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Sunday, Jun 15, 2003

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Allianz Bajaj's Swarna Vishranti

Sowmya Sundar

Allianz Bajaj recently launched Swarna Vishranti — a participating pension plan bundled with life cover. It is similar to the other pension plans in the market.

How it works?

The plan works in two parts — the deferment period and the annuity period. Regular premiums are paid during the deferment period and a lumpsum built up. You also get a life cover for the period. At the end of the deferment period (on the vesting date), you have the option to cash in up to 33 per cent of the sum assured plus accumulated bonuses and buy an annuity for the rest. You can decide the age at which you want to retire (vesting date).

Annuity options

You can either buy an annuity with Allianz Bajaj or buy an annuity offered by any other insurer. If you stick to Alliaz Bajaj, the amount available for the purchase of annuity will be marked up by 2 per cent. The minimum annuity instalment is Rs 1,000. If the annuity works out lower than Rs 1,000, then the entire sum assured plus bonuses are paid out.

Death benefits

If the policyholder dies during the deferment period, the entire sum assured and accrued bonuses are paid out if the beneficiary's age is below 45 years. If the beneficiary is above 45 years, he can opt for an annuity as mentioned above.


You can add the following riders to enhance protection: Family Income benefit, Comprehensive Accident Protection (includes Accidental Death benefit, Accidental Permanent Total or Partial Disability benefit and Waiver of Premium), Term Cover, Critical Illness and Hospital Cash benefit. Under the Family Income benefit, 1 per cent of the sum assured is paid every month for 10 years or till the vesting date, whichever is higher. All future premiums are also waived.

The Hospital Cash benefit reimburses the room charges if hospitalised during the deferment period. A maximum of Rs 1,000 a day subject to a maximum of 75 per cent of the room charges or daily hospital cash amount, whichever is lower, is reimbursed. The claim can be raised for a maximum of 60 days per policy year.

If the policyholder takes the benefit under the Critical Illness rider and death occurs within 60 days from the date of payment of the Critical Illness benefit, the death benefit under the basic plan will be paid after deducting the Critical Illness SA paid out earlier.

Other features

  • The plan is eligible for non-guaranteed compounded reversionary bonus.

  • Loans are not available under the plan.

  • If you surrender your policy at any time after three years, the payout will be equivalent to 30 per cent of the premiums paid excluding first year premiums and all rider premiums.

  • You have the flexibility to include or exclude riders at each policy anniversary.

  • Premium discounts at Rs 74 per Rs 10,000 SA is available if the policy is taken for more than Rs 50,000.

    (Pieces under this column seek to examine insurance products in detail. Readers are requested to compare products featured under this column with similar products offered by other players before arriving at an investment decision.)

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