Investment Plans 372 views November 16, 2021

Bajaj Allianz Shield Insurance Plan is a unit-linked insurance policy that helps you build wealth for long-term goals like child education, retirement, etc. And the plan will also secure your loved ones in case of your death during the policy term. The key features of this Bajaj Allianz Life Insurance Plan include –

  • Single-Premium
  • Guaranteed Addition
  • Death & Maturity Benefit
  • Seven Fund Options

Continue reading this page to know more about these and other features of the Bajaj Allianz Shield Insurance Plan.

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Bajaj Allianz Shield Insurance Plan Benefits

Bajaj Allianz shall provide you and the nominee the following benefits under this plan –

Death Payout for Nominees

In case of your death before the maturity date, the insurance company shall pay a death benefit to the nominee. If you die before the age of 60 years, the higher of the following shall be payable to the nominee –

  • Sum Assured – Total Partial Withdrawals made 24 months before the date of death
  • Single-Premium Fund Value

Plus, the higher of –

  • Top-Up Sum Assured – Top-Up Premium Fund Value withdrawn 24 months before the date of death, if any
  • Top-Up Premium Fund Value, if any

In case of death after the age of 60 years, the death benefit will be as follows –

  • Sum Assured – Total Partial Withdrawals made 24 months before the date of death and withdrawal made after the age of 60 years
  • Single-Premium Fund Value

Plus, the higher of –

  • Top-Up Sum Assured – Top-Up Premium Fund Value withdrawn 24 months before the date of death and withdrawal made after the age of 60 years, if any
  • Top-Up Premium Fund Value, if any

Maturity Benefit for the Life Assured

Upon survival till the end of the term, you’ll get the Single-Premium Fund Value and the Top-Up Premium Fund Value, if any, as well as the guaranteed addition on the maturity date.

Guaranteed Additions

If the policy isn’t terminated, on the maturity date, a guaranteed addition equal to the percentage of the single premium shall be payable to you.

  • For INR – 25,000 to 3 Lakh – 6.00%
  • For INR – 3.00,001 & above – 3.00%

Note – No guaranteed addition is payable in respect of any top-up premium.

Partial Withdrawal from Bajaj Allianz Shield Insurance Plan

You can withdraw the units of your respective funds after the completion of the first five policy years. For this, you need to send a written notice to the company specifying the amount to be withdrawn and the fund(s) to be withdrawn from. The minimum amount of partial withdrawal is INR 5,000, and the remaining balance should be INR 5,000 or 1/5th of the single premium after the withdrawal.

You can do partial withdrawals if you’re 18 years old or above. The company can change the minimum value for the units to be withdrawn and the minimum balance of single premium fund value to maintain by sending a written notice of three months in advance subject to prior approval from the Insurance Regulatory and Development Authority of India (IRDAI).

In withdrawals, each payment of top-up premium comes with a lock-in period of five years, and this applies from the date of payment of each premium. All partial withdrawals will be first made from top-up premium fund value, if any. And after the exhaustion of top-up premium fund value, further partial withdrawals shall be made from the single premium fund value.

You can choose the fund from which you want to do partial withdrawals. All withdrawals are subject to the prevailing unit price. The miscellaneous charge of INR 100 will be charged on each partial withdrawal.

Bajaj Allianz Shield Insurance Plan Investment Options

At the inception of this policy, you’ll have the following fund options –

Equity Growth Fund II – The fund aims to provide capital appreciation by investing in select stocks that have the potential for capital appreciation. The company invests at least 60% in equity and not more than 40% in bank deposits and money market instruments. However, the exposure to money market securities may be increased to 100% based on the investment manager’s perception of market conditions, market opportunities, and political, economic and other factors.

Asset Allocation Fund – The fund realizes a level of total income along with the current income and capital appreciation with reasonable investment risk. Here, the allocation is made among equities, bonds and cash. The strategy is to mix between different asset classes to gain profit from financial markets and economic conditions. So, investments in equity, debt and cash will be adjusted depending on the relative attractiveness of each asset class.

Bond Fund – The objective of this fund is to accumulate income through investments in high-quality fixed-income securities such as – G-Secs, and corporate debt rated AA and above.

Liquid Fund – The fund protects the invested capital by investing in liquid money market and short-term instruments like commercial papers, certificates of deposits, money market mutual funds, and bank FDs, etc.

Bluechip Equity Fund – The investments are made in equities forming part of the National Stock Exchange NIFTY to provide capital appreciation.

Accelerator Mid-Cap Fund II – The fund achieves capital appreciation through investments across diversified mid-cap and large-cap stocks.

Pure Stock Fund – Here, the investments are made in equity at least 60% and up to 40% in government treasury bills (Non-interest bearing). This fund excludes companies dealing in gambling, contests, liquor, entertainment, hotels, banks and financial institutions.

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