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Bajaj Allianz Pension Plans

Bajaj Allianz a prominent insurance company in India has always worked towards satisfying customer needs. This insurance company is dedicated to offering insurance products that would satisfy all the financial needs and goals of its customers. The company offers a wide range of comprehensive insurance solutions that help in catering and meeting all the financial goals of every individual. The policies offered by Bajaj Allianz provide financial security and protection to you and to your family in your absence. Hassle-free policy servicing, easy renewal procedure and quick claim settlement make Bajaj Allianz one of the prominent names in the private sector insurance companies.

What Are Pension Plans?

Pension Plans or retirement plans are ways in which systematic planning of savings and investments can be done. The pension plans are designed to offer financial support and create a corpus that can be utilized to combat lifestyle expenses, medical costs or rising inflation. Pension plans help us to invest in a systematic and disciplined manner to create a pool of fund that will help in maintaining the current lifestyle of the policyholder even during his retirement years. The pension plans help in retiring rich and maintaining a good and independent life.

Following are the two most opted Pension Plans offered by Bajaj Allianz namely Bajaj Allianz Retire Rich Plan and Bajaj Allianz Pension Guarantee Plan. Let us understand these plans in detail.

Features of Bajaj Allianz Pension Plans

Bajaj Allianz Pension Plans offer a variety of pension plans to its customers but Bajaj Allianz Retire Rich Plan and Bajaj Allianz Pension Guarantee plan are their most promising plans. Both these plans are designed to create a retirement corpus that shall be helpful to maintain a comfortable lifestyle post retirement. The features of both the plans are as under:

Bajaj Allianz Retire Rich Plan

This pension plan of Bajaj Allianz is a unit-linked pension plan that helps in meeting all the retirement dreams with comfort and ease. The plan is a market linked pension plan so the performance of the fund is subject to market conditions.

Following are the key features offered by the Bajaj Allianz retire rich plan:

  • Guaranteed vesting benefit
  • Guaranteed death benefit
  • Flexibility to choose the premium payment mode as per the convenience of the investor
  • Flexibility to change the premium payment term
  • Option to pay an additional or top-up premium
  • Tax exemption is available on premiums paid during the policy tenure, the amount commuted at the time of maturity of the policy and the death benefit received under this plan.

Bajaj Allianz Pension Guarantee Plan

The Pension Guarantee plan of Bajaj Allianz is a non-unit-linked, non-participating immediate Annuity plan that ensures that the investors receive a regular flow of income during the post-retirement phase. The annuity payment is as per the annuity payment mode opted by the investors. Following are the features offered by the Bajaj Allianz pension guarantee plan:

  • The plan offers a range of annuity options to the policyholder.
  • The plan offers flexibility to choose the immediate annuity option as per the financial goals and needs of the investor.
  • The first annuity payment is paid in 1 month/ 3 months/ 6 months or in 1 year after the date of commencement of the policy.
  • The payment of annuity shall be done yearly/ half-yearly/ quarterly/ monthly as per the annuity payment mode opted by the policyholder. Thus above are the features offered by the two most promising pension plans offered by Bajaj Allianz namely the Bajaj Allianz Retire Rich Plans and Bajaj Allianz Pension Guarantee Plan.

Benefits of Bajaj Allianz Pension Plans

Above we have seen the features offered by two of the widely opted pension plans of Bajaj Allianz. Let us now understand the benefits offered by both these plans.

Benefits of Bajaj Allianz Retire Rich Plan

  • Death Benefit: In case of death of the life assured before the date of maturity the death benefit payable shall be higher of:

    • Total fund value on the date of death of the life assured, or
    • Guaranteed death benefit
    • The guaranteed death benefit payable under the plan is 105% of all the premiums and top-up premiums (if any) paid till the date of death of the life assured.
    • the nominee can take the death benefit either:
    • in cash in lump sum or
    • can utilize the entire or a certain portion of the death benefit to purchase an annuity plan from Bajaj Allianz
  • Vesting Benefit: the vesting benefit receivable on the date of maturity shall be higher of:

    • Guaranteed Vesting Benefit, or
    • The total fund value on the vesting date
    • The guaranteed vesting benefit payable offered by the plan is 101% of the all the premiums and additional top-up premiums paid by the policyholder till the date of maturity of the policy

The vesting benefit can be utilized by the policyholder in the following ways:

  • Commute 1/3rd of the vesting benefit in lump sum and purchase an immediate annuity plan of the remaining 2/3rd of the vesting benefit
  • Use the entire portion of the vesting benefit for purchasing a single premium deferred pension plan
  • Extend the deferment period provided the age of the policyholder on the date of maturity is not more than 55 years of age.
    • Loyalty Benefit: The plan offers to give loyalty benefit to the policyholders on the date of maturity of the plan. The loyalty benefit is paid as a percentage of the annualized premium or single premium paid under the policy. following is an illustration of loyalty benefit paid under the plan:
Tenure of the PolicyRates for premium amount less than Rs 10 LakhsRates for premium amount more than Rs 10 LakhsRates applicable for single premium policies
7 years to 10 YearsNILNILNIL
11 years to 15 years8.50%25.50%3.00%
16 years to 20 Years9.00%27.00%3.50%
21 Years to 25 Years10.00%30.00%4.00%
26 Years to 30 Years11.00%33.00%4.50%
  • Surrender Benefit: policyholder can exercise the surrender of policy option during the tenure of the policy. If the surrender of policy is done within the lock-in period, then the surrender benefit shall be payable to the policyholder at the end of the lock-in period. While if the surrender of the policy is done after completion of lock-in period the surrender benefit can be utilized by the policyholder in following ways:
    • By purchasing a single premium deferred pension plan from Bajaj Allianz, or
    • Commuting 1/3rd of the surrender benefit in cash lump sum and utilizing the balance 2/3rd amount for buying an immediate annuity plan from Bajaj Allianz.

Bajaj Allianz Retire Rich Plan

For buying the Bajaj Allianz Retire Rich Pension Plan the investor has to fulfill certain eligibility criteria put forth by the insurance company. The eligibility criteria of the plan are as under:

ParticularsMinimum CriteriaMaximum Criteria
Age at Entry30 Years73 Years
Age at Maturity37 Years80 Years
Policy Term7 Years30 Years
Premium AmountFor regular premium Policies Rs 15,000 For Single premium Policies Rs 50,000 No Upper Limit
Premium Payment Term5 Years or Equivalent to the Policy Term opted
Premium Payment ModeAnnually/ Half-Yearly/ Quarterly/ Monthly/ Single Premium

Bajaj Allianz Pension Guarantee

The Bajaj Allianz Pension Guarantee plan is a pension plan that offers to pay the first annuity payment in 1 month/ 3 months/ 6 months or 12 months post the commencement of the policy. The payment of first annuity installment shall be dependent on the type of annuity payment mode selected by the investor. Following are the benefits of the Bajaj Allianz Pension Guarantee Plan:

  • The plan offers the investors 6 annuity payment options to choose from
  • The 6 annuity payment options available under the plan are:
    • Life Annuity
    • Life Annuity with Return of Purchase Price
    • Annuity certain for period 5 years, 10 years, 15 years, 20 years and life thereafter.
    • Joint Life Last Survivor with 50% of Annuity to spouse
    • Joint Life Last Survivor with Return of Purchase Price on death of Last Survivor
    • Joint Life Last Survivor with 100% of annuity to spouse
  • Tax exemption under the Income Tax Act can be availed by the policyholder on premiums paid during the policy tenure and the 1/3rd amount commuted at the time of maturity of the policy under this plan.
  • Free look period of 15 days for cancellation of policy is offered by the insurance company in case if the policyholder is not satisfied with the terms and conditions of the policy.
ParticularsMinimum CriteriaMaximum Criteria
Entry AgeFor minimum entry age for various annuity options is as under: 0 Years for annuity options: Life Annuity, Life Annuity with return of purchase price, annuity certain for period 5 years, 10 years, 15 years, 20 years and life thereafter. 37 years for annuity options: Joint Life Last Survivor with 50% of Annuity to spouse, Joint Life Last Survivor with Return of Purchase Price on death of Last Survivor, Joint Life Last Survivor with 100% of annuity to spouse 80 Years
Purchase PriceRs 25000No upper limit
Annuity per InstallmentMonthly - Rs 1000 Quarterly – Rs 3000 Half-Yearly – Rs 6000 Yearly – Rs 12000 No Limit
Annuity Payout modeYearly / Half-Yearly/ Quarterly/ Monthly

FAQs on Bajaj Allianz Pension Plans

What is the death benefit under a pension plan?

The death benefit under a pension plan is payment of death benefit to the nominee or payment of annuity as per the terms opted by the annuitant at the time of purchase of policy.

Can I make an early withdrawal from my pension plan?

Yes, surrendering of policy benefit is available under the Bajaj Allianz Retire Rich plan. Policyholder can make an early withdrawal from their pension plan.

What is meant by way of Annuity in a pension plan?

The annuity payout method is as per the annuity payout option chosen by the policyholder at the time of purchasing the policy.

Are there tax advantages accompanying Pension Plans in India?

Policyholders of pension plans can avail tax exemption under Section 80C, Section 10(10A) (iii) and Section 10 (10D) of the Income Tax Act, 1961.

What are the modes of annuity payment available?

The modes of annuity payment available under the Bajaj Allianz Pension Guarantee plan are as under: Life Annuity Life Annuity with Return of Purchase Price annuity certain for period 5 years, 10 years, 15 years, 20 years and life thereafter. Joint Life Last Survivor with 50% of Annuity to spouse Joint Life Last Survivor with Return of Purchase Price on death of Last Survivor Joint Life Last Survivor with 100% of annuity to spouse

How can I check policy status for Bajaj Allianz Pension Plans?

To check the policy status of any Bajaj Allianz Pension Plan, the policyholder can login to their Bajaj Allianz account by punching in valid credentials. Alternatively, the policyholder can also visit the nearest Bajaj Allianz branch office and check the policy status.

What is policy renewal process for Bajaj Allianz Pension Plans?

Renewal of Bajaj Allianz Pension Plan can be done by visiting the nearest office of Bajaj Allianz or through online channel.

What is the company’s process to settle claim for Bajaj Allianz Pension Plans?

For Maturity Claim settlement the policyholder can visit the nearest Bajaj Allianz branch office and submit the required documents. While in case of Death Claim settlement the nominee has to first register death intimation with Bajaj Allianz Company by either walk-in to the nearest office or by login into the death claim on Bajaj Allianz Website.

What is the policy cancellation process for Bajaj Allianz Pension Plans?

If the policyholder is dissatisfied with the terms and conditions of the Bajaj Allianz Pension Plan then cancellation of policy is possible. The cancellation process needs to be done within 15 days from the date of issuance of pension policy. The cancellation process can be initiated by returning the original policy document to Bajaj Allianz Company stating the true reason for cancellation of policy.

What are the entry age criteria’s for buying Bajaj Allianz Pension Plans?

For Bajaj Allianz Retire Rich Plan the minimum entry age is 30 years and maximum entry age is 73 years while for Bajaj Allianz Pension Guarantee plan the minimum entry age is 0 Years for annuity options: Life Annuity, Life Annuity with return of purchase price, annuity certain for period 5 years, 10 years, 15 years, 20 years and life thereafter. 37 years for annuity options: Joint Life Last Survivor with 50% of Annuity to spouse, Joint Life Last Survivor with Return of Purchase Price on death of Last Survivor, Joint Life Last Survivor with 100% of annuity to spouse while the maximum entry age is 80 years.

What is the minimum and maximum maturity age under Bajaj Allianz Pension Plans?

The minimum maturity age for Bajaj Alliance Retire Rich plan is 37 Years while Maximum Maturity age is 80 Years.

What are the premium paying term options available under Bajaj Allianz Pension Plans?

The Bajaj Allianz Pension Plan offers Yearly, Half-Yearly, Quarterly, Monthly or Single Pay premium paying term for its pension plans

What are the options available for the term of Bajaj Allianz Pension Plans?

The pension plans offered by Bajaj Allianz has a policy term ranging between 7 years to 30 years depending upon the age of the life assured.

Are there any riders available under Bajaj Allianz Pension Plans?

Rider facility is not available under Bajaj Allianz Pension Plans.

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