unit gain plus gold
TRANSCRIPT
Strictly Confidential – For Internal Circulation Only Bajaj Allianz UnitGain Plus Gold
Product Development Product Circular
1
S
Product Circular
Bajaj Allianz UnitGain Plus Gold
Unit Linked Regular Premium Endowment Plan
UIN: 116L051V01
FOR INTERNAL CIRCULATION ONLY
Department: Product Development & Actuarial Launch Date: 20th September 2007 Version: 3.0
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Product Development Product Circular
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TABLE OF CONTENTS
1. PURPOSE AND SCOPE .........................................................................................4
2. PRODUCT TYPE ....................................................................................................4
3. LAUNCH DATE ......................................................................................................5
4.PRODUCT DESCRIPTION AND FEATURE ...................................................5
5. POLICY CONTRACT AND PREMIUM ...........................................................5
6.ISSUE AGE...............................................................................................................5
7. JOINT LIFE AVAILABILITY ..............................................................................5
8. ELIGIBILITY AND LIMITS.................................................................................6
9. MINIMUM AND MAXIMUM SUM ASSURED FOR BASE POLICY .......7
10. OPTION TO PAY TOP UP.................................................................................7
11.INCREASE/ DECREASE IN REGULAR PREMIUMS ..................................8
12.DEATH BENEFIT: ................................................................................................9
13.MATURITY BENEFIT........................................................................................10
14.SURRENDER VALUE........................................................................................10
15.SURRENDER CHARGE....................................................................................10
16.ADDITIONAL RIDER BENEFITS..................................................................10
17. PREMIUM ALLOCATION RATE.................................................................14
19. PARTIAL WITHDRAWAL OF UNITS .........................................................15
20. POLICY LAPSE/ NON PAYMENT OF REGULAR PREMIUM AND.....16
21. REVIVAL OF POLICY ......................................................................................17
22. TERMINATION OF POLICY..........................................................................17
23. SETTLEMENT OPTION ..................................................................................18
24. NON DISCLOSURE (SECTION 45) ..............................................................18
25. ASSIGNMENT ...................................................................................................19
26. NOMINATION ...............................ERROR! BOOKMARK NOT DEFINED.
27. SUICIDE CLAIM PROVISION ......................................................................19
28. FUNDS /INVESTMENT OBJECTIVES/RISK PROFILES.........................19
29. FUND VALUATION.........................................................................................20
30. CHARGES UNDER THE PLAN .....................................................................21
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31. RECOVERY OF CHARGES .............................................................................22
32. REVISION OF CHARGES ...............................................................................22
33. LOANS .................................................................................................................22
34. BACK – DATING ..............................................................................................22
35. FREE LOOK PERIOD ......................................................................................22
36. DISTRIBUTION CHANNELS…………………………………………………23
ANNEXURE A ..........................................................................................................24
ANNEXURE B ...........................................................................................................25
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Product Development Product Circular
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PLEASE NOTE THAT THE SALES ILLUSTRATION SHOULD NECESSARILY BE SUBMITTED ALONG WITH THE PROPOSAL FORM DULY SIGNED BY THE
CUSTOMER
1. PURPOSE AND SCOPE Bajaj Allianz UnitGain Plus Gold aims to meet investment needs of individuals by clubbing life insurance with market-linked investments 2. PRODUCT TYPE
Bajaj Allianz UnitGain Plus Gold is a Regular Premium non-participating Individual Unit
Linked Endowment Plan.
• Guaranteed life cover, with a flexibility to choose insurance cover is provided to the
policyholder.
• Presenting a unique investment ‘Asset Allocation Fund’ wherein the policyholder does
not have worry to switch Funds in case of a change in market condition.
• The policyholder has the choice of 6 other investment Funds with complete flexibility to
switch money from one fund to other to manage their investments better.
• Policy continues to participate in investment performance of the Fund(s) even if the
policyholder is not able to pay 3 full years’ premium.
• Flexibility of Partial Withdrawals at any time after three years from commencement of
the policy provided 3 full years’ premiums are paid.
• On Maturity the Maturity Benefit is equal to the Fund Value at maturity date or in
periodic installments spread over a maximum period of five years.
• The policyholder has the option to choose additional benefits like UL Accidental Death
Benefit, UL Accidental Permanent Total/Partial Disability Benefit, UL Critical Illness
Benefit, UL Hospital Cash Benefit, UL Waiver of Premium Benefit and UL Family Income
Benefit.
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Product Development Product Circular
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3. LAUNCH DATE 20th September 2007
4. PRODUCT DESCRIPTION AND FEATURE
a) Bajaj Allianz UnitGain Plus Gold is a regular premium endowment plan with twin
benefits of Investment and Insurance with a low minimum premium and customer
selectable term. The plan comes with unlimited Top Up facility to opt for a multiplier in
the range of (1.25 to 5) to arrive at the Top Up Sum Assured. On the Policy
Commencement Date, the Company shall open a Unit Account. The Regular Premium
and the Top Up Premium paid by the Policyholder will be used to allocate units in the
Unit Account after applying the premium allocation rate in one or more Funds as
specified by the Policyholder in the Proposal Form or as subsequently informed through
a written application, whichever is latest.
b) The premium allocation rate depends on the amount of Regular Premium payable as
well as the policy year in which it is payable provided all due regular premiums are paid
and whether the premium is a Regular Premium or a Top– Up Premium
5. POLICY CONTRACT AND PREMIUM
a) Policy Contract – The basis of the contract will be the Proposal Form filled by the
Proposer. The policy document will be the evidence of the contract.
b) Premium - The Cost of Insurance will be as per the age wise mortality rates given in
Annexure A.
6. ISSUE AGE
The issue age of the policyholder is calculated as age attained (i.e., age last birthday) as
on the date of commencement of the related benefit.
7. JOINT LIFE AVAILABILITY
This product will be available for Single life only.
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8. ELIGIBILITY AND LIMITS
S.No Condition Eligibility
1 Minimum Age at Entry 0 years
2 Maximum Age at Entry 60 years/ [50 years in case of Additional Rider
Benefits, except UL WOP, 65 years(Age of UL
WOP LA) in case of UL WOP]
3 Minimum Maturity Age 18 years
4 Maximum Maturity Age 70 years
5 Additional Rider Benefit
Ceasing Age
65 years for all riders except UL WOP.
70 years(Age of UL WOP LA) in case of UL
WOP
6 Minimum Sum Assured 0.5 * Policy Term * Annualised Premium
7 Minimum Regular Premium
Rs 12,000 per yearly installment,
Rs 6,000 per half-yearly installment,
Rs. 3,000 per quarterly installment
Rs 1,000 per monthly mode
(Monthly mode is available through ECS and Salary
Saving Scheme only)
8 Maximum Regular Premium No limit
9 Minimum Term
Maximum Term
10 years. In case of minor life minimum policy
term is age18 less age at entry of the minor life.
Customer selectable term subject to max
maturity age of 70
10 Riders 6 Riders Available
11 Age Proof Standard and the Non-Standard Age proofs are
accepted.
12 Date of issuance/ Policy
Commencement Date
It is same as the date on which the policy is
issued to the customer.
13 Proposal Form Short proposal for non medical cases Complete
/full proposal form for medical cases
14 Date of Expiry of Risk On Maturity /Death/Start of Settlement Option
Period / Surrender/ Lapse
15 Premium Payment mode Annual, Half yearly, Quarterly and
Monthly (Available through ECS mode)
16 Minimum Top Up Premium
Maximum Top Up Premium
Rs.5000/-
Unlimited
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9. MINIMUM AND MAXIMUM SUM ASSURED FOR BASE POLICY
Minimum Sum Assured is 0.5 * (Policy Term) * (Annualised Premium) Maximum Sum Assured
is “y” times Regular Premium where y will be as per the following table
Age Group 0– 30 31 – 35 36 – 40 41 – 45 46 – 55 56 – 60
“y” for base cover or base
cover with UL ADB, UL
APTPDB or UL WOP or
combination of these riders
100 85 70 50 30 20
“y” for base cover withUL CI,
UL HCB or combination of
these
( 0.5 * Policy Term)
Age Group 0– 30 31 – 35 36 – 40 41 – 45 46 – 55 56 – 60
If age of FIB life
assured +
policy term is
less than or
equal to 60
50 or base cover multiplier, which ever is lower
“y” for base
cover with UL
FIB, provided
UL CI &/or UL
HCB rider has
not been opted
for. If age of FIB life
assured +
policy term is
greater than 60
0.5 times policy term
Minimum & Maximum Top Up Sum Assured
Minimum Multiplier – 1.25 Maximum Multiplier – 5
However, the Policyholder has the option to take Sum Assured equal to the Top Up Premium
paid, provided the total Top Up Premium paid or intended to be paid is less than or equal to
25 % of the total Regular Premium paid under the base policy as on date of receipt of the Top
Up Premium.
10. OPTION TO PAY TOP UP
a) The Policyholder shall have the option to pay unlimited Top Up Premium at any
time provided all due Regular Premiums have been paid.
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b) The multiplier range is (1.25 to 5) and Top Up Sum Assured is Multiplier * Top
Up Premium (by default 1.25 is taken).
c) If the total amount of Top Up Premiums paid or intended to be paid does not
exceed 25% of the Regular Premium paid till date, then Top Up Sum Assured
may be equal to Top Up premium.
11. INCREASE/ DECREASE IN REGULAR PREMIUMS
From the commencement of the fourth Policy Year, provided all due Regular Premiums are
paid in full, the Policyholder can opt to increase or decrease the Regular Premium .The
premium allocation rate will depend on the revised regular premium.
The revised (increased/decreased) Regular Premium will be allocated at the Premium
Allocation Rates applicable to the revised Regular Premium.
The increase in Regular Premium shall not result in an increase in Sum Assured.
The maximum increase in Regular Premium permitted shall be limited such that the Sum
Assured shall be at least equal to the higher of:
a. Five times of the proposed Annual Premium and
b. Half of the Policy Term multiplied by the proposed Annual Premium.
Eg: RP=Rs.20,000; Multiplier=20 then SA=Rs4,00,000, Policy Term =20,
Min multiplier = 10
If the policyholder wants to increase the premium then, note that SA cannot be increased
with increase in Regular Premium.
So SA kept constant, and minimum multiplier being 10 (i.e half the Policy Term) , the RP
can be increased from Rs.20,000 to max of Rs. 40,000 only.
The decrease in Regular Premium shall lead to a proportionate decrease in Sum Assured
The decrease in Regular Premium would lead to proportionate decrease in Sum Assured,
provided always that this does not fall below the minimum Regular Premium payable
under the Policy and the relationship between Regular Premium and Sum Assured as at
the Policy Commencement Date is maintained.
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Eg: RP = Rs.20,000; Multiplier =10 then SA= Rs2,00,000
If the policyholder wants to reduce the premium then note that premium cannot be below
Rs12,000 ( min annual premium under the policy).When the Regular Premium is decreased
to Rs.12,000 then the SA also decreases accordingly, so SA= 10 * 12,000 = Rs.1,20,000
The premium in this case can be reduced from Rs20,000 to any amount subject to a floor of
Rs12,000/- and accordingly the Sum Assured would reduce as the multiplier is kept
constant
12. DEATH BENEFIT:
• If the Life Assured dies before attaining Age 7: The Regular Premium Fund
Value and the Top Up Premium Fund Value, if any, applicable on the date of
receipt of intimation of death at the Company’s office will be paid.
• If the Life Assured dies on or after the attaining Age 7 years and before
attaining Age 60 years : The Company shall be liable to pay the higher of the
Sum Assured (less the value of the Regular Premium units withdrawn by partial
withdrawals in the 24 months immediately prior to the date of death) and the
Regular Premium Fund Value as on the date of receipt of intimation of death at
the Company’s office. If any Top Up Premium has been paid by the Policyholder,
the Company shall also be liable to pay the higher of the Top Up Sum Assured
(less the value of the Top Up Premium units withdrawn by partial withdrawals
in the 24 months immediately prior to the date of death) and the Top Premium
Fund Value as at the date of receipt of intimation of death at the Company’s
office
• If the Life Assured dies on or after attaining Age 60 years; The Company shall
be liable to pay the higher of the Sum Assured (less all partial withdrawals of
Regular Premium units made within 24 months immediately prior to attaining
Age 60 years and all partial withdrawals of Regular Premium units made after
attaining Age 60 years) and the Regular Premium Fund Value as at the date of
receipt of intimation of death at the Company’s office. If the Policyholder has
paid any Top Up Premium, the Company shall also be liable to pay the higher of
the Top Up Sum Assured (less all partial withdrawals of Top Up Premium units
made within 24 months immediately prior to attaining Age 60 years and all
partial withdrawals of Top Up Premium units made after attaining Age 60 years)
and the Top Up Premium Fund Value as at the date of receipt of intimation of
death at the Company’s office
• If at least three full years Regular Premiums have not been paid, the policy will
lapse for insurance cover but shall continue to participate in the investment
performance of the underlying Funds, subject to deduction of all Charges except
Mortality Charge and Rider Premium Charges, if any.
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• In case death occurs during the first three policy years and if any due regular
premium has not been paid within the period of grace, then death benefit payable
to the nominee will be the Regular Premium Fund Value plus Top Up Premium
Fund Value, if any, as on date of receipt of intimation of death at the Company’s
office
13. MATURITY BENEFIT
If the Life Assured is alive on the Maturity Date, provided the Policy has not been
terminated, the Regular Premium Fund Value and the Top Premium Fund Value is payable
by the Company to the Policyholder as the maturity benefit, unless the Company has
received a written notice from the Policyholder at least 90 days prior to the Maturity Date
conveying the Policyholder’s intention to opt for the Settlement Option.
14. SURRENDER VALUE
i) The Surrender Value, if any, is payable only after first three Policy years provided all
Regular Premiums due during the first three Policy Years have been paid.
ii) If Regular Premiums due during first three Policy years have not been paid in full,
Surrender Value if any, is payable only after the expiry of the revival period or at the
end of the third policy year, whichever is later.
iii) The Surrender Value payable will be equal to the Regular Premium Fund Value less
the Surrender Charge (Annexure B) plus Top Up Premium Fund Value, if any. Upon
payment of Surrender Value, the policy shall be terminated.
15. SURRENDER CHARGE
i) If any due Regular Premium is not paid within the grace period in the first three
policy years, the Surrender Charge would be 60% of the first years’ Annualized
Premium
ii) If first three years Regular Premiums have been paid in full, the Surrender Charge
(Annexure B) would be as follows: [1 – (1/1.10)^N ] * First Years’ Annualized
Premium where, N is 10 years less the elapsed policy duration in years and fraction
thereof.
iii) No Surrender Charge will be applied on units in respect of Top Up Premium.
16. ADDITIONAL RIDER BENEFITS
The policyholder has the option to choose the following additional benefits:
UL Accidental Death Benefit Rider, UL Accidental Permanent Total / Partial Disability
Benefit Rider, UL Critical Illness Benefit Rider, UL Hospital Cash Benefit Rider, UL Waiver of
Premium Rider and UL Family Income Benefit Rider.
The rider benefits should be read in conjunction with the Rider Circular
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UL Accidental Death Benefit (UL ADB) The policyholder can choose Accidental Death Benefit. The minimum age at entry is 18, and
maximum age at entry is 50. Coverage is provided until the age being 65 or termination of
the policy, whichever happens earlier. The additional amount payable in the event of
Accidental Death will be the lower of:
• The basic Sum Assured, or
• Rs 50,00,000/- under all the BJAZ policies of the policyholder taken together.
UL Accidental Permanent Total / Partial Disability Benefit (UL APTPD)
The policyholder can choose Accidental Permanent Total/Partial Disability Benefit. The
minimum age at entry is 18, and maximum age at entry is 50. This benefit includes coverage
for both, Accidental Permanent Partial and Accidental Permanent Total Disability. Coverage
is provided until the age being 65 or termination of the policy, whichever happens earlier.
The amount payable in the event of Accidental Permanent Partial Disability will be the lower
one of:
• 50% of the basic Sum Assured
• Rs 25,00,000 under all the BJAZ policies of the policyholder taken together
The amount payable in the event of Accidental Permanent Total Disability will be the lower
one of:
• the basic Sum Assured
• Rs 50,00,000 under all the BJAZ policies of the policyholder taken together
If the policyholder did receive a benefit for Accidental Permanent Partial Disability before
and the time passed from the occurrence of the Partial Disability is less than one year, the
amount payable in the event of Accidental Permanent Total Disability will be the lower one
of:
• 50% of the basic Sum Assured
• Rs 25,00,000 under all the BJAZ polices of the policyholder taken together
If the policyholder did receive a benefit for Accidental Permanent Partial Disability before
and the time passed from the occurrence of the Partial Disability is at least one year, the
amount payable in the event of Accidental Permanent Total Disability will be the lower one
of:
• the basic Sum Assured
• Rs 50,00,000 under all the BJAZ polices of the policyholder taken together
The policyholder can receive an Accidental Permanent Total Disability Benefit only once
under all the policies of the policyholder. .
UL Critical Illness Benefit (UL CI)
The policyholder may select Critical Illness coverage. The Critical Illness coverage can only be
chosen if the issue age of the Life Assured is not less than 18 and not more than 50 years. In case
of the Life Assured being minor, the policyholder will have a one-time option to include this
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benefit when the Life Assured reaches age 18. If selected, the policyholder has the option to
remove or reduce this benefit at each policy anniversary. However, once reduced or removed,
this benefit cannot be increased or included at any later date. The charges for Critical Illness are
not guaranteed and are reviewable every 5 years.
The minimum coverage is Rs. 50,000/- and the maximum coverage is equal to Rs.50 lacs. In case
if it exceeds Rs. 50 lacs, Reinsurer’s approval is required. Coverage is provided until the age
being 65 or termination of the policy, whichever happens earlier.
There is a waiting period of 6 months, i.e. the Critical Illness Benefit can only be claimed if the
illness is diagnosed at least 6 months after the date of commencement of risk or reinstatement of
risk..
UL Hospital Cash Benefit (UL HCB)
The policyholder may select Hospital Cash coverage with a daily hospital cash amount @ Rs.4
per Rs.1000 sum assured subject to a minimum Hospital Cash Sum Assured of Rs. 50,000 and
maximum of Rs. 2,50,000 or the basic Sum Assured, whichever is lower. For Example, if the basic
Sum Assured chosen is Rs. 5,00,000/-, the policyholder can choose the Sum Assured for Hospital
Cash between Rs. 50,000 and Rs. 2,50,000/-.
The hospital cash benefit can only be chosen if the issue age of the life assured is not less than 18
and not more than 50 years. Coverage is provided until the age being 65 or termination of the
policy, whichever happens earlier. In case of the Life Assured being minor, the policyholder will
have a one-time option to include this benefit when the Life Assured reaches age 18. The
policyholder has the option to remove or reduce this benefit at each policy anniversary.
However, once reduced or removed, this benefit cannot be increased or included at any later
date.
There is a waiting period of 60 day from the commencement and reinstatement of the Policy. If
the insured person has to stay for more than 72 hours in hospital as a result of injury, sickness or
disease, the company reimburses for each full day the stay in hospital exceeding 3 days up to a
total limit of 60 days in a policy year an amount which is the lower one of:
• 75% of the room charge in hospital
• The daily Hospital Cash amount
The amount is reimbursed as a lump sum at the end of the stay in hospital. The charges are not
guaranteed and are yearly reviewable. If the Hospital Cash Benefit is selected, the policyholder
has the option to renew the hospital cash benefit every year at the published rates available at the
time of renewal. For the renewal coverage there is no waiting period. If the policyholder does not
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select the option once or if his attained age at the time of renewal is 65, he loses the right to renew
the Hospital Cash Benefit in later years.
UL Waiver Of Premium (UL WOP)
The policyholder has an option to choose the UL WOP rider for the benefit of the minor Life
Assured. The aim of this additional rider benefit is to ensure continuation of the base policy in
case of Death or Accidental Total Permanent Disability of the WOP Life Assured. Minimum Age
at Entry for the Proposer (WOP Life Assured) is 18 years, and maximum age at entry for
Proposer (WOP Life Assured) is 65 years. The minimum age at entry for Life Assured is 0 years
and the maximum age at entry is 17years. The minimum policy term is 5 yrs and coverage
continues till Life Assured attains age 25 or the Proposer attains age 70 or the end of the base
policy term, whichever happens earlier.
In case of Death or Accidental Permanent Total Disability of the Proposer, the payment of future
Regular Premium(s) by the Proposer shall be waived during the Benefit Payment Period and all
the future Regular Premium(s) falling due during the Benefit Payment Period shall be allocated
by the Company to the Unit Account of the Policy on the Premium Due Dates and at the
Allocation Rate as specified in the Policy or Schedule. The allocation to different Funds will be in
Premium Allocation percentage as existing on the date of Death or date of Accidental Permanent
Total Disability Benefit.
Benefit Payment Period is from the date of death or from the date of Accidental Total Permanent
Disability of the Life Assured (WOP) , which ever happens first, till the earliest of the following:
a) End of the WOP Benefit Term
b) Policy Anniversary, at which the Life Assured attains Age of 25 years. UL Waiver of Premium Benefit shall automatically terminate on the earlier occurrence of either of
the following:
a) On Policy Anniversary at which the Life Assured attains Age of 25 years
b) On Policy Anniversary at which the Life Assured (WOP) attains Age 70 years
c) On termination of the base Policy
d) On non-payment of Regular Premium within 30 days of it becomes due, under the base
Policy
e) On exclusion of this Rider Benefit by the Policyholder. UL WOP can be included at any policy anniversary subject to underwriting of the Proposer.
However, once excluded, it cannot be included again. If the rider is taken after the
commencement of the base policy, the medical cost, if any, has to be borne by the Proposer.
UL Family Income Benefit (UL FIB)
The aim of this additional rider benefit is to ensure steady cash flow in case of death or
Accidental Total Permanent Disability of the Life Assured (UL FIB) . Life Assured (UL FIB) is the
person whose life is insured under this UL Family Income Benefit, whose name appears in the
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Schedule and who is either the Proposer of the base Policy issued on the life of a minor or the Life
Assured himself. Herein is referred to as UL FIB LA.
The minimum age at entry of UL FIB LA is 18years and maximum age at entry of UL FIB LA is
50yrs.
In case of Death of the UL FIB LA, provided the Policy is in-force at the time of Death, a monthly
income benefit of 1% of the Sum Assured is payable to the Nominee over the term of Benefit
Payout Period. The Benefit Payout Period for UL FIB rider is at the end of the Policy Term or for a
period of 10 years whichever is higher
In case of Accidental Total Permanent Disability of the UL FIB LA, provided the Policy is in-force
at the time of Accidental Total Permanent Disability, a monthly income benefit of 1% of the Sum
Assured is payable to the UL FIB LA or nominee over the term of the Benefit Payout Period
If the UL FIB LA dies after the commencement of monthly income benefit but before the expiry of
the Benefit Payout Period, the monthly income benefit would be payable to the Nominee for the
rest of the Benefit Payout Period.
UL FIB Rider can be chosen at policy inception and at any subsequent policy anniversary subject
to meeting minimum Policy Term of the rider and subject to meeting underwriting requirements
of the Company. UL FIB Rider can be excluded at any policy anniversary. Once excluded, the UL
FIB rider cannot be included again
Rider can be chosen by minor Life Assured on his/her life, after attainment of age 18 provided
the Proposer of the policy has not taken UL FIB rider
17. Premium Allocation Rate
Premium Payment due in Annual Premium
size Policy Year
1
Policy Year 2 to Policy Year
5
Policy Year 6 and
onwards
12,000 – 14,999 75% 94% 98%
15,000 – 99,999 76% 94% 98%
100,000 – 249,999 80% 94% 98%
250,000 and above 85% 94% 98%
Top ups are allocated at 98%
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18. STAFF ALLOCATION (Allocation to employees of Bajaj Allianz Life, Bajaj
Allianz General, Allianz Group & Bajaj Auto)
The staff premium allocation rate for regular premium is 85% in policy year 1 and 100% from
policy year 2 and onwards
All top up premiums will have 100% allocation across all policy years.
No commission would be payable under staff policies.
19. SWITCHING CLAUSE
The Company offers the Policyholder the option to switch between Funds at such price
and subject to such terms and conditions as may be imposed by the Company at that
time. The Policyholder may transfer or “switch” any of the Units in any Fund, to another
existing Fund or new fund established by the Company provided:
• The Company has received from the Policyholder a written notice setting out the
proposed amount of the switch, the Fund to be switched-from and the Funds to be
switched.
• The minimum switching amount is Rs.5,000 or the value of units held by the Policyholder
in the Fund to be switched from, whichever is lower.
• The Company shall affect the switch by redeeming Units from the Fund to be switched
from and allocating new Units in the Fund being switched to at their respective Unit
Price.
• The Policyholder may exercise three free switches during each Policy Year. For
subsequent switches during any Policy Year, the Company will charge a switching fee as
specified in Section 30 below.
20. PARTIAL WITHDRAWAL OF UNITS
Anytime after three years from the date of commencement of the policy provided regular
premiums for three full years’ have been paid, the policyholder has the option to partially
withdraw units from his/her fund subject to following conditions:
1) The minimum amount of withdrawal is Rs.5000.
2) Maximum partial withdrawal allowed shall be equal to fund value minus two annual
premiums which means a minimum fund value of two annual premiums needs to be
maintained at any given time.
3) All partial withdrawals will be first made from eligible Top Up premium units, if any.
Once the Top Up premium units are exhausted, further Partial Withdrawals will be made
from regular premiums units.
4) For the purpose of Partial Withdrawals, each payment of Top Up premium shall have a
lock-in period of three years, unless the payment of Top Up premium is made in the last 3
policy years.
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5) In case of minor life, partial withdrawal is allowed after attaining age 18 years.
6) No charge is applicable on partial withdrawals either from Top Up premium units or from
Regular Premium units
7) The Company reserves the right at any time and from time to time to vary the minimum
value of units at NAV to be withdrawn and/or the minimum balance of value of units to be
maintained after such partial withdrawals by giving written notice of three months in
advance, subject to prior approval from IRDA.
21. POLICY LAPSE/ NON PAYMENT OF REGULAR PREMIUM AND
FORFEITURE
• If the Policyholder has failed to make a payment of Regular Premium due by the due
date, he/she is given a grace period of 30 days (15 days, if the frequency of payment
is monthly). If death occurs during the grace period, the full death benefit is payable.
• If the unpaid Regular Premium was due during the first three Policy Years, and the
Policyholder has failed to make the payment of the complete amount due before the
expiry of the grace period then:
i) The Policy shall automatically and immediately lapse along with all insurance covers
including rider cover. However, the fund will participate in the investment
performance of the underlying Funds, subject to deduction of all Charges except
Mortality Charge and Rider Premium Charges, if any.
ii) The policyholder may revive the policy within a revival period of two years from
the due date of first unpaid Regular Premium subject to recovery of any due but
unrecovered charges except Mortality Charge and Rider Premium charge, if any,
from the due date of first unpaid Premium, failing which the Policy shall be
terminated and the Regular Premium Fund value as on date of termination less
Surrender Charge, plus Top Up Premium Fund Value, if any, as on date of
termination shall be paid at the expiry of the revival period or at the end of the
third policy year, whichever is later.
iii) In case death occurs during the first three policy years and if any due Regular
premium has not been paid within the period of grace, then Death Benefit
payable to the nominee will be the Regular Premium Fund Value plus the Top
Up Premium Fund Value as on date of receipt of intimation of death at the
Company’s office and the Policy will terminate immediately.
c) If all the due Regular Premiums have been paid for at least first three consecutive years
and the Policyholder has failed to make the payment of of the complete amount due
before the expiry of the aforesaid grace period:
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Product Development Product Circular
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i) Provided that the Policyholder has paid all Regular Premium due for the first three
Policy Years, the Policyholder will be given an opportunity to revive the Policy,
within two years from the date of first unpaid Regular Premium. During this limited
period of revival, the Policy shall continue with full Sum Assured and Additional
Rider Benefits if any, (except UL Waiver of Premium Rider benefit)levying all
appropriate charges by cancellation of units at the prevailing unit price till the
Regular Premium Fund Value less Surrender Charge, if any, does not fall to an
amount equivalent to one annual premium (NAV) across all the funds.
ii) If the Policyholder has failed to revive the Policy within the revival period of two
years the Policy shall continue at the option of the Policyholder with full Sum
Assured and Additional Rider benefits being in force (except UL Waiver of Premium
Rider benefit), if any, levying all appropriate charges by cancellation of units at the
prevailing unit price till the Regular Premium Fund Value less Surrender Charge, if
any, does not fall to an amount equivalent to one annual premium (NAV) across all
the funds and upon which:
(a) The Policy shall terminate and
(b) All units shall be redeemed and the Surrender Value is payable to the
Policyholder.
(iii) If the Policyholder has failed to revive the Policy within the revival period of two
years and does not opt to continue the Policy after the expiry of revival period, the Policy
shall be terminated and the below mentioned amount shall be payable to the
Policyholder:
• If the Maturity Date arrives during the revival period, the Regular Premium Fund Value
plus the Top Up Premium Fund Value, if any, else
• Upon expiry of revival period the Surrender Value as on date of termination
22. REVIVAL OF POLICY
Revival of the Policy is subject to the Policyholder paying all unpaid Regular Premiums
within two years from the due date of first unpaid Regular Premium and subject to other
information and documentation as may be requested by the Company. The Company
reserves the right to disallow the revival of the Policy on original Terms and Conditions.
23. TERMINATION OF POLICY
This Policy shall automatically terminate on the earlier occurrence of either of the following
events:
i) The units in the Policy are fully surrendered;
ii) The Regular Premium Fund Value less Surrender Charge falls be to an amount
equivalent to one Annual Premium provided Regular Premiums have been paid for 3
full years;
iii) Upon the Life Assured’s death;
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iv) Upon the Policy remaining lapsed for two years or remaining lapsed upto third
Policy Anniversary whichever is later.
v) On the Maturity Date, unless the Policyholder has opted for the Settlement Option or
vi) The expiry of the period for the Settlement Option.
24. SETTLEMENT OPTION
a) Provided the Company has received a written application duly signed by the
Policyholder at least 90 days prior to the Maturity Date exercising the
Settlement Option and the Company has accepted the request, the Maturity
Benefit as specified in Section 13 above is payable by the Company to the
Policyholder in installments (yearly, half yearly, quarterly or monthly, at the
Policyholder’s option) spread over a maximum period of 5 years.
b) The amount paid out to the Policyholder in each installment will be the
outstanding Regular Premium Fund Value and Top Up Premium Fund
Value if any at that date divided by the number of outstanding installments.
c) Installment payments will be made by redeeming units from the Funds at
the Unit Price applicable on that date. The redemption of units will be
effected in the same proportion as the value of Units held in each Fund on
the installment date. If the value of Units in any Fund falls to the extent that
this is insufficient to support the monthly Charges, then the same shall be
deducted proportionately from other Funds.
d) All Charges except the Mortality Charge and Rider Premium Charge, if any,
shall be deducted through the redemption of units from the Funds during
the period of the Settlement Option as selected by the Policyholder and
endorsed by the Company.
e) No Death Benefit or Additional Rider will be available during the period of
the Settlement Option.
f) The Settlement Option can only be exercised by the Policyholder.
g) No Partial withdrawals or Switches are allowed during the subsistence of the
period of the Settlement Option.
25. NON DISCLOSURE (SECTION 45) No Policy of life insurance effected after the coming into force of this Act shall, after the expiry of
two years from the date on which it was effected, be called in question by an insurer on the
ground that a statement made in the proposal for insurance or in any report of a medical officer,
or referee, or friend of the insured, or in any other document leading to the issue of the policy,
was inaccurate or false, unless the insurer shows that such statement was on a material matter or
suppressed facts which it was material to disclose and that it was fraudulently made by the
policy-holder and that the policy holder knew at the time of making it that the statement was
false or that it suppressed facts which it was material to disclose.
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26. ASSIGNMENT & NOMINATION
a) No assignment shall be effective unless and until the Company receives a written notice
from the Policyholder along with the original or duplicate copy of this Policy Document
and the assignment deed.
b) If the Policyholder and the Life Assured are the same person, the Policyholder may at
any time specify in writing a Nominee, whose details will be specified in the Schedule, to
receive benefits payable upon Life Assured’s death. If the Nominee is a minor, the
Policyholder shall also appoint a person to receive the money during the minority of the
Nominee, as specified in the Schedule. No nomination shall be effective unless and until
evidenced by an endorsement on the Policy
c) If there is no Nominee or if all the Nominees have predeceased the Policyholder, the
benefits payable under this Policy will be paid to the legal heirs of representatives of the
Policyholder
d) An assignment will automatically cancel any existing nomination.
e) The Company assumes no responsibility or liability for the validity or sufficiency of any
assignment or nomination or, if the assignment or nomination is not notified to the
Company in writing, or in recording the assignment or registering the nomination or
change in assignment or nomination.
f) Assignment will not be permitted where the Policy is issued under the Married Women’s
Property Act 1874.
27. SUICIDE CLAIM PROVISION If the Life Assured commits suicide whether sane or insane, within one year from the Date of
Commencement of Risk or date of revival, the Company will not entertain any claim by virtue of
this Policy except to the extent of the Regular Premium Fund Value and Top Up Premium Fund
Value, if any, as at the date of intimation of death of the Life Assured to the Company.
28. FUNDS /INVESTMENT OBJECTIVES/RISK PROFILES
There are seven funds offered under the plan. They are as under:
Asset Class
Funds Investment Objective
Bank
Deposits &
Money
Market
Instruments*
Equities*
G Secs,
Bonds,
Fixed
Deposits*
Risk
Profile
Equity
Growth
Fund
To provide capital appreciation
through investment in selected
equity stocks that has the potential
for capital appreciation.
0% - 40% 60% - 100% - Very High
Accelerator
Mid-Cap To achieve capital appreciation by
investing in a diversified basket of
0% - 40% 60% - 100% - Very High
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Fund investing in a diversified basket of
mid cap stocks and large cap
stocks. Minimum 50% of Equity
Investments would be in Mid Cap
stocks
Asset
Allocation
Fund
To realize a level of total income,
including current income and
capital appreciation, which is
consistent with reasonable
investment risk. The investment
strategy will involve a flexible
policy for allocating assets among
equities, bonds and cash. The fund
strategy will be to adjust the mix
between these asset classes to
capitalize on the changing
financial markets and economic
conditions. The fund will adjust its
weights in equity, debt and cash
depending on the relative
attractiveness of each asset class
0% - 100% 0% - 100% 0% - 100% High
Equity
Index
Fund II
Capital appreciation through
investment in equities forming
part of NSE NIFTY
0%-40% 60%-100% - High
Bond Fund
Provides accumulation of income
through investment in high quality
fixed income securities.
0% - 100% -
0% - 100%
Moderate
Liquid
Fund
Protection of the invested capital
through investments in liquid
money market and short-term
instruments.
0% - 100% - - Low
Pure Stock
Fund
Capital appreciation through
investment in equities but to
specifically exclude companies
dealing in Gambling, Contests,
Liquor, Entertainment (Films, TV
etc.), Hotels, Banks and Financial
Institutions.
0% - 40% 60% - 100% - Very High
*The exposure to money market securities may be increased to 100%, keeping in view market conditions,
market opportunities, and political, economic and other factors, depending on the perception of the
Investment Manager. All changes in the asset allocation will be with the intention of protecting the
interests of the policyholders.
29. FUND VALUATION
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The Fund Value is equal to the number of units under this policy multiplied by the unit price on the relevant valuation date. Computation Of NAV: When Appropriation Price is applied: The NAV of a Unit Linked Life Insurance Product shall be computed as: Market value of investment held by the fund plus the expenses incurred in the purchase of the assets plus the value of any current assets plus any accrued income net of fund management charges less the value of any current liabilities less provision, if any. This gives the net asset value of the fund. Dividing by the number of units existing at the valuation date (before any new units are allocated), gives the unit price of the fund under consideration. . This is applicable when the company is required to purchase assets to allocate units at the valuation date.
When Expropriation Price is applied: The NAV of a Unit Linked Life Insurance Product shall be computed as: Market value of investment held by the fund less the expenses incurred in the sale of the assets plus the value of any current assets plus any accrued income net of fund management charges less the value of any current liabilities less provision, if any. This gives the net asset value of the fund. Dividing by the number of units existing at the valuation date (before any units are redeemed), gives the unit price of the fund under consideration. This is applicable when the company is required to sell assets to redeem units at the valuation date.
30. CHARGES UNDER THE PLAN
S.No Name of the Charge Details
1 Policy Administration
Charge
Rs 661.5 per annum inflating from 1st April of each
year at the rate of 5% per annum deducted
through cancellation of units at each monthly due
date.
Asset Allocation Fund 1.25% p.a.
Equity Index Fund II 1.25% p.a.
Equity Growth Fund 1.75% p.a.
Accelerator Mid-Cap Fund 1.75% p.a.
Pure Stock Fund 1.75% p.a.
Bond Fund 0.95% p.a.
2 Fund Management Charge
Liquid Fund 0.95%p.a.
3 Switching Charge Lower of 5% of switch amount or Rs. 100.
Three free switches available in a policy year.
4 Mortality Charge As given in annexure A
5 Rider Premium Charge As per the rider charges
6 Surrender Charge As given above in section 15 and Annexure B
7 Premium Allocation
Charge
As given above in section 17
8 Miscellaneous charge Rs.100/- per transaction in respect of revival of the
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policy, alteration of the mode of payment of
Regular Premium, increase/decrease in Regular
Premium and for issuance of a copy Policy
Document .
31. RECOVERY OF CHARGES
g) The Fund Management Charge will be deducted from the NAV of the Funds while
calculating the Unit Price.
h) The Policy Administration Charge, the Mortality Charges and the Rider Premium
Charges, if any, will be recovered monthly at Monthly Due Dates by the redemption of
Units at the prevailing Unit Price.
i) In the event that the units are held in more than one Fund, the redemption of units will
be affected in the same proportion as the value of units held in each Fund under the
Policy. If the value of units in any Fund falls to the extent that it is insufficient to support
the proportionate monthly charges, then the same shall be deducted proportionately
from the value of units of the other Funds..
32. REVISION OF CHARGES
After taking due approval from the Insurance Regulatory and Development Authority, the
Company reserves the right to change the following charges:
• Fund Management Charge up to a maximum of 2.75% per annum of the NAV for the
Equity Growth Fund, Pure Stock Fund and Accelerator Mid-Cap Fund, 2.25% p.a. for the
Equity Index Fund II and Asset Allocation Fund, 1.75% p.a. for the Bond Fund and
Liquid Fund.
• Switching charge upto a maximum of Rs.200 per switch or 5% of the switching amount,
whichever is lower.
• Miscellaneous charge upto a maximum of Rs.200/- per transaction
• Rider Premium Charges as per filed to IRDA.
• If the Policyholder/Life Assured does not agree with the charges, he/she will be allowed
to exit the plan at the prevailing price of units after applying surrender charge, if any.
33. LOANS
No loan facility is available under this plan.
34. BACK – DATING This policy cannot be back – dated
35. FREE LOOK PERIOD
Within 15 days from the date of receipt of the policy, the policyholder has the option to review the
terms and conditions and return the policy, if he disagrees to any of the terms & conditions, stating
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Product Development Product Circular
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the reasons for your objections. The policyholder is entitled to a refund of the premium paid,
subject only to a deduction of a proportionate risk premium for the period on cover and the
expenses incurred on medical examination and stamp duty charges. The refund paid to the
policyholder will also be reduced / increased by an amount of any reduction / increase in fund
value due to fall / rise in the unit price between the date of allocation and redemption of units.
(without reference to any premium allocation rate or charges.)
36. DISTRIBUTION CHANNELS
All Channels
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ANNEXURE A
Standard Mortality Charges
Annual Charge Rates Per 1000 Sum at Risk – For Male Life Assured
Age Mortality Charge Age Mortality Charge
7 1.48 39 2.60
8 1.48 40 2.82
9 1.48 41 3.02
10 1.48 42 3.21
11 1.48 43 3.44
12 1.48 44 3.72
13 1.48 45 4.05
14 1.48 46 4.44
15 1.48 47 4.88
16 1.48 48 5.38
17 1.48 49 5.93
18 1.48 50 6.53
19 1.53 51 7.19
20 1.57 52 7.91
21 1.60 53 8.68
22 1.63 54 9.50
23 1.66 55 10.37
24 1.68 56 11.30
25 1.70 57 12.18
26 1.72 58 13.09
27 1.73 59 14.21
28 1.73 60 15.56
29 1.74 61 17.11
30 1.74 62 18.88
31 1.75 63 20.87
32 1.80 64 23.07
33 1.85 65 24.84
34 1.93 66 27.04
35 2.03 67 30.39
36 2.14 68 34.11
37 2.27 69 38.22
38 2.42 70 42.75
Note:
2) For calculating mortality charges for Female lives, a set back of two years is taken on mortality charges of Male lives
3) Upto age 18, mortality charge of age 18 is taken for both Male and Female lives
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ANNEXURE B SURRENDER CHARGES
Policy Year end
Month End
Surrender Charge as %age of first Years' Annualized Premium
1 1 60%
1 2 60%
1 3 60%
1 4 60%
1 5 60%
1 6 60%
1 7 60%
1 8 60%
1 9 60%
1 10 60%
1 11 60%
1 12 60%
2 13 60%
2 14 60%
2 15 60%
2 16 60%
2 17 60%
2 18 60%
2 19 60%
2 20 60%
2 21 60%
2 22 60%
2 23 60%
2 24 60%
3 25 60%
3 26 60%
3 27 60%
3 28 60%
3 29 60%
3 30 60%
3 31 60%
3 32 60%
3 33 60%
3 34 60%
3 35 60%
3 36 49%
4 37 48%
4 38 48%
4 39 47%
4 40 47%
4 41 47%
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Policy Year end
Month End
Surrender Charge as %age of first Years' Annualized Premium
4 42 46%
4 43 46%
4 44 45%
4 45 45%
4 46 44%
4 47 44%
4 48 44%
5 49 43%
5 50 43%
5 51 42%
5 52 42%
5 53 41%
5 54 41%
5 55 40%
5 56 40%
5 57 39%
5 58 39%
5 59 38%
5 60 38%
6 61 37%
6 62 37%
6 63 36%
6 64 36%
6 65 35%
6 66 35%
6 67 34%
6 68 34%
6 69 33%
6 70 33%
6 71 32%
6 72 32%
7 73 31%
7 74 31%
7 75 30%
7 76 29%
7 77 29%
7 78 28%
7 79 28%
7 80 27%
7 81 27%
7 82 26%
7 83 25%
7 84 25%
8 85 24%
8 86 24%
8 87 23%
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Policy Year end
Month End
Surrender Charge as %age of first Years' Annualized Premium
8 88 22%
8 89 22%
8 90 21%
8 91 21%
8 92 20%
8 93 19%
8 94 19%
8 95 18%
8 96 17%
9 97 17%
9 98 16%
9 99 15%
9 100 15%
9 101 14%
9 102 13%
9 103 13%
9 104 12%
9 105 11%
9 106 11%
9 107 10%
9 108 9%
10 109 8%
10 110 8%
10 111 7%
10 112 6%
10 113 5%
10 114 5%
10 115 4%
10 116 3%
10 117 2%
10 118 2%
10 119 1%
10 120 0%