Bajaj Allianz Principal Gain Plan

Bajaj Allianz Principal Gain is a Unit Linked Insurance Plan which promises a guaranteed maturity benefit. Thus the plan enables the policyholder to reap three benefits under a single policy which are of principal protection, life insurance cover and market-linked returns.

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Death Benefit
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Tax benefit
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Key Features

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.
Guaranteed Loyalty additions are added to the Fund Value when the plan matures.
The plan follows the Guaranteed Builder Portfolio Strategy of investment which reduces marker risks and protects the principal.
The policyholder can choose any combination of the policy term and the premium payment term.


Maturity Benefit

On maturity, higher of the following is paid to the policyholder:

  • The available Fund Value on maturity date + Guaranteed Loyalty Additions
  • 101% of the premiums paid which is the Guaranteed Maturity Benefit.
    The policyholder, if wishes, can also avail the maturity benefit in installments 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
  • Fund Value as on the date of death
  • 105% of the total premiums paid till death which is the Guaranteed Death Benefit

Being a ULIP plan, bonus is not declared.

Guaranteed Loyalty Additions

If the policyholder has paid the premiums for at least 5 years, he would be entitled to receive Guaranteed Loyalty Additions at the time of maturity. The Guaranteed Loyalty Addition is expresses as a percentage of the annual premium paid and is equal to 4% of the annual premium if the policy term is up to 10 years or 15% of the annual premium if the chosen term is more than 10 years.

Claw-back Additions

As per the IRDA regulations, non-negative additions would be added to the Fund Value to fulfill the maximum reduction in yield criteria from the end of the 5th policy year.


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.

Grace Period

A grace period of 30 days is allowed for annual mode of premium and 15 days for monthly mode of premium payment.

Partial Withdrawals

Partial withdrawals are not allowed in the plan.

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

How it works

  • 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 Sum Assured is based on the amount of premium paid and is fixed at 10 times the annual premium.
  • The premium paid, net of the applicable allocation charge is invested in the Guarantee Builder Portfolio Strategy. Under this investment strategy, the net premiums are first invested by the company in two funds of Balanced Equity Fund and Builder Bond Fund in a predefined ratio. The investment in the Balanced Equity Fund is higher in the initial years. As the plan nears maturity, the proportion of money invested in the Balanced Equity Fund is reduced and the Builder Bond Fund is proportionately increased.
  • The fund is also rebalanced every policy anniversary to maintain the minimum required percentage in the Builder Bond Fund.
  • 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.
  • 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:

  Minimum Maximum
Entry age (Last Birthday) 7 years 60 years
Maturity Age (Last Birthday) 18 years 70 years
Plan tenure 7 years 15 years
Premium payable Annual – Rs.15,000
Monthly – Rs.2000
Rs.1 lakh
Premium Paying Term 5 years to 15 years
Sum Assured 10 times the annual 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 Annual and monthly

Surrender Value

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, Fund Value and would be transferred to the Discontinuance Policy Fund after deducting the Discontinuation charges. The life cover and the Guaranteed Maturity Benefit 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 Fund Value and any would be paid without deduction of any charges.

Making the policy paid-up

A Paid-up facility is available only if the first 5 years’ premiums have been paid. The benefits payable in case of a paid-up policy are:

Death Benefit – higher of the following:

  • Paid-up Sum Assured
  • Fund Value
  • Guaranteed Death Benefit of 105% of all premiums paid till death

​Maturity Benefit – higher of the following:

  • Fund value on maturity date + Guaranteed Loyalty Additions
  • Guaranteed Maturity Benefit of 101% of all premiums paid
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.


  • If the policyholder commits suicide anytime during the plan tenure, the available Fund Value would be paid to the nominee.