Bajaj Allianz Invest Assure Plan

Bajaj Allianz Invest Assure Plan Review

Bajaj Allianz Invest Assure plan is a traditional, participating, Endowment Assurance plan wherein premiums are paid for a limited tenure but the life coverage continues till the end of the policy tenure thus providing a comprehensive insurance protection.

Highlights of the Bajaj Allianz Invest Assure Plan

• This is a traditional Endowment plan which earns bonuses by participation in the insurer’s profits.
• The plan comes in two variants of Gold and Silver which have different life cover options of 2 times the Sum Assured or 1.25 times the Sum Assured respectively.
• The policyholder also has the option to receive the benefits in monthly installments rather than as a lump sum.

Working of the Bajaj Allianz Invest Assure Plan

• The policyholder chooses the plan variant, the life cover, the Sum Assured, policy term and the available premium payment term based on which the amount of annual premium would be calculated. 
• This is a limited premium paying plan where premiums are paid for a specified tenure which is lower than the plan tenure.
• The limited premium paying tenure would depend on the plan tenure chosen and there are multiple options of this tenure available under the plan.
• On death during the period, the death benefit depending on the plan variant and accrued bonuses is paid.
• On maturity, the maturity benefit and the accumulated bonuses are paid.
• The maturity or the death benefit could be taken in instalments over a specified tenure.

Benefits and Features of Bajaj Allianz Invest Assure Plan

• Maturity Benefit – When the plan matures, the benefit payable would be:
  Basic Sum Assured + vested Bonuses + 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 + vested bonuses + Terminal Bonus, if any
  The Sum Assured on death would be higher of the following:
  • 10times the annual premium if age is lower than 45 years or 7 times the annual premium if age is 45 years and above, 
  • 105% of all premiums paid till death,
  • 2 times the Sum Assured for Gold variant or 1.25 times the Sum Assured for Silver variant.
• Monthly Income Benefit – The death benefit or the maturity benefit can be taken in equal monthly installments rather than as a lump sum. The period available for taking these monthly installments can be 5 years or 10 years. The value of each monthly installment can be calculated as below:
  If the period chosen is 5 years – (1.04*maturity/death benefit)/60
  If the period chosen in 10 years – (1.08*maturity/death benefit)/120
  If the nominee or the policyholder wishes to stop the installments and receive the remaining benefit in lump sum, the same would be allowed and the benefit payable would be equal to:
  (Death or maturity benefit – the installments already paid)
• Bonus – Bonuses are declared under the plan and are paid every year for which the policy is in-force. 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 Invest 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)	Gold – 18 years Silver – 0 years	50 years
Maturity Age (Last Birthday)	18 years	Gold – 65 years Silver – 70 years
Plan tenure	Gold – 15 years Silver – 17 years	40 years
Premium payable	Yearly – Rs.5000 Half-yearly – Rs.3000 Quarterly – Rs.2000 Monthly – Rs.800	No limit. Depends on the Sum Assured chosen
Premium Paying Term	Gold – 5,7,10,15 and policy term – 10 depending on the plan term  Silver – 7,10,15 and policy term – 10 depending on plan term	30 years
Sum Assured	Rs.1 lakh	No limit
Premium payment mode	Monthly, quarterly, half-yearly and annually

Additional Benefits of Bajaj Allianz Invest Assure Plan

• Riders – There is a provision for adding five additional riders which are available with the plan. 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 Sum Assured above the minimum level of Rs.1 lakh would attract a discount in the premium. The discount available would be Rs.10 per Rs.1000 Sum Assured above the minimum limit. 
• 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

Let's Understand The Plan With An Example:
Ramesh aged 27 years has taken a Bajaj Allianz Invest Assure policy and has opted the Gold variant for a policy term of 23 years and
premium paying term of 13 years (by selecting a PPT of ‘PT minus 10’, i.e., 23-10=13). The Sum Assured chosen by him is Rs.5,00,000
for which he is paying an annual premium of Rs.28,790 after a high sum assured rebate of Rs.4,000.



The premiums mentioned above are exclusive of any extra premium loading and/or service tax & cess.
For female lives 3 year age set back is applicable in premium calculation. Vested Bonus at 8% & 4% is not guaranteed and is for
illustrative purpose only. For substandard and smokers extra premium shall be charged as per board approved underwriting.

Premium Illustration

Here is a specimen illustration showing the premiums paid by a 35year old male for a Sum Assured (SA) of Rs.2 lakhs and Rs.1 lakh. The premiums depicted are calculated at different Premium Paying Terms (PPT) for a policy term of 30 years. The respective premiums for the two plan variants are also displayed.



The associated premium table is as follows:
 

Age	PPT – 7 years		PPT – 10 years		PPT – 15 years
	Gold	Silver	Gold	Silver	Gold	Silver
SA – 1 lakh	11093	9691	8280	7246	6043	5303
SA – 2 lakh	21186	18382	15560	13492	10404	9606

Exclusions in Bajaj Allianz Invest 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 Invest Assure Plan

Premiums have to be paid for at least 2 years if the premium paying term is less than 10 years or 3 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 least2 or 3 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.
  For the Gold and Silver variant, the death benefit would be calculated as 2 times or 1.25 times of the paid-up Sum Assured respectively
• Maturity benefit – Paid-up Sum Assured + vested bonus

Surrendering the policy

Surrender is allowed only after the policy becomes paid-up, i.e. after 2 or 3 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)+ (Vested bonuses * GSV factor of bonus)
• The SSV factors would be declared by the company based on its performance

Early Termination Value
If the policyholder has paid first year’s premium and then the compulsory second year’s or third year’s premium has not been paid, the policy could not be made paid-up neither surrendered. In this case, an Early Termination Value would be paid if the policyholder terminates the plan or does not revive it or dies, whichever is earlier. The value would be computed as:

• 11% of the premiums paid till termination date if 1 full year’s premium has been paid or,
• 15% of the premiums paid till termination date if 2 full year’s premium has been paid

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.