Bajaj Allianz iGain III Review
Plan Name: iGain III
Insurer: Bajaj Allianz Insurance Company Limited
Category: Unit Linked Insurance Plan
Objective: Financial protection of family and good return on investment.
Major USP of iGain III:
- High allocation so more amount gets invested.
- Flexible insurance cover which can be changed.
- Flexible premium payment term.
- Many riders to choose from.
Age eligibility of iGain III
Minimum Entry Age - 1 Years (18 Years in case of Additional Rider Benefits)
Maximum Entry Age - 60 Years (50 Years in case of Additional Rider Benefits)
Minimum Age at Maturity-18 Years
Maximum Age at Maturity 75 Years (Additional riders ceasing Age 65 Years)
Policy Term - 10, 15 and 20 Years
Premium Options in iGain III
Minimum Regular Premium: For premium paying term 5 to 9 Years: Rs.15000
For premium paying term 10 Years: Rs.10000
Maximum Regular Premium: No Limit
Minimum Premium Paying Term- 5 Years
Maximum Premium Paying Term- Policy Term
Premium Payment Frequency: Yearly, Half-Yearly, Quarterly & Monthly. The monthly mode will be allowed through ECS only.
Life Cover in iGain III
Minimum Sum Assured– 10 times of Annualized Premium for entry age below 45 years
7 times of Annualized Premium for entry age 45 years & above
Maximum Sum Assured- Policy Term times Annualized Premium with base cover only
[Only 10 times of Annualized Premium if any Rider has been opted for]
What benefits does iGain III offer?
Death benefit:
Option (a) - In case of death before age of 60: If the policyholder passes away before attaining age of 60, the death benefit payable would be higher of Sum Assured minus partial withdrawals made in the last 24 months prior to death or fund value.
Option (b) – In case of death after age of 60: If the policyholder passes away after attaining of 60, the death benefit payable would be higher of Sum Assured minus partial withdrawals made in the last 24 months prior to death and partial withdrawals made after age of 60 or fund value.
In case of accident after the life assured age is above 7, additional Sum Assured is payable.
Maturity Benefit: The fund value as on maturity date is paid to the policyholder.
Settlement Option: This option allows you to receive the maturity amount in predetermined installments for up to five years after maturity by notifying the company 3 months prior to maturity.
The installment amount will depend on the respective fund net asset value on the liquidation date. If the fund value is insufficient (volatile equity market) then all remaining funds will be payable and policy will be terminated. Partial withdrawals and switches are not allowed during this period.
Sum Assured: From 6th year onwards, Sum Assured will increase automatically by annual premium. The death benefit and mortality charge will be adjusted accordingly.
Sum Assured can also be decreased at policy anniversary to 115% of annual premium subject to minimum Sum Assured allowed under the plan.
Flexibility in Premium Payment Term: The time period for which you want to pay premium can be increased or decreased if the requirements are met.
Rider Benefits: Additional security can be opted by adding riders at inception or anniversary of policy to the plan by paying extra nominal premium. The riders available with iGain III are:
- Bajaj Allianz Family Income Benefit Rider
- Bajaj Allianz Term Rider
- Bajaj Allianz Waiver Of Premium Benefit Rider
- Bajaj Allianz Critical Illness Benefit Rider
- Bajaj Allianz Hospital Cash Benefit Rider
- Accidental Permanent/Total Disability Rider
How is my money invested in iGain III? What’s the risk?
The premium you pay after the deductions is invested into different funds. The funds have different risk probability- some funds invest in debt market which is safer while some funds invest in equity market which is risky but probability of higher returns is more. There are funds with mixture of equity and debt to balance the risks. There are two options for you to manage investment:
Self Managed Investment: If you have time to follow financial markets and manage your funds yourself, you can direct Bajaj Allianz to put the premium in funds of your choice. The funds available are:
1. Equity Growth Fund II Very High Risk
2. Accelerator Mid -Cap Fund II Very High Risk
3. Pure Stock Fund Very High Risk
4. Asset Allocation Fund High Risk
5. Bluechip Equity Fund High Risk
6. Bond Fund Moderate Risk
7. Liquid Fund Low Risk
Wheel of Life Portfolio Strategy: This strategy is excellent for people who can’t keep track of their funds on regular basis. Wheel of Life strategy begins with proportion of premium being allocated to high risk funds. As the policy moves towards maturity, the premium is gradually shifted from high risk funds to moderate risk fund. The rationale is that the amount gets good growth in initial stages and then is secured against market movements by lowering the risks associated.
The investment risk is borne by the policyholder. It is ultimately dependent on the policyholder whether to go with less risk low returns or higher risk more returns.
What will be my returns from IGain?
The important question that customer wants answered is “What will be my gain in iGain III?” Let us take an example:
Ravinder aged 30 invests Rs 15,000 for policy term of 20 years. He gets insurance cover of 150,000.
Assume fund value after four years is Rs 90,000.
Death Benefit: If Ravinder passes away after four years, his wife will get higher of Sum Assured or fund value.
In this case, since Sum Assured is more, it will be given to his wife.
Maturity Benefit: The returns that Ravinder will make by keeping Rs 15000 by investing in iGain III can be seen graphically:
He gives in total amount of Rs 300,000 to Bajaj Allianz. At maturity, assuming growth of 10% only is approximately Rs 724,019. The maturity amount could be more depending on the money market scenario. Longer terms typically provide good returns.
Are there any tax benefits?
Under Section 80C you can avail tax benefit, yearly premium (not more than 1lac) will be deducted from taxable income.
Under Section 10(10D) death claim is completely tax free.
What charges does Bajaj Allianz iGain III deduct and how much?
Premium Allocation Charges: These charges are deducted as percentage of premium. Insurer deducts these charges on account of expenses incurred by the company – medical examination, policy issuance, underwriting bills. Premium allocation charges are 2% for first five years and there is no charge from 6th year onwards.
Fund Management Charge: These are the charges levied as a percentage of fund value to manage the funds. The premium paid is allocated into different portfolio of funds. The charges are:
Equity Growth Fund II 1.35%
Accelerator Mid -Cap Fund II 1.35%
Pure Stock Fund 1.35%
Asset Allocation Fund 1.25%
Bluechip Equity Fund 1.25%
Bond Fund 0.95%
Liquid Fund 0.95%
Policy Administration Charge: These are monthly deductions by the insurer for maintaining the policy- paperwork, work force etc. They are recovered through cancellation of units 6th year onwards until the end of policy term. iGanin III has administration charges of Rs 32 per month with inflation of 5% at every policy anniversary.
Mortality Charge: These are charges deducted as a part of life cover provided and are recovered through cancellation of units.
What else should I know about?
Top-Up premium: This is the additional premium which can be added above the usual premium to get more units if you think the particular fund is providing good returns. Top-Up can be made after 1st policy year and not in last 5 policy years. The minimum Top-Up in iGain III is Rs 5,000.
Switch: Switch is made to transfer the fund value from one fund to another. You can make any number of switches in iGain III free of charge but the minimum amount to be switched is Rs 5000.
Premium Re-direction: This option lets you direct the further premiums into different fund. At policy anniversary, you can allocate funds in whatever fund you want.
Partial Withdrawal: If policyholder is above 18 years and the minimum amount is Rs 5000 and amount equal to three years premium shall always be maintained.
Grace period: iGain III can be renewed within 15 days for monthly mode and 30 days for other modes from the premium due date.
Free Look Period: iGain III plan can be cancelled within 15 days of receiving the policy contract. A written application can be submitted to any branch for the same. The premium will be paid back minus some charges like stamp duty, medical reports.
How can I buy iGain III?
IGain III is available online; the process is fast and simple. Within few minutes, your application will be submitted and policy will be issued accordingly.
What’s Policybazaar opinion on iGain III?
iGain III is all rounder product. There is nice flexibility as Sum Assured can be increased or decreased. The charges are low compared to many ULIP’s available in the market. The premium paying term is excellent option to manage your savings accordingly. The settlement option also lets you manage the maturity amount in comprehensive manner.
For buying iGain III, click here.
