Bajaj Allianz Wealth Insurance Plan
Bajaj Allianz Wealth Insurance Plan is a Single Premium Unit Linked Insurance Plan (ULIP). Thus it is a Traditional Insurance Plan without Bonus facility.
How it works – In this plan, premium needs to be paid upfront under Single Premium Option while the policy continues for the entire policy tenure. The premium, net of charges is allocated in the fund chosen by the policyholder among the 7 Investment Funds available.
In this plan, there is a Loyalty Addition of 7% of the Single Premium paid at the end of the 5th policy tenure. The entire Fund Value is paid to the policyholder on survival till the end of the Policy Tenure as Maturity Benefit and the policy terminates.
However, if the Life Insured dies within the policy tenure, higher of the Fund Value or the Sum Assured is paid to the nominee as Death Benefit and the policy terminates.
There are additional riders available in this plan and other flexibilities like decrease in sum assured, settlement option, etc.
Key Features of Bajaj Allianz Wealth Insurance Plan
- This is a ULIP with Single Premium Option
- In This plan, there is Loyalty Addition up to 7% of single premium at the end of the fifth year
- There is a choice of 7 investment funds to invest in as per your risk appetite by paying single premium
- This plan has an option of Systematic Switching Option where part of your Fund Value in the Liquid Fund shall be transferred from the Liquid Fund to fund(s) of your choice
- There is flexibility to decrease your sum assured in this plan
Benefits you get from Bajaj Allianz Wealth Insurance Plan
Death Benefit – In case of death of the policy holder, the nominee gets the higher of the Sum Assured or Fund Value and the policy would be terminated. The death benefit payable would be calculated separately for single premium and top up premiums.
Maturity Benefit – If the policy holder survives the policy term, then he gets the Fund Value.
Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C. The maturity amounts you receive from this plan are exempt from tax under section 10(10D) subject to the provisions stated therein.
Eligibility conditions and other restrictions in Bajaj Allianz Wealth Insurance Plan
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Minimum
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Maximum
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Sum Assured (in Rs.)
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For 7-44 years: 1.25 X Single Premium
For 45-65 years: 1.1 X Single Premium
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5 X Single Premium
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Policy Term (in years)
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(75 years – Age at entry)
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Premium Payment Term (in years)
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Single
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Entry Age of Policyholder (in years)
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7
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65
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Age at Maturity (in years)
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-
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75
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Single Premium (in Rs.)
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For 7-60 years: 25,000
For 61-65 years: 50,000
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3,30,000
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Payment modes
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Only Single
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Sample illustration of premium amount in Bajaj Allianz Wealth Insurance Plan
Premium = Rs.25,000, Rs 50,000
Age = 50 years
Policy Term = 25 years
Total Investment = Rs. 25,000 x 25 years = Rs.6,25,000
Total Investment = Rs. 50,000 x 25 years = Rs.12,50,000
Additional Features and Benefits of Bajaj Allianz Wealth Insurance Plan
Riders – There are 2 riders available in this policy
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Type of Rider
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Available with Policy
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Accidental death benefit
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Yes
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Permanent/Accidental disability benefit
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Yes
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Waiver of premium benefit
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No
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Critical illness (or dread diseases) benefit
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No
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Increased death benefit / Term rider
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No
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Hospital cash benefit
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No
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Life Guardian benefit
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No
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Investment Fund Options - Under this plan the policy holder gets the following 2 investment options:
Either he can opt for one of the 7 investment Fund Options like
- Equity Growth Fund II
- Accelerator Mid-Cap Fund III
- Pure Stock Fund
- Asset Allocation Fund
- Equity Index Fund III
- Bond Fund
- Liquid Fund
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 multiplie
- Less than 45 years- SA is 1.25 to 5 times
- Greater than or equal to 45 years- SA is 1.10 to 5 times
Switching - Unlimited Switches are allowed in this plan. Minimum Switching amount is Rs 5,000 or the Fund Value, whichever is lower.
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 Rs 5,000 or 1/5th the single premium should be maintained after Partial Withdrawal.
Charges in Bajaj Allianz Wealth Insurance Plan
Premium Allocation Charge – This charge is deducted from the Premium Paid by you
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Type of Premium
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Premium Allocation Charge
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Single Premium
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2% of the Single Premium Paid
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Top-Up Premium
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2% of the Top-Up Premium Paid
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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 till a maximum of Rs 500 per month.
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Policy Year
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Policy Administration Charge
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1st -5th year
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1.50% of the Single Premium per month which increases by 5% every year
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6th year onwards
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NIL
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Fund Management Charge– This charge is deducted by adjusting the NAV of the units on a daily basis.
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Type
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Charge
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Equity Growth Fund II Fund
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1.35% of the Equity Growth Fund II Fund Value
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Accelerator Mid Cap Fund II
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1.35% of the Accelerator Mid Cap Fund II Value
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Pure Stock Fund
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1.35% of the Pure Stock Fund Value
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Asset Allocation Fund
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1.25% of the Asset Allocation Fund Value
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Equity Index Fund II
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1.25% of the Equity Index Fund II Value
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Liquid Fund
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0.95% of the Liquid Fund Value
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Bond Fund
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0.95% of the Bond Fund Value
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Discontinuation Charge— This charge is for discontinuing the plan before the end of the Policy Tenure. There are no charges whatsoever.
Switching Charge— There are unlimited switches free in this plan.
Miscellaneous Charge— Rs. 100 is charged per transaction for the following:
Decrease of Sum Assured
Partial Withdrawal and
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.
You stop paying the premium before 5 years – Not applicable as this is a single premium payment policy.
You stop paying the premium after 5 years - Not applicable as this is a single premium payment policy.
You want to surrender the policy – You have the option to surrender your policy anytime from the 6th policy year. The surrender value payable will be equal to the fund value as on date of surrender of the policy. The policy shall thereafter terminate upon payment of full surrender value
You want a loan against your policy – There is no loan facility in this product.
Some ULIPs from different insurance companies
Other Unit Linked Insurance Plans from Bajaj Allianz Life Insurance
