Bajaj Allianz Pension Plans: Features & Benefits You Need To Know

Pension is not a new concept, and we are all aware that during the senior years of life, pensions play an important role. Furthermore, pension serves as a form of financial support structure for everyone. Every type of customer can find an insurance plan that suits their needs at Bajaj Allianz Life Insurance. The insurance company possesses a robust product portfolio, with a primary focus on Pension Plans.

 What are Bajaj Allianz Pension Plans?

A well-known insurance company in India, Bajaj Allianz has always tried to meet customer needs. This insurance company wants to give its customers insurance products that meet all of their financial needs and goals. The company provides a variety of insurance plans that cover everything and help each person reach their financial goals.

The policies that Bajaj Allianz sells give you and your family's economic security and protection while you are away. Bajaj Allianz is one of the most well-known private insurance companies because it is easy to manage policies, renew them, and pay out claims quickly.

Features of bajaj allianz pension plans

Customers of Bajaj Allianz Pension Plans can choose from a number of pension plans, but the Bajaj Allianz Pension Guarantee Plan  and the  Bajaj Allianz Retire Rich Plan are the best ones. Both of these plans are meant to help you build up a retirement fund that will help you live comfortably after you retire. The following are the parts of both plans:

Retire Rich Plan by Bajaj Allianz

Bajaj Allianz's unit-linked pension plan makes it possible to retire with confidence and simplicity, fulfilling all of your retirement ambitions. The policy is a market-linked pension plan, which means that the fund's performance depends on how the market is doing.

Bajaj Allianz's Retire Rich plan includes the following features.

• Guaranteed vesting benefit
• Death benefit that is guaranteed
• Investors can choose how they want to pay their premiums. Investors can change how long they have to pay their premiums.
• Choice to pay an extra premium or top-up
• You don't have to pay taxes on the premiums you pay during the policy's term, the amount you convert at the end of the policy's term, or the death benefit you get from this plan.

Pension Guarantee Plan by Bajaj Allianz

As a non-unit-linked, non-participating instant annuity plan, Bajaj Allianz's Pension Guarantee plan guarantees that investors will continue to receive a steady stream of income even after they've officially retired. The policyholders' annuity payments will be distributed in accordance with their annuity payment preferences. This policy has the following features:

• The plan gives the policyholder a choice of different kinds of annuities.
• For policyholders, the plan's instant annuity option means greater freedom to tailor their retirement savings to their specific requirements and aspirations.
• After the initial policy start date, you'll receive your first annuity payment either one month, three months, six months, or one year later.
• The annuity payment will be made once a year, every six months, once a quarter, or once a month, depending on what the policyholder chooses. 

Benefits of Bajaj Allianz Pension Plans

Below we have enlisted 2 different pension plans offered by Bajaj Allianz Life Insurance along with their plan benefits - 

• Retire Rich Plan by Bajaj Allianz

• Death Benefit

 If the life assured dies before the maturity date, the death benefit will be the greater of:

1. Total value of the fund on the date the life insured died, or
2. The death benefit is guaranteed.
3. The plan's guaranteed death benefit is equal to 105% of the total premiums and additional premiums (if any) paid up to the life assured's date of death.
4. The beneficiary has the option of taking the death benefit in a single lump sum payment or investing all or a portion of it in an annuity plan with Bajaj Allianz.

• Vesting Benefits

 The vesting benefit payable on the day of maturity shall be the greater of:

1. Alternatively known as the Guaranteed Vesting Benefit,
2. The value of the whole fund on the date of vesting.
3. The plan guarantees the policyholder 101% of all premiums and top-up premiums paid until policy maturity.

• Surrender Benefit

 During the policy's term, the policyholder can use the option to return the policy. If the policy is surrendered during the lock-in term, the policyholder will receive the surrender benefit once the lock-in period has ended. If the policyholder gives up the policy after the lock-in period is over, they can use the surrender benefit in one of two ways:

1.  by buying a plan that is single premium deferred single premium or
2.  by taking 1/3rd of the surrender benefit in a lump sum of cash and using the rest of the money to buy an immediate annuity policy

2. Pension Guarantee Plan by Bajaj Allianz

•  After the beginning of the policy, participants in this plan are eligible to receive their first annuity payment within one month, three months, six months, or twelve months, depending on the option they select. The first annuity payment will be made in accordance with the investor's chosen annuity payment schedule. This plan has the following benefits.Under the plan, there are five ways to pay the annuity:

1.  return of the purchase price with a life annuity.
2. Fixed annuity for five, ten, fifteen, twenty, and the rest of your life.
3. Joint life, last survivor, with spouse getting 50% of annuity
4. When the last survivor dies, the purchase price is returned.
5. Joint life, last survivor, with 100% of the annuity going to the surviving spouse.

• Under the Income Tax Act, the policyholder can deduct two-thirds of the insurance premiums during the policy's term and the entire amount of the premiums that are commuted at the policy's maturity.
• The insurance company gives the policyholder 15 days to look over the terms and conditions before canceling the policy. If the insurer is not happy with the policy's  terms and conditions, the policyholder can cancel the policy.

Conclusion

Insurance options are available from Bajaj Allianz Life Insurance, which may be tailored to meet the requirements of any clientele group or demand. It possesses a robust product portfolio, with a primary focus on pension plans.

Also Read: Retirement Planning: Why Should I Start Investing Today?