The Bajaj Allianz Pension Guarantee is a plan in which you can get an income for life. It gives you and your life partner a steady income even after your retirement. You have a choice to decide the options for annuity wherein you can save now and enjoy a stress-free retired life later.
The Options for Annuity You Can Choose From Are:
- Option A - This is a lifetime option, wherein the policyholder will receive an annuity as long as he/she is alive.
- Option B - With this option you can get lifetime annuity as well as return purchase price, this purchase price is returned on the death of the policyholder
- Option C - Under this option annuity is paid for a chosen period of 5, 10, 15, or 20 years and post that the annuity will be paid to the policyholder and post the death of the policyholder will be paid to the nominee.
- Option D - The Joint Life Last Survivor option with this option you will get an annuity of 50% of the amount the policyholder and the other 50% will be paid to your spouse. Both the policyholder and his/her partner are covered. And on the death of the policyholder the 50% prevailing will still be paid until he/she is alive.
- Option E - The Joint Life Last Survivor and Return of Purchase Price on death of Last Survivor in this option both the policyholder and her/his spouse are covered, the annuity is paid to them until at least one of them is alive. On the death of the last survivor the nominee will receive the Return of Purchase Price.
- Option F - Joint Life Last Survivor with 100% of annuity to spouse under this option both policyholder as well his/her spouse is covered, and a 100% of the annuity amount will be paid to the last survivor among the policyholder or spouse.
The Eligibility Conditions for a Bajaj Allianz Pension Guarantee Plan
0 years is the minimum age for Option B
37 years is the minimum age for Option D, E and F
And the general minimum age for this policy is 37 years
80 years is the maximum age for Option D, E and F
100 years is the maximum age for Option B
And the general maximum age for this policy is 80 years
The Key Features of The Bajaj Allianz Pension Guarantee Plan:
- This is an individual plan, that is non-linked, non-par immediate annuity plan.
- The minimum purchase price should be an amount of Rs. 25,000. There’s no maximum limit for the maximum purchase price.
- The coverage in this plan is based on the options chosen by the policyholder at the time of inception.
- The minimum purchase price should be Rs. 25, 000. You will need to pay the amount in a lump sum to Bajaj Allianz the annuity will be paid to you after the expiry of the purchase price option chosen by you. This can be monthly, quarterly, half-yearly or yearly.
- The annuity payout will be as chosen by you and the payout will work based on the options chosen as well.
- This plan has a Free-look period of 15 days from the date of the receipt of the policy and a 30 day period in cases of distance marketing.
- With this policy you get a grace period 30 days if the premium frequency is made annually, semi-annually, quarterly, and in case of a monthly premium being paid the grace paid is grace period of 15 days.
The Key Advantages of This Plan:
- As per the Income Tax Act of 1961 the policyholder will receive tax benefits.
- Death Benefit - Only on Option E has an option to provide a death benefit to a nominee.
- There is no Maturity Benefit since this is a pension plan.
- Return of purchase price - Annuity is payable to the policyholder as long as he/she is alive and if any remaining capital is available, it would be returned to the nominee on the death the policyholder.
How Does This Plan Work?
The only thing you need to do is to pay a lump sum amount to Bajaj Allianz Life, the pension or annuity will be paid out as soon as the expiry of the payment mode you have chosen. The mode can be a month, a quarter, a half-year or a year from the date of purchase. Based on the options you’ve chosen the pension payouts will happen, all options have an annuity amount paid for life, so the pension will continue on providing you a stress-free retirement.
GST of 18% is applicable on life insurance effective from the 1st of July, 2017