Bajaj Allianz Pension Plans

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.

What are Pension Plans?

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 1/3^rd of the amount in cash which called commutation of pension.

Bajaj Allianz Pension Plans

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

Bajaj Allianz Retire Rich Plan

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 1/3^rd of the corpus in cash and avail annuity out of the2/3^rd 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)

Eligibility Details

Bajaj Allianz Pension Guarantee

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

Eligibility Details

Applying for a Pension Plan from the company:

Online

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

Intermediaries

Plans which are not available online can be purchased from agents, brokers, banks, etc. where the intermediaries help with the application process.

How does an Annuity Plan work?

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.

What is ‘purchase price’ in an annuity plan?

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.

What is an immediate annuity plan?

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.

What is a deferred annuity plan? 

In a deferred annuity plan, the annuitant opts to receive the money after a few years, ideally after he retires and his income stops.

How does a life annuity plan work?

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.

Bajaj Allianz Pension Plans - FAQs

1. How to pay premium? What are the modes of payment available?

You can pay premium from ANY of these approved methods

ECS

NEFT

Cash/Cheque Payments

2. How can I check policy status for Bajaj Allianz pension plans?

As a registered user, you must log into Bajaj Allianz website with your valid User Id and password. On the homepage of your e-portal click “Policy Status” to know.

3. What is the policy renewal process for Bajaj Allianz pension plans?

You can authorize your premium payments online through Bill Junction service, available on the insurer’s website. You need to register yourself at Bill Junction and follow the policy renewal instructions.

4. What is the company’s process to settle claim for Bajaj Allianz pension plans?

Bajaj Alliance Life Insurance aims to provide faster claims settlement service. You must submit the valid documentation along with suitable claims form and submit it to the nearest branch in you city. Upon receiving the documents and processing it, your claims is settled within 30 days. The claim amount is directly deposietd in your bank account.

However, if a claim settlement is delayed beyond 30 days, the company pays an 11% interest for every day's delay

5. What is the policy cancellation process for Bajaj Allianz pension plans?

Bajaj Alliance Life Insurance policyholders must attach all the relevant policy documents along with a duly filled surrender form at any of the branch locations in their city. The value of their refund will be calculated based on the current NAV value, if the documents are submitted before 3:00 PM, else the next day’s market rates will be applicable.