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In this policy, the investment risk in investment portfolio is borne by the policy holder.

Bajaj Allianz Retire Rich A Unit-linked Pension Plan

  • Guaranteed vesting benefit
  • Pay regular or limited or single premium
  • Invest in pension builder fund
  • Top-up option
A retirement policy to help you retire rich
Download Brochure 12 pages - 356 KB
Download Policy Document 14 pages - 1527 KB
  • Overview
  • Key Advantage
  • How this works
  • Eligibility
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  • Sample Illustration
  • Policy Benefits
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Retirement Policy - Bajaj Allianz Retire Rich

A common life goal for most working individuals is to retire early and spend every hour doing what the heart really wants. Even if it isn’t about retiring early, each of us has a list of things to do once retirement comes up. Some wish to travel, others dream of buying and maintaining a farm far away from the hectic city life, others intend to teach and inspire children or take care of the elderly, while others want to start an all new business. The list of life goals is always long and different. However, the common string tying the whole idea of retirement – early or when it does happen - is the financial support and the wherewithal required during the retired years.  

Today, we are living longer and living expenses are getting higher. Hence, to ensure that you have the adequate financial support during your retired years to pursue your newer set of life goals, it is essential that you start investing towards them, now. You must utilise the phase before retirement to invest in financial instruments that will help you build a corpus or a retirement kitty that you can use to meet the financial expenses during that time. 

Bajaj Allianz Retire Rich, a unit-linked deferred pension plan, helps you invest and secure your post-retirement life goals. This retirement benefit plan helps you leverage the advantages of investing in a market linked fund, to create a corpus, which is utilised to generate regular income during your retired years. 

Guaranteed vesting benefit

The policy promises guaranteed vesting benefit (GVB) of 101% of the total premiums paid. At the end of policy term (or vesting date) vesting benefit will be higher of GVB or the fund value. On the vesting date, you have the option to take 1/3rd of the vesting benefit as a lump sum amount and buy an immediate annuity plan with the remaining amount. Alternatively, you can choose 100% of your vesting benefit to buy an immediate annuity plan or extend your prevailing deferment period provided your age as on the vesting date is less than 55 years.

Multiple premium paying terms

You can opt for regular, limited or single premium payment term under this retirement policy.

Pension Builder Fund

The investment objective of this fund is to provide capital appreciation by investing in a suitable mix of debt and equities.

Option to change the premium payment term

You can change the premium paying term anytime before the expiry of the existing payment term. The new premium paying term will be subject to the minimum and maximum term allowed under the policy.

Option of paying top-up premium

You can make an additional lump sum investment any time except in the last five policy years to enhance your fund value in the same policy.

Option to take death benefit in instalments (Settlement option)

Bajaj Allianz Retire Rich is a simple to understand unit-linked deferred pension plan.

At the inception, you have to choose between Regular, Limited or Single premium payment option

 

Premium paid by you, after deduction of premium allocation charge, will be allocated in to the Pension Builder Fund. Units will be allocated to your policy account at the prevailing unit price of the fund

 

The policy administration charge will be deducted monthly through cancellation of units. Fund management charge and guarantee charge are adjusted in the unit price

 

At the end of your policy term, i.e., on the vesting date, the vesting benefit of your policy will be your Fund Value, subject to a Guaranteed Vesting Benefit of 101% of the sum of all premiums and top-up premiums paid by you till the vesting date.

 

Entry Age

Minimum age is 30 years

Maximum age is 73 years

Vesting Age

Minimum age of Vesting 37 years

Maximum age of Vesting 80 years

Policy Term

Minimum Policy Term 7 years

Maximum Policy Term 30 years

Deferment periods available: 7 years to 30 years (both inclusive) only

Premium Paying Term

Minimum Premium Payment Term (Regular/ Limited Premium Payment option)

5 years

Maximum Premium Payment Term (Regular/ Limited Premium Payment option)

Up to the Policy Term chosen

Minimum Regular Premium

For Regular and Limited Premium Payment options:

Premium Paying Term

Per yearly installment

Per half-yearly installment

Per quarterly installment

Per monthly* installment

Less than 7 years

`50,000

`37,500

`25,000

`9,500

7 to 10 years

`25,000

`19,000

`12,500

`4,500

11 years & above

`15,000

`11,500

`8,000

`3,000

For Single Premium Payment option:

Policy Term

Single Premium

7 to 10 years

`1,00,000

11 years & above

`50,000

*Monthly premium payment frequency will be available under salary deduction scheme & ECS.

Maximum Regular Premium

No Limit

Top Up Premium

Minimum

`5,000

Maximum

No Limit

Subhash aged 35 years

He has taken Bajaj Allianz Retire Rich for a Policy Term (PT) of 24 years. Subhash has decided to pay
` 1,00,000 as annual premium for a premium paying term of 20 years.

  • Maturity Benefit
  • Death benefit

On vesting date, Subhash’s would receive vesting benefit as mention in the below table.

Policy Term: 24 Years

  • Retire Rich

Assumed Investment Return#

Maturity Benefit

@4%

` 26,95,412

@8%

` 48,81,293

#Above illustrations is at a Fund Management Charge of 1.25% and Goods & Service Tax 18%.
Please note that the 8% & 4% investment returns are not guaranteed and is for illustration purpose only.

In case of Subhash's unfortunate death in, say, the 8 policy year, his nominee would receive death benefit as mention in the below table.

Policy Term: 24 Years

  • Retire Rich

Assumed Investment Return#

Death Benefit

@4%

` 8,40,000

@8%

` 10,00,835

#Above illustrations is at a Fund Management Charge of 1.25% and Goods & Service Tax 18%.
Please note that the 8% & 4% investment returns are not guaranteed and is for illustration purpose only.

Death Benefit

  •  
    • On death of the life assured before the vesting date, the death benefit payable to the nominee will be higher of the total Fund Value as on date of receipt of intimation of death or the Guaranteed Death Benefit
    • Guaranteed Death Benefit: 105% of the Total Premiums paid including top-up premiums (if any) paid till date of death
    • The nominee can utilize the death benefit in any of the following ways:
      • Take the entire death benefit as cash lump-sum or
      • Use the entire or part of the death benefit proceeds to purchase an :
        • a. Immediate annuity from us at the then prevailing annuity rates
        • b. Immediate annuity from any other Insurer to the extent of 50% of the death benefit net of any commutation. With the remaining amount immediate annuity has to be purchased from us
        • c. Deferred annuity from us
        • d. Deferred annuity from any other Insurer to the extent of 50% of the death benefit net of any commutation. With the remaining amount deferred annuity has to be purchased from us
      • Total Premiums paid shall be sum of all single/regular/limited and any top up premiums paid till date

Vesting Benefit

  • The vesting benefit of your policy on the vesting date will be higher of the Guaranteed Vesting Benefit or the total Fund Value as on the vesting date.
  • Guaranteed Vesting Benefit: 101% of the sum of all premium and top-up premiums (if any) paid by you till the vesting date.
  • On the vesting date, you have the option to use your vesting benefit in one of the following ways:
    • You may take up to a maximum 60% of vesting benefit as a lump sum and with the balance amount purchase
    • a. Immediate annuity from us at the then prevailing annuity rates, under any immediate annuity plan available on sale then.
    • b. Immediate annuity from any other Insurer to the extent of 50% of the vesting benefit net of any commutation. With the remaining amount immediate annuity has to be purchased from us
    • c. Deferred annuity from us
    • d. Deferred annuity from any other Insurer to the extent of 50% of the vesting benefit net of any commutation. With the remaining amount deferred annuity has to be purchased from us
    • You may extend your prevailing deferment period under the policy to any available period as at the vesting date, provided your age as on the vesting date is less than 60 years. The guaranteed death benefit, guaranteed vesting benefit and option to pay top-up premiums will continue during the extended deferment period. Once the option is chosen, the guaranteed vesting benefit, as at the original vesting date, shall not be applicable at the original vesting date. No premiums need to be paid during the extended deferment period. During the extended deferment period, all applicable charges will get deducted.

Note-You will have to exercise one of the above options before the vesting date.

Loyalty Additions

You will get additional Loyalty Additions added to your Fund Value on the original vesting date of your policy. Loyalty Additions are equal to a percentage of annualized/single premium as given below:

Policy Term

For Regular/ Limited Premium payment option

For Single Premium Payment option

For premium less than ` 10,00,000

For premium less than ` 10,00,000 and above

7 to 10

Nil

Nil

Nil

11 to 15

8.5%

25.5%

3.0%

16 to 20

9.0%

27.0%

3.5%

21 to 25

10.0%

30.0%

4.0%

26 to 30

11.0%

33.0%

4.5%

Surrender Benefit

  • You may, at any time, surrender the policy
  • If the policy is surrendered during the lock in period of five years:
    • Death benefit under your plan will terminate immediately
    • Your Fund Value less the discontinuance/ surrender charge, if any, plus the top up premium Fund Value, if any, as on the date of surrender, will be transferred to the discontinued pension policy fund.
    • The discontinuance value as at the end of the lock-in period will be available to you as surrender benefit
    • Once the policy is surrendered it cannot be revived
  • On surrender of the policy after the lock in period of five years, the total Fund Value, on the date of surrender, will be available to you as the surrender benefit and the policy will terminate.
  • You should compulsorily use the surrender value available in one of the following ways:
    • You may purchase a single premium deferred pension plan from us, using the entire proceeds of your surrender benefit OR
    • You may take up to 60% of the surrender benefit as a lump sum and utilize the balance to purchase an immediate annuity:
      a. From our Company, at the then prevailing annuity rates
      b. From any other insurer to the extent of a percentage stipulated by the Authority (currently 50%), of the entire proceeds of the policy net of any withdrawal and the remaining proceeds has to be utilized to purchase an immediate annuity from us
    • If the proceeds are not sufficient to purchase a minimum annuity as prescribed by the Authority (and as amended from time to time), the proceeds of the policy will be paid out to the policyholder, as lump-sum

Documents you’ll need before investing

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Avail Systematic Investment Plans for a more stable financial future

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What is the Guaranteed Vesting Benefit under this plan?

At the end of your policy term, i.e., on the vesting date, you will be entitled to a guaranteed vesting benefit under this plan. The Guaranteed Vesting Benefit is 101% of the sum of all premiums paid and top up premiums (if any) paid by you.

Can the death benefit be taken in instalments or in lump sum?

In case of the unfortunate death of the life assured, the nominee can either opt to take the entire death benefit as lump-sum or can decide to use the entire or a certain part of the death benefit in purchasing an annuity plan from Bajaj Allianz Life Insurance at the then prevailing annuity rates. 

Why is Mortality Charge applicable in Retire Rich?

Bajaj Allianz Life Retire Rich offers you a Guaranteed Death Benefit (GDB) of 105% of the total premiums paid including the amount of any top up premium paid till the date of death. The Mortality charge is deducted for providing this benefit of GDB and is calculated on the sum at risk. The sum at risk is the difference between the Fund Value and GDB amount as on the due date of mortality charge. 

For Instance, on the premium amount of ` 15,000, considering only one premium is paid, the fund value is ` 13,500, and for this same policy, GDB is ` 15,750 (105% of ` 15,000). Hence the sum at risk is ` 2,250 (` 15,750 - ` 13,500), and mortality charge will be calculated on this sum at risk amount. However, no mortality charge is deducted if the Fund Value becomes equal to or higher than GDB anytime during the policy.

Why is there a disparity in the modal premium?

Let’s understand this with the help of an example. Mr X, a 29-year-old male has invested in Unit Linked endowment plan and pays the premium of ` 30,000 through annual mode. In this scenario, his fund value will be ` 4, 08,546 at the end of Policy Term of 10 years at assumed rate of 8% per annum. Now, if he opts for the monthly premium payment mode and pays ` 2,500 per month, his annual premium of ` 30,000 still remains the same.

In this case, the fund value after the policy term of 10 years @ assumed rate of 8% will be ` 3, 96,348. This difference of ` 12,198 in annual and monthly mode is observed because in the monthly mode the same premium amount is received by the company over an extended period which in turn leads to lower fund accumulation. Hence, in the monthly mode the premium grows at a slower rate and this, in turn, results in the Company receiving lower charges as compared to annual premium payment mode. Therefore, in all modes except annual, we are required to increase the minimum modal premium.

Life Insurance Glossary

Discontinuance Charges

These charges are deducted from the policyholder's account/fund if the life insurance policy is surrendered by the policyholder. This is also called as the Surrender Charge

Fund Value

It is the total value of units that a policyholder holds in funds. Fund Value = Number of Units x Net Asset Value

Fund Management Charges

These are charges deducted towards meeting expenses related to fund management. These are charged as a percentage of the Fund Value and deducted before calculating the Net Asset Value (NAV) of the fund.

In - force

In-force Policies are valid/active policies for which the full premiums as on date are paid.

Lapse

The termination of an insurance policy due to non-payment of premium.

Mortality Charges

Depending upon the age and the amount of cover, the charges levied towards providing life insurance cover to the insured are called as Mortality Charges

Policy Administration Charges

These are the charges deducted on a monthly basis to recover the expenses of maintaining the policy including record keeping, paper work, services, etc.

Premium Allocation Charges

These charges are deducted upfront from the premium paid by the policyholder as a percentage of premium. These charges account for the initial expenses incurred by the company in issuing the policy, e.g., cost of underwriting, medicals and expenses related to distributor fees. After these charges are deducted, the money gets invested in the chosen fund.

Regular Premium

The amount payable by the policyholder at regular intervals during the Premium Paying Term, and at the Premium Payment Frequency

Regular Premium Fund Value

The total number of Units pertaining to the Regular/ Limited Premium existing in each Fund under this Policy, multiplied by their respective Unit Price on the relevant date

Reinstatement

To restore the policy after the life insurance policy has lapsed.

Revival Period

As long as the policyholder pays premium on time, the policy remains in force. The policy lapses when premiums are not paid even after the completion of the grace period. Thereafter, the Life Insurance Company provides an option to the policyholder wherein he/she can make the policy in force only during a specific period after the grace period. The process is called Revival of the Life Insurance Policy or Policy Revival and the period is called Revival Period.

Rider Sum Assured

"Rider Sum Assured" means the sum assured as mentioned in the Schedule. For more details, please refer respective rider sales literature.

Rider Life Assured

"Rider Life Assured" means the person named as the Rider Life Assured in the Schedule whose life is assured under this Rider. For more details, please refer respective rider sales literature.

Rider Premium Charge

"Rider Premium Charge" means the charge deducted to provide the Rider benefit. For more details, please refer respective rider sales literature.

Rider Term

"Rider Term" means the period between the Date of Commencement of Rider and the Rider Maturity Date, as mentioned in the schedule. For more details, please refer respective rider sales literature.

Surrender Value

A value payable if you want to surrender the plan before a claim arises.

Top Up Premium

The amount of additional premium paid over and above the Regular/ Limited Premium payable under this Policy

Top Up Premium Fund Value

The number of Units pertaining to Top Up Premium under a policy, multiplied by the respective Unit Price on the relevant valuation date

Unit Price

Market value of investment held by the fund plus value of current assets less value of current liabilities and provisions, if any, divided by number of units existing on Valuation Date. This calculation will be done before creation / redemption of units.

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  • Claim deposits via electronic transfer to make process faster
  • Solvency ratio of 804% **
  • Our Priority is not to sell Life Insurance, it is to serve you in the fastest & most convenient manner when you need us.

**All figures as on 31st March, 2019.

"What are your life goals?" is one of the most common questions that comes to one's mind while taking any step further in Life. Most just answer it by laughing it off or saying we will think about it.

A key reason that they feel this way is that they haven't spent enough time thinking about what they want from their life, and haven't set themselves any goals.

Goals keep changing as per different life stages and one has to plan meticulously for their future.

Deciding your Life Goal is all about planning to "Live your life, your way". There could be various Life Goals such as trotting the globe, becoming a food blogger to starting your own business, owning your dream house, or planning your Childs education or marriage.

L"IF"E is full of IF's... and one needs to plan to secure their loved ones and themselves against the Ifs of Life. When you opt for a life insurance plan, you transfer your family's financial risks in case of any unfortunate event to the life insurer. This allows you and your loved ones to live life fearlessly. Life Insurance protects your family's financial wellbeing from the consequences of living without an income.

When you purchase a life insurance policy, one of your major life goal gets fulfilled i.e. you purchase a sense of security. A safety net that cushions your family members from the financial impact of your sudden absence and ensures that any outstanding debts that were incurred during your lifetime don't fall upon your loved ones.

Having life goals is an important aspect in each one's life. One needs to be SMART and plan out well in advance to ensure nothing goes wrong in the future. Life insurance offers a range of products that could come in handy for meeting your financial goals.

To ensure that it is not too late, get your #LifeGoals insured with us today! It will help you smile in the face of tomorrow's uncertainties and let you live a worry free life!