Bajaj Allianz Life Principal Gain is a unit-linked insurance plan offering capital protection and assured returns on maturity. Furthermore, the guaranteed loyalty additions of the policy ensures that the policyholder receives higher returns. It is available in both online and offline modes.
Eligibility Conditions for Bajaj Allianz Life Principal Gain:
|Minimum Entry Age||7 years|
|Maximum Entry Age||60 years|
|Minimum Age at Maturity||18 years|
|Maximum Age at Maturity||70 years|
Policy Terms & Premium Payments for Bajaj Allianz Life Principal Gain:
|Policy Term||7 to 15 years|
|Terms for Premium Payments||5 years to chosen period|
|Payment Frequency||Yearly and Monthly|
|Sum Assured||10 times of yearly premium amount|
|Minimum amount for yearly premiums||Rs 15000|
|Maximum amount for yearly premiums||Rs 1,00,000|
|Minimum amount for monthly premiums||Rs 2000|
Charges under Bajaj Allianz Life Principal Gain:
- Premium allocation charge:
|1st year||8.50 % of the premium|
|2 to 5 years||5.7 % of the premium|
|6 years and above||0%|
- Fund Management Charges:
|Type of Fund||Charges per Annum|
|Balanced Equity Fund||1.25 %|
|Builder Bond Fund||0.95 %|
|Discontinuance Life Policy Fund||0.50 %|
- Guarantee Charges: This charge is deducted as 0.25 % of the fund value and is not applicable for policies under discontinuance fund
- Miscellaneous Charges: The case of change of premium payment term or premium payment frequency, miscellaneous charge of Rs 100 is applicable on each transaction
- Surrender charges of the policy:
|Year of Surrender||Surrender charge for policies (up to Rs 25000 annual premium)||Surrender charge for policies (above Rs 25000 annual premium)|
|1st year||Less than 20 % of Annual Premium or Fund Value subject to a maximum of Rs 3000||Less than 6 % of Annual Premium or Fund Value subject to a maximum of Rs 6000|
|2nd year||Less than 15 % of Annual Premium or Fund Value subject to a maximum of Rs 2000||Less than 4 % of Annual Premium or Fund Value subject to a maximum of Rs 5000|
|3rd year||Less than 10 % of Annual Premium or Fund Value subject to a maximum of Rs 1500||Less than 3 % of Annual Premium or Fund Value subject to a maximum of Rs 4000|
|4th year||Less than 5 % of Annual Premium or Fund Value subject to a maximum of Rs 1000||Less than 2 % of Annual Premium or Fund Value subject to a maximum of Rs 2000|
|5th year and above||Nil||Nil|
- Mortality Charges: Mortality charges are deducted on a monthly basis and it depends on the sum at risk, which is maximum of death benefit minus fund value.
- Policy Administration Charge: Policy administration charges are not applicable for the first 5 years of the term. However, from 6th year onwards administration charges at the rate of 2.5% per annual premium payment is levied.
Features and Benefits of Bajaj Allianz Life Principal Gain:
|Maturity Benefits||On maturity of the policy, the individual is entitled to receive a higher sum assured which is inclusive of Guaranteed Loyal Additions Or Guaranteed Maturity Benefit which amounts to 101% of the total premiums paid|
|Death Benefits||In case of the policyholder’s death, the benefits paid to the nominee shall be higher of sum assured or fund value or Guaranteed death benefits totaling to 105 % of the total premiums paid|
|Loan||Policy loans are not available under this plan|
|Guaranteed Loyalty Additions||These are additions to the fund value on the date of maturity, provided the policyholder has paid all the premiums for 5 years|
|Claw Back Additions||According to IRDA regulations, non-zero additions will be included in the fund value from the end of 5th policy year|
|Tax Benefits||Premiums, maturity benefits, death benefits and surrender benefits are eligible for tax exemptions as per the Income tax act|
Non Payment of Premiums
If premium payments have been discontinued during the first 5 years of the policy, the Bajaj Allianz Life Principal Gain policyholder can either revive the policy or surrender the policy within 15 days after expiry of the grace period. But in case of discontinued premiums after 5 years of taking the policy, the policyholder can revive, surrender or make it a paid-up policy
Revival of the policy
The policy can be reinstated within 2 years from the date of first unpaid premium. The insured person will have to pay the outstanding premium amounts plus interests charged by the company.
Policyholders under this Life insurance plan are not eligible for partial withdrawals.
GST of 18% is applicable on life insurance effective from the 1st of July, 2017
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