Investment Plans 141 views July 16, 2021

Bajaj Allianz Life Principal Gain Plan

Bajaj Allianz Life Principal Gain Plan is a popular Unit-Linked Insurance Plan (ULIP) that covers your principal amount as well as your life. This is a guaranteed ULIP plan that can help you get high returns from your market-linked investments. At the time of maturity of your policy, you will also get guaranteed additions that can help you fulfill important milestones of life. 

Let’s have a look at the key advantages of this plan mentioned below to get an overview of the plan.

  1. Triple Benefit of Principal Protection, High Returns and Life Cover
  2. Guaranteed Loyalty Additions at Maturity
  3. Flexible Policy & Premium Payment Term Options
  4. Option to Get Death And Maturity Benefits in Installments 
  5. Multiple Premium Payment Frequency Options
  6. Unlimited Free Switching Between Funds
  7. A Grace Period of 15 or 30 Days
  8. Tax Benefits under Income Tax Act, 1961
  9. A 15 or 30-day Free Look Period

Want to know more about these features of the Bajaj Allianz Life Principal Gain Plan? On this page, we will talk about the same in detail. Keep reading to know more. 

Features and Benefits of Bajaj Allianz Life Principal Gain Plan in Detail

Bajaj Allianz Life Principal Gain is a non-participating, life, unit-linked, individual, regular and limited premium payment endowment plan that helps you achieve your life goals. We have discussed its features and benefits below. Please check. 

What is the Policy and Premium Payment Term?

For this plan from Bajaj Allianz, the policy term ranges from 7 to 15 years. You can choose the policy term according to your needs. You can also choose the premium payment term from different options – 5 to 15 years. Suppose you choose a policy term of 10 years, you cannot choose a premium payment term of more than 10 years. 

Option to Change the Premium Payment Term

Bajaj Allianz also offers the option to change your existing premium payment term at any policy anniversary date if the desired term is available under the plan and you have paid all the due premiums up to that date. Also, you cannot choose this option once the existing premium payment term expires. 

What is the Sum Assured?

The sum assured for Principal Gain Plan remains ten times the annual premium and can go up to INR 10,00,000. 

Maturity Benefit

Bajaj Allianz Life Principal Gain Plan will provide maturity benefits to the policyholder after the completion of the policy term. On the maturity date, you will get higher of the following amounts

  1. Overall fund value (as on that date) including guaranteed loyalty additions
  2. Guaranteed Maturity Benefit of 101% of the total premiums paid.

Death Benefit

In case the policyholder dies during the policy period, Bajaj Allianz Life Principal Gain Plan will pay the highest of the following amount as a death benefit to the nominee. 

  1. Sum Assured, or
  2. Fund Value, or
  3. Guaranteed Death Benefit of 105% of the total premiums paid till the date of death

Guaranteed Loyalty Additions

Once you pay the premium towards your policy for at least five years, you will get guaranteed loyalty additions.  These will be added to your fund value as extra units on the maturity date as per the below table.

For a Policy Term up to 10 YearsFor a Policy Term of More Than 10 Years
4% of the annual premium15% of the annual premium

Settlement Option

Option to Take Maturity Benefit in Installments

You can get your maturity benefit in installments from any of the following payment frequencies over a maximum of 5 years.

  1. Yearly
  2. Half-yearly
  3. Quarterly
  4. Monthly

At maturity, the policy money will remain invested in the same fund/s and in the same proportion. However, you can switch funds during this time. The value of each installment will be the outstanding fund value on that date divided by the number of outstanding installments. 

In case the life assured dies during this period, the policy will pay the death benefit as a lump sum to the nominee and terminate afterward. 

Option to Take Death Benefit in Installments

The nominee can also choose to get death benefit in installments from any of the following payment frequencies over a maximum of 5 years. 

  1. Yearly
  2. Half-yearly
  3. Quarterly
  4. Monthly

Note: The nominee will get the first installment on the date of the intimation of death. Also, you cannot withdraw partially during the settlement period. 

Multiple Premium Payment Frequency Options

You can choose from two premium payment frequency options as per your affordability – Yearly and Monthly. 

You can also change your regular or limited premium payment frequency to the other frequency at the policy anniversary. The factors for premium payment frequency will be as per the below table.

Premium Payment FrequencyPremium Frequency Factor
Yearly1
Monthly1/2

Note: The monthly mode will be only available under Salary Deduction Scheme and Electronic Clearance Service (ECS).

What is the Minimum Premium Amount?

The minimum premium amount for this plan from Bajaj Allianz Life depends on the premium payment frequency. To know more, check the below table.

Premium Payment FrequencyMinimum Premium Amount (In INR)Maximum Premium Amount (In INR)
Yearly15,0001,00,000 annually
Monthly2,000

Bajaj Allianz Life Principal Gain Plan Eligibility Criteria

Please check the conditions related to the plan mentioned below.

  1. Minimum Age at Entry -7 years
  2. Maximum Age at Entry – 60 years
  3. Minimum Age at Maturity – 18 years
  4. Maximum Age at Maturity – 70 years

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