower of 3% of (Annual Premium or Fund Value) subject to a maximum of Rs 4,000
4th
Lower of 5% of (Annual Premium or Fund Value) subject to a maximum of Rs 1,000
Lower of 2% of (Annual Premium or Fund Value) subject to a maximum of Rs 2,000
5th onwards
NIL

 
 
Switching Charge— There are unlimited switches free in this plan.
 
Miscellaneous Charge— Rs. 100 is charged per transaction for the following:
  • Alteration of premium mode
  • Alteration of premium apportionment
  • Partial withdrawal
  • Switching of Plan Variant
  • Change in premium paying term
  • Decrease in Sum assured or
  • Issuance of copy of policy document
 
Mortality Charge — This charge is paid for the Life Coverage provided according to the Sum At Risk. This is based on the mortality rates which are specified for all ages and amount of cover being provided.
 
Service Tax would be applicable on the charges depending on the applicable rates.
 
 
What happens if?
 
You stop paying the premium before 5 years - If the policy holder stops paying the premium, the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will earn a minimum guaranteed interest rate as applicable to the State Bank of India and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated Fund Value will be payable to the nominee.
 
You stop paying the premium after 5 years - If the policy holder stops paying the premium after 5 years, then there is no Surrender/Discontinuance Charges and the Fund Value is paid to the policy holder and the policy will terminate immediately.
 
You want to surrender the policy – If the policy holder wants to surrender the policy before completing 5 years, then the insurance cover will cease and the Fund Value net of any discontinuance charge, if at least 5 years’ premiums have not been paid, will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will earn a minimum guaranteed interest rate as applicable to the State Bank of India and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee.
 
If the policyholder surrenders the policy after completion of 5 policy years, then there is no Surrender/Discontinuance Charges and the Fund Value is paid to the policy holder and the policy will terminate immediately.
 
You want a loan against your policy - There is no loan available under this plan.
 
 
Other Unit Linked Insurance Plans from Bajaj Allianz Life Insurance
 
 

 

~ By Deepak Yohannan
Note: This is a statement of facts based on the information collected from the Bajaj Allianz Life Assure Plan brochure and insurance company's website. It should not be construed as a Critical or Favourable Bajaj Allianz Life Assure Plan Review, Analysis or Recommendation.
Insurance is a subject matter of the solicitation.


Leave a Comment

i have a policy from u people no one came after initial payment was taken and ther has been no feed back if possible contact me

By Pratimayadav on Mar 02, 2013 Reply

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