Bajaj Allianz ULIP Plans

Established in the year 2001, Bajaj Allianz Life Insurance Company has secured its position among the top life insurance players in India.

A joint venture between Bajaj Finserv Limited and Allianz SE, Bajaj Allianz Life Insurance Company is renowned for its world-class products, high claim settlement ratio, efficient service and after-sales customer support.  The claim settlement ratio FY 2015-16 is 98.10%.

Bajaj Allianz offers a wide range of life insurance solutions to cater to the various needs of the customers. While term insurance plans offer comprehensive life coverage, endowment plans are ideal for long-term savings. While child insurance plans take care of all the financial needs of one’s child, retirement plans guarantee a financially independent post-retirement life.  Bajaj Allianz Life Insurance Company also offers unit-linked plans, which allow one to create wealth for future while securing the financial stability of his/her family from any unforeseen and unfortunate future event.

What are ULIPs?

Unit Linked Insurance Plans (ULIPs) are insurance plans combined with the features of a mutual fund. The premiums paid by the policyholder are held in a corpus which is then invested in stocks and shares of different companies operating in the capital market. The total market value of the corpus invested divided by the number of securities purchased give the Net Asset Value (NAV) which is the price of one unit of the fund. The premium paid is invested at the prevailing NAV which changes every moment with the market trend. ULIPs promise good returns linked to the market and also insurance coverage. The basic features of ULIPs are as follows:

• The premium paid is invested in a choice of funds offered by the company. Each fund represents different risk criteria. The basic funds offered are Equity Fund which has a high risk, Debt Fund which has low risk and Balanced Fund a mix of Equity and Debt Fund with a moderate risk. The returns are directly related to the risk profile of the fund.
• Applicable charges are deducted from the premium paid for insurance coverage, administration charge, fund management charge, etc.
• Insurance coverage depends on the amount of premium paid
• The premiums are to be locked-in for 5 years after which partial withdrawals are allowed from the fund value
• Switching option is available which enables the policyholder to switch his investment between funds

Types of Bajaj Allianz ULIP Plans

Bajaj Allianz offers different types of ULIPs plans. Let us take a look at the different types of ULIP Plans offered by the company.

• Bajaj Allianz Fortune Gain
• Bajaj Allianz Future Gain
• Bajaj Allianz Retire Rich    

1. Bajaj Allianz Fortune Gain

A unit linked insurance plan that combines the benefits of insurance and high returns through market linked growth. The features and benefits of the plan are as follows:

• The plan has a single premium provision where premium is paid once at the inception of the plan
• The premium paid net of charges is invested in the policyholder’s choice of fund. The company provides an option of 7 funds to choose from.
• The plan provides for Loyalty Additions @3% of the Single premium paid if the chosen term is for 11-30 years and the premium paid is Rs.1 lakh and above
• On maturity, the Fund Value is payable which can be taken as a lump sum or availed in instalments over a period of 5 years post maturity under the Settlement Option feature
• In case of death of the insured during the plan tenure, higher of the Fund Value net of partial withdrawals or the Sum Assured is paid to the nominee
• Partial withdrawals can be made after the completion of 5 years
• Unlimited free switching is available for changing between funds and premium redirection feature is also available for redirecting future premiums into a different fund than the one originally selected
• Systematic Switching is also allowed where a part of the fund is transferred every month to the policyholder’s bank account
• Income tax benefit on the premium paid as per Section 80C and on claims under Section 10(10D) of the Income Tax Act.

Eligibility Details

2. Bajaj Allianz Future Gain

Another unit linked insurance plan which allows premiums to be paid either for the entire term under the regular pay option or for a limited term under the limited pay option of premium payment. The other features and benefits of the plan are as follows:

• The premium paid net of charges is invested as per a choice of two types of portfolio strategies – Wheel of Life and Investor Selectable Portfolio strategy.
• Under the Wheel of Life Portfolio Strategy, the allocated premium is invested in 5 funds in a predefined ratio. The ratio changes as the term elapses and approaching maturity, the funds are largely directed to Bond Fund and Liquid Fund to protect the returns against market volatility
• There is a choice of 7 funds to invest in under the Selectable Portfolio strategy.
• On maturity, the Fund Value is payable which can be taken as a lump sum or availed in instalments over a period of 5 years post maturity under the Settlement Option feature
• In case of death of the insured during the plan tenure, higher of the Fund Value net of partial withdrawals or the Sum Assured is paid to the nominee
• Partial withdrawals can be made after the completion of 5 years
• Unlimited free switching is available for changing between funds
• The portfolio strategy can also be changed
• Income tax benefit on the premium paid as per Section 80C and on claims under Section 10(10D) of the Income Tax Act.

Eligibility Details

3. Bajaj Allianz Retire Rich

A unit linked pension plan with regular, limited or single pay option of premium payment. The features and benefits of the plan are as follows:

• The premiums paid net of charges are invested in the Pension Builder Fund
• On vesting, 1/3^rd of the fund vale can be commuted, i.e. withdrawn in cash and the remaining 2/3^rd should be used to draw a pension or the policyholder can also use the entire proceeds to purchase an annuity with the fund value. Alternatively, a single premium deferred annuity plan can be bought from the proceeds. The vesting age can also be postponed if the policyholder is aged below 55 years
• On death of the annuitant before vesting, higher of the Fund Value or a Guaranteed Benefit of 105% of all premiums paid till death is paid to the nominee who can withdraw the entire amount in lump sum or use it to purchase annuity from the company
• The plan promises Loyalty Additions expressed as a percentage of the premium paid on vesting if the chosen plan term is of 11-30 years
• The policyholder may pay additional premiums in the form of top-ups
• The premium payment frequency and the term can be changed in case of regular or limited premium plans
• Income tax benefit is applicable on the premium paid as per Section 80CCC and on the commuted part as per Section 10(10A) of the Income Tax Act. Death Benefit is exempted under Section 10(10D) of the Income Tax Act

Eligibility Details

Applying for a Unit Linked 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.

Bajaj Allianz ULIP Plans - FAQs

Q1. 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

Q2. How can I check policy status for Bajaj Allianz ULIP 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.

Q3. What is the policy renewal process for Bajaj Allianz ULIP 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.

Q4. What is the company’s process to settle claim for Bajaj Allianz ULIP 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

Q5. What is the policy cancellation process for Bajaj Allianz ULIP 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.