Bajaj Allianz Retire Rich Plan

This is a Unit Linked Plan where premiums can be paid regularly, for a limited tenure or at one lump sum under the regular, limited and single premium paying options respectively.

• The premium paying term can be changed under the plan.
• Loyalty Additions are added under the plan to increase the corpus.

The date when the plan term ends is called the Vesting date and on that date the Vesting Benefit is paid to the policyholder. The benefit would be higher of the following:

• Total Fund Value as on that date, or
• The Guaranteed Vesting Benefit which is equal to 101% of all premiums, including any top-up premiums, paid till the Vesting Date.
  On the vesting date, the policyholder would have to choose any one of the following options of availing the vesting benefit. The options are:
• 1/3rd of the vesting benefit could be withdrawn as lump sum and the remaining 2/3rd of the benefit could be used to buy an Immediate Annuity plan from the company
• The entire amount of vesting benefit can be used to purchase a Single Premium Deferred Annuity Plan from the company
• If the policyholder is aged less than 55 years on the vesting date, he may choose to extend the vesting date to another available period. This would be the deferment period during which no premiums are required to be paid. However, the charges related to the fund would be deducted during this period.

If the insured dies before the vesting date, higher of the following would be paid as death benefit:

• Fund Value as on the date of death, or
• Guaranteed Death Benefit which is equal to 105% of all premiums paid till death.
  The nominee can either withdraw the entire death benefit in one lump sum or use it entirely or partially to purchase an annuity plan from the company.

Being a ULIP plan, bonus is not declared.

Loyalty Additions are payable under the plan on the actual vesting date of the plan. Loyalty Additions are expressed as a percentage of the annual or single premium paid under the plan and depend on the amount of premium and the chosen policy tenure.

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

Premiums paid under the plan would be exempt from tax under Section 80CCC. The part of vesting benefit commuted (1/3rd part which is taken as lump sum) would be exempt from tax under Section 10(10A).

There are no riders under this plan.

• Top-up Premiums – Additional premiums by way of top-up premiums are allowed anytime except in the last 5 policy years. The minimum amount of top-up is Rs.5000.

• Change in Premium Payment Term (PPT) – The PPT of the plan can be changed provided the changed tenure lies within the maximum and the minimum allowed PPT. A miscellaneous charge would be applicable for such change.

A grace period of 30 days is allowed for annual, half-yearly and quarterly payment of premium and 15 days for monthly mode of premium payment.

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.

The policy has a 5 year lock-in period. If the policy is surrendered within the first 5 years, the funds in the Fund Value and any top-up premium Fund Value would be transferred to the Discontinuance Policy Fund after deducting the Discontinuation charges. 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 Fund Value would be available as the Surrender Value.

If the plan is surrendered any time after the completion of 5 years, the available Fund Value and any top-up premium Fund Value would be available as Surrender Value.

The policyholder can use the Surrender Value in any of the following ways:

• 1/3rd of the surrender value could be withdrawn as lump sum and the remaining 2/3rd of the value could be used to buy an Immediate Annuity plan from the company
• The entire amount of surrender value can be used to purchase a Single Premium Deferred Annuity Plan from the company

Paid-up is allowed only if premiums are paid for the first 5 years of the plan. If the policyholder does not want to revive or surrender his policy, the policy would be converted to a paid-up policy and no further premiums would be payable under the plan.

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.