Page 48 - Insurance Times December 2015 SAMPLE

Non-Life Insurance Plan

Cash Assure

from Bajaj Allianz General Insurance

Company Limited

This is a traditional participating insurance policy, and it of-10 times annual premium or sum assured chosen. The
pegs investment returns to the performance of the beneficiary will also get the entire accrued bonus. The
participating fund. total death benefit can't be less than 105% of all premiums
paid.
What it delivers?
What is special?
It has four policy terms that one can choose from: 16, 20,
24 and 28 years. Premium payment term for each is policy There is a discount on premiums if you choose a higher
term minus five. So, for a policy term of 16 years, you will sum assured. For every Rs.1,000 of extra sum assured
pay an annual premium for 11 years. Depending on the above sum assured of Rs.1 lakh, a premium discount of
sum assured chosen, the age, gender and policy term, an Rs.4.50 will be given. Also, premium for women
annual premium will be calculated. policyholders will be based on premium rate for men
policyholders who are three years younger.
It will return a certain percentage of the sum assured at
periodic intervals. So, if one chooses a policy term of 16 How does it work?
years, he will get 15% of the sum assured at the end of the
4th, 8th and 12th year-total of 45%. On maturity, i.e., If a 30-year-old man takes this policy for a term of 28 years
after the 16th year, he will get 60% of the sum assured with a sum assured of Rs.4 lakh, annual premium for 23
with vested bonuses. If one chooses a maximum policy years will be Rs.25,186. He will receive three money-back
term of 28 years, he will get 30% of the sum assured at installments at the end of 7th, 14th and 21st years; each
the end of the 7th, 14th and 21st year (total of 90%), and of Rs.1.2 lakh. On maturity, assuming the participating
on maturity you will get 60% of the sum assured with fund grows 8% a year, he will get a total of around Rs.5.86
bonuses. lakh-net return of 4.47%. Assuming it grows at 4%, net
return would be just 1.43%. However, depending on
Every year, depending on the participating fund's additional bonuses at the discretion of the company, net
performance, a bonus is declared, which is a percentage returns may improve.
of the sum assured. The bonus is calculated on a
compounded basis. Entry Age - 0-54 Years
Policy Term - 16, 20, 24, 28 Years
In terms of insurance, if the policyholder dies during the Minimum Sum Assured - Rs.1 Lakh
policy term, death benefit to the beneficiary will be higher

LIC buying stocks with regards to market fall

The recent fall in stock markets is a good buying opportunity for long-term investors, and LIC has been buying stocks,
said LIC Chairman S K Roy. "The volatility is not a cause of concern, but a buying opportunity for long-term investors.
If you look at BSE data, we have been buying shares for the past many days," he told reporters after meeting Finance
Minister Arun Jaitley. Asked about LIC's investment plan for the disinvestment programme of the government, Roy
said LIC will pick up shares on a "case-to-case" basis. "We don't have a separate corpus for investment in PSUs. But
look at data, all our investment in PSUs so far are giving positive returns," he said.

44 The Insurance Times, December 2015

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