Compare Bajaj Allianz Future Gain Plan

Aviva-Life-Insurance-Company

Bajaj Allianz Future Gain Plan

Bajaj Allianz Life’s Future Gain Plan is a Unit Linked Insurance Plan which gives the dual benefit of life insurance coverage and wealth creation. The premiums paid are invested in the capital market thereby earning attractive returns.

Key features of the plan

    • There are two investment strategies in the plan. The policyholder can choose any strategy as per his investment goals.
    • The premiums paid can be invested in a choice of 7 available funds.
    • Top-up premiums can be paid to increase investments
    • The plan provides flexible options like partial withdrawals, switching, premium redirection and the option to decrease the Sum Assured.
    • 5 additional riders are available with the plan

How does the plan work?

Step 1 – the policyholder chooses the premium amount, plan term and the premium paying term The minimum and maximum Sum Assured is then calculated using the age of the insured and the plan term. The policyholder can choose any Sum Assured from the minimum and maximum range.

Step 2 – the policyholder also chooses the investment strategy. There are 2 strategies which are as follows:

  • Investor Selectable Portfolio Strategy – under this strategy, the policyholder can choose to invest the allocated premium in any of the available fund options. There are seven funds to choose from which are – Equity Growth Fund II, Accelerator Mid-cap Fund II, Pure Stock Fund, Asset Allocation Fund II, Bluechip Equity Fund, Bond Fund and Liquid Fund.
  • Wheel of Life Portfolio Strategy – this strategy works on the ‘Years to Maturity’ principle. Initially, the allocated premium is invested in equity oriented funds (Equity Growth Fund II, Bluechip Equity Fund and Accelerator Mid-cap Fund II) in a pre-defined ratio. As the plan approaches maturity, the funds are reallocated to debt-oriented funds (Bond Fund and Liquid Fund) in a pre-defined proportion. Under this strategy, the funds are reallocated from equity exposure to debt exposure to protect returns generated from market volatility. 

Step 3 – the policyholder can make partial withdrawals or switch his investments if Investor Selectable Portfolio Strategy is chosen.

Step 4 – top-ups can be done to increase the investment in a chosen fund.

Step 5- in case of death during the plan term, the death benefit is paid.

Step 6 – if the insured survives the plan tenure, the maturity benefit is paid.

Example

Arvind, aged 30 years, buys Future Gain Plan and pays a premium of Rs.1 lakh. The term selected is 10 years and premiums are paid for 5 years annually. The Sum Assured is a minimum of Rs.10 lakhs and a maximum of Rs.15 lakhs. Arvind selects Rs.10 lakhs as Sum Assured.

Option 1 – He opts for Investor Selectable Portfolio Strategy and allocates 100% of the premiums in Equity Growth Fund II. In case of death during the tenure, the death benefit would be paid to the nominee which would be higher of the Sum Assured or Fund Value. On maturity, the Fund Value is paid.

Option 2 – He opts for Wheel of Life Portfolio Strategy. The allocated premium is invested in Bluechip Equity Fund, Equity Growth Fund II and Bond Fund in the ratio 40:30:30. Every year the allocation rate changes. It moves from equity-oriented funds to Bond Fund. On death, higher of Sum Assured or Fund Value is paid. On maturity, the Fund Value is paid.

Arvind can make partial withdrawals, switch between funds and also pay top-up premiums during the plan tenure.

Plan benefits

  • Death benefit – if the life insured dies during the plan term and due premiums have been paid, the death benefit would be payable. The death benefit is higher of -
  • Sum Assured including any top-up premium Sum Assured
  • Fund Value including any top-up premium Fund Value
  • Provided that the death benefit is at least 105% of the total premiums paid till death
    If the life insured dies before reaching 60 years of age, the Sum Assured would be deducted for any partial withdrawals made during two years prior to death
    If the life insured dies after attaining 60 years, any partial withdrawals made after crossing 58 years of age would be deducted from the Sum Assured.

  • Maturity Benefit – when the plan matures, the available Fund Value as well as any top-up premium Fund Value is paid to the policyholder. The policyholder can receive this maturity benefit in lump sum or in instalments over a 5-year period after maturity through Settlement Option feature.
  • Partial withdrawals – the policyholder can make partial withdrawals after the first 5 years. The minimum amount of withdrawal is Rs.5000.
  • Switching – under the Investor Selectable Portfolio Strategy, the policyholder can make unlimited free switches throughout the plan tenure for changing funds. The portfolio strategy can also be changed from Investor Selectable Portfolio Strategy to Wheel of Life strategy.
  • Top-up Premiums – additional premiums can be paid through top-ups. The minimum amount of top-up is Rs.5000 and top-ups increase the Sum Assured. The top-up Sum Assured is 1.25 times the top-up premium for ages below 45 years and 1.1 times if age is 45 years and above.

Eligibility:

  Minimum Maximum
Age at entry (in completed years) 1 year 60 years
Age at maturity (in completed years) 18 years 70 years
Term of the plan 10 years For premium paying term 5 or 6 years – 10,15 or 20 years
For other premium paying terms – 10,15,30 years
Premium paying options Regular pay
Premium Paying term 5 years 30 years
Annual premium amount Rs.25,000 Rs.12 lakhs
Sum Assured If age is below 45 years – higher of 10 times the annual premium or 0.5*term*annual premium
If age is 45 years and above - higher of 7 times the annual premium or 0.25*term*annual premium
If age is up to 35 years – 15 times the annual premium
If age is 36-40 years and term is 21-25 years – 12.5 times the annual premium
If age is 36-40 years and term is 10-20 years – 15 times the annual premium
If age is 41-44 years and term is up to 20 years – 10 times the annual premium
If age is 45-50 years and term is 10 or 15 years – 10 times the annual premium
For any other age and term combination, the minimum Sum Assured would also be the maximum

What is not covered in the policy?

In case of suicide committed within 12 months of inception or revival of the plan, the available Fund Value and any top-up premium Fund Value is paid.

FAQs

Are riders available under the plan?

Yes, 5 riders are available under the plan.

What is the premium paying mode?

Premiums can be paid either for a limited tenure of for the entire plan duration

What are the conditions for decreasing the Sum Assured?

The Sum Assured can be decreased after the first policy year. After decrease, the Sum Assured should not fall below the minimum Sum Assured under the plan.

Do top-up premiums have a lock-in period?

Yes, top-up premiums have a lock-in period of 5 years from the date they are paid.

What is the limit on partial withdrawals?

A maximum of 2 withdrawals are allowed in each policy year. The total amount withdrawn at one time should be a maximum of 10% of the total premiums paid (including top-ups).

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