What can be more peaceful than an independent and financially stable post-retirement life? Now with the help of Bajaj Allianz Group Superannuation Secure plan, you can assure your employee with the same. It is a non-linked, variable fund based and non-participating plan that can be bought by an employer for managing the pension funds of the staff members. This policy offers a minimum GIR (Guaranteed Interest Rate) that would be guaranteed for the entire policy period.
How does the policy work?
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Pooled level
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Member level (individual accounts)
The policy provided you with two options. You can choose either of them, as per your needs:
From each of your contributions according to the rules of the scheme, applicable cess, service tax and premium allocation charges would be subtracted and the rest of the amount would be credited to the PA (policy account), either pooled or individual.
The insurance provider offers a GIR of 1.5 percent that compounds every year, as long as you are with the insurer. Moreover, an AIR (Additional Interest Rate) is also offered that might be announced by the insurance provider at the beginning of every financial quarter.
After you have received the GIR and AIR, applicable, service tax, cess and fund management charge would be deducted from your account as a percent of your balance in total of all PA.
Any payment done due to demise, exits or vesting (according to the scheme rules), from the PA would be added for GIR or AIR only for the term it was invested in the PA.
The amount of GIR and AIR added to and the applicable fund management charge subtracted from the PA would only remain to the time period and extent to which the fund has been invested.
The pattern of fund investment is regulated by the IRDA.
Benefits payable
Pooled Level
|
Situation |
When and how the benefits are paid |
Policy monies |
|
Unfortunate demise of a member |
It’s paid immediately upon the death, as per the scheme rules |
A sum, as decided by you, as per the scheme rules |
|
Retirement (on vesting) |
It’s paid immediately upon retirement, as per the scheme rules |
A sum, as decided by you, as per the scheme rules |
|
On Exits |
It’s paid as per the scheme rules |
A sum, as decided by you, as per the scheme rules |
Individual account
|
Situation |
When and how the benefits are paid |
Policy monies |
|
Unfortunate demise of a member |
It’s paid immediately upon the death, as per the scheme rules |
101% of the contributions of a member or value of individual PA, whichever is more |
|
Retirement (on vesting) |
It’s paid immediately upon retirement, as per the scheme rules |
101% of the contributions of a member or value of individual PA, whichever is more |
|
On Exits |
It’s paid as per the scheme rules |
Value of individual PA |
Policy eligibility
|
Criteria |
Details |
|
|
Group Size (Minimum) |
10 people |
|
|
Age at entry |
Minimum |
18 Years |
|
Maximum |
79 Years |
|
|
Age at Maturity (Maximum) |
80 Years |
|
|
Policy Term (Minimum) |
Annually Renewable |
|
|
Frequency of Regular Contribution |
1 year, 6 months, 3 months, per month |
|
|
Pooled or Member Level PA Size (Minimum) |
Rs. 100000 |
|
|
Pooled or total of all Member Level PA Size |
No Limit |
|
Some frequently asked questions
Is surrender of policy possible?
Yes, if you want to you go for complete policy surrender. However, you have to give prior notice of 3 months.
Can you avail loans against the plan?
No, there are no such options.
What about tax benefits?
Just like any other policy from Bajaj Allianz, tax benefits are payable in accordance with the applicable tax laws.
