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Bajaj Allianz Retire Rich Plan

Bajaj Allianz Retire Rich is a unit-linked pension plan that enables the policyholder to live worry-free post-retirement. The plan offers the policyholder the advantage of Guaranteed Vesting Benefit of 101% of the total premiums paid. The plan also provides a Guaranteed Death Benefit of 105% of the total premiums that have been paid. The policyholder can choose from regular, limited, or single premium payment options and also can change the premium payment term. The policy also offers the flexibility to enhance the coverage of the base plan by paying an additional premium.

Features of Bajaj Allianz Retire Rich Pension Plan

Following are some of the key features of Bajaj Allianz Retire Rich Pension Plan.

  • It is a non-participating unit-linked insurance cum pension plan.
  • The plan offers guaranteed death benefit and guaranteed vesting benefit. The minimum death benefit and vesting benefit is guaranteed under the plan.
  • The policyholder can enhance the basic coverage by paying an optional top-up premium.
  • Upon maturity, loyalty additions are added to the policy fund value, which helps the policyholder to enhance the vesting corpus.
  • The plan provides with three different premium payment options – Single pay, limited pay, and regular pay.
  • The plan offers flexible premium payment term with the facility to modify the premium payment frequency.
  • Policyholders can avail tax benefits under this plan.

Benefits of Bajaj Allianz Retire Rich Pension Plan

Following are the benefits paid under the Retire Rich Pension Plan.

Death benefit: On unfortunate death of the policyholder before the vesting date, the death benefit payable to the beneficiary is higher of the total Fund Value as on date of receipt of intimation of demise or the Guaranteed Death Benefit. The Death Benefit is 105% of the total premiums and top-up premiums paid till the date of demise of the life insured. The nominee has an option to receive the death benefit in the following ways:

  • Receive the entire death benefit in a lump sum or
  • Use part or as the whole of the death benefit to buy an annuity at the prevailing rate.

Vesting benefit: The total fund value as on the vesting date or the guaranteed vesting benefit, whichever is higher, is paid as vesting benefit. Guaranteed vesting benefit is 101% of all premiums and top-up premiums paid till the date of vesting. On the vesting date, policyholders have an option to receive vesting benefit through three different ways:

  • Receive 1/3rd of the vesting benefit in a lump sum and buy an immediate annuity from the balance amount at prevailing rates.
  • The policyholder can buy a single premium deferred pension plan by using the entire vesting benefit, irrespective of the minimum single premium.
  • The policyholder can extend the deferment period under the policy to any period as on the vesting date, provided the policyholder is less than 55 years of age. The guaranteed death benefit, guaranteed vesting benefit, and option to pay top-up premiums will continue during the deferment period. Policyholders are not required to pay during the extended deferment period.

Loyalty additions: The policy adds loyalty additions to the fund value on the original vesting date of the policy. Loyalty additions are calculated and expressed as a percentage of single/annualised premium. In the case of regular or limited premium, it may vary from 8.5% to 33% of the annual premium. In the case of a single premium, loyalty addition may vary from 3% to 4.5% of single premium.

Policy termFor regular/limited pay optionFor regular/limited pay optionFor a single payment option
For premium less than Rs. 10 lakhsFor premium above Rs. 10 lakhs
7 to 10 yearsNilNilNil
11 to 15 years8.5%25.5%3%
16 to 20 years9%27%3.5%
21 to 25 years10%30%4%
26 to 30 years11%33%4.5%

Eligibility Criteria

Customers are required to meet the following eligibility criteria in order to avail Retire Rich Pension Plan from Bajaj Allianz.

ParameterEligibility Details
Minimum entry age30 years
Maximum entry age73 years
Minimum age at vesting37 years
Maximum age at vesting80 years
Minimum policy term7 years
Maximum policy term
30 years
Deferment period available from 7 to 30 years
Minimum premium payment term5 years (regular & limited pay option)
Maximum premium payment termUp to the chosen policy term

Premium Details of Bajaj Allianz Retire Rich Plan

The minimum regular premium for regular and limited premium payment option:

Premium paying termYearly premiumHalf-yearly premiumQuarterly premiumMonthly premium
Less than 7 yearsRs. 50,000Rs. 37,500Rs. 25,000Rs. 9,500
Less than 7 yearsRs. 25,000Rs. 19,000Rs. 12,500Rs. 4,500
11 years and aboveRs. 15,000Rs. 11,500Rs. 8,000Rs. 3,000

For single premium payment option:

7 to 10 years – Rs. 1,00,000

11 years and above – Rs. 50,000

Other features And benefits of Bajaj Allianz Retire Rich Pension Plan

Following are some of the value-added features and benefits offered under the plan.

Surrender benefit: Policyholders may, at any time, surrender the policy. If the policy is surrendered during the 5 year’s lock-in period,

  • The death benefit offered under the plan will terminate immediately.
  • The fund value minus the policy surrender charges plus the top-up premium fund value as on the surrender date will be moved to the discontinued pension fund.
  • The discontinuance fund value at the end of the lock-in period is paid as surrender value.
  • A surrendered policy cannot be restored or revived again. If the policy is surrendered after the 5 years of the lock-in period, the total fund value on the date of policy surrender will be given to the policyholder as surrender value. The policy will terminate after the payout. The surrender value can be availed in the following ways:
  • The policyholder can buy a single deferred pension plan from the company using the entire surrender benefit amount.
  • The policyholder can utilise 1/3rd of the surrender value in a lump sum and buy an immediate annuity plan from the remaining amount.

Top-up premium: Policyholders can enhance the plan coverage by paying top-up premiums. This facility is allowed during the policy term, except in the last five policy years. The minimum top-up amount is Rs. 5000.

Free-look period: In case the policyholder is not satisfied with the terms of the policy, he/she has an option to return the same to the insurance company, stating the reason for such cancellation. However, cancellation should be made within 15 days (30 days if the policy is sold through distance marketing channels) from the date of receipt of the policy document. The customer needs to return the original policy document to the insurer, and the company will refund the premium, if paid. It is important to note that once the policy is returned, it cannot be revived, restored, or reinstated again. Moreover, the insurance company will deduct the proportionate risk premium for the period of cover, medical expenses, and stamp duty charges.

Grace period: Policyholders are given additional time to pay the premium after the premium due date when the insurance policy is in force. The Retire Rich policy offers a grace period of 30 days for policies with yearly, half-yearly, and quarterly premium payment mode and 15 days in case of monthly premium payment mode. The policy remains in force during the grace period, and the insurance company is liable to honour the policy claim, if it arises. The policy will lapse from the due date of the first unpaid premium. Nomination: Nomination is allowed in order to receive the death benefit in the event of the death of the policyholder. This nomination shall be under Section 39 of the Insurance Act, 1938.

Tax benefits: Premiums paid towards the plan are eligible for tax benefits under Section 80CCC of the Income Tax Act, 1961. The benefits received under the policy are eligible to avail tax deduction under Section 10(10D) of the Income Tax Act, 1961.

Change in premium payment frequency: The policyholder can alter the premium payment frequency under the policy at any time. Such modification may attract minimal charges. This option is valid only for limited and regular premium payment plans.

Alteration of premium payment term: Policyholders can also change the premium payment term of the plan, provided all premiums have been paid. It is important to note that such a change should be made before the expiry of the existing premium payment term. The choice to make lump sum investment: The policyholder at any time during the policy term, can make a lump sum investment. This can be done by paying top-up premiums that also enhances the fund value of the policy.

Why should you buy the Bajaj Allianz Retire Rich Plan from Bajaj Allianz?

Bajaj Allianz is known for the comprehensive range of insurance plans it offers. The variety of insurance plans offered by the company includes term plans, group insurance plans, child plans, and health insurance, to name a few. The company offers quick and efficient claim settlement process. The insurance company has a decent claim settlement ratio and has also been awarded by many reputable awards.

How does Bajaj Allianz Retire Rich Pension Plan work?

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

  • At the time of inception of the plan, policyholders are given the option to choose between regular, limited, and single premium payment option.
  • The premiums paid will be allocated to the pension builder fund. Policyholders will be allocated units into their policy account at a prevailing unit price of the fund.
  • The policyholder can invest additional funds into the plan through top-up premium.
  • In case the life insured dies during the policy term, the death benefit is paid to the nominee. The death benefit is the total fund value or the guaranteed death benefit, whichever is higher. The guaranteed death benefit is 105% of the total premiums paid till death.
  • In case the life insured survives until the end of the policy term, the maturity benefit is paid. This benefit is the fund value or the guaranteed vested benefit, whichever is higher. The guaranteed vested benefit is 101% of the total premiums paid during the policy term. The policyholder can receive vesting benefit in any one of the options provided under the plan.

Documents Required

In order to purchase the Bajaj Allianz - Retire Rich Pension Plan, the customer needs to provide some documents.

Age proof: Birth certificate, driving license, passport, school or college certificate, and PAN card can be submitted as a valid age proof.

Identity proof: Passport, Aadhaar card, PAN card, Voter ID, or driving license can be submitted as a valid identity proof.

Address proof: Utility bill, Aadhaar card, or bank account statement, bank passbook can be submitted as an address proof.

Along with the photocopies of the documents listed above, the customer has to fill up an application form and provide self-attested photocopies of the mentioned KYC documents.

Exclusion of Bajaj Allianz Retire Rich Pension Plan

In case of death of the life insured due to suicide within one year from the risk commencement date, the policy shall be considered void. The insurer is only liable to the extent of the fund value and top-up premium fund value, if any, as on date of death.

Reviews of Bajaj Allianz Retire Rich Pension Plan

Retire Rich Plan from Bajaj Allianz is a unit-linked pension plan which aims to provide a retirement corpus that grows as per the market performance. The plan helps you to meet your retirement goals and maximize wealth so that you can retire with laughter lines. This unit-linked pension plan enables you to accommodate your financial needs post-retirement when you don't have a regular source of income.

The Retire Rich Pension Plan provides Pension Fund Builder that helps you to invest in a suitable mix of debt and equities. The policy also offers insurance coverage during the policy term. The policy offers a number of flexibilities where premiums can be paid regularly for limited term, or single premium payment option. The policyholders can change the premium payment term under the plan. The policy offers vested benefit at the end of the term, and the death benefit is given to the nominee in case the life insured dies anytime during the policy term. Moreover, loyalty additions are payable upon vesting of the plan.

The policyholders are given a grace period of 30 days to pay the due premiums. Moreover, policyholders are given a grace period within which they can review the plan and return it, if not satisfied with the terms and conditions of the policy. In case the life insured dies due to suicide within one year from the risk commencement date, all benefits under the policy cease to exist, and the nominee will become eligible to receive the fund value as on date as specified in the policy document. The policyholder can enhance the basic coverage by opting for top-up premium. Moreover, they can save on income tax on the premiums paid and death benefits received against the plan under Section 80CCC and 10(10D) of the Income Tax Act, 1961.

FAQs on Bajaj Allianz Retire Rich

When do I receive loyalty additions to my plan?

You get the loyalty additions to the fund value on the original vesting date of the policy. The loyalty additions are a percentage of the annual premium or the single premium amount and are subject to vary as per the policy term.

What are the terms to make a lump sum investment into the fund?

You can make a lump sum investment in your fund any time during the policy term except the last five years of the plan. You can also make an additional investment by paying a top-up premium to increase the fund value.

What are the risks and facts associated with Retire Rich plan?

Following are some of the risks and factors associated with the policy, and it is advisable to read the policy document carefully before purchasing the plan.

  • The units allocated under the plan are subject to the market risks, which may go high and low based on the overall market performance. The computation of unit performance is calculated as per their net asset value. The NAV is calculated as the market value of the investment, which also includes the value of the current assets and is exclusive of the value of the current liabilities, if any.

  • Retire Rich Plan is a simple pension builder plan and does not claim to provide any guaranteed returns. All benefits offered under the plan are subject to the benefits mentioned under the policy terms, financial performance, and tax regulations.

  • The past performance of the fund does not guarantee the future performance of the fund. However, it can be taken as a reference.

For how long can the policyholder defer the vesting age on maturity?

Deferment is allowed only if the policyholder is below 55 years of age on the date of vesting. The deferment period allowed is equal to the policy term of 7 years to 30 years.

When can the plan be surrendered?

The policy can be surrendered only after completion of 5 policy years.

How can the surrender benefit be used?

The policyholder can use the surrender benefit to buy a single premium deferred annuity plan from the insurance company, or 1/3rd of the value can be withdrawn, and the remaining amount should be used to avail immediate annuity payouts.

What are the allowed alterations under the plan?

The policy allows modifications of the premium paying frequency and the premium paying term.

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