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Bajaj Allianz Young Assure Plan
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Bajaj Allianz Young Assure Plan
Bajaj Allianz Young Assure is a traditional child plan which provides for insurance protection along with creating savings for the child’s secured future.
Highlights of the Bajaj Allianz Young Assure Plan
This is a traditional Endowment plan where bonuses are declared.
Guaranteed Additions are also provided under the plan to enhance the benefit payable.
Premiums for the plan can be paid either for the entire duration of the plan under the Regular premium payment option or for a limited tenure under the limited premium payment option.
The policyholder can choose from a variety of policy tenure and premium payment tenure as per his requirement.
The maturity benefit payable can be availed in three options which provide the benefit in installments over a specified duration.
There is an inbuilt Accidental Permanent Total Disability Benefit Rider under the plan.
Female lives are charged lower rates of premiums.
Working of the Bajaj Allianz Young Assure Plan
The policyholder chooses the policy term, premium payment term, premium paying frequency and the Guaranteed Maturity Benefit. Based on these criteria and the age of the insured, the amount of annual premium would be calculated.
The Sum Assured would be fixed at 10 times the annual premium paid.
The policyholder would then have to choose from one of the available three cash installment options of receiving the maturity benefit.
Guaranteed Additions would be added to the plan at the end of the plan tenure.
On death during the period, the death benefit is paid and the policy is converted into a fully paid-up policy where premiums are not required. When the term ends, the maturity benefit is again paid.
On maturity, the maturity benefit is paid depending on the cash installment option chosen by the policyholder.
Benefits and Features of Bajaj Allianz Young Assure Plan
Maturity Benefit – When the plan matures, the benefit payable would be:
Guaranteed Maturity Benefit (GMB) + Guaranteed Additions (GA) + vested Bonuses (VB) + Interim Bonus (IB), if any + Terminal Bonus (TB), if any.
The maturity benefit can be taken either in lump sum or in any one of the three cash installment options available with the plan. Under this option, the benefit is paid in annual installments after the end of the plan tenure. The options are as follows:
Period
Option I – 3 years
Option II – 5 years
Option III – 7 years
At the end of plan tenure
GA + VB + IB (if any)
1 year after the plan tenure
50% of the GMB
22% of the GMB
12% of the GMB
2 year after the plan tenure
55% of the GMB + TB (if any)
25% of the GMB
15% of the GMB
3 year after the plan tenure
-
28% of the GMB
18% of the GMB
4 year after the plan tenure
-
34% of the GMB + TB (if any)
20% of the GMB
5 year after the plan tenure
-
-
23% of the GMB
6 year after the plan tenure
-
-
25% of the GMB + TB (if any)
Total
105% of the GMB
109% of the GMB
113% of the GMB
Death Benefit – If the insured dies during plan term, the death benefit payable would be the Sum Assured on death subject to a minimum of 105% of all premiums paid till death.
The Sum Assured on death would be higher of the following:
Guaranteed Maturity Benefit
Sum Assured
After paying the death benefit, the policy would be converted to a fully paid-up policy where no premium payment would be required. The policy would continue and all future bonuses and any Guaranteed Additions would be added to the policy. When the policy matures, the maturity benefit would be paid under the policy and the plan would terminate.
If the policyholder becomes permanently and totally disabled due to an accident during the plan tenure, the policy will be turned into a fully paid-up policy where premium payment would be waived. All future bonuses and Guaranteed Additions would accrue under the plan and on maturity the maturity benefit would be paid. If the insured dies during the tenure after the accidental benefit is availed, the death benefit would be paid.
Bonus – Bonuses are declared under the plan and are paid every year for which the policy is in-force. An interim bonus and a terminal bonus may also be paid on death or maturity of the plan.
Guaranteed Additions – A percentage of the Guaranteed Maturity Benefit would be added to the policy at maturity in the form of Guaranteed Additions (GA). These additions depend on the Premium Paying Term (PPT) of the plan and are as follows:
PPT
5 years
7 years
12 years
15 years
20 years
GA
15%
25%
40%
60%
90%
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. The death benefit or the maturity benefit received would also be tax exempt under Section 10(10D) of the Income Tax Act.
COMPARE THIS PLAN WITH OTHER CHILD PLANS
Eligibility Criteria of Bajaj Allianz Young 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)
18 years
50 years
Maturity Age (Last Birthday)
28 years
60 years
Plan tenure
10, 15 or 20 years
Premium payable
Depends on the chosen Guaranteed Maturity Benefit, age, plan term and premium payment term
Premium Paying Term
5, 7, 12, 15 or 20 years
Sum Assured
10 times the annual premium
Guaranteed Maturity Benefit
Rs.1 lakh
No limit
Premium payment mode
Monthly, quarterly, half-yearly and annually
Additional Benefits of Bajaj Allianz Young Assure Plan
Riders – Five additional riders are available under the plan which can be added to the base policy for a more comprehensive coverage. The riders include:
Premium Discounts – Any level of Guaranteed Maturity Benefit above the minimum level of Rs.1 lakh would attract a discount in the premium. The discount available would range from Rs.36 to Rs.48 per Rs.10, 000Guaranteed Maturity Benefit above the minimum limit depending on the premium paying term and the policy term chosen.
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 Policy Term
Step 2: Choose your Premium Paying Term
Step 3: Choose your Premium Payment Frequency
Step 4: Choose your Guaranteed Maturity Benefit
Your premium will be based on Guaranteed Maturity Benefit, age, policy term, premium payment term and premium
payment frequency. Your Sum Assured is 10 times of Annualised Premium.
Step 5: Choose your Cash Installment option
Let's Understand The Plan With An Example:
Gautam aged 30 years has taken Bajaj Allianz Young Assure for his son Arnav who is 1 year old. Gautam opted for a policy term of 20 years and premium paying term of 15 years. He chose a Guaranteed Maturity Benefit (GMB) of Rs.3,00,000, for which he will have to pay a premium of Rs.24,363 p.a. He chose Cash Installment option of 5 years for Arnav and on maturity 5 Cash Installments over 5 years starting from the policy term end will be paid. Gautam's Sum Assured will be = 10 times of Annualised Premium = 10 X Rs.24,363 = Rs.2,43,630.
On maturity, Gautam will receive Cash Installments as shown in the table below:
In case of unfortunate death of Gautam during the 5 policy year, his son Arnav, who is the nominee, will receive
Rs.3,00,000 (Guaranteed Maturity Benefit).
The policy will continue till maturity as a fully paid-up policy and on maturity, Arnav will receive the Cash Installments as
Maturity Benefit as per Cash Installment option chosen. Note: Premium shown above is exclusive of Service Tax and any extra premium.
The percentages (%) of GMB as Cash Installments and on Maturity are guaranteed. Vested Bonus at investment return of
8% & 4% is not guaranteed and is for illustrative purpose only.
Premium Illustration
The graph below shows the premiums payable at different levels of Guaranteed Maturity Benefit (GMB) for different ages and Premium Paying Term (PPT). The policy tenure is chosen to be 20 years and any cash installment option can be selected as it does not alter the premium.
The associated premium table is as follows:
Age
GMB – 5 lakhs
GMB – 10 lakhs
PPT - 12 years
PPT - 15 years
PPT - 20 years
PPT - 12 years
PPT - 15 years
PPT - 20 years
35 years
43,035
41,380
39,770
85,610
82,340
79,150
40 years
44,830
43,125
41,440
89,200
85,830
82,490
Exclusions in Bajaj Allianz Young 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.
For the accidental disability benefit, disabilities arising out of criminal acts, war, riots, rebellion, alcohol and drug abuse, participation in defense operations,participation in hazardous sports and activities, aviation, self-inflicted injury or as a result of inhalation of poison, gas or fume would be excluded from coverage.
Non-Payment of premium in Bajaj Allianz Young Assure Plan
Premiums have to be paid for at least 1 year if the premium paying term is less than 10 years or 2 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 least1 or 2 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 is payable and the policy would continue till the end of the tenure when the maturity benefit would be paid.
Maturity benefit – Paid-up Guaranteed Maturity Benefit + vested bonus + pad-up guaranteed additions would be paid as per the cash installment option selected.
Surrendering the policy
Surrender is allowed only after the policy becomes paid-up, i.e. after 1 or 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 = (total premiums paid till the date of surrender * GSV1 Factor)+ (Vested bonuses * GSV2factor of bonus)
The SSV factors would be declared by the company based on its performance and would be computed as follows:
SSV = (paid-up Sum Assured on death*SSV1 Factor) + {(paid-up Guaranteed Maturity Benefit + paid-up Guaranteed Additions)* SSV2 Factor} + (vested bonus * SSV3 Factor)
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.
