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Bajaj Allianz Life Launches Value-packed Annuity Product

In Business
February 26, 2021

Bajaj Allianz Life, one of India’s leading life insurer, launched its value- packed annuity (pension) plan – Bajaj Allianz Life Guaranteed Pension Goal, today. The comprehensive plan is designed to meet the pension needs of different types of customers and offers nine annuity options to choose from.

It is the only life insurance plan that offers a regular premium deferred annuity option that enables policyholders to guarantee their pension amount at the time of retirement by paying regularly over a period of time. Additionally, the plan also offers an option for policyholders’ spouse to continue receiving the guaranteed income during his / her lifetime. Further a legacy can be left for the nominees by ensuring the Return of Purchase Price (RoP).

As living expenses including health care costs rising, it is essential to have a robust pension plan, which will help individuals meet these expenses post retirement. This pension should be able to meet the needs for the lifetime of the policyholder, which is also increasing as life expectancy is improving. Hence, financial solutions, such as Bajaj Allianz Life Guaranteed Pension Goal, stands out as it offers guaranteed regular income as long as one is living. This is possible as the insurance plan locks the annuity amount at the time of buying the policy, and that stays fixed or lifetime.

Tarun Chugh, MD & CEO, Bajaj Allianz Life, said “Like other developing countries, India is undergoing demographic changes in terms of share of ageing and improvement in life expectancy rate. At the same time, cost of living is increasing, and the nuclear family set-ups thriving. Add to this a not so comprehensive social security system. This developing environment makes it critical for individuals to save for their retired lives, which typically will span for 25-30 years post their working age (typically 60 years in India). While there are several saving instruments that will help build a retirement corpus, annuity plans are one of the most effective tools to ensure individuals receive an income in a sustained manner through their retired life. To make it more convenient for individuals to plan for their retired life, we have introduced the deferred annuity with regular premium feature in our latest product Bajaj Allianz Life Guaranteed Pension Goal. This, first-of-its-kind feature will strike the right note with our customers and will help policyholders sustain the lifestyle they’d wanted during their retired lives.”

Bajaj Allianz Life Guaranteed Pension Goal enables policyholders to opt for immediate regular income through an immediate annuity plan or start the income later through the deferred annuity plans. The plan is designed to help people secure their retirement income for life.

Key features of Bajaj Allianz Life Guaranteed Pension Goal
The plan offers the following value-packed features:

1) Guaranteed Lifelong Regular Income: To assure policyholders of a secured financial future and receive their pension amount yearly / half-yearly / quarterly or monthly, the annuity (pension) amount is fixed at the beginning of the policy. The annuity (pension) is paid regularly to policyholders throughout their life as per their choice and need.
2) Joint Life option with continued payout for both lives: Policyholder has the option to take joint life annuity (pension) with 50% or 100% annuity (pension) payable to spouse after their death, thus ensuring their family’s life goals are on track even when they are not around.
3) Return of capital (Purchase price): Whether the customer chooses a single life or a joint life, the plan offers an option to receive the entire capital on death. The plan also comes with an option of return of purchase price on survival. In both cases the annuity (pension) is payable for life.

  1. In the 1 st option on death of the policyholder, the purchase price will be returned to the nominee
  2. In the 2 nd option, the purchase price is returned to the policyholder at age 85 with the annuity (pension) continuing. One can also receive the purchase price in
    yearly instalments from the age of 75 years

4) Nine annuity (pension) options to choose from: Policyholder can choose from a wide range of Annuity (pension) options to meet their lifestyle goals post retirement. These are

  1. Life Annuity
  2. Life Annuity Return of Purchase Price on death
  3. Life Annuity Guaranteed for 5/10/15/20 years
  4. Joint Life with 50% annuity to spouse
  5. Joint Life with 100% annuity to spouse
  6. Joint Life Last Survivor with 100% of Annuity to spouse & with Return of
    Purchase Price on death of Last Survivor
  7. Life Annuity with return of purchase price on death / survival
  8. Life Annuity with return of purchase price on death or in annual instalments on survival
  9. Family Pension

5) Premium payment term of 5 to 10 years; single premium option also available:
Policyholder can choose to pay their premium once or for a period of 5 to 10 years as per their convenience.
6) Option to change Annuity (pension) Frequency: Policyholder will have the option to change the Annuity (pension) payment frequency, at any policy anniversary.
7) Guaranteed Addition (GA):Guaranteed Additions are added in case of a deferred annuity policy. This addition is before the start of the annuity payment.