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Strictly Confidential For Internal Circulation Only Bajaj Allianz UnitGain Plus Gold

Product Circular
Bajaj Allianz UnitGain Plus Gold

Unit Linked Regular Premium Endowment Plan UIN: 116L051V01 FOR INTERNAL CIRCULATION ONLY

Department: Product Development & Actuarial Launch Date: 20th September 2007 Version: 3.0
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Strictly Confidential For Internal Circulation Only Bajaj Allianz UnitGain Plus Gold

TABLE OF CONTENTS

1. PURPOSE AND SCOPE.........................................................................................4 2. PRODUCT TYPE ....................................................................................................4 3. LAUNCH DATE ......................................................................................................5 4.PRODUCT DESCRIPTION AND FEATURE ...................................................5 5. POLICY CONTRACT AND PREMIUM ...........................................................5 6.ISSUE AGE...............................................................................................................5 7. JOINT LIFE AVAILABILITY ..............................................................................5 8. ELIGIBILITY AND LIMITS.................................................................................6 9. MINIMUM AND MAXIMUM SUM ASSURED FOR BASE POLICY .......7 10. OPTION TO PAY TOP UP.................................................................................7 11.INCREASE/ DECREASE IN REGULAR PREMIUMS ..................................8 12.DEATH BENEFIT: ................................................................................................9 13.MATURITY BENEFIT........................................................................................10 14.SURRENDER VALUE........................................................................................10 15.SURRENDER CHARGE....................................................................................10 16.ADDITIONAL RIDER BENEFITS..................................................................10 17. PREMIUM ALLOCATION RATE.................................................................14 19. PARTIAL WITHDRAWAL OF UNITS .........................................................15 20. POLICY LAPSE/ NON PAYMENT OF REGULAR PREMIUM AND.....16 21. REVIVAL OF POLICY ......................................................................................17 22. TERMINATION OF POLICY..........................................................................17 23. SETTLEMENT OPTION ..................................................................................18 24. NON DISCLOSURE (SECTION 45) ..............................................................18 25. ASSIGNMENT...................................................................................................19 26. NOMINATION ...............................ERROR! BOOKMARK NOT DEFINED. 27. SUICIDE CLAIM PROVISION ......................................................................19 28. FUNDS /INVESTMENT OBJECTIVES/RISK PROFILES.........................19 29. FUND VALUATION.........................................................................................20 30. CHARGES UNDER THE PLAN .....................................................................21
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31. RECOVERY OF CHARGES.............................................................................22 32. REVISION OF CHARGES...............................................................................22 33. LOANS.................................................................................................................22 34. BACK DATING ..............................................................................................22 35. FREE LOOK PERIOD ......................................................................................22 36. DISTRIBUTION CHANNELS23 ANNEXURE A ..........................................................................................................24 ANNEXURE B ...........................................................................................................25

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PLEASE NOTE THAT THE SALES ILLUSTRATION SHOULD NECESSARILY BE SUBMITTED ALONG WITH THE PROPOSAL FORM DULY SIGNED BY THE CUSTOMER

1. PURPOSE AND SCOPE


Bajaj Allianz UnitGain Plus Gold aims to meet investment needs of individuals by clubbing life insurance with market-linked investments

2. PRODUCT TYPE
Bajaj Allianz UnitGain Plus Gold is a Regular Premium non-participating Individual Unit Linked Endowment Plan. Guaranteed life cover, with a flexibility to choose insurance cover is provided to the policyholder. Presenting a unique investment Asset Allocation Fund wherein the policyholder does not have worry to switch Funds in case of a change in market condition.

The policyholder has the choice of 6 other investment Funds with complete flexibility to switch money from one fund to other to manage their investments better. Policy continues to participate in investment performance of the Fund(s) even if the policyholder is not able to pay 3 full years premium.

Flexibility of Partial Withdrawals at any time after three years from commencement of the policy provided 3 full years premiums are paid. On Maturity the Maturity Benefit is equal to the Fund Value at maturity date or in periodic installments spread over a maximum period of five years.

The policyholder has the option to choose additional benefits like UL Accidental Death Benefit, UL Accidental Permanent Total/Partial Disability Benefit, UL Critical Illness Benefit, UL Hospital Cash Benefit, UL Waiver of Premium Benefit and UL Family Income Benefit.

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3. LAUNCH DATE
20th September 2007

4. PRODUCT DESCRIPTION AND FEATURE


a) Bajaj Allianz UnitGain Plus Gold is a regular premium endowment plan with twin benefits of Investment and Insurance with a low minimum premium and customer selectable term. The plan comes with unlimited Top Up facility to opt for a multiplier in the range of (1.25 to 5) to arrive at the Top Up Sum Assured. On the Policy Commencement Date, the Company shall open a Unit Account. The Regular Premium and the Top Up Premium paid by the Policyholder will be used to allocate units in the Unit Account after applying the premium allocation rate in one or more Funds as specified by the Policyholder in the Proposal Form or as subsequently informed through a written application, whichever is latest. b) The premium allocation rate depends on the amount of Regular Premium payable as well as the policy year in which it is payable provided all due regular premiums are paid and whether the premium is a Regular Premium or a Top Up Premium

5. POLICY CONTRACT AND PREMIUM


a) Policy Contract The basis of the contract will be the Proposal Form filled by the Proposer. The policy document will be the evidence of the contract. b) Premium - The Cost of Insurance will be as per the age wise mortality rates given in Annexure A.

6. ISSUE AGE
The issue age of the policyholder is calculated as age attained (i.e., age last birthday) as on the date of commencement of the related benefit.

7. JOINT LIFE AVAILABILITY


This product will be available for Single life only.

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8. ELIGIBILITY AND LIMITS


S.No 1 2 Condition Minimum Age at Entry Maximum Age at Entry Eligibility 0 years 60 years/ [50 years in case of Additional Rider Benefits, except UL WOP, 65 years(Age of UL WOP LA) in case of UL WOP] 3 4 5 Minimum Maturity Age Maximum Maturity Age Additional Rider Benefit Ceasing Age Minimum Sum Assured Minimum Regular Premium 18 years 70 years 65 years for all riders except UL WOP. 70 years(Age of UL WOP LA) in case of UL WOP 6 7 0.5 * Policy Term * Annualised Premium Rs 12,000 per yearly installment, Rs 6,000 per half-yearly installment, Rs. 3,000 per quarterly installment Rs 1,000 per monthly mode (Monthly mode is available through ECS and Salary Saving Scheme only) 8 9 Maximum Regular Premium Minimum Term Maximum Term 10 11 12 13 14 15 16 Riders Age Proof Date of issuance/ Policy Commencement Date Proposal Form Date of Expiry of Risk Premium Payment mode Minimum Top Up Premium Maximum Top Up Premium
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No limit 10 years. In case of minor life minimum policy term is age18 less age at entry of the minor life. Customer selectable term subject to max maturity age of 70 6 Riders Available Standard and the Non-Standard Age proofs are accepted. It is same as the date on which the policy is issued to the customer. Short proposal for non medical cases Complete /full proposal form for medical cases On Maturity /Death/Start of Settlement Option Period / Surrender/ Lapse Annual, Half yearly, Quarterly and Monthly (Available through ECS mode) Rs.5000/Unlimited
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9. MINIMUM AND MAXIMUM SUM ASSURED FOR BASE POLICY


Minimum Sum Assured is 0.5 * (Policy Term) * (Annualised Premium) Maximum Sum Assured is y times Regular Premium where y will be as per the following table Age Group y for base cover or base cover with UL ADB, UL APTPDB or UL WOP or combination of these riders y for base cover withUL CI, UL HCB or combination of these Age Group
y for base cover with UL FIB, provided UL CI &/or UL HCB rider has not been opted for. If age of FIB life assured + policy term is less than or equal to 60 If age of FIB life assured + policy term is greater than 60

0 30 100

31 35 85

36 40 70

41 45 50

46 55 30

56 60 20

( 0.5 * Policy Term)

0 30

31 35

36 40

41 45

46 55

56 60

50 or base cover multiplier, which ever is lower

0.5 times policy term

Minimum & Maximum Top Up Sum Assured


Minimum Multiplier 1.25 Maximum Multiplier 5 However, the Policyholder has the option to take Sum Assured equal to the Top Up Premium paid, provided the total Top Up Premium paid or intended to be paid is less than or equal to 25 % of the total Regular Premium paid under the base policy as on date of receipt of the Top Up Premium.

10.

OPTION TO PAY TOP UP


a) The Policyholder shall have the option to pay unlimited Top Up Premium at any time provided all due Regular Premiums have been paid.

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b)

The multiplier range is (1.25 to 5) and Top Up Sum Assured is Multiplier * Top Up Premium (by default 1.25 is taken).

c)

If the total amount of Top Up Premiums paid or intended to be paid does not exceed 25% of the Regular Premium paid till date, then Top Up Sum Assured may be equal to Top Up premium.

11. INCREASE/ DECREASE IN REGULAR PREMIUMS


From the commencement of the fourth Policy Year, provided all due Regular Premiums are paid in full, the Policyholder can opt to increase or decrease the Regular Premium .The premium allocation rate will depend on the revised regular premium. The revised (increased/decreased) Regular Premium will be allocated at the Premium Allocation Rates applicable to the revised Regular Premium. The increase in Regular Premium shall not result in an increase in Sum Assured. The maximum increase in Regular Premium permitted shall be limited such that the Sum Assured shall be at least equal to the higher of: a. Five times of the proposed Annual Premium and b. Half of the Policy Term multiplied by the proposed Annual Premium.

Eg: RP=Rs.20,000; Multiplier=20 then SA=Rs4,00,000, Policy Term =20, Min multiplier = 10 If the policyholder wants to increase the premium then, note that SA cannot be increased with increase in Regular Premium. So SA kept constant, and minimum multiplier being 10 (i.e half the Policy Term) , the RP can be increased from Rs.20,000 to max of Rs. 40,000 only. The decrease in Regular Premium shall lead to a proportionate decrease in Sum Assured The decrease in Regular Premium would lead to proportionate decrease in Sum Assured, provided always that this does not fall below the minimum Regular Premium payable under the Policy and the relationship between Regular Premium and Sum Assured as at the Policy Commencement Date is maintained.

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Eg: RP = Rs.20,000; Multiplier =10 then SA= Rs2,00,000 If the policyholder wants to reduce the premium then note that premium cannot be below Rs12,000 ( min annual premium under the policy).When the Regular Premium is decreased to Rs.12,000 then the SA also decreases accordingly, so SA= 10 * 12,000 = Rs.1,20,000 The premium in this case can be reduced from Rs20,000 to any amount subject to a floor of Rs12,000/- and accordingly the Sum Assured would reduce as the multiplier is kept constant

12. DEATH BENEFIT:


If the Life Assured dies before attaining Age 7: The Regular Premium Fund Value and the Top Up Premium Fund Value, if any, applicable on the date of receipt of intimation of death at the Companys office will be paid. If the Life Assured dies on or after the attaining Age 7 years and before attaining Age 60 years : The Company shall be liable to pay the higher of the Sum Assured (less the value of the Regular Premium units withdrawn by partial withdrawals in the 24 months immediately prior to the date of death) and the Regular Premium Fund Value as on the date of receipt of intimation of death at the Companys office. If any Top Up Premium has been paid by the Policyholder, the Company shall also be liable to pay the higher of the Top Up Sum Assured (less the value of the Top Up Premium units withdrawn by partial withdrawals in the 24 months immediately prior to the date of death) and the Top Premium Fund Value as at the date of receipt of intimation of death at the Companys office If the Life Assured dies on or after attaining Age 60 years; The Company shall be liable to pay the higher of the Sum Assured (less all partial withdrawals of Regular Premium units made within 24 months immediately prior to attaining Age 60 years and all partial withdrawals of Regular Premium units made after attaining Age 60 years) and the Regular Premium Fund Value as at the date of receipt of intimation of death at the Companys office. If the Policyholder has paid any Top Up Premium, the Company shall also be liable to pay the higher of the Top Up Sum Assured (less all partial withdrawals of Top Up Premium units made within 24 months immediately prior to attaining Age 60 years and all partial withdrawals of Top Up Premium units made after attaining Age 60 years) and the Top Up Premium Fund Value as at the date of receipt of intimation of death at the Companys office If at least three full years Regular Premiums have not been paid, the policy will lapse for insurance cover but shall continue to participate in the investment performance of the underlying Funds, subject to deduction of all Charges except Mortality Charge and Rider Premium Charges, if any.
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In case death occurs during the first three policy years and if any due regular premium has not been paid within the period of grace, then death benefit payable to the nominee will be the Regular Premium Fund Value plus Top Up Premium Fund Value, if any, as on date of receipt of intimation of death at the Companys office

13. MATURITY BENEFIT


If the Life Assured is alive on the Maturity Date, provided the Policy has not been terminated, the Regular Premium Fund Value and the Top Premium Fund Value is payable by the Company to the Policyholder as the maturity benefit, unless the Company has received a written notice from the Policyholder at least 90 days prior to the Maturity Date conveying the Policyholders intention to opt for the Settlement Option.

14. SURRENDER VALUE


i) The Surrender Value, if any, is payable only after first three Policy years provided all Regular Premiums due during the first three Policy Years have been paid.

ii) If Regular Premiums due during first three Policy years have not been paid in full, Surrender Value if any, is payable only after the expiry of the revival period or at the end of the third policy year, whichever is later. iii) The Surrender Value payable will be equal to the Regular Premium Fund Value less the Surrender Charge (Annexure B) plus Top Up Premium Fund Value, if any. Upon payment of Surrender Value, the policy shall be terminated.

15. SURRENDER CHARGE


i) If any due Regular Premium is not paid within the grace period in the first three policy years, the Surrender Charge would be 60% of the first years Annualized

Premium ii) If first three years Regular Premiums have been paid in full, the Surrender Charge (Annexure B) would be as follows: [1 (1/1.10)^N ] * First Years Annualized Premium where, N is 10 years less the elapsed policy duration in years and fraction thereof. iii) No Surrender Charge will be applied on units in respect of Top Up Premium.

16. ADDITIONAL RIDER BENEFITS


The policyholder has the option to choose the following additional benefits: UL Accidental Death Benefit Rider, UL Accidental Permanent Total / Partial Disability Benefit Rider, UL Critical Illness Benefit Rider, UL Hospital Cash Benefit Rider, UL Waiver of Premium Rider and UL Family Income Benefit Rider. The rider benefits should be read in conjunction with the Rider Circular

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Strictly Confidential For Internal Circulation Only Bajaj Allianz UnitGain Plus Gold UL Accidental Death Benefit (UL ADB) The policyholder can choose Accidental Death Benefit. The minimum age at entry is 18, and maximum age at entry is 50. Coverage is provided until the age being 65 or termination of the policy, whichever happens earlier. The additional amount payable in the event of Accidental Death will be the lower of: The basic Sum Assured, or Rs 50,00,000/- under all the BJAZ policies of the policyholder taken together.

UL Accidental Permanent Total / Partial Disability Benefit (UL APTPD) The policyholder can choose Accidental Permanent Total/Partial Disability Benefit. The minimum age at entry is 18, and maximum age at entry is 50. This benefit includes coverage for both, Accidental Permanent Partial and Accidental Permanent Total Disability. Coverage is provided until the age being 65 or termination of the policy, whichever happens earlier. The amount payable in the event of Accidental Permanent Partial Disability will be the lower one of: 50% of the basic Sum Assured Rs 25,00,000 under all the BJAZ policies of the policyholder taken together The amount payable in the event of Accidental Permanent Total Disability will be the lower one of: the basic Sum Assured Rs 50,00,000 under all the BJAZ policies of the policyholder taken together

If the policyholder did receive a benefit for Accidental Permanent Partial Disability before and the time passed from the occurrence of the Partial Disability is less than one year, the amount payable in the event of Accidental Permanent Total Disability will be the lower one of: 50% of the basic Sum Assured Rs 25,00,000 under all the BJAZ polices of the policyholder taken together If the policyholder did receive a benefit for Accidental Permanent Partial Disability before and the time passed from the occurrence of the Partial Disability is at least one year, the amount payable in the event of Accidental Permanent Total Disability will be the lower one of: the basic Sum Assured Rs 50,00,000 under all the BJAZ polices of the policyholder taken together

The policyholder can receive an Accidental Permanent Total Disability Benefit only once under all the policies of the policyholder. UL Critical Illness Benefit (UL CI) The policyholder may select Critical Illness coverage. The Critical Illness coverage can only be chosen if the issue age of the Life Assured is not less than 18 and not more than 50 years. In case of the Life Assured being minor, the policyholder will have a one-time option to include this
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Strictly Confidential For Internal Circulation Only Bajaj Allianz UnitGain Plus Gold benefit when the Life Assured reaches age 18. If selected, the policyholder has the option to remove or reduce this benefit at each policy anniversary. However, once reduced or removed, this benefit cannot be increased or included at any later date. The charges for Critical Illness are not guaranteed and are reviewable every 5 years. The minimum coverage is Rs. 50,000/- and the maximum coverage is equal to Rs.50 lacs. In case if it exceeds Rs. 50 lacs, Reinsurers approval is required. Coverage is provided until the age being 65 or termination of the policy, whichever happens earlier. There is a waiting period of 6 months, i.e. the Critical Illness Benefit can only be claimed if the illness is diagnosed at least 6 months after the date of commencement of risk or reinstatement of risk..

UL Hospital Cash Benefit (UL HCB) The policyholder may select Hospital Cash coverage with a daily hospital cash amount @ Rs.4 per Rs.1000 sum assured subject to a minimum Hospital Cash Sum Assured of Rs. 50,000 and maximum of Rs. 2,50,000 or the basic Sum Assured, whichever is lower. For Example, if the basic Sum Assured chosen is Rs. 5,00,000/-, the policyholder can choose the Sum Assured for Hospital Cash between Rs. 50,000 and Rs. 2,50,000/-. The hospital cash benefit can only be chosen if the issue age of the life assured is not less than 18 and not more than 50 years. Coverage is provided until the age being 65 or termination of the policy, whichever happens earlier. In case of the Life Assured being minor, the policyholder will have a one-time option to include this benefit when the Life Assured reaches age 18. The policyholder has the option to remove or reduce this benefit at each policy anniversary. However, once reduced or removed, this benefit cannot be increased or included at any later date. There is a waiting period of 60 day from the commencement and reinstatement of the Policy. If the insured person has to stay for more than 72 hours in hospital as a result of injury, sickness or disease, the company reimburses for each full day the stay in hospital exceeding 3 days up to a total limit of 60 days in a policy year an amount which is the lower one of: 75% of the room charge in hospital The daily Hospital Cash amount

The amount is reimbursed as a lump sum at the end of the stay in hospital. The charges are not guaranteed and are yearly reviewable. If the Hospital Cash Benefit is selected, the policyholder has the option to renew the hospital cash benefit every year at the published rates available at the time of renewal. For the renewal coverage there is no waiting period. If the policyholder does not

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Strictly Confidential For Internal Circulation Only Bajaj Allianz UnitGain Plus Gold select the option once or if his attained age at the time of renewal is 65, he loses the right to renew the Hospital Cash Benefit in later years. UL Waiver Of Premium (UL WOP) The policyholder has an option to choose the UL WOP rider for the benefit of the minor Life Assured. The aim of this additional rider benefit is to ensure continuation of the base policy in case of Death or Accidental Total Permanent Disability of the WOP Life Assured. Minimum Age at Entry for the Proposer (WOP Life Assured) is 18 years, and maximum age at entry for Proposer (WOP Life Assured) is 65 years. The minimum age at entry for Life Assured is 0 years and the maximum age at entry is 17years. The minimum policy term is 5 yrs and coverage continues till Life Assured attains age 25 or the Proposer attains age 70 or the end of the base policy term, whichever happens earlier. In case of Death or Accidental Permanent Total Disability of the Proposer, the payment of future Regular Premium(s) by the Proposer shall be waived during the Benefit Payment Period and all the future Regular Premium(s) falling due during the Benefit Payment Period shall be allocated by the Company to the Unit Account of the Policy on the Premium Due Dates and at the Allocation Rate as specified in the Policy or Schedule. The allocation to different Funds will be in Premium Allocation percentage as existing on the date of Death or date of Accidental Permanent Total Disability Benefit. Benefit Payment Period is from the date of death or from the date of Accidental Total Permanent Disability of the Life Assured (WOP) , which ever happens first, till the earliest of the following: a) End of the WOP Benefit Term b) Policy Anniversary, at which the Life Assured attains Age of 25 years. UL Waiver of Premium Benefit shall automatically terminate on the earlier occurrence of either of the following: a) On Policy Anniversary at which the Life Assured attains Age of 25 years b) On Policy Anniversary at which the Life Assured (WOP) attains Age 70 years c) On termination of the base Policy d) On non-payment of Regular Premium within 30 days of it becomes due, under the base Policy e) On exclusion of this Rider Benefit by the Policyholder. UL WOP can be included at any policy anniversary subject to underwriting of the Proposer. However, once excluded, it cannot be included again. If the rider is taken after the commencement of the base policy, the medical cost, if any, has to be borne by the Proposer. UL Family Income Benefit (UL FIB) The aim of this additional rider benefit is to ensure steady cash flow in case of death or Accidental Total Permanent Disability of the Life Assured (UL FIB) . Life Assured (UL FIB) is the person whose life is insured under this UL Family Income Benefit, whose name appears in the

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Strictly Confidential For Internal Circulation Only Bajaj Allianz UnitGain Plus Gold Schedule and who is either the Proposer of the base Policy issued on the life of a minor or the Life Assured himself. Herein is referred to as UL FIB LA. The minimum age at entry of UL FIB LA is 18years and maximum age at entry of UL FIB LA is 50yrs. In case of Death of the UL FIB LA, provided the Policy is in-force at the time of Death, a monthly income benefit of 1% of the Sum Assured is payable to the Nominee over the term of Benefit Payout Period. The Benefit Payout Period for UL FIB rider is at the end of the Policy Term or for a period of 10 years whichever is higher In case of Accidental Total Permanent Disability of the UL FIB LA, provided the Policy is in-force at the time of Accidental Total Permanent Disability, a monthly income benefit of 1% of the Sum Assured is payable to the UL FIB LA or nominee over the term of the Benefit Payout Period If the UL FIB LA dies after the commencement of monthly income benefit but before the expiry of the Benefit Payout Period, the monthly income benefit would be payable to the Nominee for the rest of the Benefit Payout Period. UL FIB Rider can be chosen at policy inception and at any subsequent policy anniversary subject to meeting minimum Policy Term of the rider and subject to meeting underwriting requirements of the Company. UL FIB Rider can be excluded at any policy anniversary. Once excluded, the UL FIB rider cannot be included again Rider can be chosen by minor Life Assured on his/her life, after attainment of age 18 provided the Proposer of the policy has not taken UL FIB rider

17. Premium Allocation Rate


Premium Payment due in Annual Premium size 12,000 14,999 15,000 99,999 100,000 249,999 250,000 and above Policy Year 1 75% 76% 80% 85% Policy Year 2 to Policy Year 5 94% 94% 94% 94% Policy Year 6 and onwards 98% 98% 98% 98%

Top ups are allocated at 98%

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18. STAFF ALLOCATION (Allocation to employees of Bajaj Allianz Life, Bajaj Allianz General, Allianz Group & Bajaj Auto)
The staff premium allocation rate for regular premium is 85% in policy year 1 and 100% from policy year 2 and onwards All top up premiums will have 100% allocation across all policy years. No commission would be payable under staff policies.

19. SWITCHING CLAUSE


The Company offers the Policyholder the option to switch between Funds at such price and subject to such terms and conditions as may be imposed by the Company at that time. The Policyholder may transfer or switch any of the Units in any Fund, to another existing Fund or new fund established by the Company provided: The Company has received from the Policyholder a written notice setting out the proposed amount of the switch, the Fund to be switched-from and the Funds to be switched. The minimum switching amount is Rs.5,000 or the value of units held by the Policyholder in the Fund to be switched from, whichever is lower. The Company shall affect the switch by redeeming Units from the Fund to be switched from and allocating new Units in the Fund being switched to at their respective Unit Price. The Policyholder may exercise three free switches during each Policy Year. For

subsequent switches during any Policy Year, the Company will charge a switching fee as specified in Section 30 below.

20. PARTIAL WITHDRAWAL OF UNITS


Anytime after three years from the date of commencement of the policy provided regular premiums for three full years have been paid, the policyholder has the option to partially withdraw units from his/her fund subject to following conditions: 1) The minimum amount of withdrawal is Rs.5000. 2) Maximum partial withdrawal allowed shall be equal to fund value minus two annual premiums which means a minimum fund value of two annual premiums needs to be maintained at any given time. 3) All partial withdrawals will be first made from eligible Top Up premium units, if any. Once the Top Up premium units are exhausted, further Partial Withdrawals will be made from regular premiums units. 4) For the purpose of Partial Withdrawals, each payment of Top Up premium shall have a lock-in period of three years, unless the payment of Top Up premium is made in the last 3 policy years.
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5) In case of minor life, partial withdrawal is allowed after attaining age 18 years. 6) No charge is applicable on partial withdrawals either from Top Up premium units or from Regular Premium units 7) The Company reserves the right at any time and from time to time to vary the minimum value of units at NAV to be withdrawn and/or the minimum balance of value of units to be maintained after such partial withdrawals by giving written notice of three months in advance, subject to prior approval from IRDA.

21. POLICY LAPSE/ NON PAYMENT OF REGULAR PREMIUM AND FORFEITURE


If the Policyholder has failed to make a payment of Regular Premium due by the due date, he/she is given a grace period of 30 days (15 days, if the frequency of payment is monthly). If death occurs during the grace period, the full death benefit is payable. If the unpaid Regular Premium was due during the first three Policy Years, and the Policyholder has failed to make the payment of the complete amount due before the expiry of the grace period then: The Policy shall automatically and immediately lapse along with all insurance covers including rider cover. However, the fund will participate in the investment performance of the underlying Funds, subject to deduction of all Charges except Mortality Charge and Rider Premium Charges, if any. ii) The policyholder may revive the policy within a revival period of two years from the due date of first unpaid Regular Premium subject to recovery of any due but unrecovered charges except Mortality Charge and Rider Premium charge, if any, from the due date of first unpaid Premium, failing which the Policy shall be terminated and the Regular Premium Fund value as on date of termination less Surrender Charge, plus Top Up Premium Fund Value, if any, as on date of termination shall be paid at the expiry of the revival period or at the end of the third policy year, whichever is later. iii) In case death occurs during the first three policy years and if any due Regular premium has not been paid within the period of grace, then Death Benefit payable to the nominee will be the Regular Premium Fund Value plus the Top Up Premium Fund Value as on date of receipt of intimation of death at the Companys office and the Policy will terminate immediately. c) If all the due Regular Premiums have been paid for at least first three consecutive years and the Policyholder has failed to make the payment of of the complete amount due before the expiry of the aforesaid grace period:
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i)

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Strictly Confidential For Internal Circulation Only Bajaj Allianz UnitGain Plus Gold i) Provided that the Policyholder has paid all Regular Premium due for the first three Policy Years, the Policyholder will be given an opportunity to revive the Policy, within two years from the date of first unpaid Regular Premium. During this limited period of revival, the Policy shall continue with full Sum Assured and Additional Rider Benefits if any, (except UL Waiver of Premium Rider benefit)levying all appropriate charges by cancellation of units at the prevailing unit price till the Regular Premium Fund Value less Surrender Charge, if any, does not fall to an amount equivalent to one annual premium (NAV) across all the funds. ii) If the Policyholder has failed to revive the Policy within the revival period of two years the Policy shall continue at the option of the Policyholder with full Sum Assured and Additional Rider benefits being in force (except UL Waiver of Premium Rider benefit), if any, levying all appropriate charges by cancellation of units at the prevailing unit price till the Regular Premium Fund Value less Surrender Charge, if any, does not fall to an amount equivalent to one annual premium (NAV) across all the funds and upon which: (a) The Policy shall terminate and (b) All units shall be redeemed and the Surrender Value is payable to the Policyholder. (iii) If the Policyholder has failed to revive the Policy within the revival period of two years and does not opt to continue the Policy after the expiry of revival period, the Policy shall be terminated and the below mentioned amount shall be payable to the Policyholder: If the Maturity Date arrives during the revival period, the Regular Premium Fund Value plus the Top Up Premium Fund Value, if any, else Upon expiry of revival period the Surrender Value as on date of termination

22. REVIVAL OF POLICY


Revival of the Policy is subject to the Policyholder paying all unpaid Regular Premiums within two years from the due date of first unpaid Regular Premium and subject to other information and documentation as may be requested by the Company. The Company reserves the right to disallow the revival of the Policy on original Terms and Conditions.

23. TERMINATION OF POLICY


This Policy shall automatically terminate on the earlier occurrence of either of the following events: i) The units in the Policy are fully surrendered; ii) The Regular Premium Fund Value less Surrender Charge falls be to an amount equivalent to one Annual Premium provided Regular Premiums have been paid for 3 full years; iii) Upon the Life Assureds death;

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Strictly Confidential For Internal Circulation Only Bajaj Allianz UnitGain Plus Gold iv) Upon the Policy remaining lapsed for two years or remaining lapsed upto third Policy Anniversary whichever is later. v) On the Maturity Date, unless the Policyholder has opted for the Settlement Option or vi) The expiry of the period for the Settlement Option.

24. SETTLEMENT OPTION


a) Provided the Company has received a written application duly signed by the Policyholder at least 90 days prior to the Maturity Date exercising the Settlement Option and the Company has accepted the request, the Maturity Benefit as specified in Section 13 above is payable by the Company to the Policyholder in installments (yearly, half yearly, quarterly or monthly, at the Policyholders option) spread over a maximum period of 5 years. b) The amount paid out to the Policyholder in each installment will be the outstanding Regular Premium Fund Value and Top Up Premium Fund Value if any at that date divided by the number of outstanding installments. c) Installment payments will be made by redeeming units from the Funds at the Unit Price applicable on that date. The redemption of units will be effected in the same proportion as the value of Units held in each Fund on the installment date. If the value of Units in any Fund falls to the extent that this is insufficient to support the monthly Charges, then the same shall be deducted proportionately from other Funds. d) All Charges except the Mortality Charge and Rider Premium Charge, if any, shall be deducted through the redemption of units from the Funds during the period of the Settlement Option as selected by the Policyholder and endorsed by the Company. e) No Death Benefit or Additional Rider will be available during the period of the Settlement Option. f) The Settlement Option can only be exercised by the Policyholder. g) No Partial withdrawals or Switches are allowed during the subsistence of the period of the Settlement Option.

25. NON DISCLOSURE (SECTION 45)


No Policy of life insurance effected after the coming into force of this Act shall, after the expiry of two years from the date on which it was effected, be called in question by an insurer on the ground that a statement made in the proposal for insurance or in any report of a medical officer, or referee, or friend of the insured, or in any other document leading to the issue of the policy, was inaccurate or false, unless the insurer shows that such statement was on a material matter or suppressed facts which it was material to disclose and that it was fraudulently made by the policy-holder and that the policy holder knew at the time of making it that the statement was false or that it suppressed facts which it was material to disclose.

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Strictly Confidential For Internal Circulation Only Bajaj Allianz UnitGain Plus Gold

26. ASSIGNMENT & NOMINATION


a) No assignment shall be effective unless and until the Company receives a written notice from the Policyholder along with the original or duplicate copy of this Policy Document and the assignment deed. b) If the Policyholder and the Life Assured are the same person, the Policyholder may at any time specify in writing a Nominee, whose details will be specified in the Schedule, to receive benefits payable upon Life Assureds death. If the Nominee is a minor, the Policyholder shall also appoint a person to receive the money during the minority of the Nominee, as specified in the Schedule. No nomination shall be effective unless and until evidenced by an endorsement on the Policy c) If there is no Nominee or if all the Nominees have predeceased the Policyholder, the benefits payable under this Policy will be paid to the legal heirs of representatives of the Policyholder

d) An assignment will automatically cancel any existing nomination. e) The Company assumes no responsibility or liability for the validity or sufficiency of any assignment or nomination or, if the assignment or nomination is not notified to the Company in writing, or in recording the assignment or registering the nomination or change in assignment or nomination. f) Assignment will not be permitted where the Policy is issued under the Married Womens Property Act 1874.

27. SUICIDE CLAIM PROVISION


If the Life Assured commits suicide whether sane or insane, within one year from the Date of Commencement of Risk or date of revival, the Company will not entertain any claim by virtue of this Policy except to the extent of the Regular Premium Fund Value and Top Up Premium Fund Value, if any, as at the date of intimation of death of the Life Assured to the Company.

28. FUNDS /INVESTMENT OBJECTIVES/RISK PROFILES


There are seven funds offered under the plan. They are as under: Asset Class Funds Investment Objective Bank Deposits & Money Market Instruments* G Secs, Bonds, Fixed Deposits* Risk Profile

Equities*

Equity Growth Fund Accelerator Mid-Cap

To provide capital appreciation through investment in selected equity stocks that has the potential for capital appreciation. To achieve capital appreciation by investing in a diversified basket of

0% - 40%

60% - 100%

Very High

0% - 40%

60% - 100%

Very High

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Strictly Confidential For Internal Circulation Only Bajaj Allianz UnitGain Plus Gold Fund investing in a diversified basket of mid cap stocks and large cap stocks. Minimum 50% of Equity Investments would be in Mid Cap stocks To realize a level of total income, including current income and capital appreciation, which is consistent with reasonable investment risk. The investment strategy will involve a flexible policy for allocating assets among equities, bonds and cash. The fund strategy will be to adjust the mix between these asset classes to capitalize on the changing financial markets and economic conditions. The fund will adjust its weights in equity, debt and cash depending on the relative attractiveness of each asset class Capital appreciation through investment in equities forming part of NSE NIFTY Provides accumulation of income through investment in high quality fixed income securities. Protection of the invested capital through investments in liquid money market and short-term instruments. Capital appreciation through investment in equities but to specifically exclude companies dealing in Gambling, Contests, Liquor, Entertainment (Films, TV etc.), Hotels, Banks and Financial Institutions.

Asset Allocation Fund

0% - 100%

0% - 100%

0% - 100%

High

Equity Index Fund II Bond Fund

0%-40%

60%-100%

High

0% - 100%

0% - 100%

Moderate

Liquid Fund

0% - 100%

Low

Pure Stock Fund

0% - 40%

60% - 100%

Very High

*The exposure to money market securities may be increased to 100%, keeping in view market conditions, market opportunities, and political, economic and other factors, depending on the perception of the Investment Manager. All changes in the asset allocation will be with the intention of protecting the interests of the policyholders.

29. FUND VALUATION


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Strictly Confidential For Internal Circulation Only Bajaj Allianz UnitGain Plus Gold The Fund Value is equal to the number of units under this policy multiplied by the unit price on the relevant valuation date. Computation Of NAV: When Appropriation Price is applied: The NAV of a Unit Linked Life Insurance Product shall be computed as: Market value of investment held by the fund plus the expenses incurred in the purchase of the assets plus the value of any current assets plus any accrued income net of fund management charges less the value of any current liabilities less provision, if any. This gives the net asset value of the fund. Dividing by the number of units existing at the valuation date (before any new units are allocated), gives the unit price of the fund under consideration. . This is applicable when the company is required to purchase assets to allocate units at the valuation date.

When Expropriation Price is applied: The NAV of a Unit Linked Life Insurance Product shall be computed as: Market value of investment held by the fund less the expenses incurred in the sale of the assets plus the value of any current assets plus any accrued income net of fund management charges less the value of any current liabilities less provision, if any. This gives the net asset value of the fund. Dividing by the number of units existing at the valuation date (before any units are redeemed), gives the unit price of the fund under consideration. This is applicable when the company is required to sell assets to redeem units at the valuation date.

30. CHARGES UNDER THE PLAN


S.No 1 Name of the Charge Policy Administration Charge Details Rs 661.5 per annum inflating from 1st April of each year at the rate of 5% per annum deducted through cancellation of units at each monthly due date. Asset Allocation Fund Equity Index Fund II Equity Growth Fund Accelerator Mid-Cap Fund Pure Stock Fund Bond Fund Liquid Fund 3 4 5 6 7 8 Switching Charge Mortality Charge Rider Premium Charge Surrender Charge Premium Allocation Charge Miscellaneous charge 1.25% p.a. 1.25% p.a. 1.75% p.a. 1.75% p.a. 1.75% p.a. 0.95% p.a. 0.95%p.a.

Fund Management Charge

Lower of 5% of switch amount or Rs. 100. Three free switches available in a policy year. As given in annexure A As per the rider charges As given above in section 15 and Annexure B As given above in section 17 Rs.100/- per transaction in respect of revival of the
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Strictly Confidential For Internal Circulation Only Bajaj Allianz UnitGain Plus Gold policy, alteration of the mode of payment of Regular Premium, increase/decrease in Regular Premium and for issuance of a copy Policy Document .

31. RECOVERY OF CHARGES


g) The Fund Management Charge will be deducted from the NAV of the Funds while calculating the Unit Price. h) The Policy Administration Charge, the Mortality Charges and the Rider Premium Charges, if any, will be recovered monthly at Monthly Due Dates by the redemption of Units at the prevailing Unit Price. i) In the event that the units are held in more than one Fund, the redemption of units will be affected in the same proportion as the value of units held in each Fund under the Policy. If the value of units in any Fund falls to the extent that it is insufficient to support the proportionate monthly charges, then the same shall be deducted proportionately from the value of units of the other Funds..

32. REVISION OF CHARGES


After taking due approval from the Insurance Regulatory and Development Authority, the Company reserves the right to change the following charges: Fund Management Charge up to a maximum of 2.75% per annum of the NAV for the Equity Growth Fund, Pure Stock Fund and Accelerator Mid-Cap Fund, 2.25% p.a. for the Equity Index Fund II and Asset Allocation Fund, 1.75% p.a. for the Bond Fund and Liquid Fund. Switching charge upto a maximum of Rs.200 per switch or 5% of the switching amount, whichever is lower. Miscellaneous charge upto a maximum of Rs.200/- per transaction Rider Premium Charges as per filed to IRDA. If the Policyholder/Life Assured does not agree with the charges, he/she will be allowed to exit the plan at the prevailing price of units after applying surrender charge, if any.

33. LOANS
No loan facility is available under this plan.

34. BACK DATING


This policy cannot be back dated

35. FREE LOOK PERIOD


Within 15 days from the date of receipt of the policy, the policyholder has the option to review the terms and conditions and return the policy, if he disagrees to any of the terms & conditions, stating
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Strictly Confidential For Internal Circulation Only Bajaj Allianz UnitGain Plus Gold the reasons for your objections. The policyholder is entitled to a refund of the premium paid, subject only to a deduction of a proportionate risk premium for the period on cover and the expenses incurred on medical examination and stamp duty charges. The refund paid to the policyholder will also be reduced / increased by an amount of any reduction / increase in fund value due to fall / rise in the unit price between the date of allocation and redemption of units. (without reference to any premium allocation rate or charges.)

36. DISTRIBUTION CHANNELS


All Channels

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Strictly Confidential For Internal Circulation Only Bajaj Allianz UnitGain Plus Gold ANNEXURE A Standard Mortality Charges Annual Charge Rates Per 1000 Sum at Risk For Male Life Assured Age 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 Mortality Charge 1.48 1.48 1.48 1.48 1.48 1.48 1.48 1.48 1.48 1.48 1.48 1.48 1.53 1.57 1.60 1.63 1.66 1.68 1.70 1.72 1.73 1.73 1.74 1.74 1.75 1.80 1.85 1.93 2.03 2.14 2.27 2.42 Age 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 Mortality Charge 2.60 2.82 3.02 3.21 3.44 3.72 4.05 4.44 4.88 5.38 5.93 6.53 7.19 7.91 8.68 9.50 10.37 11.30 12.18 13.09 14.21 15.56 17.11 18.88 20.87 23.07 24.84 27.04 30.39 34.11 38.22 42.75

Note: 2) For calculating mortality charges for Female lives, a set back of two years is taken on mortality charges of Male lives 3) Upto age 18, mortality charge of age 18 is taken for both Male and Female lives

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Strictly Confidential For Internal Circulation Only Bajaj Allianz UnitGain Plus Gold

ANNEXURE B SURRENDER CHARGES

Policy Year end 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 3 3 3 3 4 4 4 4 4


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Month End 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41

Surrender Charge as %age of first Years' Annualized Premium 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 49% 48% 48% 47% 47% 47%

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Strictly Confidential For Internal Circulation Only Bajaj Allianz UnitGain Plus Gold Surrender Charge as %age of first Years' Annualized Premium 46% 46% 45% 45% 44% 44% 44% 43% 43% 42% 42% 41% 41% 40% 40% 39% 39% 38% 38% 37% 37% 36% 36% 35% 35% 34% 34% 33% 33% 32% 32% 31% 31% 30% 29% 29% 28% 28% 27% 27% 26% 25% 25% 24% 24% 23%

Policy Year end 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 5 5 5 5 6 6 6 6 6 6 6 6 6 6 6 6 7 7 7 7 7 7 7 7 7 7 7 7 8 8 8


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Month End 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87

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Strictly Confidential For Internal Circulation Only Bajaj Allianz UnitGain Plus Gold Surrender Charge as %age of first Years' Annualized Premium 22% 22% 21% 21% 20% 19% 19% 18% 17% 17% 16% 15% 15% 14% 13% 13% 12% 11% 11% 10% 9% 8% 8% 7% 6% 5% 5% 4% 3% 2% 2% 1% 0%

Policy Year end 8 8 8 8 8 8 8 8 8 9 9 9 9 9 9 9 9 9 9 9 9 10 10 10 10 10 10 10 10 10 10 10 10

Month End 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120

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