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Bajaj Allianz Future Gain Plan
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Bajaj Allianz Future Gain Review
Bajaj Allianz Future Gain is a Unit Linked Insurance Plan where premiums paid are invested in market-linked funds. Thus, the plan provides market-linked growth and also insurance protection.
Highlights of the Bajaj Allianz Future Gain Plan
This is a Unit Linked Plan where premiums can be paid either for the entire plan tenure through Regular Premiums or for a limited tenure through Limited Premiums.
A very low premium allocation charge is deducted from the premiums paid so that the policyholder can enjoy maximum wealth creation.
There are two portfolio strategies to choose from based on the risk profile of the policyholder.
The policyholder can choose any combination of the policy term and the premium payment term.
Working of the Bajaj Allianz Future Gain Plan
The policyholder decides on the amount of premium he wants to pay, the policy term, the premium paying term and the premium paying frequency.
The premium paid, net of the applicable allocation charge is invested in the funds as per the chosen strategy.
There are two strategies of investment – Investor Selectable Portfolio Strategy and Wheel of Life Portfolio Strategy.
In the Investor Selectable Portfolio Strategy, the net premium is invested in a choice of 7 funds. The funds are:
Equity Growth Fund II
Accelerator Mid-Cap Fund II
Pure Stock Fund
Asset Allocation Fund II
Bluechip Equity Fund
Bond Fund
Liquid Fund
Under the Wheel of Life Strategy, the investment is guided by years to maturity. Initially, the net premium is invested in a predefined ratio in all the five funds except Bond and Liquid Fund. As the plan nears maturity, the funds are redirected to Bond and Liquid Fund to guarantee safety of the returns generated.
This strategy protects the returns from market volatility as the plan approaches maturity.
If the policyholder wants, he can change the premium paying term subject to certain terms and conditions.
The portfolio investment strategy can also be changed any time during the plan tenure.
The Sum Assured can also be decreased any time during the tenure.
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.
COMPARE THIS PLAN WITH OTHER ULIP PLANS
Benefits and Features of Bajaj Allianz Future Gain Plan
Maturity Benefit – On maturity, the regular premium Fund Value and any top-up premium Fund Value is paid to the policyholder. The policyholder, if wishes, can also avail the maturity benefit in instalments over a period of 5 years post the date of maturity under the Settlement Option.
Death Benefit – If the insured dies when the plan is in-force, higher of the following would be paid as the death benefit:
Sum Assured including any top-up premium Sum Assured
Fund Value as on the date of death including any top-up premium Fund Value
The death benefit should be a minimum of 105% of the total premiums paid till death.
If the policyholder is below 60 years of age when he dies, the Sum Assured would be net of partial withdrawals made in the last 2 years preceding death.
If the policyholder is 60 years and above as on the date of death, partial withdrawals made after attaining 58 years of age would be deducted from the Sum Assured.
Bonus – Being a ULIP plan, bonus is not declared.
Claw-back Additions – As per the IRDA regulations, non-negative additions would be added to the 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.
Tax benefit – 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.
Eligibility Criteria of Bajaj Allianz Future Gain Plan
The plan can be bought only by Resident Indians. The other eligibility criteria of the plan includes:
Higher of 10 times the annual premium or 0.5*term*annual premium if age is lower than 45 years
OR
7 times the annual premium or 0.25*term*annual premium if age is 45 years and above
12.5 or 15 times the annual premium depending on age and policy term
Top-up Sum Assured
1.25 times the Sum Assured if age is lower than 45 years
1.1 times the annual premium if age is 45 years and above.
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
Annual, half-yearly, quarterly and monthly
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Applicable charges in Bajaj Allianz Future Gain Plan
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:
Annual premium / Policy year
Year 1
Years 2 to 5
Year 6 onwards
Rs.25,000 to Rs.99,999
5.50%
3.75%
Nil
Rs.1 lakh to Rs.199,999
2.50%
1.75%
Nil
Rs.2 lakhs and above
Nil
Nil
Nil
Policy Administration Charge – A charge of Rs.33.33 is deducted every month from the Fund Value which inflates at 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:
Fund Type
Charge
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
1.25% per annum
Liquid Fund
0.95% per annum
Bond Fund
0.95% per annum
Discontinuance Policy Fund
0.50% per annum
Miscellaneous Charges – A charge of Rs.100 per transaction for any alterations allowed and affected would be charged.
Guarantee Charge – 0.25% of the Fund Value.
Discontinuance Charge – Applicable for policies in which premiums are discontinued. The charges are
Year of Discontinuance
Annual Premiums up to Rs.25,000
Annual Premiums above Rs.25,000
1
Lower of 20% of annual premium or Fund Value up to a maximum of Rs.3000
Lower of 6% of annual premium or Fund Value up to a maximum of Rs.6000
2
Lower of 15% of annual premium or Fund Value up to a maximum of Rs.2000
Lower of 4% of annual premium or Fund Value up to a maximum of Rs.5000
3
Lower of 10% of annual premium or Fund Value up to a maximum of Rs.1500
Lower of 3% of annual premium or Fund Value up to a maximum of Rs.4000
4
Lower of 5% of annual premium or Fund Value up to a maximum of Rs.1000
Lower of 2% of annual premium or Fund Value up to a maximum of Rs.2000
5 year onwards
Nil
Nil
Mortality charge – This charge is deducted on the first day of each month based on the Sum at Risk and the policyholder’s age
Additional Benefits of Bajaj Allianz Future Gain Plan
Riders – There are five riders available with the plan which can be added to the base policy. The riders include:
Bajaj Allianz ULIP Waiver of Premium Benefit Rider
Partial Withdrawals – Partial withdrawals are allowed after 5 completed policy years. The minimum amount of withdrawal allowed is 10% while the maximum amount is 10% of the total premiums paid. A maximum of 2 partial withdrawals are allowed in a policy year.
Top-up Premiums – Top-up premiums are allowed any time except the last 5 years. The minimum amount of top-up is Rs.5000
Switching – Unlimited free switches are allowed with a minimum value of Rs.5000 per switch.
Grace Period – A grace period of 30 days is allowed for annual mode of premium and 15 days for other modes of premium payment.
FreeLook 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
Let's Understand The Plan With An Example: Harsh aged 35 years has taken a Bajaj Allianz Future Gain policy for a Policy Term (PT) of 24 years. Harsh has decided to pay Rs.50,000 as annual premium for a premium payment term of 20 years. The Sum Assured chosen by him is Rs.7,00,000. Harsh will receive Rs.25,27,222 (the regular premium fund value) on maturity.
The above illustrations are at 8% investment return and considering investment is in the "Asset Allocation Fund II" and Service Tax-14%.
Please note that the 8% and 4% investment returns are not guaranteedand is for illustration purpose only.
Exclusions in Bajaj Allianz Future Gain Plan
If the policyholder commits suicide anytime during the plan tenure, the available Fund Value would be paid to the nominee.
Non-Payment of Premium in Bajaj Allianz Future Gain Plan
Premiums are payable for the chosen tenure. If the premiums are not paid, the policyholder has three choices. If the premiums for the first 5 years are not paid, the policyholder would have to either revive the policy or the policy would deemed to be surrendered and the Surrender Value would be paid. If premiums are discontinued after 5 years, the policyholder can revive the policy, make it paid-up or surrender the policy.
Surrendering the policy
Within the first 5 policy years
The policy has a 5 year lock-in period. If the policy is surrendered within the first 5 years, the regular premium Fund Value and any top-up premium Fund Value would be transferred to the Discontinuance Policy Fund after deducting the Discontinuation charges. The life cover would cease to apply. 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
After 5 years
If the plan is surrendered any time after the completion of 5 years, the available regular premium Fund Value and any top-up premium Fund Value would be paid without deduction of any charges.
Making the policy paid-up
Paid-up facility is available only if the first 5 years’ premiums have been paid. The benefits payable are reduced if the policy becomes a paid-up policy.
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 the policyholder discontinues his premiums after the completion of first 5 policy years and the available balance in the Fund Value and any top-up premium Fund Value is insufficient to meet one month’s charges applicable under the policy, the policy would be foreclosed. The remaining Surrender Value of the policy would be paid on such foreclosure.
