Bajaj Allianz Retire Rich
"A plan that enables you to retire with laughter lines... not worry lines."
You have been working hard. You're going to retire one day. How do you want to spend your retirement? Travelling? Golfing? Turning a hobby into a second career or volunteering for a noble cause or simply spending more time with your family.
In retirement, how you choose to spend your time is now up to you. The decisions you make about your money today should be flexible enough to accommodate your changing needs.
Taking charge of your retirement begins with Bajaj Allianz Retire Rich - A Unit-linked Pension Plan that your retirement dreams are well met.
Premium Paid, maturity benefit, death benefit and surrender value are eligible for Tax benefits as per extant Income Tax Act, subject to the provision stated therein. Please consult your Tax Consultant before investing
Key benefits of Bajaj Allianz Retire Rich
This retirement plan offers you the key benefits of:
- Guaranteed Vesting Benefit and Guaranteed Death Benefit
- Option to select regular, limited or single premium payment
- Option to change the premium payment term
- Flexibility to pay top-up premium
How Does Your Plan Work?
Bajaj Allianz Retire Rich is a simple to understand unit-linked deferred pension plan.
- At the inception, you have to choose between Regular, Limited or Single premium payment option
- Premium paid by you, after deduction of premium allocation charge, will be allocated in to the Pension Builder Fund. Units will be allocated to your policy account at the prevailing unit price of the fund
- The policy administration charge will be deducted monthly through cancellation of units. Fund management charge and guarantee charge are adjusted in the unit price
- In the process to comply with the reduction in yield, the Company may arrive at specific non-negative claw-back additions, if any, to be added to the unit Fund Value, as applicable, at various durations of time after the first five years of the contract.
- At the end of your policy term, i.e., on the vesting date, the vesting benefit of your policy will be your total Fund Value subject to a Guaranteed Vesting Benefit of 101% of the sum of all premiums and top-up premiums paid by you till the vesting date
Subhash aged 35 years has taken a Bajaj Allianz Retire Rich for a Policy Term (PT) of 24 years. Subhash has decided to pay Rs. 1,00,000 as annual premium for a premium paying term of 20 years. On vesting date, Subhash's vesting benefit may be Rs.26,95,412 at 4% and Rs. 48,81,293 at 8% investment return respectively.
In case of Subhash's unfortunate death in the 8th policy year, his nominee may receive Rs. 8,40,000 at 4% and Rs. 10,00,835 at 8% investment return respectively
Above illustrations is at a Fund Management Charge of 1.25%
Policy Benefits and Features
What's in it for You?
- On death of the life assured before the vesting date, the death benefit payable to the nominee will be higher of the total Fund Value as on date of receipt of intimation of death or the Guaranteed Death Benefit
- Guaranteed Death Benefit: 105% of the sum of all premiums and top-up premiums (if any) paid till date under the policy
- The nominee can utilize the death benefit in any of the following ways:
- Take the entire death benefit as cash lump-sum or
- Use the entire or part of the death benefit proceeds to purchase an annuity from us at the then prevailing annuity rates.
- The vesting benefit of your policy on the vesting date will be higher of the Guaranteed Vesting Benefit or the total Fund Value as on the vesting date
- Guaranteed Vesting Benefit: 101% of the sum of all premium and top-up premiums (if any) paid by you till the vesting date
- On the vesting date, you have the option to use your vesting benefit in one of the following three ways:
- You may take up to 1/3rd* of vesting benefit as a lump sum and purchase an immediate annuity from us with the balance amount at the then prevailing annuity rates under any immediate annuity plan available on sale then.
- You may purchase a single premium deferred pension plan from us, using the entire proceeds of your vesting benefit irrespective of minimum single premium.
- You may extend your prevailing deferment period under the policy to any available period as at the vesting date, provided your age as on the vesting date is less than 55 years. The prevailing guaranteed death benefit, guaranteed vesting benefit and option to pay top-up premiums will continue during the extended deferment period. Once the option is chosen, the guaranteed vesting benefit shall not be applicable at the original vesting date. No premiums need to be paid during the extended deferment period. During the extended deferment period, all applicable charges will get deducted.
Note: You will have to exercise one of the above three options before the vesting date
*maximum as allowed by IT Act
You will get additional Loyalty Additions added to your Fund Value on the original vesting date of your policy. Loyalty Additions are equal to a percentage of annualized/single premium as given below:
|Policy Term||For Regular/ Limited Premium payment option||For Single Premium Payment option|
|For premium less than Rs. 10,00,000||For premium of Rs. 10,00,000 and above|
|7 to 10||Nil||Nil||Nil|
|11 to 15||8.5%||25.5%||3.0%|
|16 to 20||9.0%||27.0%||3.5%|
|21 to 25||10.0%||30.0%||4.0%|
|26 to 30||11.0%||33.0%||4.5%|
- You may, at any time, surrender the policy
- If the policy is surrendered during the lock in period of five years:
- Death benefit under your plan will terminate immediately
- Your Fund Value less the discontinuance/ surrender charge, if any, plus the top up premium Fund Value, if any, as on the date of surrender, will be transferred to the discontinued pension policy fund.
- The discontinuance value as at the end of the lock-in period will be available to you as surrender value
- Once the policy is surrendered it cannot be revived
- On surrender of the policy after the lock in period of five years, the total Fund Value, on the date of surrender, will be available to you as the surrender value and the policy will terminate.
- You should compulsorily use the surrender value available in one of the following two ways:
- You may purchase a single premium deferred pension plan from us, using the entire proceeds of your surrender benefit OR
- You may take up to 1/3rd* of the surrender value as a lump sum and purchase an immediate annuity from us with the balance amount at the then prevailing annuity rates.
Alteration of Premium payment frequency (only in regular premium/ limited premium payment options)
- You can change your premium payment frequency under you policy at any time subject to minimum premium allowed under the plan and subject to the existing & requested premium frequencies being aligned.
- Miscellaneous charge will be applicable for this alteration
- The premium frequency factors for other than single premium option are as given below:
Modes Yearly Half-yearly Quarterly Monthly Premium Frequency Factor 1 1/2 1/4 1/12
Option to make lump sum investment
You can make lump sum investments at any time except in the last five policy years by paying unlimited top up premiums to enhance your fund value, provided all due regular premiums are paid. The minimum top up premium is Rs. 5,000.
Option to change the premium paying term (only in case of regular and limited premium payment option)
- You have the option to change your premium paying term at any time subject to the minimum and maximum premium paying term allowed under the plan, provided all due regular and limited premium till the date of such request are paid
- Such option should be exercised before the expiry of the existing premium paying term
- Miscellaneous charge will be applicable for the option.
Pension Builder Fund
Risk Profile - Medium (SFIN: ULIF06908/02/13PENSIONBUI116)
The investment objective of this fund is to provide capital appreciation by investing in a suitable mix of debt and equities. The fund strategy would be to invest in following mix of assets:
|Equity & equity related instruments||0% - 50%|
|Debt, fixed deposits & debt related instruments||25% - 100%|
|Mutual funds(a) and money market instruments||0% - 40%|
(a) Mutual fund exposure will be as mandated by the IRDA guidelines
The exposure to money market securities may be increased to 100% only in extreme situations external to the company, keeping in view market conditions, political, economic and other factors. All changes in the asset allocation will be with the intention of protecting the interests of the Policy holders.
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