Bajaj Allianz Retire Rich Plan

Entry Age

Minimum – 30 years

Maximum – 73 years

Age at Vesting

Minimum – 37 years

Maximum – 80 years

Type

A unit linked pension plan.

Basis

Individual

Coverage

• Death Benefit: In the event the sum assured dies before the vesting date, the death benefit payable to the nominee will be a higher of the total fund value on the date of the intimation of death or the guaranteed death benefit. The guaranteed death benefit is 105% of the sum assured of the premiums paid and the top up premiums that were paid. The nominee can choose to take a lump sum of the entire death benefit or can use the part of the death benefit to purchase an annuity at the prevailing rates.

• Vesting Benefit: Vesting benefit is paid that is higher value of the Guaranteed Vesting Benefit or the total fund value as on the vesting date. The guaranteed vesting benefit is 101% of the sum of all the premiums paid along with the top up premiums paid till the vesting date. On the date of vesting you can both take one third of the vesting benefit in a lump sum payout and purchase an immediate annuity at the prevailing annuity rates. You can also purchase a single premium deferred pension plan using the entire proceeds of the vesting benefits. You can also extend the deferred period provided your age on the date of vesting is less than 55 years.

• Surrender Benefit: The policy can be surrendered at any time. If the policy is surrendered during the lock-in period, then the death benefit will be terminated and if the fund value is less than the surrender charge, the fund value will be transferred to the discontinued pension policy fund. The policy cannot be revived after discontinuation. If you surrender the policy after 5 years, then the total fund value on the date of surrender will be paid to you and the policy will be terminated. The surrender value should be used to purchase a single premium deferred pension plan or can take one third of the surrender value and purchase an immediate annuity at the prevailing annuity rates.

Policy term

Minimum - 7 years

Maximum – 30 years

Deferment period available: 7 – 30 years

Premium amount

Premium paying term

Less than 7 years, 7-10 years and 11 years and above.

Premium paying frequency

Single, monthly, quarterly, half-yearly and yearly.

Renewability

Cannot be renewed.

Riders

Not available.

Bonuses

No bonus offered.

Loan

Not available.

Free look period

The plan has a 15 days free look period from the date of receipt of the policy document. If it is issued under IRDA Guidelines on Distance Marketing, you get 30 days free look period. You need to provide a written reason of objection along with the policy document. You will receive refund on the date of allocation along with deductions of proportionate risk charges and expenses incurred on medical examination and the stamp duty charges, if any.

Grace period

The policyholder will get 15 days grace period for monthly frequency of premium payment or it is 30 days for other frequencies of premium payment.

Tax benefits

Tax benefits are as applicable are as per Section 80CCC for the premium payments made and as per Section 10(10A) for the commutation amount.

Nomination

You need to nominate a person to receive the death benefit in the event of your death.

Exclusion

If the sum assured commits suicide within one year from the commencement of the policy, then the nominee will get paid the fund value and the top up premiums paid along with the death benefit.

Charges

• Premium allocation charge:

Policy year	Regular or limited premium payment option	Single premium payment option
1	8.5%	4%
2-5	5.7%	-
6+	0	-

Top up premiums attract a charge of 2%.

• Fund management charge: If it is the Pension Builder Fund, then the charge is 1.25% p.a. and for the discontinued pension policy fund, the charge is 0.50%.

• Surrender charge:

Policy year	Annual premiums up to Rs.25,000	Annual premiums above Rs.25,000	Single Premium
1	20% of lower of fund value or annualised premium subject to maximum of Rs.3,000	6% of lower of fund value or annualised premium subject to maximum of Rs.6,000	1% of lower of fund value or annualised premium subject to maximum of Rs.6,000
2	15% of lower of fund value or annualised premium subject to maximum of Rs.2,000	4% of lower of fund value or annualised premium subject to maximum of Rs.5,000	0.5% of lower of fund value or annualised premium subject to maximum of Rs.5,000
3	10% of lower of fund value or annualised premium subject to maximum of Rs.1,500	3% of lower of fund value or annualised premium subject to maximum of Rs.4,000	0.25% of lower of fund value or annualised premium subject to maximum of Rs.4,000
4	5% of lower of fund value or annualised premium subject to maximum of Rs.1,000	2% of lower of fund value or annualised premium subject to maximum of Rs.2,000	0.1% of lower of fund value or annualised premium subject to maximum of Rs.2,000
5 and above	Nil	Nil	Nil

• Mortality charge:

For 30 years- Rs.1.34 per thousand p.a.

For 40 years- Rs.2.35 per thousand p.a.

For 50 years- Rs.6.52 per thousand p.a.

For 60 years- Rs.14.98 per thousand p.a.

Fund

Pension Builder Fund:

Medium risk and the investment of this fund is to provide capital appreciation by investing in a suitable mix of debt and equities.

Portfolio allocation:

Loyalty Additions