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Bajaj Allianz Lifelong Assure Plan

Bajaj Allianz Lifelong Assure is traditional, participating Whole Life Endowment Plan where premiums are payable only for a limited tenure. Thus, the plan provides lifelong insurance coverage without a break in the coverage continuity.

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Death Benefit
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Loan
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Tax benefit

Key Features

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It is a Limited Premium Paying plan where the policyholder can choose any tenure from 10, 15 or 20 years.
The benefit payable under the plan can be availed in installments and coverage is provided till the insured reaches 100 years of age.
After the completion of the Premium Paying Term, the plan provides guaranteed cash backs.
Female lives are allowed premium rebates.

Benefits

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Maturity Benefit

If the insured attains 100 years and the plan matures, the Sum Assured on Maturity is paid which is a percentage of the Sum Assured based on the Premium Paying Term (PPT) chosen and any Terminal Bonus. The percentage of Sum Assured payable is as follows:

PPT Sum Assured on Maturity
10 years 200% of the Sum Assured
15 years 250% of the Sum Assured
20 years 300% of the Sum Assured
Death Benefit

If the insured dies before reaching 100 years of age and the policy is in-force, the death benefit payable would be higher of the following:

  • 10 times 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 total premiums paid till death
  • Sum Assured on Maturity i.e. 200%, 250% or 300% of the Sum Assured according to the Premium Paying Term chosen.
    Along with the death benefit, any interim cash bonus and Terminal Bonus would also be paid.
Benefits in installments

The maturity benefit or the death benefit can be taken in monthly installments instead of a lump sum amount over a period of 5 years or 10 years. The value of the monthly installment would be calculated as below:

  • For 5 years – 1.04*(maturity benefit or death benefit/60)
  • For 10 years – 1.08 *(maturity benefit or death benefit/120)
    These installments can also be discontinued anytime. On discontinuation, the total benefit payable net of the installment benefits already paid is paid to the policyholder or nominee as the case may be.
Survival Benefits

Guaranteed cash backs are paid to the policyholder after the completion of the Premium Paying Term @3% of the chosen Sum Assured. Cash bonuses, depending on the company’s performance, are also paid from the 6th policy year.

Loan

Loans are allowed under the plan only if the plan has acquired a Surrender Value. The maximum available amount of loan is 80% of the Surrender Value of the plan.

Bonus

Cash bonuses are declared and paid from the 6th policy year.

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.

Riders

Five additional riders are available under the plan which can be added to the base policy for a comprehensive coverage option. 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

If a higher amount of Sum Assured is chosen, the company provides premium rebates. This rebate is allowed per thousand of Sum Assured for Sum Assured levels above Rs.1 lakh. The rebate offered ranges from Rs.8 to Rs.19 per thousand and depends on the Premium Paying Term and age of the policyholder

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.

How it works

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  • The policyholder chooses the Sum Assured and the Premium Paying Tenure. Based on the age of the insured, the Sum Assured and the Premium Paying Tenure and frequency, the premium would be calculated.
  • If the insured dies any time before reaching 100 years of age, the death benefit is paid.
  • Guaranteed cash back as a percentage of the Sum Assured would be paid every year after the Premium Paying Term is completed as a Survival Benefit.
  • In addition to this cash back, cash bonuses are also paid every year from the 6th policy year.
  • On maturity when the insured reaches 100 years of age, the maturity benefit is paid.

Eligibility

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The plan can be bought only by Resident Indians. The other eligibility criteria of the plan includes:
 

  Minimum Maximum
Entry age (Last Birthday) 10 years 55 years
Maturity Age (Last Birthday) NA 100 years
Plan tenure (100 – age at entry) years
Premium payable  

Frequency PPT -10 PPT - 15 PPT - 20
Yearly Rs.18,303 Rs.13,401 Rs.10,811
Half-yearly Rs.10,000 Rs.8500 Rs.7000
Quarterly Rs.5500 Rs.4625 Rs.3875
Monthly Rs.2000 Rs.1667 Rs.1471
No Limit
Premium Paying Term (PPT) 10, 15 and 20 years
Sum Assured Rs.1lakh No limit
Premium payment mode Monthly, quarterly, half-yearly and annually

Surrender Value

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Surrendering the policy

Surrender is allowed only after the policy becomes paid-up. On surrendering the policy, higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV) would be paid.

  • GSV = (total Premiums paid excluding taxes * GSV Factor) – guaranteed cash backs already paid
  • The SSV would be declared by the company based on its performance and would be calculated as:
    Paid-up Sum Assured * SSV factors

Early Termination Value

If the policyholder has paid first year’s premium and 12 months have elapsed but the 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.

Exclusions

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  • 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