Bajaj Allianz’s new pension guarantee plan extends pension benefits to spouse

Bajaj Allianz Life Insurance has launched a non-linked immediate annuity plan called Pension Guarantee. Apart from providing a guaranteed income for one’s lifetime, this immediate annuity plan has the options to extend annuity (pension) to the spouse too. The minimum annual premium has been kept at Rs 25,000.

“Considering the increasing life expectancy among Indians, the Pension Guarantee plan offers options that extend benefit of annuity not only for one’s lifetime but also spouse. The option of annuity with return of purchase price can be effectively used for passing inheritance to one’s legal heir,” says Rituraj Bhattacharya, Head, Product Development, Bajaj Allianz Life.

While the minimum entry age for the policy is set at 37 years, maximum eligible age is 80 years. Available in six options, the plan gives provisions for payment of annuity to the spouse of the annuitant after his demise (either 50% or 100% annuity depending on the Joint Life Last Survivor options chosen).

This plan also offers annuity with an option of return of purchase price in case of the death of annuitant. Under this option, the outstanding annuity is paid to the legal heir after the death of the nominated spouse. The policy, however, does not have the provision for a loan.