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Bajaj Allianz Guarantee Assure Plan

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Bajaj Allianz Guarantee Assure Plan Review

Bajaj Allianz Guarantee Assure plan is a traditional, non-participating, Endowment Assurance plan which provides the benefit of guarantee savings and insurance coverage.


Highlights of the Bajaj Allianz Guarantee Assure Plan

  • This is a traditional Endowment plan which does not earn bonuses.
  • There are three options for policy term but the premium payment term is fixed at 5 years.
  • Guaranteed Additions are added to the Sum Assured based on the plan term chosen.
  • Females are charged lower premiums than males.


Working of the Bajaj Allianz Guarantee Assure Plan

  • The policyholder has to choose from an option of 3 plan terms of 7, 8 or 9 years.
  • The premium would be limited to 5 years irrespective of the plan tenure chosen.
  • Premium would be determined based on the Sum Assured and the policy tenure chosen by the policyholder. 
  • Guaranteed Additions @5% of the Sum Assured for a 7 year term, 6% of the Sum Assured for an 8 year term and 7% of the Sum Assured for a 9 year term would be added to the Sum Assured every policy year.
  • On death during the period, the death benefit and accrued Guaranteed Additions is paid.
  • On maturity, the maturity benefit and the accumulated Guaranteed Additions are paid.
  • The policyholder or the nominee (in case of a death claim) can avail the maturity or the death benefit in monthly installments rather than as a lump sum over a period of 5 years or 10 years. The value of each installment would be calculated as follows:
    For a 5 year benefit period – (1.04*Maturity/Death Benefit)/60
    For a 10 year benefit period – (1.08*Maturity/Death Benefit)/120
    These monthly installments can also be discontinued whereupon, the death or maturity benefit received would be:
    Factor 3*Death or Maturity Benefit where, factor 3 would depend on the month of discontinuance
COMPARE THIS PLAN WITH OTHER ENDOWMENT PLANS


Benefits and Features of Bajaj Allianz Guarantee Assure Plan

  • Maturity Benefit – When the plan matures, the benefit payable would be:
    Basic Sum Assured + accumulated Guaranteed Additions
    If the policy is taken on the life of a minor, the policy would mature only after the insured child attains 18 years of age irrespective of the tenure chosen.
  • Death Benefit – If the insured dies during plan term, the death benefit would be:
    Sum Assured on death + accumulated Guaranteed Additions till death
    The Sum Assured on death would be higher of the following:
    • Basic Sum Assured as chosen at policy commencement 
    • 5 times the annual premium 
    • 105% of all premiums paid until death
  • Early Termination Value – This value is paid if at least 1 full years’ premium has been paid by the policyholder who then asks for policy termination after 12 months of paying 1 year’s premium. Thus, this value would become payable 12 months after inception, revival or death. The value would be:
    10% of premiums paid till date + 10% of Guaranteed Additions added
  • Bonus – Bonuses are not declared under 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 Guarantee 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) 9 years 60 years
Maturity Age (Last Birthday) 18 years 69 years
Plan tenure 7, 8 or 9 years
Premium payable Yearly – Rs.23,839
Half-yearly – Rs.12,158
Quarterly – Rs.6198
Monthly – Rs.2145
No limit. Depends on the Sum Assured chosen
Premium Paying Term 5 years
Sum Assured Rs.1 lakh No limit
Premium payment mode Monthly, quarterly, half-yearly and annually or Single Premium


Additional Benefits of Bajaj Allianz Guarantee Assure Plan

  • Riders – No riders are available with the plan
  • Premium Discounts – Any level of Sum Assured above the minimum level of Rs.1 lakh would attract a discount in the premium. The discount available would be Rs.7.50 per Rs.1000 Sum Assured
  • 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 Sum Assured
Step 2: Choose your Policy Term (PT)
Your Premium will be based on your current age, Sum Assured, Policy Term

Let's Understand The Plan With An Example:
Suresh aged 30 years has taken a Bajaj Allianz Gurantee Assure poliy and opted and for a Policy Term (PY) of 9 years. The Sum Assured chosen by him is Rs.5,00,000 for which is is paying a premium of Rs.1,28,020 yearly. On maturity date, Suresh will receive Rs.5,00,000 (teh Sum Assured choosen) plus the accured Guranteed Addition of Rs.3,15,000.The maturity benefit received will be Rs.8,15,000.


 

Premium Illustration

Here is a specimen illustration showing the premiums payable at different levels of Sum Assured (SA),
term and age.



The tabulated rates are:
 
Age Term - 7 years Term - 8 years Term - 9 years
SA - 2
lakhs
SA - 5
lakhs
SA - 2
lakhs
SA - 5
lakhs
SA - 2
lakhs
SA - 5
lakhs
35 years 47,028 116,445 49,214 121,910 51,744 128,235
40 years 47,150 116,750 49,364 122,285 51,932 128,705
 


Exclusions in Bajaj Allianz Guarantee 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 Guarantee Assure Plan

Premiums have to be paid for at least 2 years after which the policyholder can surrender the policy or make it paid-up.

Making the policy Paid-up

If at least2 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. Future Guaranteed Additions 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 + accumulated Guaranteed Additions 
  • Maturity benefit – Paid-up Sum Assured + accumulated Guaranteed Additions


Surrendering the policy

Surrender is allowed only after the policy becomes paid-up, i.e. after 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 * GSV Factor)+ (Accumulated Guaranteed Additions* GSV factors of such additions)
  • The SSV would be declared by the company based on its performance
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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