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Bajaj Allianz Elite Assure Plan

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Bajaj Allianz Elite Assure Plan Review

Bajaj Allianz Elite Assure plan is a traditional, participating, Endowment Assurance plan which provides life insurance protection at the same time as providing a means to wealth creation.


Highlights of the Bajaj Allianz Elite Assure Plan

  • This is a traditional Endowment plan where bonuses are declared.
  • Guaranteed Loyalty Additions are also provided to enhance the benefit payable.
  • Premiums for the plan can be paid either for the entire duration of the plan under the Regular premium payment option or for a limited tenure under the limited premium payment option.


Working of the Bajaj Allianz Elite Assure Plan

  • The policyholder chooses the policy term, premium payment term, premium paying frequency and the Guaranteed Maturity Benefit based on which the amount of annual premium would be calculated. 
  • The Sum Assured would be fixed at 10 times the annual premium paid.
  • Guaranteed Loyalty Additions would be added to the policy at the end of each policy year starting from the end of the 10th policy year.
  • The Guaranteed Loyalty Additions would be expressed as a percentage of the Guaranteed Maturity Benefit chosen by the policyholder and would depend on the premium payment term and the policy term chosen. 
  • On death during the period, the death benefit is paid.
  • On maturity, the maturity benefit is paid.
COMPARE THIS PLAN WITH OTHER ENDOWMENT PLANS

 

Benefits and Features of Bajaj Allianz Elite Assure Plan

  • Maturity Benefit – When the plan matures, the benefit payable would be:
    Guaranteed Maturity Benefit + Guaranteed Loyalty Additions+ vested Bonuses + Interim Bonus, if any + Terminal Bonus, if any
    The maturity benefit would be same in both plan variants and the minimum guaranteed maturity benefit would be 100.1% of the total premiums paid
  • Death Benefit – If the insured dies during plan term, the death benefit payable would be:
    Sum Assured on Death + Guaranteed Loyalty Additions+ vested bonuses + Interim Bonus, if any+ Terminal Bonus, if any.
    The death benefit payable should not be lower than the Guaranteed Death Benefit which is 105% of the premiums paid till death
    The Sum Assured on death would be higher of the following:
    • Guaranteed Maturity Benefit
    • Sum Assured
  • Bonus – Bonuses are declared under the plan and are paid every year for which the policy is in-force. An interim bonus and a terminal bonus may also be paid on death or maturity of the plan.
  • Loan –Loan can be taken on the policy after the policy has acquired a Surrender Value. The maximum amount of loan available is 90% of the acquired Surrender Value
  • Tax benefit – Premiums paid under the plan would be exempt from tax under Section 80C up to a limit of Rs.1.5 lakhs. Premiums paid for the APC & CA option would be exempt under Section 80D. The death benefit or the maturity benefit received and the CI benefit if received would also be tax exempt under Section 10(10D) of the Income Tax Act.


Eligibility Criteria of Bajaj Allianz Elite Assure Plan

The plan can be bought only by Resident Indians. The other eligibility criteria of the plan includes:
 
  Minimum Maximum
Entry age (Last Birthday) 0 years 55 years
Maturity Age (Last Birthday) 18 years 70 years
Plan tenure 15, 20, 25 and 30 years
Premium payable Depends on the chosen Guaranteed Maturity Benefit
Premium Paying Term 7, 10 or equal to plan tenure
Sum Assured 10 times the annual premium
Guaranteed Maturity Benefit Rs.5 lakhs No limit
Premium payment mode Monthly, quarterly, half-yearly and annually


Additional Benefits of Bajaj Allianz Elite Assure Plan

  • Riders – Five additional riders are available under the plan which can be added to the base policy for a more comprehensive coverage. The riders include:
    • Bajaj Allianz Accidental Death Benefit Rider
    • Bajaj Allianz Accidental Permanent Total/Partial Disability Benefit Rider
    • Bajaj Allianz Critical Illness Benefit Rider 
    • Bajaj Allianz Family Income Benefit Rider
    • Bajaj Allianz Waiver of Premium Benefit Rider
  • Premium Discounts – Any level of Guaranteed Maturity Benefit above the minimum level of Rs.5 lakhs would attract a discount in the premium. The discount available would range from Rs.72 to Rs.90 per Rs.50, 000 Guaranteed Maturity Benefit above the minimum limit depending on the premium paying term chosen. 
  • Grace Period – A grace period of 30 days is allowed for payment of premium after the due date for annual, half-yearly or quarterly modes of premium payment. For monthly modes, the grace period allowed is 15 days. The life cover under the policy would continue during the grace period.
  • Free Look Period – A cooling off period or a free look period of 15 days is granted to the policyholder after the policy issuance to review the policy terms and conditions. If found unsatisfactory, the plan can be cancelled within this period and the premium paid would be refunded after deducting the relevant mortality charge, service tax, cess and stamp duty paid.

Plan Details

You can customize your policy to suit your requirement in the following manner:

Step 1:Choose your Policy Term
Step 2:Choose your Premium Paying Term
Step 3:Choose your Premium Payment Frequency
Step 4:choose your Guaranteed Maturity Benefit(GMB)

Your premium will be based on GMB, age, policy term,permium payment term and permium payment frequency. Your Sum Assured 10 times of Annualised Premium.

Let's Understand The Plan With An Example:
Naresh aged 30years has taken Bajaj Allianz Elite and opted a policy term and premium paying term of 25 years.He chose a GMB of Rs.6,00,000, for which would be paying of Rs.58,424 yearly.
Sum Assured=10 times of Annualised Premium*=Rs.58,84,240
*Annualized Premium is exclusive of extra premium, rider premium and services tax & cess,if any

On maturity, Naresh will receive the following Maturity Benefit:



Note:
Premium shown above is exclusive of Service Tax any extra permium.
Vested Bonus at the assumed investment return is not guaranteed and is for illustrative purpose only.

Premium Illustration

The graph below shows the premiums payable at different combinations of term, Guaranteed Maturity Benefit (GMB) and age. The Premium Paying Term is assumed to be of 10 years,



The associated premium table is as follows:
 
Age Term – 20 years Term – 25 years Term – 30 years
GMB - 5 lakhs GMB - 7 lakhs GMB - 5 lakhs GMB - 7 lakhs GMB - 5 lakhs GMB - 7 lakhs
35 years 59,525 83,031 62,760 87,560 68,615 95,757
40 years 60,180 83,948 63,830 89,058 70,355 98,193


Exclusions in Bajaj Allianz Elite Assure Plan

  • If the policyholder commits suicide within a year of policy issuance 80% of the premiums paid would be returned and no death benefit would be payable.
  • If suicide is committed within a year of policy revival, higher of 80% of the premiums paid till death or the Surrender Value acquired would be paid provided the policy is in force.


Non-Payment of premium in Bajaj Allianz Elite Assure Plan

Premiums have to be paid for at least 1 year if the premium paying term is less than 10 years or 2 years if the premium paying term is more than 10 years. After this compulsory period, the policyholder can surrender the policy or make it paid-up.

Making the policy Paid-up

If at least1 or 2 full years’ premium has been paid, the policy would become a paid-up policy if future premiums are not paid. The benefits under the plan would be reduced and would be called Paid-up benefits. Bonuses would not be declared under the policy and the following benefits would be paid as and when they occur:
  • Death Benefit –Paid-up Sum Assured on death + vested bonus + accrued guaranteed loyalty additions + paid-up value of the guaranteed loyalty additions
  • Maturity benefit – Paid-up Guaranteed Maturity Benefit + vested bonus + accrued guaranteed loyalty additions+ paid-up value of the guaranteed loyalty additions


Surrendering the policy

Surrender is allowed only after the policy becomes paid-up, i.e. after 1 or 2 full years’ premiums have been paid. On surrendering the policy, higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV) would be paid.
  • GSV = (Basic Premium paid excluding taxes * GSV1 Factor)+ (Vested bonuses and accrued loyalty additions* GSV2factor of bonus)
  • The SSV factors would be declared by the company based on its performance and would be computed as follows:
    SSV = {(paid-up Guaranteed Maturity Benefit + vested bonuses + accrued loyalty additions)*SSV1 Factor} + {(Number of premiums paid/total number of premiums payable)* SSV2 Factor + accrued loyalty additions}
Revival 

Revival is allowed within 2 years from the date of the first unpaid premium. The policyholder would be required to pay the outstanding premium and any interest charged by the insurer to revive his policy. 

Foreclosure 

If a loan is availed under a policy, the loan and the interest therein should not exceed the Surrender Value in the policy. If the policy is in-force, this does not happen. If the policy is made paid-up, the policyholder would be notified and the policy would be foreclosed.
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