Bajaj Allianz Cash Rich Plan Review: Features, Benefits and Analysis
There are a number of options for people looking for insurance plans in India. Once can go for traditional life insurance, term insurance or money back plans. Read this post for more information on Cash Rich plan by Bajaj Allianz.
Recently, I noticed an advertisement in a newspaper about the new plan from Bajaj Allianz named Cash Rich plan. This plan is also being promoted with the help of an interesting advertisement based on the theme that "Wishes do not see your income or age". Bajaj Allianz Cash Rich Plan is a traditional money back plan where you are paid 5% of the sum assured every year and some bonuses as well. At the time of maturity, you will get the sum assured plus the terminal bonus. Let us discuss the features, benefits and all the other aspects of this plan in detail.Features of Bajaj Allianz Cash Rich Plan
1. The minimum entry age is 0 years while the maximum entry age is 60 years. The maximum age allowed at maturity is 100 years.
2. You can choose the policy term to be between 10 to 65 years. This wide range offers flexibility to people in different age groups. You can choose the premium paying term to be 5, 10, 15, 20, 25 and 30 Years.
3. The minimum sum assured allowed under the plan is Rs 1,00,000 for which you are required to pay Rs 8000 annually as premium.Benefits of Bajaj Allianz Cash Rich Plan
There are a number of benefits of this plan and in my opinion it will be convincing for majority of salaried people in India.
1. Firstly, the amount paid as premium can be used to get tax benefits under Section 80C. The death claim obtained from the plan is also completely tax free.
2. You can obtain a loan against the policy too. The maximum amount allowed is 80% of the sum assured. For instance, if you have taken the policy with sum assured of Rs 20,00,000, you can take loan of up to 16,00,000.
3. A number of riders are also available with the policy which gives you more freedom and flexibility while getting insured. Some of the riders available with the plan are Bajaj Allianz Supplementary Death Benefit, Bajaj Allianz Comprehensive Accidental Protection Benefit, Bajaj Allianz Family Income Benefit, Bajaj Allianz Critical Illness Benefit and Bajaj Allianz Hospital Cash Benefit.
4. In case you pay your future premiums in advance, you will also get additional discounts.
5. In case you change your mind in between the policy term, you can get the plan changed into a single premium term plan.Premium and returns of Bajaj Allianz Cash Rich Plan
Let us now discuss the premiums and returns provided by this plan with an example that will help you to understand the features properly. Suppose, Mr Krishna who is 35 years old takes Bajaj Allianz CashRich Insurance Plan for duration of 25 years. Thus he will be required to pay his premiums till the age of 60 and will start getting the cash back from the age of 60. Suppose he wants to get sum assured of Rs 20 lakhs, for this he will have to pay Rs 10,284 monthly.
The total accumulated bonus after 25 years will be 21,87,556 and he will start getting a cash back of Rs 1,22,000 every year thereafter. Note that the guaranteed amount here is Rs 1,00,000 and the non-guaranteed amount is Rs 22,000. He will get this annual cash back till the cash back period (35 yrs). Once he completes the age of 95 he will get maturity benefit of 20 lakhs. Mr. Sharma will also have a life cover of Rs 20 lakhs during the cash back period.Final Verdict about the Bajaj Allianz Cash Rich Plan
In my opinion this plan appears to be promising especially for people in the age group of 25-35. However, you should be careful while selecting the amount of sum assured. You should properly analyze your financial needs, present lifestyle and conditions and other insurance policies you have. If you have any doubt regarding the Bajaj Allianz Cash Rich Plan, you can post a comment below.
