Investment Plans 461 views December 9, 2020

Do you have the right investment plan to secure your as well as your family’s future? If not, we will recommend you Bajaj Allianz Life Guaranteed Income Goal Plan, which is a non-linked, non-participating, life, individual, savings, regular and limited premium payment endowment plan. With this insurance plan, you can  get either a lump sum or income benefit as per your choice. Under this life plan, Bajaj Allianz Life Insurance Company Limited provides you an option to extend your Life Cover beyond the policy term. There are multiple terms and premium payment options for you. Read this page and know further details of this plan.

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Bajaj Allianz Life Guaranteed Income Goal Plan Maturity Benefit

A Guaranteed Maturity Benefit is payable to you at the end of the policy term as per your chosen option (lump sum or monthly).

For lump-sum Option

Under this, the payable lump sum will be enhanced at a certain percentage of your Sum Assured. It is known as the Guaranteed Enhancer (GE) which is applicable as follows:

Policy Term (PT)Premium Payment Term (PPT)Guaranteed Enhancer (GE)
105310%
107410%
125375%
127450%
1010510%
1212600%

Conditions for Getting Lump Sum Maturity Benefits

  1. If the Life Assured does not choose Extended Life Cover (ELC), the policy will terminate on the Maturity Date.
  2. If the Life Assured Chooses ELC, the policy will terminate at the end of the ELC Period
  3. GE will be applied to the Sum Assured if the policy is in force and your paid-up sum Assured if your policy continues as a paid-up plan.
  4. The Guaranteed Enhancer is not available for a lapsed or surrendered policy

For Income Option

For this option, the maturity benefit is payable in yearly, half-yearly, quarterly, or monthly installments. It is known as Guaranteed Maturity Installments (GMI) and will be payable to you at the end of the GMI year which will be equal to your Premium Payment Term (PPT). Every subsequent installment after the first installment is increased by 5%. Check out the pointers below and know when your GMI will start as per the opted payment mode from the maturity date.

  1. If you choose the yearly installment, the GMI will start from the policy anniversary
  2. If you choose the other installment options, the GMI will start after lapsation of respective installment periods such as half-yearly, quarterly or monthly.

Once the GMI starts, it will continue to be paid to the Life Assured or the nominee (in case the Life Assured dies during the GMI period). And, the GMI percentage is applied to the paid-up sum assured for a paid-up plan.

Conditions to Meet to Get Income Maturity Benefits

  1. If the Life Assured doesn’t choose ELC, the risk cover will terminate at maturity and the policy will terminate once the last GMI is paid.
  2. If the Life Assured chooses ELC, the GMI is payable to you or your nominee and the policy will terminate at the end of the ELC period (when the last GMI got paid).
  3. The Life Assured can change the GMI frequency any time during the policy term or the GMI period.
  4. GMI does not apply to a lapsed or surrendered policy

Note – The sum of all Guaranteed Maturity Installments and the Guaranteed Maturity Benefit is subject to a minimum of 100% of the Total Paid Premium.

Bajaj Allianz Life Guaranteed Income Goal Plan Death Benefit

When you die in an unfortunate event, the company will pay a Sum Assured on Death to your Nominee/Beneficiary as per your chosen option.

Lump-Sum Option

A Sum Assured on Death will be payable and the policy will terminate on the payment of such benefits.

Income Option

A Death Benefit becomes payable during the policy term as on the date of death. And this Death Benefit payout will be as follows –

  1. For a policy with ELC, the Sum Assured on Death will be paid and the risk cover will terminate after that. Your policy will terminate on the payment of the last GMI.
  2. For a policy without ELC, the remaining GMI will be payable, and on the payment of the last GMI, the policy will terminate.

What is the Sum Assured on Death?

It is an amount payable to the claimant when the Life Assured dies. And the Sum Assured on Death will be the highest of the following:

  1. 10X Annualized Premium
  2. 105% of Total Paid Premiums
  3. Policy Sum Assured.

Extended Life Cover (ELC)

At the policy inception, the Life Assured has an option to choose the Extended Life Cover (ELC). Under this, the risk cover will be extended and you will have the protection amount equal to the Sum Assured on Death. The ELC period starts from the Maturity Date and continues for a period equal to the PPT. And once the ELC is chosen, it cannot be removed.

Surrender

If Bajaj Allianz Life Guaranteed Income Goal Plan acquires a surrender value, you can surrender it anytime during the Policy Term both in lump sum and income benefit. This benefit is available to the Life Assured if at least 2 years of premiums have been paid in full. Your surrender benefit for this investment plan will be higher than the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV).

The SSV is equal to SSV1 plus SSV2. And the SSV1 is equal to the paid-up sum assured on death multiplied by the SSV1 factor. The amount of SSV2 is equal to the Sum of All Outstanding Paid-up GMIs multiplied by the SSV2 factor (Income Benefit).  SSV2 amount for a lump-sum benefit is calculated by multiplying the paid-up sum assured with Guaranteed Enhancer and SSV2 factor.

For Lump Sum Benefit

Under this, the amount of SSV2 will be payable as a surrender benefit

For Income Benefit

If the surrender is made during the GMI period for a paid-up policy, the sum of all outstanding paid-up GMIs will be payable as a surrender benefit. For surrender during the GMI period where all premiums have been paid, the present value of all outstanding GMIs will be payable as a surrender benefit.

Note- SSV1, SSV2 and present value factors are not guaranteed, and the company has the right to change these factors from time to time, subject to prior approval from the IRDAI.

Exclusion

If the Life Assured dies due to suicide within 12 months from the date of risk commencement or revival, whichever is later, the nominee receives an amount higher of the 80% of the total paid premiums or the surrender benefit, provided the policy is in force and all due have been paid till the date of death.

Riders

To enjoy extra coverage under Bajaj Allianz Life Guaranteed Income Goal Plan, you can choose from the optional additional riders at an extra cost.

  1. Bajaj Allianz Accidental Death Benefit: Under this rider, the nominee will receive an additional sum assured over and above the base policy sum assured if the policyholder loses his/her life in an accident.
  2. Bajaj Allianz Accidental Permanent Total/Partial Disability Benefit: From this rider, a sum will be available to the Life Assured if he/she suffers from total or partial disability due to an accident.
  3. Bajaj Allianz Critical Illness Benefit: Under this rider, the Life Assured will get a lump sum amount if he/she is diagnosed with any of the covered critical illnesses.
  4. Bajaj Allianz Family Income Benefit: Under this rider, on a contingent event, the family of the Life Assured will receive 1% of the rider sum assured every month for a minimum of 10 years or the remaining rider term.
  5. Bajaj Allianz Waiver of Premium Benefit: Under this rider, a waiver of premium is provided if the policyholder is unable to pay the premium due to a contingency like death, critical illness or permanent total disability due to an accident.

Note – If you have purchased this policy through a POS channel, the above-mentioned riders won’t apply.

Free Look Period

You can return the policy within 15 days of the policy document receipt stating the reasons for rejection, and 30 days if the policy is obtained through distance mode. If no claim has been made in the policy, you will be entitled to a refund of the paid premium(s) minus the proportionate risk premium and rider premium (if any), medical expenses, and stamp duty charges.

Tax Benefits

The premium payment, Survival Benefit, Maturity Benefit, Surrender Benefit, and Death Benefit of this investment plan help you get tax benefits. These benefits are as per the prevailing Income Tax laws.

Things to Look for Before Purchasing a Policy

  1. Entry age: 6-60 years
  2. Maturity age: 18-72 years
  3. Life cover termination age: 84 years
  4. Policy term: 10 or 12 years for the lump sum benefit and 5, 7, 10 or 12 years for the income benefit
  5. Premium payment term: 5, 7, 10 or 5, 7, 12 for the lump sum benefit and 5, 7, (5, 7, 10), (5, 7, 12) for the income benefit
  6. Premium payment mode: yearly, half-yearly, quarterly, and monthly
  7. Minimum Sum Assured: INR 1 lakh

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