Compare Bajaj Allianz Young Assure Plan

Bajaj Allianz-Life-Insurance-Company

Bajaj Allianz Young Assure Plan

Bajaj Allianz Life’s Young Assure is a traditional child insurance plan which is designed to protect the financial future of the policyholder’s child. The plan aims to create a corpus for the child’s future even if the parent faces premature death.

Key features of the plan

  • Premiums under the plan can be paid regularly or for a limited tenure.
  • This is a participating plan which participates in bonus declarations.
  • Besides bonuses, Guaranteed Maturity Benefit and Guaranteed Additions are also paid under the plan.
  • The maturity benefit is paid in instalments under three plan options. Each option pays a specified rate of Guaranteed Maturity Benefit.
  • There is an inbuilt accidental disability rider which covers accidental death or disability.
  • Additional riders are available for a comprehensive coverage
  • Females are charged a lower rate of premium. Discounts are also given in premiums if the chosen Guaranteed Maturity Benefit is more than Rs.1 lakh.

How does the plan work?

Step 1 – the policyholder chooses the Guaranteed Maturity Benefit, the plan term, premium paying term and frequency. Based on the insured’s age and the above factors, the premiums are calculated.

Step 2 – There are three payout options for availing maturity benefit after the completion of the plan tenure and the policyholder has to choose one option.

Step 3- in case of death, the death benefit would be paid.

Step 4 – if the insured survives the plan tenure, the maturity benefit is paid according to the chosen cash instalment option.

Example

Bisht, aged 35 years, buys Young Assure Plan and chooses a Guaranteed Maturity Benefit of Rs.2.5 lakhs. The term is 15 years and premiums are paid annually throughout the plan tenure.

Option 1 – if Bisht chooses instalment option I, he would be paid the Guaranteed Additions, vested bonus and any interim bonus on maturity. In the second year after maturity, Rs.1.25 lakhs is paid and in the next year Rs.137,500 is paid.

Option 2 – In case of Option II, Guaranteed Additions, vested bonus and any interim bonus are paid on maturity. From the second year and every year thereafter till 5 years, 22%, 25%, 28% and 34% of Guaranteed Maturity Benefit is paid. In the final payment, any terminal bonus is also paid.

Option 3 – For Option III, 12%, 15%, 18%, 20%, 23% and 25% of the Guaranteed Maturity Benefit is paid every year for 7 years respectively.

Option 4 – in case of death, the death benefit is paid and future premiums are waived off. The plan earns Guaranteed Additions and bonuses. On maturity, the maturity benefit is paid.

Plan benefits

  • Death benefit – if the life insured dies during the term of the plan, the death benefit is paid. The death benefit is higher of the Sum Assured or the Guaranteed Maturity Benefit subject to a minimum of 105% of all premiums paid. After the death benefit is paid, future premiums are waived off. Guaranteed Additions and bonuses continue to accrue during the remaining term of the plan. After the tenure ends, the maturity benefit is paid again. If the life insured becomes disabled due to an accident, all future premiums would be waived off. In case of subsequent death, the death benefit is paid. If the plan matures, the maturity benefit would be paid.  
  • Maturity Benefit – when the chosen tenure of the plan comes to an end, the maturity benefit is payable. The maturity benefit is the sum of Guaranteed Maturity Benefit (GMB), Guaranteed Additions, vested bonuses, any interim bonus and any terminal bonus. The policyholder can choose to receive the maturity benefit in any of the available 3 cash instalment options. These options are as follows:
    Instalments payable Option I – the benefit is paid over 3 years post maturity Option II – the benefit is paid over 5 years post maturity Option III - the benefit is paid over 7 years post maturity
    In the 1st year Guaranteed Additions + vested bonuses + any interim bonus
    In the 2nd year 50% of GMB 22% of GMB 12% of GMB
    In the 3rd year 55% of GMB + any terminal bonus 25% of GMB 15% of GMB
    In the 4th year NA 28% of GMB 18% of GMB
    In the 5th year NA 34% of GMB + any terminal bonus 20% of GMB
    In the 6th year NA NA 23% of GMB
    In the 7th year NA NA 25% of GMB + any terminal bonus
  • Guaranteed Additions – Guaranteed Additions are calculated as a percentage of the Guaranteed Maturity Benefit and are added at the end of the term. The rate of additions depends on the premium paying term and are as follows:
    Premium paying terms Guaranteed Additions
    5 years 15%
    7 years 25%
    12 years 40%
    15 years 60%
    20 years 90%

Eligibility Criteria

  Minimum Maximum
Age at entry (in completed years) 18 years 50 years
Age at maturity (in completed years) 28 years 60 years
Term of the plan 10,15 or 20 years
Premium paying options Regular or limited pay
Premium Paying term For term 10 years – 5 or 7 years
For term 15 years – 12 or 15 years
For term 20 years – 12, 15 or 20 years
Sum Assured 10 times the annual premium
Guaranteed Maturity Benefit Rs.1 lakh No limit

What is not covered in the policy?

  • In case of suicide committed within 12 months of inception, 80% of the premiums paid are refunded.
  • If suicide is committed within 12 months of revival, higher of 80% of the premiums paid or the surrender value under the plan is paid.
  • For the accidental disability benefit, disabilities occurring due to suicide, self-inflicted injuries, war, participation in hazardous activities, criminal acts, aviation, etc. would not be covered.

Premium Illustration

Below are the sample rates of premium payable by a non-tobacco user male for a combination of different ages, term and premium payment term. The Guaranteed Maturity Benefit is taken to be Rs.2 lakhs.

Bajaj-Allianz-Young-Assure

FAQs

How many riders are available under the plan?

5 riders are available with the plan.

What are the available premium paying frequencies?

Premiums can be paid yearly, half-yearly, quarterly or monthly.

Is loan available under the plan?

Yes, loans up to 90% of the surrender value can be taken under the plan

Can the maturity benefit be taken in lump sum?

If the policyholder does not want to avail cash instalments, the maturity benefit can be taken in lump sum by making a written request at least 3 months before maturity.

Can a lapsed policy be revived?

Yes, the company allows 2 years to revive a policy which has lapsed.

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