Investment Plans 211 views December 18, 2021

Bajaj Allianz Retire Rich is a unit-linked pension plan that helps you build a corpus to live your retirement days without any worry. In case you die and leave your family, the life cover ensures financial protection for the latter. The plan comes packed with the following key features.

  • Death Benefit
  • Vesting Benefit
  • Surrender Benefit

Before buying this ULIP Plan of Bajaj Allianz Life Insurance, learn more about these benefits on the page below.

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Bajaj Allianz Retire Rich Plan Benefits

You and your nominee will be eligible to receive the following benefits under the Bajaj Allianz Retire Rich Plan –

Death Benefit for the Nominee

The company shall pay a death benefit to your nominee in case of your demise during the policy term. Upon death after the date of commencement of risk but before the vesting date, the company pays the following –
Single/Regular Premium Fund Value + Top-Up Premium Fund Value (if any)
Note – At no time, the death benefit should be < 105% of the sum of the paid Regular or Single Premium(s) and Top-Up Premiums (if any)

In case of death before the vesting date, the nominee can use any one of the following options:

  • Utilize the entire proceeds to purchase immediate annuity guaranteed for life
  • Withdraw the entire proceeds of the policy
  • Vesting Benefit Payable at the End of the Policy Term

Upon survival till the vesting date, you’ll receive –

  • Single/ Regular Premium Fund Value + Top-Up Premium Fund Value (if
    any)
  • The Vesting Benefit shall not be < 101% of the paid total Single or
  • Regular Premium(s) and Top-Up Premiums (if any).

On the vesting date, you can use any one of the following options:

  • Purchase an immediate annuity plan from the company at the prevailing annuity rate, with or without commuting up to the maximum as allowed under the Income Tax Act. When you choose this option, the vesting benefit will convert into an annuity irrespective of the minimum purchase price of the immediate annuity plan.
  • Buy a single premium deferred pension plan from the company irrespective of the minimum single premium.

You need to intimate the insurance company about the chosen option before the vesting date. If not intimated, the company will de-unitize the vesting benefit on the vesting date and keep the frozen amount in current liabilities. Thereafter, the company will not deduct any charges.

Surrender Benefit for Liquidity

After a lock-in period of the first five policy years, you can surrender this policy. Upon surrender, discontinuance action shall take place and the Regular/Single Premium Fund after the deduction of discontinuance charge plus Top-Up Premium Fund Value (if any) shall be transferred to the Discontinued Pension Policy Fund. After that, the risk covered under the policy shall terminate immediately. You can’t revive the policy after its surrender.

You can utilize the surrender benefit by choosing one of the following –

  • Purchase a single premium deferred pension plan from the company
  • Utilize the amount to purchase an immediate annuity

Bajaj Allianz Retire Rich Investment Options

You can invest your money in only one fund – Pension Builder Fund. This is a medium-risk fund whose objective is to provide capital appreciation by investing in a suitable mix of debt and equities. Here, the allocation is done in the following manner –

  • Equity & Equity Related Instruments : 0% – 50% Debt
  • Fixed deposits & Debt Related Instruments : 25% – 100%
  • Mutual Funds and Money market instruments : 0% – 40%

Note – Mutual fund exposure will be as mandated by the Insurance Regulatory and Development Authority of India (IRDAI) guidelines.

Free Look Period

A free look period of 15 days, which starts from the receipt of this policy, is given to review the terms and conditions. And if you’re dissatisfied with the policy, give the company a written notice of its cancellation along with the reason. After that, receive your refund including the first paid Regular Premium less the proportionate risk premium for the period on cover and the expenses incurred on medical examination and stamp duty charges.

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