Bajaj Allianz Life Assure

Bajaj Allianz Life Assure

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This plan is a latest addition to ULIP portfolio of Bajaj Allianz. It comes in two variants- Bajaj Allianz Life Assure- Sure and Bajaj Allianz Life Assure- More. The plan allows you to add riders to increase financial security. There is also flexibility to add lump sum amount in the policy. Decrease of premium is also allowed. All in all, Bajaj Allianz Life Assure is loaded with many features.

Plan Parameters:

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Minimum Age at Entry: 1 year

Maximum Age at Entry: 65 years

Maximum Maturity Age: 75 years

Policy Term: 10 years, 15 years, 20 years

Premium Payment Term: 5, 10, 15, 20 years

Premium Payment Frequency: Yearly, Half Yearly, Quarterly, Monthly

Minimum Premium Amount: Rs 10,000 (yearly)

Sum Assured: 7 times annual premium to 20 times annual premium (subject to underwriting)

Death Benefit:

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Single Life Policy: On death of life insured, the amount payable would be equal to Sum Assured and fund value.

Joint Life Policy:

On death of primary life assured:

Death Benefit

	Dies 1st	Dies 2nd
Primary Life Assured	Sum Assured is paid. Policy is transferred to spouse	Sum Assured is paid along with fund value. Policy terminates.
Spouse	Sum Assured is paid. Policy continues.	Sum Assured and fund value is paid. Policy terminates

Maturity Benefit:

Variant: Bajaj Allianz Life Assure plan- Sure

Higher of guaranteed maturity value or regular premium fund value.

Guaranteed maturity value is equivalent to base regular premiums paid (deducted by relevant charges) accumulating at 3% per annum compounding monthly till the maturity date.

Variant: Bajaj Allianz Assure Plan- More

The fund value as on maturity date will be payable.

Funds Available:

There is just 1 fund available with Bajaj Allianz Life Assure Plan- Sure.

Assured Return Fund: This is a moderate risk fund. The portfolio allocation is in equity, debt, mutual funds and money market instruments.

There are total of 7 funds available with the other variant Bajaj Allianz Life Assure-More. These are:

Equity Growth Fund II- This is a high risk high return fund. The indicative portfolio allocation towards equity is 60% or more and rest of allocation will be directed towards money market instruments.

Accelerator mid-Cap Fund II- - This is a high risk high return fund. The portfolio allocation towards equity is 60% or more and rest of allocation will be directed towards bank deposits and money market instruments.

Pure Stock Fund: - This is a high risk high return fund. The portfolio allocation towards equity is 60% or more and rest of allocation will be directed towards money market instruments. Stocks belong to gambling, contests, liquor, entertainment, hotels, banks; financial institutions are excluded in this fund.

Asset Allocation Fund: - This is a high risk high return fund. The portfolio allocation towards both equity and money market instruments can be from 0%-100%.

Bluechip Equity Fund: - This is a high risk high return fund. The portfolio allocation towards equity is 60% or more and rest of allocation will be directed towards bank deposits and money market instruments. Equities forming part of NSE NIFTY are chosen for this fund.

Bond Fund: - This is a moderate risk fund. The portfolio allocation is in G-Secs, Fixed Deposits and Money Market instruments.

Liquid Fund: - This is a low risk fund. The portfolio allocation is in bank deposits and money market instruments.

The allocation mentioned above is only indicative and change can be made depending on market conditions.

Riders Available:

- Bajaj Allianz Extra Cover Benefit Rider

- Bajaj Allianz Super Premium Waiver Benefit Rider

- Bajaj Allianz Accelerated Critical Illness Benefit Rider

Other Benefits:

Top-Up Premium:

You can also add lump sum amount in form of top-up premium. This addition can be done anytime except in the last 5 years. The minimum amount to be added is Rs 5,000. When you top-up policy, you get additional Sum Assured too. Premium allocation charge of 2% of top up amount will also be deducted.

Option to decrease Sum Assured:

The opted Sum Assured can be decreased at any policy anniversary. If you have made top-up, its Sum Assured can also be decreased.

Settlement Option:

In case you do not want to receive final maturity value in lump sum, you can choose settlement option. This benefit will pay put the final maturity amount in installments over the period of next 5 years.

Switching between variants:

Switch is only allowed if it is from Bajaj Allianz Life Assure Sure to Bajaj Allianz Life Assure More.

Applicable Charges:

Premium Allocation Charges:

Year	Premium Allocation Charge
1	20%
2-5	4%
6 onwards	Nil

Policy Administration Charges: There are no policy administration charges for the first 5 policy years. From 6^th policy year onwards, Rs 10 per month will be deducted which will inflate at 5% per annum. These charges are deducted directly by cancellation of units.

Guarantee Charge: 2% of base regular premium for Bajaj Allianz Assure Plan-Sure.

Fund Management Charge: The annual fund management charge ranges from 0.95% to 1.35% as per the fund chosen. These charges are adjusted against units.

Mortality Charge: These are charges deducted as a part of life cover provided and are recovered through cancellation of units.

Cancellation or Surrender:

The plan can be cancelled within 15 days of receipt of policy documents. Within this period, you can visit branch with policy documents and letter of cancellation. After the request is received and processed, the amount will be paid back within few days after deduction of nominal charges.

Surrender after 15 days:

Year of surrender	Annual Premium up to Rs 25000	Annual Premium above Rs 25000
1	20% of lower of regular premium or fund value subject to maximum of Rs 3,000	6% of lower of regular premium or fund value subject to maximum of Rs 3,000
2	15% of lower of regular premium or fund value subject to maximum of Rs 3,000	4% of lower of regular premium or fund value subject to maximum of Rs 3,000
3	10% of lower of regular premium or fund value subject to maximum of Rs 3,000	3% of lower of regular premium or fund value subject to maximum of Rs 3,000
4	5% of lower of regular premium or fund value subject to maximum of Rs 3,000	2% of lower of regular premium or fund value subject to maximum of Rs 3,000
5 and above	Nil	Nil

Due to mandatory lock in period of 5 years, the cancelled due amount will only be paid after 5 years.

Tax Benefits:

Under section 80C of the Income Tax Act, premium amount paid is eligible for tax deductions up to maximum of Rs 100,000. The final maturity amount is tax free under Section 10 (10D). In case of death of insured, the amount payable is also tax free. Tax laws are subject to change, kindly verify before investing.

Last words on Bajaj Allianz Life Assure:

Bajaj Allianz Life Assure comes with plenty of benefits and features. Joint life option is not offered by many plans but is available with this plan. Then there are other features like top-ups, riders, flexible Sum Assured etc. However the charges are bit on higher side. At a time when insurance companies have gone as far as waiving off allocation charges, Bajaj Allianz Life Assure allocation charges tend to be on higher side which makes it far less lucrative option.