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BAJAJ ALLIANZ -- THE "SWARNA VISHRANTHI" |
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The "Swarna Vishranthi" Plan |
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RETIREMENT AGES - A NEW CHAPTER IN A PERSON'S LIFE! |
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Consider the following scenario : |
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Mr. Saleem Khurana a 60 year old engineer was on the verge of retirement. Since his parents were no more, he had to educate his 2 brothers, arrange the marriage of his sister and arrange the necessary funds for his son's higher studies. Now on the verge of retirement Mr. Khurana had completed all his obligations. His 2 brothers had finished their studies and were earning. His sister was happily married and his son had got admission in a prestigious business school. But instead of feeling exhilarated there was a strange emptiness in his mind. He had not saved a single penny for his retired life! The future loomed ahead of Mr. Khurana, bleak and full of worries. |
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In India there are a number of persons who are like Mr. Khurana - who have not planned their retirement lives. Adequate and systematic retirement planning is necessary to ensure that there are adequate funds to enable the person to lead a peaceful and a happy life after retirement. |
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It is in this context that life Insurance plays a pivotal role. All the players in the Insurance sector are offering a number of schemes catering to the retirement needs of the investor. This article discusses one such plan. |
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The "Swarna Vishranthi" Plan offered by Alliance Bajaj Life Insurance Company |
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Features: |
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- There is an option to choose the retirement age (between 45 years to 70 years).
- This plan works in two parts The Deferment Period and The Annuity Period. During the Deferment Period the plan provides the necessary life cover and builds up the funds necessary for the purchase of the annuity. The Deferment period ends with the Vesting Date and the Annuity Period begins when the individual has retired.
- This is a participating plan and the sum assured grows with time due to the bonus declared by the company.
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Benefits: |
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1. The Family Income Benefit |
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In the case of death or accidental permanent total disability of the insured a guaranteed monthly income of 1% of the sum assured is paid till the vesting date or for a period of 10 years, whichever is higher. |
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2. Comprehensive accident protection |
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- Accident Death Benefit: In the event of any death caused by accident the survivors of the insured are paid an amount equal to the sum assured subject to a maximum of Rs. 50 lakhs under all the policies of Alliance Bajaj taken together.
- Accidental Permanent / Total or Partial Disablement benefit: In case the accident leads to any disablement then this policy promises a refund of 50% of the Sum assured in case of partial disability OR 100% of the sum assured in case of complete disablement.
- Waiver of Premium Benefit: In the event of any accident which seriously hampers the individual's earning benefit the policy waives of all the future premiums while keeping the valuable insurance cover intact.
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3. Tax benefits |
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Contribution towards this policy will be eligible for tax benefits under Section 80CCC of the Income tax act. The maximum limit is Rs.10,000. |
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4. Benefits on the vesting date |
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- The sum assured would be used to purchase an annuity at the prevailing rate of interest.
- The client can avail the option of taking 33% of the Sum assured as a lump sum amount which will be tax free as per the tax laws. The balance amount will be used to purchase an annuity.
- The client can also exercise the option to buy an annuity from some other insurance company. But in case the investor purchases the annuity from Bajaj then the amount available for the purchase of the annuity would be marked up by 2%.
- Retirement which marks the beginning of a new phase in a person's life requires systematic and careful financial planning.
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