A PROJECT ON A STUDY ON PRODUCTS OF BAJAJ ALLIANZ LIFE INSURANCE
PREPARED FOR AND PRESENTED TO BAJAJ ALLIANZ LIFE INSURANCE COMPANY
LIMITED UNDER THE GUIDANCE COMPANY GUIDE NAME NAME Mr. ABHISHEK
RANJAN DUBEY B.D.M. UNIVERSITY GUIDE Mr. GAURAV BISARIA LECTURER
REPORT
SUBMITTED IN PARTIAL FULFILMENT FOR THE AWARD OF DEGREE OF
MASTERS OF BUSINESS ADMINSTRATION BY SAMARTHA SHUKLA M.B.A FINANCE
0800122094 INTEGRAL UNIVERSITY DASAULI, KURSI ROAD, LUCKNOW- 226026
(U.P.) INDIA PHONE: +91 522 2890812, 3096117, 6451039 2008-2009
BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED 7TH FLOOR, SHALIMAR
TOWERS, VIBHUTI KHAND GOMTINAGAR LUCKNOW-226010
CERTIFICATE BY THE COMPANYTHIS IS TO CERTIFY THAT SAMARTHA
SHUKLA , STUDENT OF M.B.A. FINANCE , INTEGRAL UNIVERSITY DID HIS
SUMMER TRAINING IN BAJAJ ALLIANZ LIFE INSURANCY COMPANY LIMITED
FROM 15 T H JUNE TO 13 T H AUGUST 2009.
Mr. ABHISHEK RANJAN DUBEY B. D.M.
Mr. RAJESH KHANNA
2
CERTIFICATE BY THE UNIVERSITY
This is to certify that Samartha Shukla, student of M.B.A.
Finance has done his summer training in Bajaj Allianz Life
Insurance Company Ltd. and prepared a project report on the topic
Comparative Analysis of Bajaj Allianz Life Insurance Company with
other Companies.
M.S. KHAN Head of the Department (Samartha Shukla)
3
ACKNOWLEDGEMENTFirst of all I would like to thank the management
at Bajaj Life Insurance Company for giving me the opportunity to do
my summer training in their esteemed organization. I am highly
obliged to Mr. Abhishek Ranjan Dubey (Business Development Manager)
and Mr. Rajesh Khanna for granting me an opportunity to undertake
training in Gomtinagar Branch. I express my thanks to all sales
managers under whose able guidance and direction, I was able to
give shape to my training. Their constant review and excellent
suggestions throughout the project are highly commendable. My
sincere thanks to all executives who helped me gain knowledge about
the actual working and processes involved in various departments. I
am grateful to my teacher Mr. Gaurav Bisaria who has helped in
making this project. His valuable guidance has helped in preparing
this project.
(Samartha Shukla)
4
CONTENTS S.NO.1). 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14)
15) 16) 17) 18) 19) 20)
TOPICSTITLE PAGE CERTIFICATE BY THE COMPANY CERTIFICATE BY THE
UNIVERSITY ACKNOWLEDGEMENT EXECUTIVE SUMMARY RESEARCH OBJECTIVES
MEANING OF INSURANCE MEANING OF LIFE INSURANCE HISTORY OF LIFE
INSURANCE BENEFITS OF LIFE INSURANCE LIFE INSURANCE IS INSURANCE AS
WELL AS INVESTMENT KINDS OF INSURANCE POLICIES NATIONALISATION OF
LIFE INSURANCE IN INDIA INTRODUCTION ABOUT THE COMPANY PRODUCTS OF
BAJAJ ALLIANZ LIFE INSURANCE RESEARCH METHODOLOGY RESULT
SUGGESTIONS AND RECOMMENDATIONS LIMITATIONS BIBLIOGRAPHY
Page No.1 2 3 4 6 10 11 16 18 22 23 25 30 31 40 97 102 103 104
105
5
EXECUTIVE SUMMARYBajaj Allianz Life Insurance Co. Ltd. is a
joint venture between Allianz SE, one of the world's largest
insurance companies, and Bajaj Finserv. Allianz SE is a leading
insurance corporation globally and one of the largest asset
managers in the world, that manage assets worth over a Trillion.
With over 115 years of financial experience, Allianz SE is present
in over 70 countries around the world. Bajaj Allianz is into both
life insurance and general insurance. Today, Bajaj Allianz is one
of India's leading and fastest growing insurance companies.
Currently, it has presence in more than 550 locations with over
60,000 Insurance Consultants. In June 2008, Bajaj Allianz entered
into partnership with Thomas Cook India to provide travel finance.
Bajaj Allianz Life Insurance ensures excellent insurance and
investment solutions by offering customized products, supported by
the best technology.
A comprehensive list of policies and products offered by Bajaj
Allianz Life Insurance Co. Ltd. is as follows:6
UNIT LINKED Regular Premium New UnitGain Super UnitGain Plus
Gold New UnitGain Plus New UnitGain YoungCare YoungCare Plus New
FamilyGain-R Single Premium New UnitGain Premier SP New UnitGain
Plus SP
PENSION Annuity Pension Guarantee Retirement Future Income
Generator Swarna Vishranti New UnitGain Easy Pension Plus RP New
UnitGain Easy Pension Plus SP Future Secure
TRADITIONAL Endowment InvestGain SaveCare Economy SP Life Time
Care Super Saver Money Back CashGain
TERM PLANS Protector Term Care New Risk Care
WOMEN INSURANCE Miss Confident Plans
HEALTH Care First Health Care Family CareFirst
CHILDREN PLAN ChildGain
JUST LAUNCHED Family Assure Fortune Plus CenturyPlus II UnitGain
Protection Plus Invest Plus Group Seva Plan
In my training Period, I have focused mainly on two products of
Bajaj Allianz Life Insurance company: New Family Gain and New Unit
Gain. NEW FAMILY GAIN In this product, the minimum premium which is
to be paid by the customer is Rs.5000.7
The maximum premium for this product is Rs.10000.The policy term
is 10 years. The Sum Assured is Rs. 50000 or the Fund Value which
ever is higher. It is a unit linked plan and the Lock-in period is
3 years. After 3 years the customer can withdraw 75% or whole
amount but surrender charges will be taken. After 5 years no
surrender charges will be charged. In this product customer has the
facility of getting a premium holiday for 2 years after 3 years
have been completed and if he withdraws after 5 years he will get
Rs. 30000. The customer will get benefit of Section 80C and Section
10(10D) of Income tax. Under Section 80 C the customer will get Tax
rebate and under Section 10(10D) he will get tax free maturity
gains. NEW UNIT GAIN In this product, the minimum premium which is
to be paid by the customer is Rs.10000. The maximum premium for
this product has no limit. The policy term is 10 years. The Sum
Assured is 5 times the premium amount or the Fund Value which ever
is higher. It is a unit linked plan and the Lock-in period is 3
years. After 3 years the customer can withdraw 75% or whole amount
but surrender charges will be taken. After 5 years there are no
surrender charges
8
In this product customer has the facility of getting a premium
holiday for 2 years after 3 years have been completed and if he
withdraws after 5 years he will get Rs. 60000. The customer will
get benefit of Section 80C and Section 10(10D) of Income tax. Under
Section 80 C the customer will get Tax rebate and under Section
10(10D) he will get tax free maturity gains.
Human Life Value Concept This concept tells about value of a
human life, particularly when he/she is a earning member of the
family. Suppose a person is 30 years old and has a fixed monthly
income of Rs. 10000 and if retires at the age of 60 then he will
earn about 36 lakh in those 30 years. Unfortunately if he/she dies
at the age of 32 his family members will have a financial loss, so
to minimize the loss occurred due to the death of the earning
member, one should have insurance of about 36 lakh.
Fixed Deposit compared with Insurance policyIn fixed deposit
money is locked in for 5 or more years and in Insurance Policy
money is locked in only for 3 years. In fixed deposit, at maturity
TDS (Tax deduction at source) is deducted but in Insurance policy,
maturity amount is tax free under Section 10(10D). In fixed deposit
the rate of return is about 8-10% but in Insurance policy rate of
return is 15% or more.
9
In Fixed deposit, no life insurance is given but in Insurance
policy life insurance is given. In the training period, I have
tried to inform people about the products of Bajaj Allianz Life
Insurance. I have met different people like: Salaried people
Businessmen Chartered Accountants Lawyers Doctors Engineers
Housewives
RESEARCH OBJECTIVES1)
To know the consumer responses about Bajaj Allianz life
insurance policy.
2) To know about the products of Bajaj Allianz Life Insurance.
3) To know about the objections of people for not taking the
Insurance policy.4) 5)
To know the need for Life Insurance. To know the benefits of
Life Insurance.
10
6) To know the market share of Bajaj Allianz Life Insurance in
the Market. MEANING OF INSURANCEInsurance may be described as a
social device to reduce or eliminate risk of loss to life and
property. Insurance is a collective bearing of risk. Insurance is a
financial device to spread the risks and losses of few people among
a large number of people, as people prefer small fixed liability
instead of big, uncertain and changing liability. Insurance can be
defined as a legal contract between two parties whereby one party
called insurer undertakes to pay a fixed amount of money on the
happening of a particular event, which may be certain or uncertain.
The other party called insured pays in exchange a fixed sum known
as premium. Insurance is desired to safeguard oneself and ones
family against possible losses on account of risks and perils. It
provides financial compensation for the losses suffered due to the
happening of any unforeseen events. IMPORTANCE OF INSURANCE
Insurance constitutes one of the major segments of the financial
market. Insurance services play predominant role in the process of
financial intermediary. Today insurance industry is one of the most
growing sectors in India. There is lot of potential in the Indian
Insurance Industry.11
There are many issues, which require study. The scope of the
study of Insurance industry of India would be very great as there
are ongoing developments in the industry after the opening of the
sector. The major issue right now is the hike in FDI (Foreign
Direct Investment) limit from 26% to 49% in the insurance sector.
In near future Government may allow 49% FDI in Insurance. This
would lead to more capital inflow by foreign partners. Another
major issue is the effects on LIC after the entry of private
players in the market. Though market share of LIC has been
affected, it has improved in terms of efficiency. There are number
of other hot topics like penetration of Health Insurance, Rural
marketing of insurance, new distribution channels, new product
ranges, insurance brokers regulation, incentive scheme of
development officers of LIC etc. So it offers lot of scope for
studying the insurance industry. Right now the insurance industry
has great opportunities in countries like India or China which have
huge population. Also the penetration of insurance in India is very
low in both life and non-life segment so there is lot potential to
be tapped. Before starting the discussion on insurance industry and
related issues, we have to start with the basics of insurance. So
first we understand what is Insurance? How the word insurance is
different from the word Assurance? etc.
12
DIFFERENCE BETWEEN INSURANCE AND ASSURANCEAssurance is older in
history and it was used to describe all types of Insurance. From
1826, the term assurance came to be used only for the risks covered
by life insurance and the term insurance was exclusively used to
denote the risks covered by marine, fire, etc. The word assurance
indicated certainty. In life insurance, there is an assurance from
the insurance company to make payment under the policy either on
the maturity or at earlier death. On the other hand the word
insurance was used to denote indemnity type of insurance where the
insurance company was liable to pay only in case of the loss damage
the property. The insured event was bound to happen sooner or later
under assurance but the event insured against may or may not happen
under insurance. The principle of indemnity applies to insurance
contracts (non-life) only. The scope of the word, insurance is
wider.
PRINCIPLES OF INSURANCEAn insurance contract is based on some
basic principles of insurance. (1) Principle of utmost good faith
It means maximum truth. Both the parties should disclose all
material information regarding the subject matter of
Insurance.13
(2) Principle of indemnity This means that if the insured
suffers a loss against which the policy has been made, he shall be
fully indemnified only to the extent of loss. In other words, the
insured is not entitled to make a profit on his loss. (3) Principle
of subrogation This means the insurer has the right to stand in the
place of the insured after settlement of claims in so far as the
insureds right of recovery from an alternative source is involved.
The insurer before the settlement of the claim may exercise the
right. In other words, the insurer is entitled to recover from a
negligent third party any loss payments made to the insured. The
purposes of subrogation are to hold the negligent person
responsible for the loss and prevent the insured from collecting
twice for the same loss. The concept of Third Party Claims is based
on the same principle. (4) Principle of causa proxima The cause of
loss must be direct and an insured one in order to claim of
compensation. (5) Principle of insurable interest The assured must
have insurance interest in the life or property insured. Insurable
interest is that interest which considerably alters the position of
the assured in the event of loss taking place and if the event does
not take placed, he remains in the same old position.
HISTORY OF INSURANCEThe concept of insurance is believed to have
emerged almost 4500 years ago in the ancient land14
of Babylonia where traders used to bear risk of the carvan by
giving loans, which were later repaid with interest when the goods
arrived safely. The concept of insurance as we know today took
shape in 1688 at a place called Lloyds Coffee House in London where
risk bearers used to meet to transact business. This coffee house
became so popular that Lloyds became the one of the first modern
insurance companies by the end of the eighteenth century. Marine
insurance companies came into existence by the end of the
eighteenth century. These companies were empowered to write fire
and life insurance as well as marine. The Great Fire of London in
1966 caused huge loss of property and life. With a view to
providing fire insurance facilities, Dr. Nicholas Barbon set up in
1967 the first fire insurance company known as the Fire Office. The
early history of insurance in India can be traced back to the
Vedas. The Sanskrit term Yogakshema (meaning well being), the name
of Life Insurance Corporation of Indias corporate headquarters, is
found in the Rig Veda. The Aryans practiced some form of community
insurance around 1000 BC. Life insurance in its modern form came to
India from England in 1818. The Oriental Life Insurance Company was
the first insurance company to be set up in India to help the
widows of European community. The insurance companies, which came
into existence between 1818 and 1869, treated Indian lives as
subnormal and charged an extra15
premium of 15 to 20 percent. The first Indian insurance company,
the Bombay Mutual Life Assurance Society, came into existence in
1870 to cover Indian lives at normal rates. The Insurance Act,
1938, the first comprehensive legislation governing both life and
non-life branches of insurance were enacted to provide strict state
control over insurance business. This amended insurance Act looked
into investments, expenditure and management of these companies. By
the mid- 1950s there were 154 Indian insurers, 16 foreign insurers,
and 75 provident societies carrying on life insurance business in
India. Insurance business flourished and so did scams,
irregularities and dubious investment practices by scores of
companies. As a result the government decided to nationalize the
life assurance business in India. The Life Insurance Corporation of
India (LIC) was set up in 1956. The nationalization of life
Insurance was followed by general insurance in 1972. TIME LINE IN
INSURANCE HISTORY (MAJOR LANDMARKS) 1818: British introduced the
life insurance to India with the establishment of the Oriental Life
Insurance Company in Calcutta. 1850: Non life insurance started
with Triton Insurance Company. 1870: Bombay Mutual Life Assurance
Society is the first India owned life insurer.16
1912: The Indian Life Assurance Company Act enacted to regulate
the life insurance business. 1938: The Insurance Act was enacted.
1956: Nationalization took place. Government took over 245 Indian
and foreign insurers and provident societies. 1972: Non-life
business nationalized, General Insurance Corporation (GIC) came
into being. 1993: Malhotra committee was constituted under the
chairmanship of former RBI chief R. N. Malhotra to draw a blue
print for insurance sector reforms. 1994: Malhotra committee
recommended reentry of private players. 1997: IRDA (Insurance
Regulatory and Development Authority) was set up as a regulator of
the insurance market in India. 2000: IRDA started giving license to
private insurers. ICICI Prudential, HDFC were first private players
to sell Insurance Policies. 2001: Royal Sundaram was the first
non-life private player to sell an insurance policy. 2002: Bank
allowed to sell insurance plans as TPAs enter the scene, insurers
start setting non-life claims in the cashless mode.
MEANING OF LIFE INSURANCE
17
There are three parties in a life insurance transaction: the
insurer, the insured, and the owner of the policy (policyholder),
although the owner and the insured are often the same person.
Another important person involved in a life insurance policy is the
beneficiary. The beneficiary is the person or persons who will
receive the policy proceeds upon the death of the insured. Life
insurance may be divided into two basic classes term and permanent.
Term life insurance provides for life insurance coverage for a
specified term of years for a specified premium. The policy does
not accumulate cash value. Permanent life insurance is life
insurance that remains in force until the policy matures, unless
the owner fails to pay the premium when it is due. Whole life
insurance provides for a level premium, and a cash value table
included in the policy guaranteed by the company. The primary
advantages of whole life are guaranteed death benefits, guaranteed
cash values, fixed and known annual premiums, mortality and expense
charges will not reduce the cash value shown in the policy.
Universal life insurance (UL) is a relatively new insurance product
intended to provide permanent insurance coverage with greater
flexibility in premium payment and the potential for a higher
internal rate of return. A universal life policy includes a cash
account. Premiums increase the cash account.
18
If you want insurance protection only, and not a savings and
investment product, buy a term life insurance policy. If you want
to buy a whole life, universal life, or other cash value policy,
plan to hold it for at least 15 years. Canceling these policies
after only a few years can more than double your Life insurance
costs. NEED FOR LIFE INSURANCE You need Life Insurance because
typically the need for income continues for those who are
financially dependent on you, but there is no guarantee of your
ability to earn consistently and for the rest of your life. Life
insurance can help you safeguard the financial needs of your
family. This need has become even more important due to steady
disintegration of the prevalent joint family system, and emergence
of nuclear families. The need to protect your family's ever growing
needs is why you need Life Insurance.
Why Do I Need Life Insurance?Thats a common question. Why would
you need Insurance? Simply put, Life brings with it many surprises,
some pleasant and some not so and a Life Insurance Plan ensures
that you are better prepared to face uncertainties. How? In a
number of ways:
ProtectionYou need life insurance to be there and protect the
people you love, making sure that your family has a means to look
after itself after you are gone. It is a thoughtful business
concept designed to protect the economic value of a human life for
the benefit of those financially dependent on him. Thats a good
reason. Supposing you suffer an injury that keeps you from earning?
Would you like to be a financial burden on your family, already
losing out on your salary? With a life insurance policy, you are
protected. Your family is protected.19
RetirementLife insurance makes sure that you have regular income
after you retire and also helps you maintain your standard of
living. It can ensure that your postretirement years are spent in
peace and comfort.
Savings and InvestmentsInsurance is a means to Save and Invest.
Your periodic premiums are like Savings and you are assured of a
lump sum amount on maturity. A policy can come in really handy at
the time of your childs education or marriage! Besides, it can be
used as supplemental retirement income!
Tax BenefitsLife insurance is one of the best tax saving options
today. Your tax can be saved twice on a life insurance policy-once
when you pay your premiums and once when you receive maturity
benefits. Money saved is money earned!
HISTORY OF LIFE INSURANCERisk protection has been a primary goal
of humans and institutions throughout history. Protecting against
risk is what insurance is all about. Over 5000 years ago, in China,
insurance was seen as a preventative measure against piracy on the
sea. Piracy, in fact, was so prevalent, that as a way of spreading
the risk, a number of ships would carry a portion of another ship's
cargo so that if one ship was captured, the entire shipment would
not be lost.In another part of the world, nearly 4,500 years ago,
in the ancient land of
20
Babylonia, traders used to bear risk of the caravan trade by
giving loans that had to be later repaid with interest when the
goods arrived safely. In 2100 BC, the Code of Hammurabi granted
legal status to the practice. It formalized concepts of bottomry
referring to vessel bottoms and respondentia referring to cargo.
These provided the underpinning for marine insurance contracts.
Such contracts contained three elements: a loan on the vessel,
cargo, or freight; an interest rate; and a surcharge to cover the
possibility of loss. In effect, ship owners were the insured and
lenders were the underwriters. Life insurance came about a little
later in ancient Rome, where burial clubs were formed to cover the
funeral expenses of its members, as well as help survivors
monetarily. With Rome's fall, around 450 A.D., most of the concepts
of insurance were abandoned, but aspects of it did continue through
the Middle Ages, particularly with merchant and artisan guilds.
These provided forms of member insurance covering risks like fire,
flood, theft, disability, death, and even imprisonment. During the
feudal period, early forms of insurance ebbed with the decline of
travel and long-distance trade. But during the 14th to 16th
centuries, transportation, commerce, and insurance would again
reemerge. Insurance in India can be traced back to the Vedas. For
instance,
21
Yogakshema, the name of Life Insurance Corporation of India's
corporate headquarters is derived from the Rig Veda. The term
suggests that a form of "community insurance" was prevalent around
1000 BC and practiced by the Aryans. And similar to ancient Rome,
burial societies were formed in the Buddhist period to help
families build houses, and to protect widows and children. Modern
Insurance Illegal almost everywhere else in Europe, life insurance
in England was vigorously promoted in the three decades following
the Glorious Revolution of 1688. The type of insurance we see today
owes its roots to 17th century England. Lloyd's of London, or as
they were known then, Lloyd's Coffee House, was the location where
merchants, ship owners and underwriters met to discuss and transact
business deals. While serving as a means of risk-avoidance, life
insurance also appealed strongly to the gambling instincts of
England's burgeoning middle class. Gambling was so rampant, in
fact, that when newspapers published names of prominent people who
were seriously ill, bets were placed at Lloyds on their anticipated
dates of death. Reacting against such practices, 79 merchant
underwriters broke away in 1769 and two years later formed a New
Lloyds Coffee House that became known as the real Lloyds. Making
wagers on
22
people's deaths ceased in 1774 when parliament forbade the
practice. Insurance moves to America The U.S. insurance industry
was built on the British model. The year 1735 saw the birth of the
first insurance company in the American colonies in Charleston, SC.
The Presbyterian Synod of Philadelphia in 1759, sponsored the first
life insurance corporation in America for the benefit of ministers
and their dependents. And the first life insurance policy for the
general public in the United States was issued, in Philadelphia, on
May 22, 1761. But it wasn't until 80 years later (after 1840), that
life insurance really took off in a big way. The key to its success
was reducing the opposition from religious groups. In 1835, the
infamous New York fire drew people's attention to the need to
provide for sudden and large losses. Two years later, Massachusetts
became the first state to require companies by law to maintain such
reserves. The great Chicago fire of 1871 further emphasized how
fires can cause huge losses in densely populated modern cities. The
practice of reinsurance, wherein the risks are spread among several
companies, was devised specifically for such situations. With the
creation of the automobile, public liability insurance, which first
made its appearance in the 1880s, gained importance and acceptance?
More advancement was made to insurance during the process of
23
industrialization. In 1897, the British government passed the
Workmen's Compensation Act, which made it mandatory for a company
to insure its employees against industrial accidents. During the
19th century, many societies were founded to insure the life and
health of their members, while fraternal orders provided lowcost,
members only insurance. Even today, such fraternal orders continue
to provide Insurance coverage to members, as do most labour
organizations. Many employers sponsor group insurance policies for
their employees, providing not just life insurance, but sickness
and accident benefits and old-age pensions. Employees contribute a
certain percentage of the premium for these policies. Final
Thoughts Even though the American insurance industry was greatly
influenced by Britain, the US market developed somewhat differently
from that of the United Kingdom. Contributing to that was America's
size; land diversity and the overwhelming desire to be independent.
As America moved from a colonial outpost to an independent force,
from a farming country to an Industrial nation, the insurance
business developed from a small number of companies to a large
industry. Insurance became more sophisticated, offering new types
of coverage and diversified services for an increasingly complex
country.
KEY FEATURES OF LIFE INSURANCE
1) Nomination: -
24
When one makes a nomination, as the policyholder, one continues
to be the owner of the policy and the nominee does not have any
right under the policy as long as he/she is alive. The nominee has
only the right to receive the policy money in case of your death
within the term of the policy. 2) Assignment: If your intention is
that your policy monies should go only to a particular person, you
need to assign the policy in favor of that person. 3) Death
Benefit: The primary feature of a life insurance policy is the
death benefit it provides. Permanent policies provide a death
benefit that is guaranteed for the life of the insured, provided
the premiums have been paid and the policy has not been
surrendered. 4) Cash Value: The cash value of a permanent life
insurance policy is accumulated throughout the term of the policy.
It equals the amount a policy owner would receive, after any
applicable surrender charges, if the policy were surrendered before
the insured's death. 5) Dividends: Many life insurance companies
issue life insurance policies that entitle the policy owner to
share in the company's divisible surplus. 6) Paid-Up Additions:
Dividends paid to a policy owner of a participating policy can be
used in numerous ways, one of which is toward the purchase of
additional coverage, called paid-up additions. 7) Policy Loans:
-
25
Some life insurance policies allow a policy owner to apply for a
loan against the value of their policy. Either a fixed or variable
rate of interest is charged. This feature allows the policy owner
an easily accessible loan in times of need or opportunity. 8)
Conversion from Term to Permanent: When in need of temporary
protection, individuals often purchase term life insurance. If one
owns a term policy, sometimes a provision is available that will
allow her to convert her policy to a permanent one without
providing additional proof of insurability. 9) Disability Waiver of
Premium: Waiver of Premium is an option or benefit that can be
attached to a life insurance policy at an additional cost. It
guarantees that coverage will stay in force and continue to
grow
BENEFITS OF LIFE INSURANCE1) Risk cover: Life Insurance
contracts allow an individual to have a risk cover against any
unfortunate event of the future. 2) Tax Deduction: Under section
80C of the Income Tax Act of 1961 one can get tax deduction on
premiums up to one lakh rupees. Life Insurance policies thus
decrease the total taxable income of an individual. 3) Loans: An
individual can easily access loans from different financial
institutions by pledging his insurance policies. 4) Retirement
Planning: -
26
What had provided protection against the financial consequences
of premature death may now be used to help them enjoy their
retirement years. Moreover the cash value can be used as an
additional income in the old age. 5) Educational Needs: Similar to
retirement planning the cash values that flow from ones life
Insurance schemes can be utilized for educational needs of the
insurer or his children.
ROLE OF LIFE INSURANCE IN THE GROWTH OF THE ECONOMYThe Life
Insurance Industry has an enviable track record among public sector
units. It has a Consistent profit and dividend paying record
accompanied by a steady growth in its financial resources. Through
investments in the Government sector and socially- oriented sectors
the Industry has contributed immensely to the nation's development.
The industry is recognized as one of the largest financial
Institutions in the country. The ventures initiated by the industry
in the areas of Mutual Fund, Housing Finance have done exceedingly
well in recent years. To protect the country's foreign exchange
reserves, the reinsurance arrangement are so organized that maximum
retention is made possible within the country while at the same
time protecting interests of the policy holders. SECTION 45 OF THE
INSURANCE ACT, 193827
No policy of life insurance effected after the coming into force
of this Act shall, after the expiry of two years from the date on
which it was effected, be called in question by an insurer on the
ground that a statement made in the proposal for insurance or in
any report of a medical officer, or referee, or friend of the
insured, or in any other document leading to the issue of the
policy, was inaccurate or false, unless the insurer shows that such
a statement was on a material matter or suppressed facts which it
was material to disclose and that it was fraudulently made by the
policyholder and that the policyholder knew at that time of making
it that the statement was false or that it suppressed facts which
it was material to disclose. PROHIBITION OF REBATE: SECTION 41 OF
THE INSURANCE ACT, 1938 No person shall allow or offer to allow,
either directly or indirectly, as an inducement to any person to
take out or renew or continue an insurance in respect of any kind
of risk relating to lives or property in India, any rebate of the
whole or part of the commission payable or any rebate of the
premium shown on the policy, nor shall any person taking out or
renewing or continuing a policy accept any rebate, except such
rebate as may be allowed in accordance with the published
prospectuses or tables of the insurer. Any person making default in
complying with the provisions of this section shall be punishable
with a fine which may extend to five hundred rupees.
LIFE INSURANCE IS INSURANCE AS WELL AS INVESTMENTIt is the
special characteristic of life insurance that it not only provides
security but is also a form of investment. The insured not only
wants to secure his family from the risk of his death, but also
wants to invest in the long term insurance plan. Both these
elements are possible in life insurance
28
because the insurance company promises to pay a fixed amount on
the death of the insured, or on his attaining a certain age.
Element of Protection: Life insurance is the best way of securing
against financial risks. The member of the family insures his life
to provide affixed amount security to his family in case of death
and his family been secured against any financial strain. Financial
problems not only arise on untimely death of the earning member,
but also when the earning member becomes old and his energy to work
reduces and so does his source of income also reduce. At this
stage, he wants to retire and lead a peaceful life. And if he has
no source of income at this time he shall have to depend on others,
which is a very pitiable stage in old age. That is why; a rational
man always saves for his old age, so that he doesnt have to depend
on others for maintaining himself. In such plans, insurance holds
the prime position due to the following reasons1) He makes savings
in the form of life insurance. To pay a regular premium he has to
save necessarily. Though premium takes a form of compulsory expense
yet for depositing regular premiums he has to develop a habit of
saving. 2) The saving also remains secure in life insurance. The
savings kept in a bank account can be withdrawn anytime for
expenses, but the amount paid as premium can be received from the
insurance company only on attaining a certain age. 3) Life
insurance is also a kind of indirect saving. The life insurance
policy cannot be forfeited by Income Tax department, even after
non-payment of income tax. In this way, the element of economic
security is present entirely in a life insurance policy. It is
both, an element of protection and a helping hand in the old age.
Element of Investment: Life insurance also provides the benefit of
investment. The amount of premium consists, apart from the cost of
insurance, an amount of investment. This investment constantly
increases. And this amount of investment is called Life Fund and
represents the element of investment. The Life insurance companies
invest the amount of life fund to earn profits, and give the
benefits of such profits to the policy holder also. Firstly, while
determining the amount of net premium, the amount of interest is
deducted from the cost of insurance that constitutes interest from
the investment of premium fund. Then the insurance companies29
distribute most of the part of their profits (up to 90%) to the
policyholders as bonus. The investment in Life insurance policy is
superior to other kinds of investments because here there is no
risk of loosing money and there is no need to invest the whole
amount at one time. Life insurance can be called as the best kind
of risk- free security, on whose security, lending money is also
possible. By nationalization of Life insurance in our country, the
insurance policy is guaranteed by the government by which it has
become more secure.
KINDS OF LIFE INSURANCE POLICIESTemporary Term Insurance
Term assurance: provides for life insurance coverage for a
specified term of years for a specified premium. The policy does
not accumulate cash value. Term is generally considered "pure"
insurance, where the premium buys protection in the event of death
and nothing else. There are three key factors to be considered in
term insurance: 1. Face amount (protection or death benefit), 2.
Premium to be paid (cost to the insured), and 3. Length of coverage
(term). Various insurance companies sell term insurance with many
different combinations of these three parameters. The face amount
can remain constant or decline. The term can be for one or more
years. The premium can remain level or increase. A common type of
term is called annual renewable term. It is a one year policy but
the insurance company guarantees it will issue a policy of equal or
lesser amount without regard to the insurability of the insured and
with a premium set for the insured's age at that time. Another
common type of term insurance is mortgage insurance, which is
usually a level premium, declining face value policy. The face
amount is intended to equal the amount of the mortgage on the
policy owners residence so the mortgage will be paid if the insured
dies. A policy holder insures his life for a specified term. If he
dies before that specified term is up, his estate or named
beneficiary receives a payout. If he30
does not die before the term is up, he receives nothing. In the
past these policies would almost always exclude suicide. However,
after a number of court judgments against the industry, payouts do
occur on death by suicide (presumably except for in the unlikely
case that it can be shown that the suicide was just to benefit from
the policy). Generally, if an insured person commits suicide within
the first two policy years, the insurer will return the premiums
paid. However, a death benefit will usually be paid if the suicide
occurs after the two year period.Permanent Life Insurance
Permanent life insurance is life insurance that remains in force
(in-line) until the policy matures (pays out), unless the owner
fails to pay the premium when due (the policy expires OR policies
lapse). The policy cannot be canceled by the insurer for any reason
except fraud in the application, and that cancellation must occur
within a period of time defined by law (usually two years).
Permanent insurance builds a cash value that reduces the amount at
risk to the insurance company and thus the insurance expense over
time. This means that a policy with a million dollar face value can
be relatively expensive to a 70 year old. The owner can access the
money in the cash value by withdrawing money, borrowing the cash
value, or surrendering the policy and receiving the surrender
value. The four basic types of permanent insurance are whole life,
universal life, limited pay and endowment. Whole life coverage
Whole life insurance provides for a level premium, and a cash value
table included in the policy guaranteed by the company. The primary
advantages of whole life are guaranteed death benefits; guaranteed
cash values, fixed and known annual premiums, and mortality and
expense charges will not reduce the cash value shown in the policy.
The primary disadvantages of whole life are premium inflexibility,
and the internal rate of return in the policy may not be
competitive with other savings alternatives. Also, the cash values
are generally kept by the insurance company at the time of death,
the death benefit only to the beneficiaries. Riders are available
that can allow one to increase the death benefit by paying
additional premium. The death benefit can also be increased through
the use of policy dividends. Dividends cannot be guaranteed and may
be higher or lower than historical rates over
31
time. Premiums are much higher than term insurance in the
short-term, but cumulative premiums are roughly equal if policies
are kept in force until average life expectancy. Cash value can be
accessed at any time through policy "loans". Since these loans
decrease the death benefit if not paid back, payback is optional.
Cash values are not paid to the beneficiary upon the death of the
insured; the beneficiary receives the death benefit only. If the
dividend option: Paid up additions is elected, dividend cash values
will purchase additional death benefit which will increase the
death benefit of the policy to the named beneficiary. Universal
life coverage A universal life insurance policy includes a cash
account. Premiums increase the cash account. Interest is paid
within the policy (credited) on the account at a rate specified by
the company. Mortality charges and administrative costs are then
charged against (reduce) the cash account. The surrender value of
the policy is the amount remaining in the cash account less
applicable surrender charges, if any. With all life insurance,
there are basically two functions that make it work. There's a
mortality function and a cash function. The mortality function
would be the classical notion of pooling risk where the premiums
paid by everybody else would cover the death benefit for the one or
two who will die for a given period of time. The cash function
inherent in all life insurance says that if a person is to reach
age 95 to 100 (the age varies depending on state and company), then
the policy matures and endows the face value of the policy.
Actuarially, it is reasoned that out of a group of 1000 people, if
even 10 of them live to age 95, then the mortality function alone
will not be able to cover the cash function. So in order to cover
the cash function, a minimum rate of investment return on the
premiums will be required in the event that a policy matures.
Universal life insurance addresses the perceived disadvantages of
whole life. Premiums are flexible. Depending on how interest is
credited, the internal rate of return can be higher because it
moves with prevailing interest rates (interest-sensitive) or the
financial markets (Equity Indexed Universal Life and Variable
Universal Life). Mortality costs and administrative charges
are32
known. And cash value may be considered more easily attainable
because the owner can discontinue premiums if the cash value allows
it. And universal life has a more flexible death benefit because
the owner can select one of two death benefit options, Option A and
Option B. Option A pays the face amount at death as it's designed
to have the cash value equal the death benefit at maturity (usually
at age 95 or 100). With each premium payment, the policy owner is
reducing the cost of insurance until the cash value reaches the
face amount upon maturity. Option B pays the face amount plus the
cash value, as it's designed to increase the net death benefit as
cash values accumulate. Option B offers the benefit of an
increasing death benefit every year that the policy stays in force.
The drawback to option B is that because the cash value is
accumulated "on top of" the death benefit, the cost of insurance
never decreases as premium payments are made. Thus, as the insured
gets older, the policy owner is faced with an ever increasing cost
of insurance (it costs more money to provide the same initial face
amount of insurance as the insured gets older) Limited-pay Another
type of permanent insurance is Limited-pay life insurance, in which
all the premiums are paid over a specified period after which no
additional premiums are due to keep the policy in force. Common
limited pay periods include 10-year, 20-year, and paid-up at age
65. Endowments Endowments are policies in which the cash value
built up inside the policy, equals the death benefit (face amount)
at a certain age. The age this commences is known as the endowment
age. Endowments are considerably more expensive (in terms of annual
premiums) than either whole life or universal life because the
premium paying period is shortened and the endowment date is
earlier. In the United States, the Technical Correct Limited-pay
Another type of permanent insurance is Limited-pay life insurance,
in which all the premiums are paid over a specified period after
which no additional
33
premiums are due to keep the policy in force. Common limited pay
periods include 10-year, 20-year, and paid-up at age 65. Endowments
Endowments are policies in which the cash value built up inside the
policy, equals the death benefit (face amount) at a certain age.
The age this commences is known as the endowment age. Endowments
are considerably more expensive (in terms of annual premiums) than
either whole life or universal life because the premium paying
period is shortened and the endowment date is earlier. In the
United States, the Technical Corrections Act of 1988 tightened the
rules on tax shelters (creating modified endowments). These follow
tax rules as annuities and IRAs do. Endowment Insurance is paid out
whether the insured lives or dies, after a specific period (e.g. 15
years) or a specific age (e.g. 65). Accidental Death Accidental
death is a limited life insurance that is designed to cover the
insured when they pass away due to an accident. Accidents include
anything from an injury, but do not typically cover any deaths
resulting from health problems or suicide. Because they only cover
accidents, these policies are much less expensive than other life
insurances. It is also very commonly offered as "accidental death
and dismemberment insurance", also known as an AD&D policy. In
an AD&D policy, benefits are available not only for accidental
death, but also for loss of limbs or bodily functions such as sight
and hearing, etc. Accidental death and AD&D policies very
rarely pay a benefit; either the cause of death is not covered, or
the coverage is not maintained after the accident until death
occurs. To be aware of what coverage they have, an insured should
always review their policy for what it covers and what it excludes.
Often, it does not cover an insured that puts himself at risk in
activities such as: parachuting, flying an airplane, professional
sports, or involvement in a war (military or not). Also, some
insurers will exclude death and injury caused by proximate causes
due to (but not limited to) racing on wheels and
mountaineering.34
Accidental death benefits can also be added to a standard life
insurance policy as a rider. If this rider is purchased, the policy
will generally pay double the face amount if the insured dies due
to an accident. This used to be commonly referred to as double
indemnity coverage. In some cases, some companies may even offer a
triple indemnity cover. NATIONALISATION OF LIFE INSURANCE IN INDIA
On 19th January, 1956, the Indian Government issued an emergency
ordinance, whose objective was to nationalize life insurance. As a
result of this ordinance, the business of life insurance which was
in the hands of private sector organizations at that time now came
in the hands of the Government of India. At the time of
nationalization, in our country 154 Indian Insurance companies, 16
foreign insurance companies and 75 private insurance societies were
working in the Insurance business. In June 1956, an Act by the name
of Life Insurance Corporation Act, 1956 was passed in the
Parliament, which came into force from 1st July 1956 in India. As a
result of this Act, a Government organization was established which
is known as Life Insurance Corporation of India. The Life Insurance
Corporation started the insurance business from 1st September,
1956.
REASONS OR OBJECTIVES OF NATIONALISATION1) To arrange funds for
Five Year Plans of the Government of India. 2) To widely propagate
Life Insurance even in villages and small towns. 3) To eliminate
unhealthy competition among Private Insurance Companies. 4) To end
mismanagement, spread in Private Insurance Companies. 5) To
increase the per person insured amount. 6) To establish a socialist
society, to give maximum benefits to the society. 7) To reduce the
wasteful administrative expenses of the Private Insurance
Companies. 8) To secure the interests of small insured persons.
35
9) To create a sense of saving among people. 10)To utilize the
Life Insurance Fund properly. 11) To end the delays in payments on
maturity to insured by Private Insurance Companies. 12)To
decentralize economic and financial power from the hands of Private
Insurance Companies.
INTRODUCTION ABOUT THE COMPANYBajaj Allianz Life Insurance is a
union between Allianz SE, one of the largest Insurance Company and
Bajaj Finserv. (recently demerged from Bajaj Auto.) Allianz SE is a
leading insurance conglomerate globally and one of the largest
asset managers in the world, managing assets worth over a Trillion
(Over INR. 55, 00,000 Crores). Allianz SE has over 115 years of
financial experience and is present in over 70 countries around the
world. At Bajaj Allianz Life Insurance, customer delight is our
guiding principle. Our business philosophy is to ensure excellent
insurance and investment solutions by offering customized products,
supported by the best technology. It started in 2001.Financial
services arm's profit rises to Rs 42 croreBS Reporter / Mumbai July
16, 2009, 0:40 IST
Bajaj Finserv, the financial services arm of the Bajaj Group,
posted a net profit of Rs 42 crore for the quarter ended June 30,
2009. It had posted a loss of Rs 36 crore in the corresponding
period last year. The groups life insurance arm, Bajaj Allianz Life
Insurance Company, was the biggest contributor to the firms income.
Bajaj Allianz has posted a profit of Rs 68 crore in the June
quarter. In the year-ago quarter, it had posted a loss of Rs 3
crore.36
Gross written premium for the quarter rose 40 per cent to Rs
2,001 crore as against Rs 1,847 crore in the corresponding period
last year. Renewal premium, too, increased to Rs 1,423 crore as
against Rs 1,018 crore in the quarter ended June 30, 2008. However,
new business premium fell 42.28 per cent to Rs 577 crore.
ALLIANZ GROUPAllianz Group is one of the world's leading
insurers and financial services providers. Founded in 1890 in
Berlin, Allianz is now present in over 70 countries with almost
174,000 employees. At the top of the international group is the
holding company, Allianz AG, with its head office in Munich.
Allianz Group provides its more than 60 million customers worldwide
with a comprehensive range of services in the areas of Property and
Casualty Insurance, Life and Health Insurance, Asset Management and
Banking. ALLIANZ AG- A GLOBAL FINANCIAL POWERHOUSE Worldwide 2nd by
Gross Written Premiums - Rs.4, 46,654 crore. 3rd largest Assets
under Management (AUM) & largest amongst Insurance cos. - AUM
of Rs.51, 96,959 crore. 12th largest corporation in the world
37
49.8 % of global business from Life Insurance Established in
1890, 110 yrs of Insurance expertise 70 countries, 173,750
employees worldwide
BAJAJ GROUPBajaj Auto Ltd, the flagship company of the Rs. 8000
crore Bajaj group is the largest manufacturer of two-wheelers and
three-wheelers in India and one of the largest in the world. A
household name in India, Bajaj Auto has a strong brand image &
brand loyalty synonymous with quality & customer focus. A
STRONG INDIAN BRAND- HAMARA BAJAJ One of the largest 2 & 3
wheeler manufacturer in the world 21 million+ vehicles on the roads
across the globe Managing funds of over Rs 4000 cr. Bajaj Auto
finance one of the largest auto finance cos. in India Rs. 4,744 Cr.
Turnover & Profits of 538 Cr. in 2002-03 It has joined hands
with Allianz to provide the Indian consumers with a distinct option
in terms of life insurance products. As a promoter of Bajaj Allianz
Life Insurance Co. Ltd., Bajaj Auto has the following to offer
Financial strength and stability to support the Insurance Business.
A strong brand-equity.38
A good market reputation as a world class organization. An
extensive distribution network.
Adequate experience of running a large organization.
Fiscal Year 2001-2002(6 months) 2002-2003 2003-2004 2004-2005
2005-2006 2006-2007 2007-2008
Accelerated Growth No. of policies sold 21,37 1,15,965 1,86,443
2,88,189 7,81,685 20,79,217 37,44,742
New Business in FY Rs. 7 cr. Rs. 63.3 cr. Rs. 180 cr. Rs. 857
cr. Rs. 2,717 cr. Rs. 4,302 cr. Rs. 6,674 cr.
Mission of the companyIndia has 102 crore population but only 16
crore people are insured till now. Still 86 crore People are yet to
be insured. Also in broader perspective, company wants to make
every person get benefited through investing in Bajaj Allianz Life
Insurance. The Company is focusing on improving employee
productivity, policy persistency, operational processes and service
levels. Vision of the Company 1) To be the first choice insurer for
customers. 2) To be the preferred employer for staff in Insurance
industry. 3) To be the number one insurer for creating shareholder
value 4) To aspire to be a world class organization.
39
5) To encourage organizational transparency. 6) To value
integrity.
HISTORY OF THE COMPANYBajaj Allianz Life Insurance Co. Ltd.is a
joint venture between two leading conglomerates- Allianz AG, one of
the world's largest insurance companies, and Bajaj Auto, one of the
biggest 2 and 3 wheeler manufacturers in the world. Characterized
by global presence with a local focus and driven by customer
orientation to establish high earnings potential and financial
strength, Bajaj Allianz Life Insurance Co. Ltd. was incorporated on
12th March 2001. The company received the Insurance Regulatory and
Development Authority (IRDA) certificate of Registration (R3) No
116 on 3rd August 2001 to conduct Life Insurance business in India.
Bajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj
group is the largest manufacturer of two-wheelers and
three-wheelers in India and one of the largest in the world. A
household name in India, Bajaj Auto has a strong brand image &
brand loyalty synonymous with quality & customer focus. With
over 15,000 employees, the company is a Rs. 4000 crore auto giant,
is the largest 2/3-wheeler manufacturer in India and the 4th
largest in the world. AAA rated by Crisil, Bajaj Auto has been in
operation for over 55 years. It has joined hands with Allianz to
provide the Indian consumers with a distinct option in terms of
life insurance products.
Details of the CompanyManaging Director and CEO Mr. Kamesh
Goyal40
Sashi Krishnan, CIO, Bajaj Allianz Life Insurance
C.F.O. Mr. Rajesh Viswanathan
Head, Marketing- Mr. Sanjay Jain
BOARD OF DIRECTORS: Mr. Rahul Bajaj (Chairman) Dr. Werner
Zedelius Mr. Sanjay Asher Mr. Niraj Bajaj41
Mr. Sanjiv Bajaj Mr. Heinz Dollberg Mr. Ranjit Gupta Mr. S. H.
Khan Mr. Suraj Mehta Mr. Dietmar Raich Mr. Manu Tandon Mr. Kamesh
Goyal (Alternate Director to Dr. Werner Zedelius) Address Branch
Address: Bajaj Allianz Life Insurance Co. Ltd. Shalimar Towers,
TC-57N Vibhuti Khand Gomtinagar, Lucknow-226010. Telephone: (+91
522) 6450751 Head Office Address: Bajaj Allianz Life Insurance
Company Limited GE Plaza, Airport Road, Yerawada, Pune-411006
Maharashtra Telephone: (+91 20) 66026777
CHANNEL PARTNERS OF BAJAJ ALLIANZStandard Chartered Bank Contact
Number : 022 2492 8888 E-mail Address:
[email protected]
42
Syndicate Bank Contact Number : 020 4026 742 E-mail Address:
[email protected] www.syndicatebank.com Placement
Sales and Services Ltd. Contact Number : 0487-2388666,2385922 Tele
Fax 2388666 E-mail Address: [email protected] Address:
Regency Centre, Kalavary Road, West Fort, Thrissur 4 Kerala, India
Team Life Care Co. (India) Ltd. Contact Number : 0427 - 2410707;
2420707; Tele Fax 2421245 Address: 5/118, Yercaud Main Road,
Chinnakollapatti, SALEM - 636008. Ernestine Consultants Pvt Ltd.
Contact Number : 080- 4034 1999 Fax- 080 - 4034 1920 Address: 1011,
Ist Floor 3rd Cross, 13th Main HAL 2nd Stage, Indira Nagar
Bangalore-560038
www.teamlifecare.in
COSMOS Co-op BANK Ltd. Contact Number : 020 2488051 E-mail
Address : [email protected] www.cosmosbank.com 43
Organizational chartBranch Manager V V Business Development
Manager (B.D.M.) V V Assistant Business Development Manager
(A.B.D.M.) V V Insurance Sales Officer (I.S.O.)
PRODUCTS OF BAJAJ ALLIANZ LIFE INSURANCE1) BAJAJ ALLIANZ NEW
FAMILYGAIN
44
The thumb rule for buying insurance is that your insurance needs
are minimal in your early earning years, increases with added
responsibilities (Marriage, children, loans etc.) and taper off by
the time you retire. It is difficult to find a single insurance
plan that can take care of all your changing requirements in life
additional protection, more money to invest, sudden requirement of
cash or a steady post-retirement income. With Bajaj Allianz New
Family Gain, you can invest in one life insurance plan that can
take care of all your changing requirements. This plan has been
designed to provide you with maximum flexibility, so that you do
not have to worry about your changing needs. The Bajaj Allianz New
Family Gain comes with a host of features to allow you to have the
best of all worlds - Protection and Investments. It enables every
participant to create a solid financial protection and savings plan
for himself and his family. In this way, as a participant in the
Bajaj Allianz New Family Gain Plan, you can secure your well-being
and accumulate savings towards financial independence and a
comfortable retirement. The Key Features of the New Family Gain
Plan are: It is a unit linked Endowment type plan with a minimum
term of 10 years and maximum maturity age 70 years. Guaranteed
death benefit: Sum Assured Plus Fund Value of Units. You have the
option to choose a host of additional rider benefits: UL Accidental
Death Benefit, UL Accidental Permanent Total/Partial Disability
Benefit. It provides you with an easy, regular contribution
mechanism to assist you in accumulating funds. You can select an
investment strategy to grow the funds contributed. Choice of 7
investment funds today with flexible investment management: you can
change funds at any time and also invest in the newer funds that
would be introduced from time to time. The premiums allocated are
invested in fund/funds of your choice (depending on the allocation
rate) and units are allocated depending on the price of units for
the fund/funds. The value of your policy is the total value of
units that you hold in the fund/funds. The insurance cover charges,
policy administration charges and the additional rider benefit
charges are deducted through monthly cancellation of units. The
Fund Management Charge is priced in the unit value.
45
You can choose a Sum Assured (Level of Protection) that you want
in the New Family Gain Plan. Minimum Sum Assured = 5 times of
Annualized Premium Maximum Sum Assured = Policy Term times of
Annualized Premium
Death Benefit: The death benefit will be 1) On death before
attaining the age of 7 year: The death benefit will be the NAV of
the units in the policyholder's account (Fund Value) as on date of
receipt of intimation of death at the office. The policy terminates
on the death of the life assured. 2) On death on or after attaining
the age of 7 years: The death benefit will be the sum assured plus
the NAV of the units in the policyholder's account (Fund value) as
on date of receipt of intimation of death at the office. Maturity
Benefit On maturity, the NAV of units in the fund will be paid out
and the policy will terminate. Additional Rider Benefits available
with New Family Gain You have the option to add the following
additional rider benefits, providing total protection against
uncertainties. UL Accidental Death Benefit UL Accidental Permanent
Total & Partial Disability Benefit (Please refer to the
brochure on additional rider benefits for more details.) Assured
protection even if you miss payment of your premiums Bajaj Allianz
New Family Gain provides you with the unique feature of continued
protection even if you forget to pay your premiums. After payment
of 3 full years' premiums, when premiums due are not paid the46
policy will be kept in-force, with full insurance benefits by
way of deducting units for the Cost of Insurance and all other
charges, provided the Fund Value less surrender charge, if any does
not falls to an amount equivalent to one annual premium under the
policy. Bajaj Allianz New Family Gain offers you a choice of 7
funds. You can choose to invest fully in any one fund or allocate
your premiums into the various Funds in a proportion that suits
your investment needs. TAX BENEFITS Premiums paid and benefits
received will be eligible for tax benefits as per applicable tax
laws. As per the current tax laws: Premiums payable are eligible
for tax benefits as per Section 80C of the Income Tax Act. Partial
Withdrawals, Surrender Value, Death Benefit and Maturity Benefit
are eligible for tax benefits as per Section 10(10D) of the Income
Tax Act. In case of change in any tax laws relevant to the
policyholder or the fund performance, the same will be applied as
per regulations prevailing at that point of time. RISK OF
INVESTMENT UNDER UNIT LINKED PLANS The Proposed/Life Assured is
aware that the investment in the Units is subject to the following,
amongst other risks and agrees that he is making the investment in
the Units with full knowledge of the same. Unit Linked Life
Insurance products are different from the traditional insurance
products and are subject to the risk factors. The premium paid in
unit linked life insurance policies are subject to investment risks
associated with capital markets and the Unit Price of the units may
go up or down based on the performance of the fund and factors
influencing the capital market and the insured/policyholder are
responsible for his/her decisions. Bajaj Allianz Life Insurance is
only the name of the insurance company and Bajaj Allianz New Family
Gain is only the name of the policy and does not in any way
indicates the quality of the policy, its future prospects or
returns. Please know the associated risks and the applicable
charges from your policy document or by consulting the Company,
your Insurance agent or your Insurance intermediary.47
Pure Stock Fund, Equity Index Fund II, Bond Fund, Asset
Allocation Fund, Accelerator Mid-Cap Fund, Equity Growth Fund and
Liquid Fund are the names of the funds offered currently with Bajaj
Allianz New Family Gain, and in any manner do not indicate the
quality of the respective funds, their future prospects or returns.
The investments in the Units are subject to market and other risks
and there can be no assurance that the objectives of any of the
funds will be achieved. Pure Stock Fund, Equity Index Fund II, Bond
Fund, Asset Allocation Fund, Accelerator Mid-Cap Fund, Equity
Growth Fund and Liquid Fund do not offer a guaranteed or assured
return. All benefits payable under the Policy are subject to the
tax laws and other financial enactments, as they exist from time to
time. The past performance of other funds of the company is not
necessarily indicative of the future performance of any of these
funds. Important details of the plan: Minimum Age at Entry: 0
years(Risk commences at age 7) Maximum Age at Entry: 60 years
Minimum Age at Maturity: 18 years Maximum Age at Maturity: 70 years
Minimum Term: 10 years. For minor lives: 18 minus age at entry of
minor life subject to minimum of 10 years. The minimum age at entry
for all additional rider benefits is 18 years. The maximum age at
entry for all additional rider benefits is 50 years. For your
convenience, we have provided 3 premium payment modes that can be
Yearly, Half-Yearly, and Quarterly. We also offer a Monthly premium
payment mode with salary deduction schemes or ECS. The minimum
premium is Rs. 5000 for the Yearly Mode, Rs. 2,500 for Half Yearly,
Rs. 1,250 for Quarterly and Rs. 500 for the Monthly Mode. In
addition, you also have the option to pay topups to increase your
investments. The minimum top-up premium is Rs. 1,000. If any due
regular premium is not paid within the days of grace in the first
three policy years, the policy shall lapse. The policyholder will
get an opportunity to revive the policy within two years from the
date of first unpaid premium, and if he does not revive during this
period the contract shall be terminated and the surrender value
will be the fund value as on date of lapse less surrender charge,
if any. This would be paid on the expiry of the revival period or
three policy years, whichever is later.
48
If policy is lapsed and death occurs during this period, the
fund value as on date of lapse would be paid and the policy will
terminate immediately. If all the due premiums have been paid for
at least first three consecutive years and subsequent premiums are
unpaid, you will be given an opportunity to revive the policy
within two years from the first unpaid premium. During this limited
period for revival, the insurance covers under the policy shall
continue levying all appropriate charges by cancellation of units
at the prevailing unit price to meet the mortality charge and other
expense charges until the Fund value in respect of Regular Premium
less surrender charge, if any, falls to an amount equivalent to one
annual premium (NAV) across all the funds. At the end of two years
i.e. period for revival, if the contract is not revived, you can
opt to continue the insurance cover under the policy subject to
deduction of all charges until the Fund value in respect of Regular
Premium less surrender charge, if any, falls to an amount
equivalent to one annual premium (NAV) across all the funds. If you
do not opt to continue with the insurance cover after the revival
period, the contract shall be terminated by paying the fund value
as on date of termination less surrender charge, if any. When the
Fund value in respect of Regular Premium less surrender charge, if
any, falls to an amount equivalent to one annual premium you will
be notified about this and the contract shall be terminated by
paying the fund value as on date of termination less surrender
charge, if any.
2) NEW UNIT GAINThis product is similar to New Family Gain but
in this product the minimum premium that is to be paid is Rs. 10,
000 and there is no limit for maximum premium. The Sum assured is
five times the premium amount. Both these products (New Family Gain
and New Unit Gain) were started from 1st July 2006.
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Key highlights of Bajaj Allianz New Unit Gain Your investment,
apart from normal allocation receives Loyalty units
Equivalent to 51% of the first years Annualized Premium over a
period of 10 years. Choice of 2 investment portfolio strategies to
manage your investments Better. Your Policy continues to
participate in the investment performance of the fund(s), even if
you are not able to pay 3 full years premiums. Maximum flexibility:
Option to increase the premium Partial withdrawal anytime after 3
years from the commencement of the policy, provided 3 years regular
premiums have been paid. Three free switches every year. Option to
pay unlimited top-up premiums anytime during the tenure of the
policy, to further enhance your savings. o Three simple terms to
choose from: 15, 20 and 25 years. o A host of additional rider
benefits to provide you with additional protection. o Guaranteed
Life Cover, with flexibility to choose insurance cover to suit your
changing needs.
3) PENSION GUARANTEEYour date of retirement is closing in. You
want something that gives you an assured income long after youre
retired. We at Bajaj Allianz Life Insurance are aware of this need,
and have come up with a plan that lasts you for a lifetime. Invest
your savings in the Bajaj Allianz Pension Guarantee, a plan that
gives you a guaranteed income, till your time comes. The Bajaj
Allianz Pension Guarantee Plan With Bajaj Allianz Pension
Guarantee, you can ensure a regular income after retirement. The
plan offers you a range of immediate annuities to choose from. The
immediate annuities available are:
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Bajaj Allianz Pension Guarantee- Life Annuity: Annuity for Life
Bajaj Allianz Pension Guarantee-: Annuity Guaranteed for 5 years
and life thereafter Bajaj Allianz Pension Guarantee-: Annuity
Guaranteed for 10 years and life thereafter Bajaj Allianz Pension
Guarantee-: Annuity Guaranteed for 15 years and life thereafter
Bajaj Allianz Pension Guarantee-: Annuity Guaranteed for 20 years
and life thereafter Bajaj Allianz Pension Guarantee-Return of
Capital: Annuity for life with Return of Capital (Purchase Price)
How does Bajaj Allianz Pension Guarantee work? All you have to do
is pay a lump sum amount to Bajaj Allianz Life Insurance Company
and the annuity payments will start after expiry of
monthly/quarterly/half-yearly/ yearly interval corresponding to the
payment mode selected by you. Under all the options, annuity is
payable for life, so you do not have to worry about your income
stopping at any stage. Under the Return of Capital option (option 6
above), the amount used to purchase the annuity is paid to the
nominee on the death of the annuitant. Important details of the
Bajaj Allianz Pension Guarantee Plan Minimum Age at Entry 45
Maximum Age at Entry 80 Minimum Purchase Price Rs. 25,000 Minimum
Annuity Installment Rs. 1,000 Annuity Frequency Mode For your
convenience we have provided 4 Annuity Frequency Modes that can be
Yearly, Half yearly, Quarterly or Monthly. The annuity will be
payable one month/quarter/half year/year after the date of purchase
depending on the mode selected.
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The Sample Annuity Rate per annum per Rs.1 lakh of purchase
price is given below. The annuity rate varies between different
purchase price bands. Tax Benefits The policy will be eligible for
tax benefits under Section 80C of the Income Tax Act as of now. 4)
BAJAJ ALLIANZ PROTECTOR Dreams and Aspirations - we are constantly
driven in our pursuit of these. House, Consumer Durables, visits to
exotic locations are some of the dreams we live for. And the best
way to fulfill them is through easy loans available at todays low
interest rates. With small equated monthly installments, the price
is not too heavy. Yet, who can predict the unfortunate twists and
turns in life? And in case of unfortunate death of the loanee, the
burden of repayment falls on the family. Bajaj Allianz Protector is
the perfect plan to protect your family from the repayment
liability of outstanding loans. All this at a very nominal cost.
Now, is there a better way to provide for your familys financial
security? The Bajaj Allianz Protector Plan The Bajaj Allianz
Protector Plan is a mortgage term insurance plan that covers the
outstanding principal amount of a loan. It is an economical way to
protect the family from the burden of repayment of the loan in case
of death of the loanee. The plan is designed to pay a sum insured
that will be equal to the outstanding principal amount of the loan
due. The Bajaj Allianz Protector Plan offers you the convenience of
choosing between two premium payment options Regular Premium
Payment - Premium payment limited to approximately 2/3rd of the
loan tenure, while coverage continues for the full tenure of the
loan. Single Premium Payment - One time premium payment covering
you for the full tenure of the loan.
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Joint life availability You have the option to cover the
co-applicant of the loan under this plan. Under this option, both
lives will be covered and the death benefit will be payable in case
of death of either life. The policy terminates on death of either
life. Benefits Payable Death Benefit The death benefit is equal to
the outstanding principal amount of the loan due as per the loan
schedule, irrespective of changes in interest rate/term at a later
stage. The outstanding amount of loan due will depend on the loan
amount, loan tenure and interest rate as agreed upon at the time of
disbursement of the loan. Important details of the Bajaj Allianz
Protector Plan Eligibility Condition Minimum Sum Assured Rs. 2,
00,000 Maximum Sum Assured No Limit Minimum Age at Entry 20 Yrs
Maximum Age at Entry 55 Yrs Maximum Age at Policy Expiry Date 65
Yrs Minimum Term for Single Premium 2 Yrs Minimum Term for Regular
Premium 5 Yrs Maximum Term (Regular and Single Premium) 30 Yrs
Premium Payment Mode For your convenience we have provided 5
Premium Payment Modes that can be single premium, yearly,
half-yearly, quarterly or monthly. The premium for frequencies
other than yearly mode is the annual premium multiplied with the
frequency factor (0.51 for the half yearly mode, 0.26 for the
quarterly mode, and 0.09 for the monthly mode). Monthly mode is
permitted only by salary deduction or direct bank debit. The
minimum premiums are Rs. 2500 for the Single Premium, Rs. 1000 for
the annual mode, Rs. 700 for the halfyearly mode, Rs. 450 for
quarterly mode and Rs. 175 for monthly.53
Tax Benefits Tax benefits under Section 80C and Section 10(10)D
available as per applicable tax laws. All payments due under this
plan shall be governed by tax laws applicable at that point of
time. Surrender values/Paid up Values There are no surrender values
or paid-up values under this plan. Loans Loans are not available
under this plan Change of Occupation On change of occupation,
depending upon the nature of the new occupation, the premiums and
benefits may be modified. Days of Grace In case of non-payment of
premiums, a grace period of 30 days will be allowed for the yearly,
half yearly and quarterly modes (15 days for the monthly mode).
After that the policy will lapse. Revival of the Policy It is
possible to revive a policy that has lapsed due to nonpayment of
premiums within 5 years from the date of lapse. The revival will be
effected subject to underwriting. In case of joint life, revival
would be subject to underwriting on both lives. General Exclusion
In case the life assured (in case of joint life, either of the life
assured) commits suicide within one year from the date of
commencement / reinstatement of the policy, the benefits of the
plan would not be payable, and the premiums would be refunded. 5)
TERM CARE Life Insurance..... At the back of our minds we are often
nagged by certain fears, the fears of an uncertain future, the
insecurity of not
54
being able to provide adequately for our loved ones, the fear of
not being able to save enough. Life Insurance is the only complete
answer to these fears. It is life insurance that provides you with
the security of a financial safety net and enables you to plan for
unpredictable adversities. Happiness often sneaks in through a door
you didn't know you left open. Let life insurance be that door for
you. The 'Bajaj Allianz Term Care' Plan The 'Bajaj Allianz Term
Care' Plan is a term insurance plan. It is an economical way of
providing for one's life cover and at the same time ensuring that
the premiums paid are returned at maturity. What does the 'Bajaj
Allianz Term Care' Plan offer you? This plan not only offers you
life insurance cover at a low cost, but also provides for return of
premiums on maturity. The premiums returned at maturity will be
equal to the single premium or the sum total of equivalent annual
premiums of the Economy Pack (excluding extra premiums charged, if
any). In case of pre-mature death during the policy term, the full
Sum Assured will be paid to the nominee. The 'Bajaj Allianz Term
Care' Plan offers you the convenience of choosing between two
premium payment options. Regular Premium Payment - Premium payment
throughout the selected term. Single Premium Payment - One time
premium payment for the selected term at commencement. Apart from
covering the risk of natural death, this plan also provides you the
option to choose upto 5 additional benefits. You can select a
specific combination of additional benefits best suited to your
needs, available in 4 attractive packages to choose from. i.
Economy: This is the basic plan, which is available for both the
regular and single premium payment options.
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ii. Protect: This pack comes with the following 3 in-built
additional benefits: a. Accidental Death Benefit. b. Accidental
Permanent Total/Partial Disability Benefit. c. Waiver of Premium
Benefit (in case of accidental permanent total disability). The
Protect Pack is available with the regular premium payment option
only. iii. Health: This pack comes with the following 2 in-built
additional benefits: a. Critical Illness Benefit. b. Hospital Cash
Benefit. The Health Pack is available with the regular premium
payment option only. iv. Total: This pack comes with the following
5 in-built additional benefits: a. Accidental Death Benefit. b.
Accidental Permanent Total/Partial Disability Benefit. c. Waiver of
Premium Benefit (in case of accidental permanent total disability).
d. Critical Illness Benefit. e. Hospital Cash Benefit. The Total
Pack is available with the regular premium payment option only.
What are the in-built benefits that the 'Bajaj Allianz Term Care'
Plan offers you? a. Accidental Death Benefit Accidents are always
sudden and sometimes fatal. You can't lessen the emotional shock,
but you can certainly soften the financial one. Bajaj Allianz
Accidental Death Benefit gives your loved ones something to start
with after the permanent loss of your income by paying double the
basic Sum Assured. The total Accidental Death Benefit shall however
be subject to a maximum of Rs. 10, 00,000/- under all policies
taken with Bajaj Allianz together. b. Accidental Permanent
Total/Partial Disability Benefit Accidents are unpredictable and so
are the consequences. This may lead to a disability - partial or
total. The Bajaj
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Allianz Accidental Permanent Total/Partial Disability Benefit
provides a financial cushion against such misfortunes. Type of
Disability Benefits Accidental Permanent Partial Disability 50 % of
Sum Assured * Accidental Permanent Total Disability 100 % of Sum
Assured ** * Subject to a maximum of Rs. 5, 00,000/- under all
policies with Bajaj Allianz taken together. ** Subject to a maximum
of Rs. 10, 00,000/- under all policies with Bajaj Allianz taken
together. c. Waiver of Premium Benefit An accident may lead to
permanent total disability limiting your ability to earn. The Bajaj
Allianz Waiver of Premium Benefit is a helping hand when you need
it most. It keeps your insurance cover alive by waiving off future
premiums and enables you to live up to your commitments. d.
Critical Illness Benefit Some illnesses are critical. They not only
alter your life's pattern but also result in a financial drain.
Bajaj Allianz Critical Illness Benefit softens the impact on your
family by paying out the Critical Illness Benefit (equal to the Sum
Assured) under the plan immediately, while other policy benefits
continue (excluding Hospital Cash Benefit). We cover 11 Critical
Illnesses. e. Hospital Cash Benefit The worry of settling hospital
bills (room charges) adds to the trauma of hospitalization. Bajaj
Allianz Hospital Cash Benefit reduces this financial burden and
helps you to recover with peace of mind. Flexibility in Coverage*
At Bajaj Allianz, we believe in offering benefits and not just
products. We realize that you are unique and your needs for
insurance vary with time. We therefore offer you the flexibility of
including the following benefit combination at each policy
anniversary.
57
Combination 1: Accidental Death Benefit; Accidental Permanent
Total/Partial Disability Benefit; Waiver of Premium Benefit. This
combination can be added, if not taken earlier, deleted and added
subsequently at each policy anniversary. We also offer the
flexibility of excluding the following benefit combination:
Combination 2: Critical Illness Benefit; Hospital Cash Benefit.
This combination can be taken at inception only but can be excluded
subsequently at any policy anniversary. Once excluded, Combination
2 cannot be included in the policy subsequently. * Available with
the regular premium payment option only Other important details of
the 'Bajaj Allianz Term Care' Plan. Eligibility Condition Minimum
Age at Entry Maximum Age at Entry Maximum Age at Maturity Minimum
Term Maximum Term Minimum Sum Assured 00,000/Maximum Sum Assured
00,000/Minimum Premium Yearly, Half Yearly. The minimum premium for
Single Premium option shall be Rs. 6000/Premium Payment Mode For
your convenience we have provided 3 Premium Payment Modes that can
be single premium, yearly or half-yearly.58
18 Years 50 years 65 years 5 years 40 years Rs. 1, Rs. 10, (Rs.)
1500/- for Rs. 1500/- for
6) BAJAJ ALLIANZ NEW RISK CARE PLAN Bajaj Allianz New Risk Care
plan, a bouquet of happiness, security and pride for you & your
family. Commitments towards the family are non-measurable and
countless. Its our endeavor to keep up your commitments by sharing
your burdens and reducing your liabilities. In case of any mishap
or unfortunate event, the plan will always stand by you as a pillar
of strength. Bajaj Allianz New Risk Care helps you to secure your
familys well being, and create a strong financial back up in case
of any unforeseen eventualities. Allow us to take over your
financial concerns and worries to rest on us. Insure your Today
with us to ensure your familys Smiles Tomorrow The Key Features of
Bajaj Allianz New Risk Care: A non-participating traditional Term
Assurance plan. Higher insurance coverage at Low premium.
Regular/Single Premium payment options. Enhanced Protection options
available through Additional Rider Benefits. Rebates on premium
in-case of high sum assured (both on regular and single premium
mode). How does the Bajaj Allianz New Risk Care work? What are the
Benefits? You are required to make regular installments or a
one-time payment. In case of any unfortunate happening before
maturity of the policy, the Death Benefit on the policy will be
paid to the nominee. There is no maturity benefit. Power of 4 for
Enhanced Protection Power of 4 for Enhanced Protection Accidental
Death Benefit: Covers against Accidental Protection. Accidental
Permanent Total/Partial Disability Benefit: Covers against
Disability protection. Critical Illness Benefit: Covers you against
11 defined critical diseases.
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Hospital Cash Benefit: Reduces your burden against
hospitalization expenses. (For complete details on riders, please
refer to our Additional Rider Benefits Brochure. These additional
Rider Benefits are available on regular premium policies only and
not on single premium policies.) Flexibility in Coverage At Bajaj
Allianz, we believe in offering solutions and not just benefits. We
believe that you are unique and your needs for insurance are
different from others and vary with time. We therefore present you
New Risk Care with Additional Rider Benefits, which offers you the
flexibility of inclusion or exclusion of coverage at each policy
anniversary, subject to conditions relating to such inclusions and
exclusions. Accidental Death Benefit, Accidental Permanent
Total/Partial Disability Benefit can be included or excluded at
each policy anniversary, but once excluded cannot be included
again. Hospital Cash Benefit (HCB) and Critical Illness (CI) can be
taken at inception only. HCB & CI can be reduced or excluded
subsequently at any policy anniversary. Once reduced or excluded,
they cannot be increased or included subsequently. Minimum Premium
Amount Rs. 200 per Monthly installment (through salary deduction or
ECS), Rs. 500 per Quarterly installment, Rs. 1,000 per HalfYearly
installment, Rs. 1,500 per Yearly installment, Rs. 5,000 for Single
Premium. Important Details Minimum Entry Age 18 years Maximum Entry
Age 60 years Maximum Maturity Age 65 years Minimum Policy Term 5
years Maximum Policy Term 40 years Minimum Sum Assured Rs.4, 00,000
Maximum Sum Assured Rs.50, 00, 00,000 Premium paying frequency
yearly Yearly/Half
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/Quarterly/Monthly/ Single High Sum Assured Rebate (HSAR) On Sum
Assured of Rs. 10,00,000 or more
Indicative Premiums The table below illustrates the premium
rates* for New Risk Care. Age: 30 Years Gender: Male Sum Assured:
Rs. 5, 00,000 Payment Mode 10 25 Single Premium (in Rs.) 9,045
22,630 Regular Annual Premium (in Rs.) 1,665 2,065 *Excluding
service tax. Death benefit In case of any unfortunate happening
before maturity of the policy, the Death Benefit equal to the
chosen Sum Assured on the policy will be paid to the nominee.
Surrender Value In case of Single Premium mode, the policy can be
surrendered after five years from Policy Commencement Date and the
surrender value is equal to 0.70*(n-t)/n*Single Premium, where n is
Policy Term and t is elapsed duration in years from Policy
Commencement Date to the Policy Anniversary following the date of
surrender. Surrender value is not payable on Regular Premium mode.
Revival of lapsed Policy You may revive the lapsed policy within
two years from first unpaid premium by paying all due regular
premiums along 15 13,140 1,840 Term 20 17,650 1,970
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with interest compounding half-yearly at such rate as the
Company may decide from time to time. Tax Benefits Premium paid
will be eligible for tax benefit under Section 80C. The death
benefit will be eligible for tax benefit under Section 10(10) D as
per the prevailing tax laws. Nomination Nomination can be made for
receiving policy proceeds in case of death. General Exclusion If
the Life Assured commits suicide whether sane or insane, within one
year from the Policy Commencement Date or Commencement of Risk, the
Company will not entertain any claim by virtue of this Policy
except to the extent of the Installment/Single Premium paid. The
actual date of death will be the basis for determining the validity
of the contract of insurance. 7) CHILD GAIN Are your children
destined for greatness? Will they devise the universal currency, or
solve the problem of global warming? Will they make music like we
have never heard before, or keep shattering records in sports? Will
they bring God to men, or peace to the world? Your children may
just be the ones to end wars, feed the hungry, and care for many.
Your child can aim for the highest echelons of success, for
greatness, and immortal fame. Your child can dream. But before your
child does, you must. Bajaj Allianz ChildGain Plan Taking care of a
child is perhaps the most important job a parent can have. It is
natural that you would like to give your child your best, and
therefore, this is the time when careful financial planning can
help you fulfill the aspirations that you have for your children.
The Bajaj Allianz ChildGain Solutions
62
help you to enjoy the joys of parenthood responsibly, with the
reassurance of a secure future for your child. What does Bajaj
Allianz ChildGain Plan offer you? Bajaj Allianz ChildGain offers a
wide array of solutions that allows you to plan for your childs
future by providing you with as many as 4 distinct and unique
options. Option 1: ChildGain 21 Option 2: ChildGain 24 Option 3:
ChildGain 21 Plus Option 4: ChildGain 24 Plus Common features in
the 4 Options of Bajaj Allianz ChildGain Plan 1. Limited Premium
Payment Term which means that the premiums are payable till your
child attains age 18 years. 2. Your contributions grow by the way
of compounded annual bonuses, which will be paid to you with the
first guaranteed payout (policy anniversary following age 18 of
your child), for in-force policies. In addition to the annual
bonuses, a terminal bonus may also be paid. 3. You are eligible for
Tax Benefits under Section 80C and Section 10(10) D of the Income
Tax Act. 4. Assuring Your Childs Future: In an uncertain world, the
prime interest of your child cannot be jeopardized in any way. This
is why we have built in some added benefits in all our plans to
protect the interests of your childs future, by counter insuring
you- the policy holder. Inbuilt Benefits Premium Waiver Benefit: In
case of death or accidental total permanent disability of the
policyholder during the premium payment term, all future premium
payments are waived. This benefit will not be available in the
event of accidental permanent total disability after age 65 of the
policyholder.
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Family Income Benefit: In case of death or accidental total
permanent disability of the policyholder during the term of the
policy, a monthly income benefit of 1% of the sum assured (12% per
annum) subject to a maximum of Rs.10,000 p.m. becomes payable till
the end of the policy term. This benefit will not be available in
the event of accidental permanent total disability after age 65 of
the policyholder. Option to Purchase further Insurance at Maturity:
For ensuring continuity of the valuable insurance protection that
the child was enjoying, we offer the child an option to purchase a
with profits endowment or an equivalent plan from Bajaj Allianz
Life Insurance Company for twice the amount of face value of this
policy, without any medical examination, on the premium rates
prevailing at that time (The application must be made at least 6
months prior to maturity of this policy). Payout Structures For
ChildGain 21 and ChildGain 21 Plus: The minimum guaranteed payouts
are as follows: Policy Anniversary following 21 completion of Age
Payout as % of Sum Assured 35%* 18 19 20 25%
20% + Accrued 25%
Bonuses For ChildGain 24 and ChildGain 24 Plus: The minimum
guaranteed payouts are as follows: Policy Anniversary following 24
completion of Age Payout as % of Sum Assured 40% 18 25% + Accr