Bajaj Allianz Life Insurance, on Thursday, July 13, 2023, launched the Bajaj Allianz Life ACE, a flexible guaranteed income life insurance plan.
In a release, the company said it is a non-linked, participating, early-income life insurance plan, which allows customers to customise their cash flows based on their financial needs.
Customers can start receiving income from the policy's start or postpone it by up to 5 years. They can decide whether to receive payment from the end of the first month of paying the premium or select a specific period that suits their financial requirements.
The plan also allows customers to choose the tenure, from a minimum of 10 years to up to 100 years of their age. Says Tarun Chugh, MD & CEO of Bajaj Allianz Life, based on their financial goal, customers can choose their income level, when and for how long they want the income, and how they want their cash flow.
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Four Product Options
Deferred Income: Insured receive income in arrears after the premium-payment term and deferment period. This income comprises a mix of guaranteed income and cash bonuses if declared. The deferment period allows customers to delay the start of their income by up to 5 years. Upon maturity, customers receive the sum assured, or 105 per cent of the total premiums paid, along with any accumulated income benefits and terminal bonus.
If the policyholder dies during the policy term, the person is entitled to death benefits, which include the sum assured, 105 per cent of the accumulated income benefits (if any), and a terminal bonus (if declared).
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Early Income: The insured can receive income in arrears from the first policy month or year after the deferment period, including cash bonuses (if declared) and guaranteed income. Similar to the deferred income option, customers can defer the start of their income by up to 5 years. The maturity proceeds, and death benefits remain the same.
Increasing Income: It provides higher income in arrears after the premium-payment term and deferment period. This income comprises a combination of guaranteed income and cash bonuses (if declared). The maturity proceeds, and the death benefits remain the same.
Wealth: The option offers customers a lump sum amount at the end of the policy term. This includes the maturity sum assured (based on the maturity sum assured rate multiplied by the annualised premium), accrued simple reversionary bonus (if declared), and terminal bonus (if declared). In the event of the policyholder's death, the death benefit includes the sum assured on death, accrued simple reversionary bonus (if declared), and terminal bonus (if declared).
Sum assured on death is 11 times the annualised premium, and the death benefit will never be lower than the guaranteed death benefit of 105 per cent of total premiums paid.
Bajaj Allianz Life ACE also has a Goal Protection Benefit, ensuring that the policyholder's family receives income through the policy term even after the policyholder's death. The release said the plan also offers women extra income on the premiums paid.
