Bajaj Allianz CSC Bachat Plus

‘Protecting the family against the odds of life’, this is one of the main targets most people strive to achieve. They spend their whole life ensuring that their loved ones are absolutely safe and happy all through their lives. Most probably, you also pray and look forward to the same. Bajaj Allianz, one of the leading insurance players of India, understands this concern very well and hence they have designed a unique variable insurance policy, Bajaj Allianz CSC Bachat Plus. This policy would help you protect your family, both financially and mentally, from the unforeseen challenges of life. The best part – the policy is extremely pocket-friendly.

 

The key advantages of Bajaj Allianz CSC Bachat Plus

The policy offers the following:

 

    GIR (Guaranteed Interest Rate)

    AIR (Guaranteed Additional Interest Rate)

    Partial withdrawals options

    Premium payment frequency alteration options

 

How does the plan functions?

    At the inception of the policy, a PA (Personal Account) would be opened in the name of the applicant/policyholder (you).

    In this account, your transactions – regular premium payments done by you minus the premium allocation fee along with related services charges, would be recorded and maintained.

    Applicable services plus mortality charges would be deducted from your PA every month.

    The insurance provider would offer a GIR of 1% annually on the available balance in your PA. This amount would be credited to your account at the start of every calendar quarter all throughout the term of your policy.

    The AIR offered by the company would also get credited to your PA in the same way as mentioned above. Initially, i.e. in the first 5 years of the policy, you would get the AIR at the rate of 4 percent/annum. From then on, it would be calculated at the rate of 0.5 percent/annum.

    So, your balance in your PA, also known as PAV (Policy Account Value) would be the value of the regular premium payments done by you minus mortality charge, premium allocation charge, related services charges enhanced by AIR, GIR as well as residual add-ons, if any.

    Residual additions (non-zero positive), if any would be credited to your PA. This is done for meeting the required reduction in the yield parameter at the end of policy term from the beginning of the 5th year of the policy.

    A certain amount of fund would be floated by your insurance provider for this policy. Also, the investment pattern of the floated fund is regulated by the IRDA.

    You can opt for multiple policies, provided all the plans issued under the model of CSC distribution (before the fresh proposal for policy application) are active.

 

Benefits payable to you

Maturity benefit

On the date of maturity, the benefit you are eligible to get would be equal to your PAV. This benefit is subject to the least amount equal to the total premium payments done by you minus the summation of all the partial withdrawals done by you during the policy term. It is calculated at the rate of 1 percent/annum till the date of maturity.

 

Death benefit

If the policyholder dies during the term of policy, the death benefit payable to his or she nominee would be the higher of the following:

 

    the PAV or

    the Sum insured on death

 

Note – the sum insured on death would be the higher of the following:

    Sum insured

    105 percent of the total premium payments made till the death of the policyholder

    total premium payments made till the death of the policyholder compounded at the rate of 1 percent/annum

 

Surrender benefit

Bajaj Allianz CSC Bachat Plus allows you to surrender your plan at any point of time. Here go the conditions:

 

    If you surrender the same during the first 5 years (lock-in period) of your policy term, you are entitled to get the PAV (at the end of that period) as the surrender value.

    In case you surrender after that period, you are entitled to receive the PAV as on the surrender date. Thereafter, the policy would terminate.

 

The parameters of the policy

Policy Parameters

Eligibility

Minimum age of entry

14 years

Maximum age of entry

55 years

Minimum maturity age

65 years

Sum Insured Multiplier

Age < 45 years

Age >= 45 years

10 X of the annualized premium

7 X of the annualized premium

Total Sum Insured under all plans

Rs. 2, 00, 000

Policy Term

10 and 15 years

Premium Payment Term

Equal to the term of policy

Premium

Mode

Regular Premium

Annually

Half-annually

Quarterly

Monthly

Min.

Rs. 1, 800

Rs. 900

Rs. 450

Rs. 150

Max.

Rs. 20, 000

Rs. 10, 000

Rs. 5, 000

Rs. 1, 665

 

Some frequently asked questions

What are the charges under the plan?

Going through the table would help you know them:

Charges

Details

Mortality charges

The sample mortality charges per annum per thousand of sum insured for a health man are given as under:

Age

20 Yrs

30 Yrs

40 Yrs

50 Yrs

Charges

Rs. 1.13

Rs. 1.34

Rs. 2.35

Rs. 6.52

Premium allocation charges

Policy Term

Premium Allocation Charges

1 Year

20 %

2 Years on

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What if the policyholder commits suicide?

 

If the policyholder commits suicide during the very first year of the policy or within one year of the latest date of policy renewal, then the liability of the insurance company would be limited to the PAV, as on the death date.