Bajaj Allianz Fortune Gain Plan
Bajaj Allianz Fortune Gain Plan Review
Bajaj Allianz Fortune Gain is a Unit Linked Insurance Plan where the premium is paid once while the plan provides attractive returns linked to the market. Insurance protection is also provided under the plan.
On maturity, the Single Premium Fund Value and any Top-up premium Fund Value available on the maturity date would be paid to the policyholder. The policyholder, if wishes, can also avail the Fund Value in installments over a period of 5 years post the date of maturity under the Settlement Option.
If the insured dies when the plan is in-force, the following death benefit would be paid:
(Higher of the Sum Assured or Single Premium Fund Value) + (higher of the top-up premium Sum Assured + top-up premium Fund Value)
If the insured dies before attaining 60 years of age, the Sum Assured would be reduced by the amount of partial withdrawals made in the two years immediately preceding death
If the insured dies after crossing 60 years of age, the Sum Assured would be reduced by the amount of partial withdrawals made from the Single Premium Fund Value in the two years before attaining the age 60 and all withdrawals made after attaining 60 years.
Partial withdrawals made from the top-up Fund Value would not be deducted for this computation. The death benefit payable should not be lower than 105% of all premiums paid till death including any top-up premiums paid.
Being a ULIP plan, bonus is not declared.
Loyalty Additions are payable under the plan if the chosen policy term is 10 years to 30 years and the single premium paid is Rs.1 lakh and above. Loyalty Addition is added @ 3% of the Single Premium paid under the plan.
- As per the IRDA regulations, non-negative additions would be added to the Single Premium Fund Value to fulfil the maximum reduction in yield criteria from the end of the 5th policy year.
- Loan –Loan is not available under the plan.
Premiums paid under the plan would be exempt from tax under Section 80C up to a limit of Rs.1.5 lakhs. The death benefit or the maturity benefit received would also be tax exempt under Section 10(10D) of the Income Tax Act.
- Grace Period – A grace period of 30 days is allowed for annual, half-yearly and quarterly payment of premium and 15 days for monthly mode of premium payment.
- 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.
Partial withdrawals are allowed in the plan after a completion of 5 policy years. The minimum amount of partial withdrawal is Rs.5000 and a maximum of 10% of the single premium paid. A maximum of 2 withdrawals are allowed in one policy year and the combined amount of the withdrawals should not be more than 50% of the single premium and any top-up premiums paid.
This facility enables the policyholder to change between funds whenever desired. Unlimited free switches are allowed and the minimum amount of switching should be Rs.5000.
- Systematic Switching Option – The option can be chosen only at policy inception and is available only in the first 12 policy months. In this option, the premiums invested are credited to the Liquid Fund initially. Thereafter, 1/x amount of the fund is then transferred to the fund of the policyholder’s choice at the beginning of each month, where x is the number of months remaining to the next policy anniversary date.
- Premium Redirection – This facility enables the policyholder to choose one from the available seven funds for investing his premium or to distribute his premiums in the funds offered in any ratio provided that the premium allocated in any one fund should be at least 5%
- Top-up Premiums – Additional premiums by way of top-up premiums are allowed after the first 5 policy years. The minimum amount of top-up is Rs.5000 and every top-up premium has a lock-in of 5 years.
Being a ULIP plan, there are certain charges applicable. The charges include the following:
- Premium Allocation Charge – This charge is deducted on receipt of each premium before the premium is credited into the fund. The charges is:
|Rs.50,000 to Rs.99,999
|Rs.1 lakh to Rs.499,999
|Rs.5 lakhs to Rs.999,999
|Rs.10 lakhs and above
|Rs.5000 to Rs.999,999
|Rs.10 lakhs and above
- Policy Administration Charge – A monthly charge of Rs.10 is deducted from the fund value at the start of each month. The charge would increase @5% per annum.
- Fund management Charge – These charges depend on the type of fund selected and are charged on a daily basis. The applicable charges are:
|Equity Growth Fund II
|1.35% per annum
|Accelerator Mid-cap Fund II
|1.35% per annum
|Pure Stock Fund
|1.35% per annum
|Asset Allocation Fund II
|1.25% per annum
|Bluechip Equity Fund
|0.95% per annum
|0.95% per annum
|0.50% per annum
- Miscellaneous Charges – A charge of Rs.100 per transaction for decrease in Sum Assured or for issuing a copy of the policy document would be charged.
- Discontinuance Charge – Applicable for policies in which premiums are discontinued. The charges are:
|Year of Discontinuance
|Lower of 1% of single premium or Fund Value up to a maximum of Rs.6000
|Lower of 0.50% of single premium or Fund Value up to a maximum of Rs.5000
|Lower of 0.25% of single premium or Fund Value up to a maximum of Rs.4000
|Lower of 0.10% of single premium or Fund Value up to a maximum of Rs.2000
|5 year onwards
- Mortality charge – This charge is deducted on the first day of each month based on the Sum at Risk and the policyholder’s age.
Let's Understand The Plan With An Example:
Yuvraj aged 35 years has taken a Bajaj Allianz Fortune Gain policy for a Policy Term (PT) of 24 years. Yuvraj has decided to pay Rs.2,00,000 as single premium. The Sum Assured chosen by him is Rs.8,00,000. On maturity date, Yuvraj will receive Rs.7,80,374 (the
single premium fund value) on maturity.
Above illustration is at 8% investment return and considering investment in "Asset Allocation Fund II”
At 4% investment return the above stated maturity benefit would be Rs.2,49,629
How it works
- The policyholder decides on the amount of single premium he wants to pay and the fund in which the premiums are to be invested.
- There are 7 fund options to choose from which are:
- Equity Growth Fund II
- Accelerator Mid-cap Fund II
- Pure Stock Fund
- Asset Allocation Fund II
- Bluechip Equity Fund
- Bond Fund
- Liquid Fund
- The premium paid, net of the applicable allocation charge is invested in the above funds based on the policyholder’s risk profile
- If the policyholder dies during the tenure of the plan the death benefit is paid.
- If the plan attains maturity, the maturity benefit is paid.
The plan can be bought only by Resident Indians. The other eligibility criteria of the plan includes:
|Entry age (Last Birthday)
|Maturity Age (Last Birthday)
|Premium Paying Term
5 years to 25 years
|1.25 times the single premium if age is lower than 45 years
1.10 times the single premium if the age is 45 years and above
|10 times the single premium
|Top-up Sum Assured
|1.25 times the top-up premium if age is lower than 45 years
1.10 times the top-up premium if the age is 45 years and above
|Premium payment mode
The policy has a 5 year lock-in period. If the policy is surrendered within the first 5 years, the funds in the Single Premium Fund Value and any top-up premium Fund Value would be transferred to the Discontinuance Policy Fund after deducting the Discontinuation charges. This fund would earn a minimum interest of 4% per annum. The money would remain in the Discontinuance Policy Fund till the completion of 5 years and the Fund Management charges would be deducted as and when applicable. If the policyholder dies during this period, the Fund Value as on the date of death would be paid. Otherwise, after the completion of the lock-in period of 5 years, the available Fund Value would be paid.
If the plan is surrendered any time after the completion of 5 years, the available Single Premium Fund Value and any top-up premium Fund Value would be paid without deduction of any charges.
- If the policyholder commits suicide anytime during the plan tenure, the available single premium Fund Value and any top-up premium Fund Value would be paid to the nominee.