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PROJECT REPORT
ON
COMPARISON OF PENSION PLAN OF
BAJAJ ALLIANZ
WITH OTHER COMPETITORS
UNDERGONE AT
BAJAJ ALLIANZ LIFE INSURANCE
In partial fulfillment of the requirement for the
Degree of
“MASTER OF BUSSINESS ADMINISTRATION”
SESSION (2006-2008)
SUBMITTED TO
INVERTIS INSTITUTE OF MANAGEMENT & STUDIES,
BAREILLY
AFFILIATED TO
U.P. TECHNICAL UNIVERSITY, LUCKNOW
Prepared By:-
NITESH CHANDRA OJHA
MBA 2nd YEAR
ROLL NO. 0701570059
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PREFACE
THE PRESENT REPORT IS ON “THE COMPARISON OF WHOLE LIFE
PLAN” OF THE COMPANY BAJAJ ALLIANZ LIFE INSURENCE WITH
OTHER MAJOR INSURANCE PLAYERS. IN ADDITION, THE REPORT
STUDIES THE COMPARATIVE ANALYSIS OF THE VARIOUS INSURANCE
PLAYERS. THE AIM OF THE STUDY IS TO GAIN INSIGHT INTO THE
WHOLE GAMUT OF WHOLE LIFE INSURANCE BUSINESS IN BAREILLY.
IN THIS REPORT, THE BASIC FEATURES AND BENEFITS OFFERED BY
BAJAJ ALLIANZ LIFE INSURANCE’S PENSION PLAN OVER OTHER
COMPANIES HAVE BEEN ANALYZED. IT ALSO ANALYSES THE BENEFITS
OR UNIQUE SELLING PROPOSITION OF THE COMPANY’S PENSION PLAN,
WHICH GIVES IT A COMPETITIVE EDGE OVER OTHER INSURANCE
COMPANIES.
THE REPORT ALSO UNDERTAKES A SURVEY REGARDING THE
AWARENESS ABOUT THE INSURANCE AS A MODE OF INVESTMENT FOR
A PRUDENT INVESTOR. IT ATTEMPTS TO GAIN INSIGHT ABOUT THE
CONSUMER BEHAVIOR REGARDING THE PURCHASE OF PENSION PLAN
AS A MODE OF SAFETY AND SECURITY FOR THEIR FAMILY
ANDTHEMSELVES.
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Acknowledgements
Any accomplishment requires the effort of many people and this work is no
different. I thank Bajaj Allianz Life Insurance and its entire staff, whose
support was instrumental in accomplishing the task. I would also like to express
my sincere gratitude to Bajaj Allianz Life Insurance Company Ltd. for giving
me this wonderful opportunity to work and get to know more about the
insurance industry and life insurance market in general. It was a great
experience to work with so talented and committed people.
I would also like to express my sincere regards to MR.S.K. ROI (FACULTY
IIMS) for extending her valuable guidance. He has been a source of inspiration
and motivation incidental to the completion of my project.
Many data of my findings are the result of a collection from various sources,
such as magazines and many insurance companies. Regardless of the source, I
wish to express my gratitude to those who may have contributed to this work,
even though anonymously.
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BAJAJ ALLIANZ LIFE INSURANCE
MISSION PENSION
With inflation eating away at buying power... taxes eroding the interest earned
on savings... and the possibility of spending more than two decades in
retirement, it's clear that a plan is needed to secure your retirement dreams.
And, as the Life insurance rates are based primarily on age, the younger you
are when you make this decision, the lower your premium will be. Make a
decision today and ensure a more enjoyable, less tension filled tomorrow . . .
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CONTENTS
1. EXECUTIVE SUMMARY
2. INTRODUCTION
• COMPANY PROFILE (6-11)
• PRODUCTS OFFERED BY THE COMPANY (12-17)
• RETIREMENT (18-34)
• RETIREMENT PLANNING (35-39)
•
3. PROJECT OBJECTIVE (40-45)
4. APPENDICES-PENSION PLAN
• BAJAJ ALLIANZ LIFE INSURANCE (46-54)
• ICICI PRUDENTIAL LIFE INSURANCE (55-60)
• HDFC STANDARD LIFE INSURANCE (61-65)
• OM KOTAK MAHINDRA LIFE INSURANCE (66-68)
• MAX NEW YORK LIFE INSURANCE (69-71)
• ING VYSYA LIFE INSURANCE (72-75)
• TATA AIG LIFE INSURANCE (76-77)
• LIFE INSURANCE CORPORATION (78-79)
• STATE BANK OF INDIA (84-85)
• AVIVA LIFE INSURANCE (86-88)
5. RESEARCH METHEDOLOGY (89)
6. ANALYSIS AND INTERPRETATION (90-93)
7. SWOT ANALYSIS (94-96)
8. CONCLUSION (97-98)
9. RECOMMENDATION (99)
10. LIMITATIONS (100)
11. BIBLOGRAPHY (101)
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COMPANY PROFILE
BAJAJ GROUP
Bajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj group is the
largest manufacturer of two-wheelers and three-wheelers in India and one of the
largest in the world. .A household name in India, Bajaj Auto has a strong brand
image & brand loyalty synonymous with quality & customer focus.
A STRONG INDIAN BRAND- HAMARA BAJAJ
 21 million+ vehicles, one of the largest 2 & 3 wheeler manufacturers in the
world on the roads across the globe.
 Managing funds of over Rs 4000 cr.
 Bajaj Auto finance one of the largest auto finance Cos. in India.
 Rs. 4,744 Cr. Turnover & Profits of 538 Cr. in 2002-03.
It has joined hands with Allianz to provide the Indian consumers with a distinct option
in terms of life insurance products
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ALLIANZ GROUP
Allianz Group is one of the world's leading insurers and financial
services providers.
Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost
174,000 employees. At the top of the international group is the holding company,
Allianz AG, with its head office in Munich.
Allianz Group provides its more than 60 million customers worldwide with a
comprehensive range of services in the areas of:
 Property and Casualty Insurance,
 Life and Health Insurance,
 Asset Management and Banking.
ALLIANZ AS- A GLOBAL FINANCIAL POWERHOUSE
 Worldwide 2nd by Gross Written Premiums - Rs.4, 46,654 cr.
 3rd largest Assets Under Management (AUM) & largest amongst Insurance
cos. - AUM of Rs.51, 96,959 cr.
 12th largest corporation in the world
 49.8 % of global business from Life Insurance
 Established in 1890, 110 yrs of Insurance expertise
70 countries, 173,750 employees worldwide
SHARED VISION
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A household name in India teams up with a global
conglomerate...
Bajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj group is
the largest manufacturer of two-wheelers and three-wheelers in India and one of
the largest in the world.
A household name in India, Bajaj Auto has a strong brand image & brand loyalty
synonymous with quality & customer focus. With over 15,000 employees, the
company is a Rs. 4000 crore auto giant, is the largest 2/3-wheeler manufacturer in
India and the 4th largest in the world. AAA rated by Crisil, Bajaj Auto has been in
operation for over 55 years. It has joined hands with Allianz to provide the Indian
consumers with a distinct option in terms of life Insurance products
As a promoter of Bajaj Allianz Life Insurance Co. Ltd., Bajaj Auto has the following
to offer –
 Financial strength and stability to support the Insurance Business.
 A strong brand-equity.
 A good market reputation as a world-class organization.
 An extensive distribution network.
 Adequate experience of running a large organization.
 A 10 million strong base of retail customers using Bajaj products.
 Advanced Information Technology in extensive use.
 Experience in the financial services industry through Bajaj Auto Finance
Ltd
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INDIAN OPERATIONS
Growing at a breakneck pace with a strong pan Indian presence Bajaj
Allianz has emerged as a strong player in India...
Bajaj Allianz Life Insurance Company Limited is a joint venture between two leading
conglomerates Allianz AG and Bajaj Auto Limited.
Characterized by global presence with a local focus and driven by customer
orientation to establish high earnings potential and financial strength, Bajaj Allianz
Life Insurance Co. Ltd. was incorporated on 12th March 2001. The company received
the Insurance Regulatory and Development Authority (IRDA) certificate of
Registration (R3) No 116 on 3rd August 2001 to conduct Life Insurance business in
India.
Bajaj Allianz- THE PRESENT
 Product tailored to suit your needs
 Decentralized organization structure for faster response
 Wide reach to serve you better – a nationwide network of 700 + branches
 Specialized departments for Banc assurance, Corporate Agency and Group
Business
 Well networked Customer Care Centers (CCCs) with state of art IT systems
 Highest standard of customer service & simplified claims process in the
industry
 Website to provide all assistance and information on products and services,
online buying and online renewals.
 strong tele-marketing and Direct marketing team
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 Swift and easy claim settlement process
Tie Ups with Banks
Pioneers of Banc assurance in India...Having pioneered the phenomenon,
Banc assurance is one our core business strategies. Two of our strong Banc assurance
tie-ups are:
• Standard Chartered Bank
• Syndicate Bank
Company has developed a range of life insurance products exclusively for our Banc
assurance partners. Also, our products are customized to suit specific needs of banks.
FOCUSSED SALES NETWORK
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WHY BAJAJ ALLIANZ
Bajaj Allianz Life Insurance Company Limited is a union between Allianz
SE, the world’s leading insurer and Bajaj Auto, one of India’s most respected names.
Allianz SE is a leading insurance conglomerate globally and one of the largest
asset managers in the world, managing assets worth over a Trillion Euros (over
Rs. 55,00,000 crores). At Bajaj Allianz, we realize that customer seek an insurer he
can trust his hard earned money with. Allianz SE has more than 110 years of
financial experience in over 70 countries and Bajaj Auto, trusted for over 55 years in
the Indian market, are committed to offering people financial solutions that
provide all the security customer need for his family and himself.
At Bajaj Allianz, customer delight is our guiding principle. Ensuring world class
solutions by offering them customized products with transparent benefits supported
by the best technology is their business philosophy.
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PRODUCTS
Individual plans
Protector
A mortgage reducing term plan
This is the perfect plan to protect the family from the repayment liability of
outstanding loans, in the unfortunate case of death of the loanee. There is also an
option to cover the co- applicant of the loan at a very nominal cost under this plan...
Child gain
Children’s policy
Right from providing for your child's education to securing a bright future, this plan is
tailor- made to suit your child's needs...
Cash gain
Money Back Plan
This is the only money back plan that offers quadruple protection, going upto 4 times
the basic sum assured, and a family income benefit...
Swarna Vishranti
Retirement plan
In addition to life insurance and attractive tax benefits, this plan enables you to make
adequate provisions for your years after retirement as well...
Invest gain
An Endowment Plan
This savings plan combines high protection (up to quadruple cover) with a unique
family income benefit...
Term Plan With Return -Of-Premium
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An economic way of providing life cover, this plan also ensures the return of all
premiums at the time of maturity...
Life Time Care
Whole Life Plan
This whole life plan provides survival benefits at the age of 80 thereby making sure
you are financially secure at the time when you need it the most…
Keyman Insurance
A Promising Business Opportunity
Keyman Insurance provides you with the unique opportunity to protect your business
against the unfortunate loss of key people, while giving you valuable tax advantage
and a lovely tool to help employee loyalty too...
New Unit Gain Plus
The thumb rule for buying insurance is that your insurance needs are minimal in your
early earning years, increase with added responsibilities (Marriage, children, loans
etc.) and taper off by the time you retire. It is difficult to find a single insurance plan
that can take care of all your changing requirements in life – additional protection,
more money to invest, sudden requirement of cash or a steady post-retirement
income...
Additional Rider Benefits For Unit Linked Product
Bajaj Allianz Additional Benefits – Additional protection for you and your family
available with Unit Gain Plus ...
New Unit Gain Easy Pension Plan
Unit Linked Retirement Plan Without Life Cover
Bajaj Allianz New UnitGain Easy Pension Plus, is a plan that helps you take control
of your future and ensure a retirement you can look forward to. This is a regular
premium investment linked deferred annuity policy. Available as: New UnitGain Easy
Pension Regular Premium & New UnitGain Easy Pension Single Premium.
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Swarna Raksha I
A fixed annuity for life will be payable, and on death of the annuitant, the nominee
will be entitled to receive an amount that is equal to the lumpsum used to purchase the
annuity.
Mahila Gain Rider
The unique plan that takes care of you and your loved ones and provides benefits like
• Critical Illness Benefit
• Reconstructive Surgery Benefit for Breast(s) due to Breast Cancer
• Congenital Disability Benefit
• Complications of Pregnancy Benefit.
Health Care
This is a three-year health insurance plan, providing comprehensive health cover with
life insurance benefit. You can choose the amount of cover for each benefit separately
in multiples of the minimum cover amount, subject to a maximum multiple of 10.
New Unit Gain Premier SP
• Upfront Allocation of 105% of single premium on day 1
• Flexi maturity after 6years
New Unit Gain Super
• High Allocation
• Guaranteed life cover
New Family Gain
• The only Unitlinked insurance plan with ethical equity fund.
• Suits religious investment guidelines as well.
Save Care Economy-SP
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• An ideal plan for a one-time lump sum investment that provides for savings with
high risk-cover.
• An investment that provides financial security and liquidity.
An ideal plan for a one-time lump sum investment that provides for savings with high
risk-cover. This Single Premium investment plan for 10 years is also participates in
the profits of the company.
New Unit Gain Plus SP
• A single premium plan with maxx allocations
• Choice of 4 investment funds and 3 free switches allowed each year
• Partial and Full withdrawls after 3 years
Samraksha
• Single premium Term Assurance
• Convenient terms of 5 & 10 years
• Sum Assured options of Rs. 5000 and Rs. 10,000
• Minimum & maximum entry age is 18 & 45 respectively
• Surrender Value – None & Maturity Value – None
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Capital Unit Gain
• Big Boss of all ULIPS
• Capital UnitGain is a unit linked endowment regular premium plan that is deisgned
to suit all your insurance & investment needs.
Unit Gain Guarantee SP
• High Allocation
• Full or partial withdrawals are allowed anytime after 3 years
New Risk Cover
"Insure your Today with us to Ensure your family Smiles Tomorrow."
• A non-participating traditional Term Assurance plan.
• Higher insurance coverage at Low premium.
• Regular/Single Premium payment options.
Additional Benefits For Traditional Product
Redesign your life insurance coverage to suit your nedds, providing total protection.
Bajaj Allianz Care First
• Guaranteed renewals upto age 65 without medicals
• Finest treatment in leading hospitals
• Generous hospital cover upto 7Lacs.
• Same premium for 3 years.
Alp Nivesh Yojana
• Life cover and Maturity benefit equal to sum assured + vested bonus
• Guaranteed Surrender Value
• Avail additional benefits including Accidental Death Benefit & Accidental
Permanent Total / Partial Disability Benefit
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Bima Kavach Yojana
• Return of premium on maturity
• Guaranteed Surrender Value
• Avail additional benefits including Accidental Death Benefit & Accidental
Permanent Total / Partial Disability Benefit
Jana Vikas Yojana
• Life Cover
• Maturity Benefit of 125%of the single premium payable on survival till the end of
the policy term
• Guaranteed Surrender Value
Group plans
Group Credit Shield
Available for Employer - Employee Groups
and Non Employer-Employee Groups
Group Term Life
Available for Employer - Employee Groups
and Non Employer-Employee Groups
Group Term Life Scheme
in lieu of EDLI (Employees Deposit Linked Insurance)
New Group Super Annuation Scheme
Assure your Employees a financially secured, stable and independent post retirement
life.
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INTRODUCTION
PLANNING FOR RETIREMENT
After spending years working hard, setting up your home and raising a family,
retirement should be one of the most rewarding chapters of your life. It should be the
time to enjoy your independence. Spending time with children and grandchildren,
traveling, pursuing a hobby, embarking on a new vocation.
However, for too many people, the uncertainty of their retirement income clouds this
sunny picture. Even though you have planned ahead and saved, will it be enough to
last a lifetime? Is there some way your savings could provide a constant source of
income that would ensure peace of mind?
Today, thanks to a healthier life style and advances in medicine, the average Indian
lives longer. A person, who is 60 plus today, can hope to live at least till the age of 75.
A person who is 40 plus today can hope to live at least till the age of 80. That means
that we need to plan for at least 20 to 30 years of retired life.
NEED OF INSURANCE AFTER RETIREMENT
Retirement does not necessarily mean the end to your need for life insurance. It only
implies a change in the type of insurance plan you need.
Naturally, you'd want to ensure the continuation of the same lifestyle for you and your
spouse. However, as with any other major life stage change, you should re-evaluate
your coverage to ensure its adequacy.
If you are married, it is best for you to select a "Joint and Survivor option" annuity
which pays benefits as long as either you or your spouse is alive. However if you are
single, a "single life option" annuity is best for you. In the case of a "Single Life"
option, benefits continue for as long as the benefit recipient lives, whether the
recipient lives to age 68 or 108. Finally, if you want to leave behind something for
your beneficiaries, you could choose a "Return of Premium" option in an annuity.
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MONEY TO BE SET ASIDE FOR RETIREMENT
You, and you, alone know how much retirement income you will need, to live
comfortably. To gain a better understanding of the need to plan ahead, you could start
by assessing all aspects of your current and anticipated financial needs.
Begin by answering the following questions:
• How long do you have to save that amount before retirement?
• Where can you invest your retirement money?
• How much risk are you willing to take on your investments?
• Do pay special attention to the first question. Many people who are currently
employed, assume the answer to that question is zero, because their retirement
money will come from the employer's pension plan. Unfortunately, this
monetary stream may not provide a sufficient retirement income.
To ensure a comfortable retired life, you would be wise to invest money into
additional avenues - like life insurance. To calculate your likely monetary
requirements during retirement, use our Retirement Calculator that will give you an
intelligent estimate.
However, as you get closer to retirement, you will need to re-evaluate your needs and
adjust accordingly to meet your goals.
ANNUITIES
An annuity gives you a fixed sum of money, at periodic intervals, for the rest of your
life. Adding a tax deferred investment, like an annuity, to your retirement plan may
help you realize your retirement dreams. Besides giving your savings the power of tax
deferred compounding (in case of deferred annuity), you are also in control of when
you begin receiving payments. They also provide a number of benefits that other
instruments don't. Some of these include:
Lifetime Income:
If outliving your savings is a concern, an Annuity could be the solution. You can
arrange to receive a steady stream of periodic payments, for the rest of your life. Only
Annuities provide the retirement income options that can protect you from outliving
your assets.
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Competitive Interest Rates:
Annuities can offer competitive interest rates, as well as investment flexibility. With
some Annuities, you can "lock-in" a guaranteed interest rate for a specified period of
time. To maintain your purchasing power, your assets need to grow equal to or faster
than, the inflation rate. Even if inflation averages just 3% per year, your purchasing
power may be cut in half in almost 20 years.
Leverage the Power of Tax Deferral:
A Deferred Annuity allows you to accumulate money for retirement on a tax-deferred
basis. You put money in, and over time it earns interest and multiplies. Deferred refers
to the postponement of the payout - the steady payments to you start later, usually at
retirement. With deferred annuities, there are no taxes on earnings as well. Invest in
an annuity now and defer the income receipts till you retire - an effective retirement
strategy.
Guaranteed Death Benefit:
• Level Term Assurance.
TAX BENEFITS
Premiums paid under this Plan will be eligible for If you were to die prematurely,
would your spouse have enough money to continue the lifestyle that he/she has
become accustomed to? Annuities offer Joint or Survivor Option, which ensures that
the same income stream continues for your spouse. Will your heirs be able to meet the
final expenses? Planning to provide for the needs of the family after your death is
essential? Annuities offer the option of a guaranteed death benefit, which passes to
your named beneficiary.
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ANNUITY OR NOT
Annuities are widely used to augment / add to retirement incomes. However, we
recommend that you do not blindly go for them. Annuities generally work well for
people who meet the following criteria:
• You are afraid you may outlive your savings
• You are investing money you will not need for the next 10-15 years. That's
about the time it will take to get the maximum benefits from tax rules (The
only exception to this rule, is if you are about to retire and want to put a chunk
of money into an immediate annuity, which will provide you with fixed,
guaranteed monthly income right away.)
• You have received a windfall lately: a bonus, an inheritance or any other lump
sum that you want to invest for your future.
• Annuities are an ideal way to invest large sums of money received all at once
• Your current tax bracket is very high and it would reduce later due to
retirement. As the Annuity's gains are tax deferred, your entire savings work
and grow for you
• You are nearing retirement age and looking for a product that will pay you a
guaranteed income for life
ANNUITY MEANING
The word annuity implies periodic payments. When you buy an annuity, the company
promises to pay you a periodic sum of money, for a specified period of time.
An Immediate Annuity starts making the income payments within the first year of its
purchase.
A Deferred Annuity will start making the payments at a pre-determined future date, as
agreed between the buyer of the Policy and the company.
Immediate Annuity
An Immediate Annuity starts making the periodic income payments within the very
first year of its purchase. The annual amount received as annuity payment from ICICI
Prudential is dependent on the purchase price of the annuity and the buyer's life
expectancy. The annual amount receivable through the annuity can be varied by
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adjusting the purchase price of the annuity. The Joint Life, Last Survivor Annuity also
returns the purchase price of the annuity to a designated nominee.
Deferred Annuity
A Deferred Annuity is one where the payout phase begins after a stipulated number of
years. Either multiple contributions or a single lump sum contribution can be made
towards it. A Deferred Annuity has two phases: the Accumulation Phase and the
Payout Phase.
Accumulation Phase:
The amount accumulates on a compounded basis, till the Buyer decides to take
income from it. If the Buyer dies, a regular income stream is automatically provided
to the beneficiaries.
Payout Phase:
This begins when the Buyer starts making periodical withdrawals from the
accumulated sum. The Buyer may make partial withdrawals or convert the entire
accumulated sum to a stream of income payments
ANNUITY PAYOUT OPTIONS
An Annuity can pay out incomes in monthly, quarterly, semi-annual or annual
installments. You can design your Annuity to receive income of a specified amount
over a specified period of time.
The following income options are widely used -
Return of Purchase Price - Income payments are guaranteed for the life of the
Annuitant. On the demise of the Annuitant, the Beneficiary receives the original
purchase price as a lump sum.
Annuity certain for chosen period and Life Annuity thereafter - Income
payments are guaranteed for a specific number of years (5, 10 or 15 years).
Additionally, the payments continue beyond the "period certain" for as long as the
Annuitant lives.
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Joint Life Last Survivor - This option is based on the lives of two people. The
income payments continue till the demise of both the Annuitants.
The plan can be structured so that -
• On the demise of one of the Annuitants, the payments continue for the same
amount or for a lesser amount.
• On the demise of both the Annuitants, the original purchase price is given to
the Beneficiary as a lump sum.
THE IMPACT OF INFLATION ON YOUR
RETIREMENT SAVINGS
A hundred rupees today doesn't buy what it used to ten years back. How much less
will your money be worth when you are ready to cash out at retirement? One widely
used measurement for projecting inflation rates is the Consumer Price Index (CPI).
The CPI is the representative cost of a "basket of goods". The actual price of the
basket of goods is not that important. What is critical is the amount of change,
specifically the 12 month change, stated as a percentage. This percentage change is
known as the rate of inflation.
Determining Your Future Buying Power
To plan an adequate income stream for your retirement, we should apply the expected
annual CPI to your planned annuity income. This will determine just how much
buying power your retirement income will have. The procedure is as follows:
First, estimate how much annual income you will need to live the lifestyle you want,
in today's currency.
Second, multiply this amount by one plus the annual rate of inflation. For example, if
you think you will need Rs. 200,000 a year and the expected annual rate of inflation is
5%:
Rs.200, 000 x (1 + 0.05) = 210,000
You will actually need Rs.210, 000 to cover your expenses after a year - inclusive of
the cost of rising inflation.
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Repeat the calculation, using your new total, for every year you plan to wait before
drawing on your savings at retirement. The results may surprise you. For example, the
effects of 10 years of inflation means you will need Rs. 255,256 (approx) to meet
those same expenses!
Thus, you need to consider the effect of inflation on your expected annuity income
when planning for retirement.
RETIREMENT PLANS
Most of you picture yourselves enjoying the fruits of labor after retirement, going on
your dream vacation, or helping your children's career take wing. But do you realize
that financing all this will most likely depend partly on your personal savings?
Because personal savings and investments represent a significant source of retirement
income for many people, you can never save too much.
Currently, you are at a stage where you are juggling many roles, as nurturing parents,
dutiful caregivers to elders, supportive life partners, while trying to maintain a career.
It is too easy to get carried away handling and solving the day-to-day problems to not
look into your retirement needs. It may also seem too far away to be of concern. But a
look at the issues below will make the need for some strategic planning at this stage
amply clear.
Today, thanks to a healthier lifestyle and advances in medicine, the average Indian
lives longer. This makes the challenge of accumulating enough money for retirement
even more difficult, since it may have to last longer. Also, with the falling interest rate
scenario and the rising costs of medical expenses retirement mean monetary
uncertainty for most of us. More so, because there is also the ever-persistent evil of
inflation, which erodes your purchasing power. The graph below illustrates how much
Rupees will 10,000/- amount to after some years:
Therefore, the message is simple - no matter whether you are 30 or 50, you should
start planning early to have a healthy retirement kitty.
As can be seen the cost of delaying is high. Situation A is when you are saving Rs
10000 annually from the age of 25 to 34 years and Situation B is when you save the
same annual amount from the age of 35 to 59 years. As can be seen in the example,
even after investing your money for a 2.5 times longer duration, the maturity value in
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the second case is much lesser (the figures are based on a hypothetical interest rate of
10%). The longer your money is allowed to grow at a compounded rate, the more
dramatic will the difference be eventually.
Therefore, the message is simple - Put Time On Your Side and Start Early.
W/out Sec80CCC (1) Benefit With Sec80CCC (1) Benefit
Details Amount Details Amount
1 Income 300000 Income 300000
2 Tax Deductible Exp. 100000 Tax Deductible Exp. 110000
3 Taxable Income (1-2) 200000 Taxable Income (1-2) 190000
4 Taxes Payable 35700 Taxes Payable 32550
5 Investment in Sec88 20000 Investment in Sec88 20000
6 Tax Rebate u/s 88 4000 Tax Rebate u/s 88 4000
7 Net Taxes (4-6) 31700 Net Taxes (4-6) 28550
Assumption of an investment of RS10,000 u/s 80CCC(1)
As the chart indicates, the powerful combination of compound interest plus tax
deferred earnings, plus no tax on maturity proceeds, can be one of your strongest
allies, when it comes to accumulating wealth, for your retirement or other long term
financial goals.
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POWER TO PLAN YOUR RETIREMENT, THE WAY
YOU WANT
YOUR OBJECTIVE OF RETIREMENT PLANNING:
• Maximize the value of your investments to get more pensions, when you
retire.
• Beat the effect of inflation over the long-term, enjoy real appreciation.
Value
of your
invest
ments
that
give
you
This is where you are now- invest This is where you want to be-
for your retirement kitty Peaceful Retirement Years.
Your
Objectiv
e-
Maximiz
e this This is when you retire
Linked Pensions provide you the power to invest the way you want- so you have the
opportunity to maximize your returns.
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27. zzzzzzzzz 27
Options to maximize your
returns
Why the Market-Linked
Pension Plan is a better way
to accumulate?
Sustained regular
investments over a long
period of investments,
because of the Rupee-Cost
Averaging Effect.*
Long-Term Combination of
Appreciatio Cap.
n of your Appreciation
investment with steady
returns
Reasonable
and steady
returns
OTHER INVESTMENT FLEXIBILITIES
Flexibility to Top-Up on your investments just at a cost of 1%-
Power in your hands to direct your windfall/Lump sum gains anytime for growing your
retirement kitty.
Flexibility to Switch Between your Investments Options-
Based on your changing Life stage, your investment priorities change. We have made
a flexibility to felicitate this change for you, so that you can change from one option
of investment to other depending on your needs.
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POWER TO CHOOSE PROTECTION ON YOU LIFE
AND HEALTH, THE WAY YOU WANT TO
Options to plan for your
Retirement
Pure Protection with
Accumulation Accumulation
purpose- No Purpose- With
LifeCover and LifeCover and
Health Riders Health Riders
ZERO DEATH DEATH BENEFIT
BENEFIT OPTION WITH RIDERS
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POWER TO START YOUR PENSION, WHENEVER YOU
WANT TO.
What if you do not want your pension to start as opted by you originally?
- You may find that you want to work for some more years.
- You may want to accumulate in your pension for some more time.
- And, above all you may want to start your pension whenever you wish, any
day, any month.
We understand your needs and hence we have the flexibility in our products that give
you the power to start your pension whenever you wish to.
You may wish to postpone it because:
You want to accumulate for some more time.
You may work for some more years.
You may wish to take any benefits from the market
movements.
Your Original You have the flexibility of postpone the original date
Vesting Date
and start you pension whenever you wish
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POWER TO GET YOUR PENSION, THE WAY YOU WANT TO
If you think how you would receive your pension, we have so many options for you,
just to fit in your requirements. We give you options such as to provide you with best
of the solutions for your retirement.
Options for
Receiving Pension
Annuity for whole of your Annuity guaranteed for
life. 5/10/15 years with
continuation after that till
you survive.
Annuity for whole of your
life with the return of the
purchase price to the
nominee.
Annuity for you and your
spouse for the whole of life
with the return of purchase
price to the nominee.
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INCREASING LIFE EXPECTANCY
Population in India is expected to increase by 49% between 1991(Census) and 2016;
the number of elderly people would increase by 107%. An amazing 113Mn by 2016,
which would increase to a staggering 179Mn by 2026. You may be one of them!!
A 60 year old person toady would on an average live till 75 years. 20 years from now
a person aged 60 would live till 80 years. Wouldn’t we be facing the same long
retirement? Was the situation same with our grandfathers?? Perhaps not!
The yesteryears!!
Retirement Years
What is looks like today??
LESSER NUMBER OF PRODUCTIVE YEARS
How do we take care of these long years, if we do not plan from today??
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RISING INFLATION
Wouldn’t you have ridiculed on somebody who ten years age would have said” Potatoes ten
years from now would cost Rs10 /kg?” Today you may look back and say how correct he was!!
Look at these
10 years ago Today % Increase Expected Cost after 10
years
1 Kg of Potato Rs 1.50 Rs 8.00 533% Rs43
1 Ltr. Of Petrol Rs17.00 Rs31.00 182% Rs57.00
1 Mum-Dli Train Ticket
Rs350.00 Rs1750.00500% Rs8750.00 May
Look
ridiculo
us
Do you spend more while at “Work” or when at “Vacation”- Certainly on same
as that
“Vacation”!!
Have you provided for your retirement, which is nothing but your vacation after your
tiring Work life??
ENOUGH SAVINGS TO TAKE CARE OF THE INCREASING COSTS DURING
YOUR VACATION
I wish I had catalysts in my body that would have prepared medicines for me
whenever I wanted. (Medical Costs)
Which are the most common diseases that hit people in the old age- Arthritis, Asthma,
and Diabetes? A look at the expected cost for these, when you retire would make you
think twice.
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Disease No. of visits to Cost in 1992 Cost in 2002 Projected Cost
doctor per (Rs) (Rs) in 2012#
month cost (Rs)
Spondylitis Once in 3 2500 8000 25600
months
Arthritis Once in 2 250 850 2890
months
Asthma Month cost45 175 600 2060
days
Diabetes Once in a 225 750 2500
month
ADVANCED MEDICAL SCIENCE HAS BECOME VERY
EXPENSIVE
A simple blood test today costs anything between Rs75-Rs100. X-Ray ranges to even
more, something like Rs200-Rs300. These basic costs may quadruple in the next 20
years and would be far more expensive when you require them even more, at your old
age.
Research reveals that medical expenses are 40% of the expenses in old age, with these
increasing prices, do you have enough provision to take care of your health properly
at old age.
As if Inflation was not enough: Finally, from 2005 onwards, the government proposes
to decontrol the pricing of drugs under the deregulation of the price control regime.
Costs, which were controlled till now, will skyrocket.
In case we do not have the provision, certainly we have to wish for
the catalysts.
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DELAY YOUR SAVINGS AND THE COST THAT YOU WOULD INCUR IS
UNIMAGINABLE(THE MAGIC OF COMPOUNDING)
If You Invest Early If you invest late
Rs 6,78,803
Rs 11, 32,832
R
Rs 3,00,000 eti
R
re
eti
m
re
In en
m
ve t
Rs 3,00,000 en
st Sa
t
m vi
Sa
en ng
vi
ts s
ng
s
When you invest Rs10, 000 When you invest Rs25,000
annually for 30 year The annually In for a 15 year
period( from age 31 to 60 Choice period(from
ve 46-60), the
years), the magic of is all value you receive is far
st
compounding lets your yours- lower. m
money grow to a larger Be Cost of delaying is high!!
en
amount Smart in
ts
Early investments make your
Plannin
g or pay
the high
cost of
RETIREMENT PLANNING
INCREASING LIFE EXPECTANCY
SOME FACTS:
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35. zzzzzzzzz 35
• Populations worldwide are ageing. In India, while the total population is
expected to rise by 49% between 1991(Census) and 2016, the number of
elderly person is expected to increase by 107%, to nearly 113 Mn. In other
words, the share of the aged in the population would be 9%. It would still rise
further and would stand at 179 Mn by 2026- or 13.3% of the population.
• Demographics suggest that while today in India, Males and females of 60
years of age are going to live till 75 years, a person who is 40 as of today and
would be 60 by 2022 would live for 20 years, post attaining the age of 60
years.
What these facts reflect is that with the increasing time, their old age would increase.
Not only the number of old age people would increase but also the number of years
they spend in.
The other important factor is that the number of working years is constantly reducing,
with the increased competition and the urbanization in the country.
In such a scenario, the situation looks like as this:
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YESTERYEARS
Retirement Years
Working Years
What it looks like today?
Retirement Years
Working Years
We are increasingly getting left with lesser number of productive years to take care of a longer
and longer retirement years.
PROTECTION OF LIFESTYLES
How the Cost of Living has been increasing?
Ten years Ago Today % increase
1 Kg of Potato Rs 1.50 Rs 8. 00 533%
1 Litre of Petrol Rs 17 Rs 31 182%
1 Cinema Ticket Rs 20 Rs 80 400%
1 Mumbai-Delhi Train Rs350 Rs1750 500%
Ticket
Looking at the above list of items which would be the one that you would not use
after you have retired. Perhaps you would use all of them. If these keep on growing at
the same rate, a 10 year hence scenario would look like this.
Today % increase 10 year hence
1 Kg of Potato Rs 8. 00 533% 43
36

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1 Litre of Petrol Rs 31 182% 57
1 Cinema Ticket Rs 80 400% 320
1 Mumbai-Delhi Rs1750 500% 8750
What we have not considered here is the medical cost, which is a major expense in the
post-retirement phase.
Isn’t it frightening to imagine what would be the cost of the above items 20 years
from now??
Now, ask a person- when would he spend more money –on a vacation or while at
work. More often that not you would get an answer “VACATION”. What is
retirement- it is this vacation after a long stint of working years. In this period one
would like to maintain the present level of lifestyle, if not better.
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EXAMPLE OF AN AVERAGE FAMILY SPENDS OF AN INDIVIDUAL
TODAY
Household Expenses: Rs6, 000 per month.
Expenses on Children: Rs3, 000 per month.
Medical Expenses: Rs5, 00 per month.
Assuming this individual would work for the next 20 years and then retire and also
assuming that the household expenses would reduce to 60% of the present level
(because the children would be independent), the cost comparisons would like as
follows:
Expenses Present After 20 years*
Household 6000 9552
Children 3000 0
Medical Expense 500 1526
Total 9500 11078
Even with the household expenses reduced by 40% and no expenses on the children
post-retirement, the cost of living will increase by 15%.
Therefore it is important that we provide enough to take care of these increasing
expenses.
· The costs have been worked out assuming an increase in the medical costs by
15% and an overall cost inflation of 5%
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The Compounding Effect of Money
How many times one thinks of retirement planning at an early stage in the life. The attitude
generally exhibited is “I AM TOO YOUNG TO PLAN FOR RETIREMENT”.
Example, assuming a retirement age of 55 years and the amount of money required
then, to take care of the retirement is Rs10, 00, 000. Now let us see what would be the
effect of planning your retirement from the age of 25, 30 and 35 years.
One would require to invest nearly Rs 24, 000 per annum to get the same amount at
retirement, if he starts the planning at 35 years as compared to Rs 10, 600 if he
chooses to start the planning at age of 25 years of age.
A successful planning would be when we spread our responsibilities over a longer
period of time to make it less cumbersome rather than making it short and difficult.
Protection for Spouse/ Dependents
While doing a research of the needs of the people in the various life stages, one thing
that was strongly opined by people in the age group of 45 years and more was the
“financial independence of them and their spouses during their retirement period”.
With the breaking up of the traditional family system in the present era and people
living in nuclear families, the worry for the provision for the old age is a specific
concern.
It is important that you provide for the financial independence of you and your spouse
post your retirement
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OBJECTIVES OF THE RESEARCH STUDY
The purpose of the project in the first place was to study the various pension
plans provided by the different insurance companies. Further to study and
compare the plans and bring out differences. Also to make a ready-reckoner of
the same for the advisors and unit managers.
The main objectives of the research study were as follows –
• To gain an insight into the entire gamut of the pension market.
• This comparative study would help in assessing the product features of
other pension providers and their strategy towards creating customers
for the product
This study would also helped in knowing the potential market for the product
and also how to have a competitive edge over the other players in the market by
stressing on to the key areas of the product.
METHODOLOGY ADOPTED
 The first step was to study all the insurance products being offered by BAJAJ
ALLIANZ LIFE INSURANCE CO. LTD.
 Then data of other pension players was collected by personally visiting them and
then probing their pension plans.
 The next step was to draw results from the analysis of the information collected
regarding the features of the product in the market.
 A comparison was then made between the features of the product in the market
and that offered by BAJAJ ALLIANZ LIFE INSURANCE CO. LTD.
 After finding out the investors details, this data was then tabulated, analyzed and
deductions were then made so as to know the investors psyche and the products
and features which a investor looks for in a product.
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RESEARCH DESIGN
A research design is the arrangement of conditions for collection and analysis of
data in a manner that aims to combine relevance to the research purpose with
economy in procedure. The research design id the conceptual structure within
which research is conducted; it constitutes the blue print for the collection,
measurement and analysis of data.
Types of Research Design
1. Exploratory Research Design- Also called formulative research study; the main
purpose of such studies is that of formulating a problem for more precise
investigation or of developing the working hypotheses from an operational point
of view.
2. Descriptive and diagnostic Research Design- Descriptive research studies are
those studies which are concerned with describing the characteristics of a
particular individual, or of a group, whereas diagnostic research studies determine
the frequency with which something occurs or its association with something else.
3. Hypothesis-testing Research Design- These studies are those where the
researcher tests the hypotheses of causal relationships between variables.
In my study, I have used “Exploratory Research Design”.
SAMPLING
Sampling may be defined as the selection of some part of an aggregate or totality
on the basis of which a judgment or inference about the aggregate or totality is
made.. In other words, it is the process of obtaining information about an entire
population by examining only a part of it.
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Types of Sampling
1. Probability Sampling: - Also known as “random sampling” or “chance
sampling”. Under this sampling design, every item of the universe has an
equal chance of inclusion in the sample.
2. Non-Probability Sampling: - It is that sampling procedure which does
not afford any basis for estimating the probability that each item in the
population has of being included in the sample.
In my study, I have taken a sample size of 250 and 50 respectively for my two
surveys.
DATA ANALYSIS
Data is mainly of two types:
1. Primary data: - are those, which are collected a fresh and for the first time,
and thus happen to be original in character.
2. Secondary Data: - are those which, have already been collected by
someone else and which have already been passed through statistical
process.
In my study, data has been collected through questionnaires hence it is primary
data.
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QUESTIONNAIRE FOR INSURANCE SURVEY
Name- Age- Occupation-
Address-
Phone no.-
Q.1- Do u know that govt. of india has privatized life insurance industry?
(a)yes
(b)no
Q.2- How many life insurance companies are in india?
(a)17
(b)12
(c) 10
(d)can,t say
Q.3- Do u know abt. BAJAJ ALLIANZ?
(a)yes
(b)no
Q.4- How do u know abt the BAJAJ ALLIANZ ?
(a)through media advertisements
(b)through representative of BAJAJ ALLIANZ
(c)through articles
(d)other channels
Q.5- Which company has the punch line “
(a) max new york life insurance
(b)birla sunlife
(c) icici pru
(d)BAJAJ ALLLIANZ
Q.6- Have u taken any life insurance cover for urself or for ur family?
(a)yes
(b)no
Q.7- The no. of policies u have at this time
(a) 1-5
(b)5-10
(c) more than that
Q.8-What is the importance of insurance in your life?
(a) safety
(b)investment
(c)tax saving
(d)others
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Q.9- How do u rate BAJAJ ALLIANZ vis-à-vis services offered?
(a) excellent
(b)good
(c)average
(d)poor
Q.10-Do u think BAJAJ ALLIANZ needs more publicity in life insurance sector?
(a)yes
(b)no
Q.11- Which media according to you would put more impact on you?
(a)television
(b)radio
(c)newspaper
(d)BAJAJ ALLIANZ representative
Q.12- Would u like to know more about any products and services of BAJAJ
ALLIANZ?
(a)yes
(b)no
Q.13- Do u know about the CAPITAL UNIT GAIN PLAN ( CUG) of BAJAJ
ALLIANZ?
(a) yes
(b)no
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DATA ANALYSIS
INSURANCE COAMPANIES
In all there was 10 insurance companies' pension plans were studied,
including BAJAJ ALLIANZ LIFE INSURANCE CO. LTD.
COLLECTION OF DATA
S. No. INSURANCE COMPANY
1. BAJAJ ALLIANZ LIFE INSURANCE
2. ICICI PRUDENTIAL LIFE INSURANCE
3. HDFC STANDARD LIFE INSURANCE
4. OM KATAK MAHINDRA LIFE INSURANCE
5. MAX NEW YORK LIFE INSURANCE
6. ING VYSYA LIFE INSURANCE
7. TATA AIG LIFE INSURANCE
8. LIFE INSURANCE CORPORATION
9. STATE BANK OF INDIA - LIFE (SBI LIFE)
10. AVIVA LIFE INSURANCE
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APPENDICES
PENSION PLANS
BAJAJ ALLIANZ LIFE INSURANCE
BAJAJ ALLIANZ represents pension plans that combine the best of investment
and insurance.
NEW UNIT GAIN EASY PENSION PLAN RP
IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS
BORNE BY THE POLICYHOLDER.
‘Bajaj Allianz New UnitGain Easy Pension Plus RP’ Plan
With Bajaj Allianz New UnitGain Easy Pension Plus RP you can take control of your
future and ensure a retirement you can look forward to.
Early retirement from work is every ones dream; you want your saving and
investment to grow fast so you don’t have to work for money anymore and enjoy
every moment of being with your loved one’s.
The New UnitGain Easy Pension Plus RP is a retirement plan that helps you retire
with laughter lines. This unitlinked pension plan gives you the advantage of investing
in securities making your savings grow faster so you can retire earlier.
What are the benefits available?
The plan works in two parts – the deferment period and the annuity period. During the
deferment period, the plan builds up the funds. The deferment period ends at the
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vesting date. You are free to choose your age of retirement (vesting date) between 45
and 70 years. After the vesting date, the annuity payments begin.
The benefits on Vesting Date (the date you choose to retire)
• The Fund Value as on the vesting date will be used to purchase an immediate
annuity, at rates prevailing at that point of time.
• Option to take lump sum: You have the option to take up to 1/3rd of the Fund
Value as a lump sum. This amount would be tax free in your hand, as per current
tax laws. The balance amount will be used to purchase an immediate annuity.
• Open Market Option: You have the option to purchase an immediate annuity
from Bajaj Allianz or from any other life insurer as recognised by IRDA. If the
immediate annuity is purchased from Bajaj Allianz, the amount available for
purchase of the annuity will be marked up by 2%.
Assurance – for your family
In the unfortunate event of death during the deferment period, your spouse will have
the option to take the Fund Value as a lump sum or purchase an annuity to get regular
income for life. For the immediate annuity, your spouse will have the Open Market
Option as well. The immediate annuity from Bajaj Allianz will be available only if the
spouse is above 45. If age were below 45, the Fund Value would be paid out.
Annuity options:
Allianz Life insurance at the vesting date. The annuity products currently available
are:
• annuity for life
• Annuity for life with 5 , 10, 15 or 20years certain payout
• Annuity for Life with Return of Capital
• Annuity for Life with joint life last survivor option
You also have the open market option to purchase immediate annuity.
The minimum instalment of annuity from Bajaj Allianz is Rs. 1000/-. The annuity
frequency may be changed to make each instalment more than the minimum
requirement. If it still below the minimum, the Fund Value may be paid in a lump
sum, if permissible, subject to applicable tax laws.
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Full Withdrawals
Full withdrawal/Surrender is allowed (subject to Surrender Charge, if any) anytime
after 3 years from commencement
Important Details of the ‘Bajaj Allianz New UnitGain Easy Pension
Plus RP ’ Plan
Minimum Maximum
Age at Entry 18 yrs 65 yrs
Defement Period 5 yrs 40 yrs
Age at Vesting 45 yrs 70yrs
Minimum Premium Rs.10000 for yearly, Rs.5000 for halfyearly,
Rs.2500 for quarterly, and Rs.1000 for
monthly
Tax Benefits
Premiums paid will be eligible for tax deduction under Section 80C of the Income
Tax Act.
Charges under this plan
• Policy Administration Charges will be Rs.50 per month per policy (charged
monthly through cancellation of units) escalating at 5% per annum.
• Fund Management Charge will be 1.75% p.a. of NAV for Equity Growth Pension
Fund and Accelerator Mid-Cap Pension Fund, 1.25% p.a. of the NAV for Equity
Index Pension Fund II, 0.95% p.a. of the NAV for Bond Pension Fund and 0.95%
p.a. of NAV for Liquid Pension Fund.
• Switching Charges: Three free switches would be allowed every year. Subsequent
switches would be charged @ 5% of switch amount or Rs. 100, whichever is
lower.
• Allocation: A portion of the premium paid will be charged towards expenses in
the initial years. Accordingly, the allocation to your fund will be will be as
follows-
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Annual premium size Premium payment due Premium payment due in
in
Policy Year 1 Policy Year 2
10,000-24,999 84% 98%
25,000-49,999 86% 98%
50,000- 99,999 88% 98%
100,000-499,999 90% 98%
500,000 and above 92% 98%
• Surrender Charge If first three years regular premiums are not paid and the
policy is lapsed, the Surrender Charge on regular premium unit value would be
100% of the first years annualised Allocated Premium.
If first three years regular premiums have been paid in full, the scale of
Surrender Charge applicable on regular premium unit value would be as follows:
Policy year Surrender Charge
4 5%
5 2%
6 and above No Charge
The Surrender Value would be payable after three policy years. Further, if first three
years regular premiums have not been paid and the policy is lapsed, the Surrender
Value, if any, would be payable at the expiry of the revival period or three policy
years, whichever is later.
No surrender charge will be applied in case of complete surrender of units in respect
of Top Up Premium.
Miscellaneous Charge: The miscellaneous charge would be charged at the rate of
Rs.100/- per transaction in respect of reinstatement, alteration of premium mode,
increase in regular premium or issuance of copy of policy document.
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% p.a. of the NAV for the
Equity Growth Pension Fund and Accelerator Mid-Cap Pension Fund, 2.25% p.a.
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50. zzzzzzzzz 50
for the Equity Index Pension Fund II and 1.75% p.a. for the Bond Pension Fund
and Liquid Pension 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
• If the Proposer/Life Assured does not agree with the charges, he/she will be
allowed to exit the plan at the prevailing price of units.
NEW UNIT GAIN EASY PENSION PLAN SP
IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT
PORTFOLIO IS BORNE BY THE POLICYHOLDER
‘Bajaj Allianz New UnitGain Easy Pension Plus SP’ Plan
With Bajaj Allianz New UnitGain Easy Pension Plus SP you can take control of your
future and ensure a retirement you can look forward to. This is a Single Premium
units existing at the valuation date (before any units are redeemed) , gives the unit
linked deferred annuity plan, which will help you plan for your retirement and ensure
price of the fund under consideration. This is applicable when the company is
required Flexibility – to manage your investments to sell assets to redeem units at the
valuation date that your investment grows well.
You have been working hard. you’re going to retire one day. How do you see your
retirement? Traveling? Golfing? Turning a hobby in to a second career or
volunteering for a noble causeor simply spending more time with your family. Post
retirement, how you choose to spend your time is now up to you. Its also upto you to
ensure your retirement income lasts as long as u do. The decisions u make about your
money today should be flexible enough to accomdate your changing needs. Taking
charge of your retirement begins with Bajaj Allianz New Unit Gain Pension Plus SP,
a plan that ensures that your years ahead are golden years.
KEY FEATURES OF THIS PLAN ARE-
• Single premium plan
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51. zzzzzzzzz 51
• Unlimited top-ups
• Choice of 5 investment funds
• Mortality charges are nil, enabling you to maximize your investment returns
What are the benefits available?
The plan works in two parts – the deferment period and the annuity period. During the
deferment period, the plan builds up the funds. The deferment period ends at the
vesting date. You are free to choose your age of retirement (vesting date) between 45
and 70 years. .. After the vesting date, the annuity payments begin.
Benefits on Vesting Date (the date you choose to retire)
• The Fund Value as on the vesting date will be used to purchase an immediate
annuity, at rates prevailing at that point of time
• Option to take lump sum: You have the option to take upto 1/3rd of the Fund
Value as a lump sum. This amount would be tax free in your hand, as per current
tax laws. The balance amount will be used to purchase an immediate annuity.
• Open Market Option: You have the option to purchase an immediate annuity from
Bajaj Allianz or from any other life insurer as recognised by IRDA. If the
immediate annuity is purchased from Bajaj Allianz, the amount available for
purchase of the annuity will be marked up by 2%.
Assurance – for your family
In the unfortunate event of death during the deferment period, your spouse will have
the option to take the Fund Value as a lump sum or purchase an annuity to get regular
income for life. For the immediate annuity, your spouse will have the Open Market
Option as well. The immediate annuity from Bajaj Allianz will beavailable only if the
spouse is above 45. If age were below 45, the Fund Value would be paid out.
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52. zzzzzzzzz 52
Full Withdrawals
Full withdrawal/Surrender of Fund Value, net of Surrender Charge, if any, is allowed
anytime after 3 years from commencement.
Annuity options
You will be able to choose from all immediate annuity products offered by Bajaj
Allianz Life insurance at the vesting date. The annuity products currently available
are:
• Annuity for Life
• Annuity for Life with 5, 10, 15 or 20 years certain payout
• Annuity for Life with Return of Capital
• Annuity for life with Joint Life Last Survivor Option
You also have the open market option to purchase immediate annuity.
The minimum instalment of annuity from Bajaj Allianz is Rs. 1000/-. The annuity
frequency may be changed to make each instalment more than the minimum
requirement. If it still below the minimum, the Fund Value may be paid in a lump
sum, if permissible, subject to applicable tax laws.
IMPORTANT DETAILS OF THE ‘BAJAJ ALLIANZ NEW UNIT GAIN EASY
PENSION PLAN SP’ PLAN
Minimum Maximium
Age at Entry 18 yrs 65yrs
Defement Period 5yrs 40 yrs
Age at Vesting 45 yrs 70yrs
Single Premium Rs. 50000 No limit
Top Up Premium Rs. 5000 No limit
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Tax Benefits
Contributions made will be eligible for tax deduction under Section 80C of the
Income Tax Act.
Charges Under the Plan
Policy Administration charges will be Rs.50 per month per policy (charged monthly
through cancellation of units) escalating at 5% per annum. The Company reserves the
right to change the Policy Administration Charge at any time with prior approval from
the IRDA.
Fund Management charge will be 1.75% p.a. of the NAV for Equity Growth
Pension and Accelerator Mid-Cap Pension Fund, 1.25% p.a. of the NAV for Equity
IndexPension Fund II, 0.95% p.a. of the NAV for Bond Pension Fund and 0.95% p.a.
of NAV for Liquid Pension Fund.
Switching Charges: Three free switches would be allowed every year. Subsequent
switches would be charged @ 5% of switch amount or Rs. 100, whichever is lower.
Allocation: A portion of the premium paid will be charged towards expenses.
Accordingly, the allocation of single premium and top ups would be 98%.
Miscellaneous Charge: The miscellaneous charge would be charged at the rate of
Rs.100/- per transaction in respect of issuance of copy of policy document.
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% p.a. of the NAV for Equity
Growth Pension Fund and Accelerator Mid-Cap Pension Fund, 2.25% p.a. for
Equity Index Pension Fund II and 1.75% p.a. for Bond Pension Fund and Liquid
Pension Fund.
• Switching charge upto a maximum of Rs.200 per switch or 5% of the switching
amount, whichever is lower.
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• Miscellaneous charge upto a maximum of Rs.200/- per transaction.
• If the Proposer/Life Assured does not agree with the charges, he/she will be
allowed to exit the plan at the prevailing price of units.
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ICICI PRUDENTIAL LIFE INSURANCE
Lifetime Pension: A regular premium linked deferred pension plan that gives you
the freedom to choose the amount of premium, and invest in market-linked funds, to
generate potentially higher returns.
Secure Plus Pension: A regular premium deferred pension plan that gives you the
flexibility to choose between 3 levels of sum assured for the same level of total annual
contribution.
Life Link Pension: A single premium linked deferred pension plan that gives you
the freedom to choose the amount of premium, and invest in market-linked funds, to
generate potentially higher returns.
Forever Life: A regular premium deferred pension plan that helps you save for
your retirement while providing you with life insurance protection.
LIFETIME PENSION
DEFERRED PENSION PLAN
A Linked Deferred Plan gives you the freedom to choose the amount of premium, and
invest in market-linked funds, to generate potentially higher returns. A part of the
premium paid is used to pay for the death benefit (if any) opted for by you and the rest
would be invested in the plan of your choice. On the retirement date, the accumulated
value of the units will be used to purchase an annuity - to provide you with regular
income for life.
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LIFE COVER BENEFIT
In the unfortunate event of your death before retirement, your spouse has the option of
receiving either the death benefit or the value of units as a lumpsum (whichever is
higher), or get an annuity that would provide regular income for life.
VESTING AGE
You can choose a vesting date once you are 50 years of age. However, you have the
option of postponing this vesting date till the age of 70 years. With this, you can take
advantage of market movements.
TOP-UPS
Use your surplus funds to top-up your investment (minimum Rs 10,000) during the
deferment period.
LIFE COVER
You choose the amount of life cover you require. You can also opt for a Zero Death
Benefit. The amount, which you pay for the Death Benefit, depends on your chosen
protection level.
LIFE COVER - INCREASE/DECREASE
In case you opt for a Death Benefit, you have the option of increasing or decreasing
the cover during the deferment period.
CHOOSING INVESTMENT PLAN
You can choose between the Maximize (Growth), Protector (Income) or Balancer
(Balanced) plans. You also have the power to switch between the plans, to suit your
investment priorities. You are entitled to one free switch every year during the
deferment period.
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ELIGIBILITY
You should be between 18 and 60 years of age.
MINIMUM PREMIUM
The minimum annual premium is Rs.10,000; half-yearly premium is Rs. 5,000 and
monthly premium is Rs.834.
TERM
Minimum term is 10 years.
SURRENDER
This plan acquires a surrender value after full premiums for 3 policy years are paid. In
case of complete withdrawal, a surrender value equivalent to the value of the units is
paid.
INITIAL CHARGES
The initial administrative charges in the 1st year would be 20% of the premium, for
premium amounts less than Rs.50,000. For premiums equal to or greater than
Rs.50,000, the charges would be 18% of the premium. In case the Zero Death Benefit
has been opted for, the charges would be 18% and 15% for the same premium bands.
However, in all cases, charges wouldbe 7.5% in the 2nd year and 4% from 3rd year
onwards.
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ADMINISTRATIVE CHARGES
Other charges would include annual administrative charges of 1.25% per annum of
net assets for Protector (Income) and 1.25% per annum for Maximizer (Growth) and
Balancer (Balanced) options. An annual investment charge of 0.25% per annum of net
assets for Protector and 1% for Maximizer (Growth) and Balancer (Balanced) would
also be charged.
ANNUITY PAYMENT MODE
Your accumulated value would start paying you regular income in the form of an
annuity, at a frequency chosen by you. This income can be received monthly,
quarterly, half-yearly or annually.
SECUREPLUS PENSION
DEFERRED PENSION PLAN
Secure Plus Pension - a flexible regular premium deferred pension plan.
CHOOSE - PROTECTION LEVELS
Secure plus Pension provides you with three levels of sum assured, for the same
amount of total annual contribution. You have the option of choosing between Basic,
Standard and Enhanced levels of cover.
How to calculate your cover as per the term you
have chosen
(Term - 5) x Premium = Basic cover
(Term) x Premium = Standard cover
(Term + 5) x Premium = Enhanced cover
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ZERO DEATH BENEFIT OPTION
Pension from Secure plus Pension gives you the opportunity to shift from one level of
cover to another as per your changing requirement. Once you have decided to avail of
the Zero Death Benefit option, you do not get the option to alter your cover again. In
the unfortunate event of death, your spouse is protected by a lump sum amount, which
is the sum assured plus the value accumulated in your policy. Additionally, your
spouse can exercise the option to draw an amount.
COMMUTATION
The total accumulated value of the policy, including the declared bonuses, would be
used as a purchase price to give you a pension of your choice. You have the option of
taking up to 33.33% of the accumulated value as a lumpsum and begin a pension from
the rest of the amount.
ACCUMULATION OF FUNDS
The invested premium and the declared bonus interest would be payable on death
(along with the Sum Assured) or would be used as a purchase price at the time of
vesting. However, at the time of payment due to death or at the time of vesting, if the
value of the individual's investment account is more than the invested premium (along
with the declared bonus interests) then the additional amount would also be payable
on death or would be used as a purchase price at the time of vesting. The differential
between declared bonus interest and earned rate would not be greater than 1%.
VESTING AGE
You can choose a vesting age between 50 and 75 years. You have the flexibility to
postpone the vesting date from the originally chosen vesting date up to a maximum of
75 years of age. This option can be exercised only once, 6 months prior to vesting.
ELIGIBILITY
• With Life Cover: Any person between 18 and 60 years of age can apply.
• Without Life Cover (Zero Death Benefit): Any person between 18 and 65
years of age can apply.
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TERM
Minimum term is 10 years.
MINIMUM PREMIUM
Minimum annual premium is Rs.10,000; half-yearly premium is Rs.5,000; and
monthly premium is Rs.834.
SURRENDER
Secure plus Pension acquires a surrender value after premiums for three policy years
are fully paid. The surrender value is the accumulated value of your policy, or its
market value at the time of death or maturity, whichever is higher. Surrender value
can be classified under two categories:
a) Guaranteed b) Non-guaranteed.
• Guaranteed surrender value will be 35% of all premiums paid - excluding the
first year premium and all extra premiums and premiums for rider benefits.
• On request, the company may provide non-guaranteed surrender values as
specified from time-to-time.
• The insurance protection ceases on surrender of the policy.
ANNUITY PAYMENT OPTIONS
Your accumulated value would start paying you regular income in the form of an
annuity, at a frequency chosen by you. This income can be received monthly,
quarterly, half-yearly or annually.
GURANTEED ANNUITY PERIOD
• You have the option of selecting a guaranteed annuity rate period of either 5 or
7 years.
• The amount of annuity is fixed for a guaranteed annuity rate period and will be
recalculated at intervals of every guaranteed period, based on the then
prevailing annuity rates.
• On commencement, and at the end of every guaranteed period, the amount of
annuity payable for the next guaranteed number of years and the Residual
Purchase Price (which will be available for calculation of the annuity rate at
the end of the guaranteed annuity period), on survival, will be guaranteed
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LIFE LINK PENSION
PREMIUM
Life Link Pension - a single premium linked deferred pension plan.
DEFERRED PENSION PLAN
A Linked Deferred Plan gives you the freedom to choose the amount of premium, and
invest in market-linked funds, to generate potentially higher returns. A part of the
premium paid is used to pay for the death benefit (if any) opted for by you and the rest
would be invested in the plan of your choice. On the retirement date, the accumulated
value of the units will be used to purchase an annuity - to provide you with regular
income for life.
LIFE COVER BENEFIT
In the unfortunate event of your death before retirement, your spouse has the option of
receiving either the death benefit or the value of units as a lump sum (whichever is
higher), or get an annuity that would provide regular income for life.
VESTING AGE
You can choose a vesting date once you are 50 years of age. However, you have the
option of postponing this vesting date till the age of 75 years. With this, you can take
advantage of market movements.
TOP-UPS
Use your surplus funds to top-up your investment during the deferment period. The
minimum top-up amount is Rs. 5,000.
PROTECTION LEVEL
You choose the amount of life cover you require. In this plan, the Death Benefit is
1.05 times the premium paid. You can also opt for a Zero Death Benefit. The amount,
which you pay for the Death Benefit, depends on your chosen protection level.
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CHOOSING INVESTMENT PLAN
You can choose between the Maximize (Growth), Protector (Income) or Balancer
(Balanced) plans. You also have the power to switch between the plans, to suit your
investment priorities. You are entitled to one free switch every year during the
deferment period.
ELIGIBILITY
You should be between 18 and 60 years of age. For Zero Death Benefit, any person
between 18 and 65 can apply. The cover ceasing age is 60 years.
MINIMUM PREMIUM
Minimum premium in this plan is Rs. 50,000.
TERM
Minimum term of the product is 3 years.
SURRENDER
This plan acquires surrender value after 1 year from the start of the plan. In case of
complete withdrawals, a surrender value equivalent to the value of the units is paid.
INITIAL CHARGES
For premiums between Rs.50, 000 and Rs.99, 999, the initial charges would be 4% of
the premium. For premiums between Rs.1, 00,000 and Rs.4, 99,999, charges would be
2.25% and for an amount of Rs.5, 00,000 or more, the charges would be 1.25% of the
premium.
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ADMINISTRATIVE CHARGES
Other charges would include annual administrative charges of 1.25% per annum of
net assets for Protector (Income) and 1.25% per annum for Maximizer (Growth) and
Balancer (Balanced) options. An annual investment charge of 0.25% per annum of net
assets for Protector and 1% for Maximizer (Growth) and Balancer (Balanced) would
also be charged.
FOREVERLIFE (DEFERRED PENSION)
FOREVERLIFE
A comprehensive retirement solution that is developed keeping in mind your various
capabilities and needs, with respect to your retirement planning. We make sure you
can plan well when you can and maintain your lifestyle for a lifetime. So, whether you
are 30 or 60 we have just the right retirement plan for you.
LIFE COVER BENEFITS
Forever Life Pension Plan provides life cover during the deferment phase. In the
unfortunate event of your death, your spouse has the option to receive the sum assured
with guaranteed additions and vested bonuses (if any) as a lumpsum or get an annuity
that would provide a regular income for life.
VESTING AGE
You can choose the vesting age between 50 to 70 years. You have the flexibility to
postpone the vesting from the originally chosen vesting date up to a maximum of 70
years of age. This option can be exercised once at the time of vesting. During the
postponed period, your accumulated amount will earn interest as determined by the
company from time to time. There will be no life cover or premiums paid during this
period.
ELIGIBILITY
You should be between 20 and 60 years of age.
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MINIMUM SUM ASSURED
Minimum sum assured is Rs. 50,000.
TERM
Minimum term is 5 years and the maximum is 30 years.
MINIMUM PREMIUM
Minimum premium is Rs.6, 000.
SURRENDER
Forever Life Pension Plan acquires a surrender value after premiums for 3 policy
years are fully paid. A surrender value is payable if you wish to withdraw after 3
years.
ANNUITY PAYMENT MODE
Your accumulated value would start paying you regular income in the form of an
annuity, at a frequency chosen by you. This income can be received monthly,
quarterly, half-yearly or annually.
GURANTEED ANNUITY PERIOD
• You have the option of selecting a guaranteed annuity rate period of either 5 or
7 years.
• The amount of annuity is fixed for a guaranteed annuity rate period and will be
recalculated at intervals of every guaranteed period, based on the then
prevailing annuity rates.
• On commencement, and at the end of every guaranteed period, the amount of
annuity payable for the next guaranteed number of years and the Residual
Purchase Price (which will be available for calculation of the annuity rate at
the end of the guaranteed annuity period), on survival, will be guaranteed.
• Once the policy holder is 75 years of age, the annuity will be fixed for life and
not reviewed thereafter.
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OPEN MARKET OPTION
At the time of reset of the annuity, you have an Open Market Option, which would
enable you to get your annuity from any other annuity provider, should our rates not
be as competitive.
ANNUITY OPTION
1. Life Annuity: Annuity for life.
2. Life Annuity with Return of Purchase Price: Life Annuity for the annuitant
with the return of the purchase price to the beneficiary
3. Life Annuity Guaranteed for 5, 10, 15 years: Guaranteed Annuity is paid for
the chosen term (5/10/15 years) and after that, the annuity continues as long as
the annuitant is alive.
4. Joint Life, Last Survivor with Return of Purchase Price: In this case, the
annuity is first paid to the annuitant. After the death of the annuitant, the
spouse starts getting a pension, which is an amount that is equal to the annuity
paid to the annuitant. After the death of the last survivor, the purchase price is
returned to the beneficiary.
5. Joint Life, Last Survivor without Return of Purchase Price: In this case, the
annuity is first paid to the annuitant. After the death of the annuitant, the
spouse starts getting a pension, which is an amount that is equal to the annuity
paid to the annuitant.
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HDFC STANDARD LIFE INSURANCE
PERSONAL PENSION PLAN
WORKING OF PERSONAL PENSION PLAN
This participating (with profits) plan is basically a savings contract, which is designed
to provide an income for life from retirement. It does this by providing a notional
lump sum on retirement, comprising of sum assured plus any attaching bonus. Subject
to the prevailing regulations, part of this lump sum can be taken in form of cash and
the rest converted to an annuity at the rate then offered by HDFC Standard Life.
Alternatively, if it is permitted by the prevailing regulations, the notional lump sum
can be used to buy an annuity with any other insurance company
who will accept such business.
On earlier death after the first year, for Regular Premium policies all premiums paid
to date will be returned with interest at 8% per annum, subject to a maximum of the
sum assured plus bonuses declared to date. For Single premiums, it is sum assured
plus bonuses declared to date.
Normally, we will declare a reversionary bonus once a year. Once added, it cannot be
reduced. Reversionary bonus will take the form of a simple addition to your policy
benefits.
In addition, on maturity, a terminal bonus might be payable. On death, an interim
bonus, reflecting the period since the last addition of reversionary bonus, might also
be payable.
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NOTIONAL LUMP SUM AS CASH ON RETIREMENT
Subject to the prevailing legislation and regulations, part of this can be taken as a
lump sum and the rest used to buy an immediate annuity.
PAYING PREMIUMS
You can pay either a single premium or pay premiums in quarterly, half-yearly or
annual form by cheque, in cash or by bank drafts.
BASIC BENEFITS
Your basic benefits will be paid by cheque.
ALTER THE BASIC BENEFITS AND TERM OF POLICY
You cannot increase your benefits or term under this policy. To increase your
benefits, you would need a new policy. You should contact your personal financial
consultant. You may be able to decrease the benefits. The terms for so doing will be at
our discretion.
COST
The cost of the plan depends on your age, the amount of benefit you have chosen, the
premium paying frequency and the term of the policy. To give you an idea, here are
the annual premiums in Rupees, payable on a policy with sum assured of
Rs. 100,000.
Age Term
10 15 20
30 n/a n/a 4,309
35 n/a 6,098 4,327
40 9,577 6,117 4,357
For Single premium policies, the premium payable with respect to the basic benefit is
equal to the basic sum assured as required by the policyholder.
ELIGIBILITY
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Minimum Maximum Minimum Maximum Minimum Maximum
Term3 Term Age atAge atAge atAge at
Entry Entry Retirement Retirement
RP1 SP2 RP SP RP SP
10 5 40 15 18 35 60 50 70
1. RP: Regular Premium
2. SP: Single Premium
3. Term to Retirement
LOANS
There is no facility for loans against this contract.
SURRENDER VALUE
You can surrender the policy at any time. Subject to prevailing legislation and
regulations, you may be paid a surrender value at our discretion. If premiums have
been paid continuously for at least 3 years, the surrender value will be subject to a
guaranteed minimum.
GUARANTEED SURRENDER VALUE
Before retirement, the guaranteed surrender value, including the value of any
attaching bonuses, for Regular premium policies is:
• Zero in respect of premiums paid in the first year; and
• 50% of premiums paid subsequent to the first year in respect of the basic
benefit, excluding all additional premiums.
• Before retirement, the guaranteed surrender value, including the value of any
attaching bonuses, for Single Premium policies is 50% of the single premium
paid in respect of the basic benefit, excluding all additional premiums.
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OM KOTAK MAHINDRA
KOTAK RETIREMENT INCOME PLAN
KOTAK RETIREMENT INCOME PLAN
The Kotak Retirement Income Plan is a savings plan designed to meet your post-
retirement needs. It is a plan that gives you "Jeene ki azaadi". It gives you the choice
to remain independent even after retirement.
The Kotak Retirement Income Plan is a participating plan. The plan comes in two
forms:
• With Cover
• Without Cover.
ELIGIBILITY
Minimum age - 18 years
Maximum age - 60 years
TERM
Term can you chosen to pay the premiums: 5 yrs - 30 yrs
VESTING AGE
Minimum Age - 45 yrs, Maximum Age - 65 yrs
COMMUTATION
You may take a lump sum in cash of up to a third of your Basic Sum Assured or
Accumulation Account, whichever is higher; and the balance of the benefit you are
eligible for will be used to buy an annuity of your choice.
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