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Bajaj Allianz - Pension Guarantee Plan

One such retirement plan is the Bajaj Allianz Pension Guarantee plan. This Pension Guarantee plan is a conventional immediate annuity plan. By the help of this Pension Guarantee plan, you can lead a comfortable and financially stable life, even after retirement. Bajaj Allianz Pension Guarantee plan is a non-linked immediate annuity plan which guarantees an income in your golden years. In Bajaj Allianz Pension Guarantee plan, the premium needs to be paid in a lump sum and the pension starts from the next cycle as per the option of pension which has been selected. In this pension guarantee plan, six pension options are available for the customers at the time of purchase of the policy.

Features of Bajaj Allianz - Pension Guarantee Plan

Let us check out the key features of the Bajaj Allianz Pension Guarantee plan.

  • Bajaj Allianz Pension Guarantee plan is a non-linked and non-participating immediate annuity plan.
  • This plan is an immediate annuity plan as the annuity begins immediately after the payment of premium from the next date chosen and the premium payment is made in a lump sum.
  • There can be two options chosen for annuity i.e. Single Life and Joint policyholder which includes the policyholder and spouse in it.
  • These pension plans do not have death benefit included in them (except return of purchase price option) as the death of the policyholder leads to the end of annuity payments.
  • The payment of annuity will be chosen by the policyholder and the payout functions on the basis of the option that has been chosen.
  • The Bajaj Allianz Pension Guarantee plan can be purchased at a minimum purchase price of Rs. 25,000. However, there is no limit on the maximum purchase price for the Pension Guarantee plan.
  • The Pension Guarantee plan has 15 days Free-Look out period and it is 30 days in case of distance marketing. This period will begin from the day the policy documents are received.

  • There are six annuity options which are available with the Bajaj Allianz Pension Guarantee plan.

    Option A - Life Annuity plan where the annuity has to be paid only until the insured person is alive.

    Option B – Life Annuity with return of purchase price.

    Option C - Annuity Certain Guarantee for period of 5, 10, 15 or 20 years and life thereafter.

    Option D - Joint Life last survivor with 50% of annuity to spouse.

    Option E - Joint Life last survivor with the return of purchase price on death of last survivor (100% of annuity to spouse).

    Option F - Joint life last survivor with 100% of annuity to spouse.

Benefits of Bajaj Allianz - Pension Guarantee

  • The payment for annuity payouts will be made according to the frequency chosen.
  • For the six annuity options which are available, there are different benefits which can be availed. These benefits can also be referred to as Survival Benefits.

    Option A

In case of Life Annuity, annuity payment to the annuitant will occur till the annuitant is alive. After the annuitant dies, if any annuity payment happens as on the date of the death, it will be paid to the nominee/legal heir of the annuitant.

Option B In case of life annuity with return of purchase price, the annuity payment to annuitant is done till he is alive. In case of the death of annuitant, the purchase price and any outstanding annuity installment as on the date of death is paid to the nominee/legal heir of the annuitant.

Option C

In case of annuity certain for a period of 5 years, 10 years, 15 years or 20 years and life thereafter; annuitant will receive the annuity till he is alive. If the annuitant dies before the end of the chosen period, the annuity for the remaining period will be paid to the nominee/legal heir of the annuitant. However, if the annuitant dies after the end of the chosen period, then any amount due as on date of death is paid to the nominee/legal heir of the annuitant.

Option D For joint life last-survivor with 50% of annuity to spouse, pension is paid to the annuitant till he is alive. After the annuitant dies, then 50% of annuity installment would be paid to the spouse. When the spouse dies, any due outstanding annuity installment as on the date of death of the spouse is paid to the nominee/legal heir.

Option E For joint life last-survivor with return of purchase price on death of last survivor, the annuity installments would be paid till any one of both annuitants are alive. On the first demise, there is no change implemented. But after the demise of the second annuitant, any annuity installment outstanding as on the date of death and the purchase price is paid to the nominee/legal heir.

Option F

For joint life last-survivor with 100% annuity to spouse, the annuity installments would be paid till any one of both annuitants is alive. When the annuitant dies and the spouse is alive, 100% of any annuity installment will continue to be paid to the spouse. If the annuitant is alive and the spouse dies, then no changes will be implemented in the payment of the annuity method. However, after the annuitant dies and the death of the spouse; any outstanding installment of the annuity as on the date of death of the spouse would be paid to the nominee/legal heir.

  • An annuitant can avail tax benefits on the purchase price as per Section 80CCC of the Income Tax Act 1961.

Eligibility criteria

Let us check out the eligibility criteria for purchasing the Bajaj Allianz Pension Guarantee plan.

ParticularMinimumMaximum
Age for entry
37 years
For option D, E & F: annuitant & spouse’s minimum age at entry is at least 37 years

80 years
For option D, E & F annuitant and spouse’s maximum age at entry is 80 years
Age for entryRs. 25,000No limit
Minimum Annuity per Installment
Yearly – Rs. 12,000
Half Yearly – Rs. 6,000
Quarterly – Rs. 3,000
Monthly – Rs. 1,000
No limit
Annuity Payout FrequencyMonthly, quarterly, half-yearly or yearly

Tax benefits and other benefits

The Bajaj Allianz Pension Guarantee plan can be used to claim Income tax deduction on the purchase price paid under Section 80CCC of the Income Tax Act, 1961.

Under Section 80CCC of the Income Tax Act, 1961 taxpayers can claim a tax deduction of up to Rs. 1, 50,000 on expenditure that is incurred in either purchasing a new life insurance policy, or continuing an existing plan or a periodical annuity. Precisely, it means that an individual can claim tax deductions under Section 80CCC only when the individual has made any payment towards receiving pension from any fund which can be referred to under Section 10(23AAB). The amount received as pension, any other interest or bonus earned on the annuity will also be taxed during the year of receipt.

Only individual taxpayers, either resident Indians or Non-resident Indians, can claim these tax benefits. The deduction limit for Section 80CCC is included along with the limit of Section 80C and Section 80CCD i.e. the total deduction limit permissible for all the Sections altogether is up to Rs. 1, 50,000.

What is the plan coverage?

The Bajaj Allianz Pension Guarantee plan is an excellent option for maintaining a guaranteed pension over the years and helps in leading an independent life after retirement. It helps in receiving the fixed income according to the frequency of the annuity payment chosen. Annuity payment can be monthly, quarterly, half-yearly or annually.

One of the major coverages provided by the Bajaj Allianz Pension Guarantee plan is the provision for coverage of spouse of the policyholder. Out of the six annuity options available for the plan Option D i.e. Joint Life Last Survivor with 50% of annuity to spouse, Option E i.e. Joint Life Last Survivor Option with Return of Purchase Price on death of Last Survivor and Option F i.e. Joint Life Last Survivor Option with 100% of annuity to spouse are those options which enable a policyholder to include his spouse into the policy. So, with Bajaj Allianz’s Pension Guarantee plan, you can financially secure the retirement life of your loved ones, even when you are not with them anymore.

By the Option D i.e. Joint Life Last Survivor with 50% annuity to spouse, annuity installments are received by the annuitant till he is alive. After the demise of the annuitant, any annuity installment which is due as on the date of the death and 50% of the annuity installment will be received by the spouse till he/she is alive. Similarly, in case of Joint Life Last Survivor with 100% annuity to spouse, the annuity installments will be received by the annuitant and in case the annuitant dies, any outstanding annuity installment as on date of death and 100% of annuity installment will be received by the spouse till he/she is alive.

Furthermore, the provision for an annuity with return of purchase price helps an annuitant to pass on his inheritance to his legal heir. In case of all options where any outstanding annuity installments with return of purchase price is made to the nominee or legal heir of the annuitant, a legacy is being passed on by the annuitant to his heirs.

So, with the Bajaj Allianz Pension Guarantee Plan, a policyholder or an annuitant can provide financial coverage to his spouse and his children i.e. his heirs and ensure a financially secured life for them.

Policy Details

Bajaj Allianz Pension Guarantee plan is a non-linked immediate annuity payment plan which provides a stress-free and financially independent life after retirement.

Here, the premium is paid in a lump sum and the annuity payment begins immediately in the successive cycle depending on the option of pension selected. Since the Bajaj Allianz Pension Guarantee plan is a pension plan, there is no such specific concept of death benefit associated with plan except Option B & E i.e. Life annuity with Return of Purchase Price and Joint Life Last Survivor with Return of Purchase Price on death of last survivor in which on death of the annuitant and spouse both, outstanding annuity and purchase price is returned to the nominee of the annuitant. Your frequency for annuity payments can be chosen by you depending on your retirement goals.

In this policy, the policyholder will select the amount which would be utilized in purchasing the pension guarantee plan. In the next step, after the specification of purchase price, the annuity option needs to be specified by the policyholder. Then the frequency on which the payment of annuity will be made needs to be chosen. It can be monthly, quarterly, half-yearly or annually depending on the policyholder’s requirements. With this, the Pension Guarantee plan is ready to work as per your requirements and specifications.

With a free-look period of 15 days available for the policyholder, you can always go ahead and cancel the plan if you are not quite convinced or satisfied with the benefits being provided.

Documents Required

To purchase a Bajaj Allianz Pension Guarantee plan, there are mainly two methods i.e. Online Method or Offline Method.

When you are purchasing the plan online, you can log in to the web portal of the insurance provider and enter your required details. With the entry of details like basic personal details, purchase price, Annuity option, frequency of annuity payment, etc., the annuity will be calculated and the user can make the payment of the purchase price online and submit the KYC documents.

However, in case of offline method for purchase of the Pension Guarantee plan, the user will need to fill an application form or a proposal form. Along with the application form, you will need to provide documents which act as your address proof such as Passport, Voter’s Identity Card, Driving License, Credit card statement, etc. and the other KYC document which act as your identity proof. For identity proof, you can submit your Passport, PAN card, Voter’s identity card, Driver’s License, Ration card, Bank Pass Book, etc. You will also need to submit your photograph during the purchase of the policy.

Reviews of Bajaj Allianz - Pension Guarantee Plan

The Bajaj Allianz Pension Guarantee plan is a non-unit linked plan providing with immediate annuity. With retirement being an important phase in the life of an individual, every individual aims to have a stress-free and relaxed life during retirement. This is feasible when you have a guaranteed source of income after your retirement. A systematic retirement planning or in fact strategic retirement planning right from an early age will help you in understanding your expenses after retirement and how you need to manage some of your investments to achieve your retirement goals.

With the Bajaj Allianz Pension Guarantee plan, you are definitely planning strategically for your post-retirement life. Bajaj Allianz Pension Guarantee plan offers those attractive features which can make you feel secured financially for your retirement. Coverage of spouse and return of the purchase price are the two major distinguishing features of this policy. In addition to this, the choice for annuity payout frequency is a beneficial option for the policyholders. With the option to cover your spouse and return of purchase price to your nominee offered by the Bajaj Allianz Pension Guarantee plan, you can very well secure your retired life as well the well-being of your dear ones, even after you are no longer alive.