Bajaj Allianz Life Insurance Company Limited is an alliance between Bajaj Finserv Limited and Allianz SE. The company has been a leader in the insurance market with world-class products, efficient service and after-sales support. The company has been offering various types of insurance plans both in the Life Insurance category and General Insurance category. Bajaj Allianz Life Insurance is among the market leaders in insurance sector offering a huge range of products at competitive rates. Moreover, the company boasts of a strong foundation of sales force which helps to increase the company’s market share in the insurance sector.
Peaceful Post-Retirement Life
Tax Free Regular Income
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Pension plans help an individual to plan for his retirement by ensuring regular payment of annuity after retirement.
Some common features of pension plans are:
There are two types of Pension plans called Deferred and Immediate Annuity. Under the former plan, the policyholder will have to wait for a specified period before the annuity payments start. Usually this period is when the policyholder pays premiums to the company which accumulate till the end of the period and then annuity payouts start. Under Immediate Annuity, the policyholder pays a lump sum amount and payouts start immediately without waiting for a certain period.
The plan vests on maturity from when the annuity payments start to accrue
Immediate Annuity plans have no feature of death benefit because annuity payments stop when the policyholder dies. Deferred annuity plans on the other hand provide for a death benefit during the deferment period when annuity payments do not accrue
The policyholder has to receive annuity payments from the accumulated corpus and if he wants he can withdraw 1/3rd of the amount in cash which called commutation of pension.
Bajaj Allianz offers two types of plans. One is a unit linked pension plan while the other is a traditional plan with guaranteed benefits. Let us analyze the plans offered by the company in details
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A linked annuity plan which promises market related returns. The components of the plan include:
Premiums can be paid either for the entire term through the Regular Pay option, for a limited term through the Limited Pay option or in a lump sum through the Single Pay option
The allocated premium is invested in the Pension Builder Fund
On Vesting, either the fund value or a guaranteed benefit of 101% of premiums paid is payable
On vesting, the policyholder can choose to commute 1/3rd of the corpus in cash and avail annuity out of the2/3rd or use the amount to buy a Single Premium Deferred Annuity plan the Vesting Age can also be postponed if he is lower than 55 years of age
If he dies before vesting, the fund value or 105% of total premiums is paid. The nominee has the option to either take the benefit in cash or avail annuity
Loyalty Additions are expressed as a percentage of the annual premiums or the single premium paid and are added to the fund value on maturity if the plan term is for 11-30 years
The fund value can be increased by top-ups which should be of a minimum value of Rs.5000
The premium payment term and the frequency can be changed anytime
The premiums paid, commuted pension and death benefit will attract no tax under their respective Sections of 80CCC, 10(10A) and 10(10D)
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Eligibility Details
Minimum | Maximum | |
Entry Age | 30 years | 73 years |
Vesting Age | 37 years | 80 years |
Policy Term | 7 years | 30 years |
Annual Premium amount | Regular Pay - Rs.15, 000 Single Pay – Rs.50, 000 | No limit |
Sum Assured | 204, 841 | Depends on term, age and premium |
Premium Payment Term | Equal to the policy term or 5 years | |
Premium Paying Frequency | Yearly, half-yearly, quarterly or monthly |
A traditional pension plan which has the following features and benefits:
It is an immediate annuity plan where annuity payments will start without waiting
The annuity can be taken either on a single life basis or on a joint life basis
The annuity comes in different options from A to F which are:
A –Annuity for life
B - Annuity for lifeand then Return of Purchase Price
C - Life Annuity guaranteed for 5/10/15 or 20 years and thereafter payable for life
D - Lifetime Annuity with Return of Purchase Price on death of last survivor
E - Joint Life Last Survivor with 50% annuity to the spouse
F - Joint Life Last Survivor with 100% annuity to the spouse
The plan promises higher annuity payouts if the purchase price is higher
Section 80CCC exempts the premium amount from taxation
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Eligibility Details
Minimum | Maximum | |
Entry Age | Option B – 0 years Other Options – 37 years | Option B –100 years Other Options – 80 years |
Purchase Price | Rs.25, 000 | No limit |
Policy Term | 7 years | 30 years |
Annual Annuity Payout | Rs.1000 | No limit |
AnnuityPayout Frequency | Yearly, half-yearly, quarterly or monthly |
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
The company offers specific plans which are available online only. The customer only needs to log into the company’s website, choose the required plan, choose the coverage and provide the details. The premium will be determined using the filled details. The customer then needs to pay the premium online through credit card, debit card or net banking facilities and the policy will be issued
Plans which are not available online can be purchased from agents, brokers, banks, etc. where the intermediaries help with the application process.
An annuity plan works on a very basic principle – you create a fund for your retirement days by paying regular premiums throughout a period of time, and then when you retire and your regular income stops, the annuity plan substitutes your income by paying you regularly. This payment is made out of the fund you created for yourself.
The purchase price in an annuity plan is the combined value of the premiums you paid during the accumulation period of the plan. Once the accumulation period is over, the annuity period stars and it is at this time that the policyholder or he annuitant begins to receive the regular income.
An immediate annuity plan is a kind of annuity plan where the policyholder begins receiving the annuity as soon as the purchase price is paid. The annuitant may opt to receive the annuity in monthly, quarterly, semi-yearly or annual installments.
In a deferred annuity plan, the annuitant opts to receive the money after a few years, ideally after he retires and his income stops.
As the name suggests, a life annuity plan continues to pay the annuitant till the time he is alive, or in other words till the last day of his life. This is a good type of annuity plan as this ensures that the annuitant doesn’t have to depend on anyone even after he retires and his regular income stops.
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Cash/Cheque Payments
However, if a claim settlement is delayed beyond 30 days, the company pays an 11% interest for every day's delay.
You may also like to read National Pension Scheme Details
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
*Please note that the quotes shown will be from our partners
*Tax benefit is subject to changes in tax laws
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