Investment Plans 849 views November 27, 2021

Bajaj Allianz Life Principal Gain is a guaranteed maturity unit-linked policy that helps you accumulate corpus while also providing life cover in case of any untoward incident. The key features of this Bajaj Allianz Life Insurance Plan are as follows –

  • Maturity Benefit
  • Death Benefit
  • Guaranteed Loyalty Additions
  • Two Fund Options
  • Settlement Option

Read this page to know how these benefits of Bajaj Allianz Life Principal Gain help achieve your financial goals.


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Bajaj Allianz Life Principal Gain Benefits

If you purchase this unit-linked policy from Bajaj Allianz Life Insurance, you and your nominee will get the following benefits –

Maturity Benefit

On the maturity date, the company shall pay the higher of

  • Fund Value + Guaranteed Loyalty Additions
  • Guaranteed Maturity Benefit of 101% of the total paid premiums

Death Benefit

In case of your death, the insurer shall pay the highest of –

  • Sum Assured
  • Fund Value
  • Guaranteed Death Benefit of 105% of the total premiums
    to the nominee

Guaranteed Loyalty Additions

The insurance company shall provide you Guaranteed Loyalty Additions to your fund value as extra units if you have paid the premium for five years. For a policy term of up to 10 years, the addition would be 4% of the annual premium. Whereas, if the term is more than 10 years, the addition would amount to 15% of the annual premium.

Bajaj Allianz Life Principal Gain Investment Options

Your money can be invested in any of the following funds as per the Guarantee Builder Portfolio Strategy. In this, your money is invested in the following two funds as per years to maturity (specified earlier):

Balanced Equity Fund – The fund provides capital appreciation by investing in a mix of debt and equities. Here, 10% to 70% of your money is invested in equity, 0% to 80% in debt and debt-related securities including fixed deposits and 0% to 50% in mutual funds and money-market instruments.

Builder Bond Fund – It aims to provide accumulation of income through investments in fixed-income securities. So, 40% to 100% of your funds are invested in debt and debt-related securities including fixed deposits and 0% to 60% in money-market instruments, cash, mutual funds.

Note – The maximum investment in mutual funds is governed by the Insurance Regulatory and Development Authority of India (IRDAI) guidelines.

Settlement Option Under the Bajaj Allianz Life Principal Gain Plan

The insurance company allows you and the nominee to receive the maturity and death benefit in installments. With this settlement option, you can receive your maturity benefit yearly, half-yearly, quarterly or monthly, as chosen by you, for up to 5 years. And during this period, your money will continue being invested in the same fund. However, you can switch funds.
The first installment of the maturity payout is paid on the maturity date. Each installment amount is the outstanding fund value. The payment is made during this period by redeeming units from the funds at the unit price as on the installment date. You’ll need to bear the investment risk during the settlement period.

If you die during this period, your nominee will receive the higher of –

  • 105% of the paid premium
  • Outstanding fund value

Note – No partial withdrawals are allowed during the settlement period, but you can withdraw the fund value completely. The insurer shall deduct the fund management charge and mortality charge during this period. 

The nominee can also use the settlement option to receive the death benefit in installments for up to five years. And if the nominee does so, the death benefit will be unitized in the same funds and the same proportion as on the date of intimation of death. The nominee can switch funds if he/she wants.

The first installment of the death benefit will be payable on the intimation of death. During the settlement period, no risk cover will be available to the nominee. No partial withdrawals are allowed, but the nominee can withdraw the fund value completely.

You can do unlimited free switches, and the minimum switching amount is INR 5,000 or the value of units in the fund to be switched from, whichever is less.

Eligibility Criteria for Bajaj Allianz Life Principal Gain

You can purchase this policy if you meet the following age criteria –

  • Minimum Age at Entry – 7 years
  • Maximum Age at Entry – 60 years
  • Minimum Age Allowed at Maturity – 18 years
  • Maximum Age Allowed at Maturity – 70 years

The risk cover will commence upon the issuance of the policy, and if the life assured is minor, the policy will vest on the life assured attaining the age of 18 years.

Free Look Period

You’ll get the free look period of 15 days or 30 days in case the policy is issued under the provisions of IRDAI guidelines on distance marketing. This period starts from the date of receipt of the policy. During this period, you can review the terms and conditions of the policy and return the same if dissatisfied. For this, you need to send a written notice to the company stating the reasons for objections. Upon such cancellation during the free look period, you can get a refund of the premium allocation charge plus charges levied by cancellation of units plus fund value, as on the date of cancellation after the deduction of the proportionate risk premium for the period on cover, medical examination expenses and stamp duty charges.

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