Bajaj Allianz Retire Rich is unit linked pension plan which provides market linked returns while at the same time guaranteeing the vesting benefit and death benefit. The plan allows a flexible premium payment term thus enabling the policyholder to afford the plan easily. Top-ups can also be paid under the plan to increase the Fund Value.
Step 1 – the policyholder chooses the premium amount, the plan term, premium paying term and frequency.
Step 2 – the premiums paid are deducted for premium allocation charges and then invested in the Pension Builder Fund.
Step 3- the policyholder can make additional investments into the plan through top-ups.
Step 4 - in case of death during the plan term, the death benefit is paid which is higher of the Fund Value or Guaranteed Death Benefit. The Guaranteed Death Benefit is 105% of total premiums paid till death.
Step 5 – if the insured survives the plan tenure, the maturity benefit is paid which is higher of the Fund Value or the Guaranteed Vesting Benefit. The Guaranteed Vesting Benefit is equal to 101% of premiums paid during the term. The policyholder has to avail the vesting benefit in any of the options provided under the plan.
Tarun, aged 30 years, buys the plan and pays a regular premium of Rs.50, 000. The tenure selected is 20 years.
Option 1 – If Tarun dies during the term, higher of the Fund Value including any top-up premium Fund Value or 105% of premiums paid till death is paid to the nominee.
Option 2 – If Tarun survives the plan tenure, higher of the Fund Value including any top-up premium Fund Value or the Guaranteed Vesting Benefit of 101% of premiums paid is paid to Tarun. Loyalty Additions are also added on vesting.
Tarun can choose to receive the Vesting benefit in any of the following manners:
The Vesting Benefit could then be used by the policyholder in any of the following options:
|Term of the plan||Regular or Limited premium||Single Premium|
|Premium below Rs.10 lakhs||Premium Rs.10 lakhs and above|
|Age at entry (in completed years)||30 years||73 years|
|Age at maturity (in completed years)||37 years||80 years|
|Term of the plan||7 years||30 years|
|Premium paying options||Limited Pay, Single Pay or Regular Pay|
|Premium Paying term||5 years||30 years|
|Annual premium amount||Limited and Regular Premium:
Premium paying term below 7 years – Rs.50, 000
Premium paying term 7-10 years – Rs.25,000
Premium paying term 11 years and above – Rs.15,000
Term 7-10 years – Rs.1 lakh
Term 11 years and above – Rs.50,000
In case of suicide committed with a year or buying a plan or within one year from the date of plan’s revival, only the Fund Value including any top-up premium Fund Value is paid to the nominee.
Deferment is allowed only if the policyholder is aged below 55 years on the vesting date. The allowed deferment period is equal to the plan tenure of 7 years to 30 years.
The plan can be surrendered only after the first 5 policy years.
The surrender benefit can be used by the policyholder to either buy a single premium deferred annuity plan from the company or 1/3rd of the value can be withdrawn in cash and the remaining 2/3rd should be used to avail immediate annuity payouts.
The plan allows alteration of the premium paying term and the premium paying frequency.
Only one fund is available under the plan which is the Pension Builder Fund.