The Bajaj Allianz ULIP Plans provide a bouquet of unique investment-cum-insurance opportunities. These plans can be either for the regular investor or can be taken for the specific purpose of wealth accumulation or to get good superannuation benefits. Thus, there are plans on the platter to suit different investor temperaments.
Bajaj Allianz ULIP Plans
The Bajaj Allianz ULIP Plans score over pure investment or pure insurance options. These give the beauty of ULIPs (Unit Linked Insurance Plans) with added riders, benefits and investment options.
The ULIPs score over mutual funds since they provide for insurance cover apart from the investment. What’s more, they are tailor-made to the needs of the investor. The investor can choose to get free switches as well every year, and they also have the option of paying top-up premiums over and above the regular premiums.
Types of Bajaj Allianz ULIP Plans
Bajaj Allianz offers many insurance-cum-investments based ULIP plans depending on the kind of premiums being paid, the benefits accruing and a host of other determining and differentiating factors. Here is a brief on all the Bajaj Allianz ULIP Plans:
- Bajaj Allianz Future Gain ULIP plan
While the basic purpose of the plan is to invest in capital and gain insurance benefits out of a single fund, the Future Gain plan is special in that it gives multiple investment options to the investor-cum-insurer. It comes with guaranteed death benefit rider and gives the scope of withdrawals, too.
- Bajaj Allianz Fortune Gain ULIP plan
This is a single premium ULIP plan of Bajaj Allianz. In this endowment plan, one can pay 99.5 % of the premium in one go. It comes with its set of death and maturity benefits so also with switching options, etc. It is a single premium plan with a minimum yearly premium of INR 50,000 per annum.
- Bajaj Allianz Retire Rich ULIP plan
This is more of a retirement benefit plan with an insurance element. The premiums can be paid either through regular premium payment, single premium payment or limited premium payment option. Also, it comes with death benefits and vesting benefits.
Bajaj Allianz ULIP Plans: Future Gain Plan
The most common of the Bajaj Allianz ULIP Plans is the Fortune Gain Plan. It is a very flexible plan which takes care of investor’s sentiment, ability to pay premiums and his/ her investment goals and is endowed with the following features:
Tenure
The minimum policy term is 10 years, and the maximum term is 30 years. The insurer can choose the term of the policy of this unit-linked plan. It can be started at a very early age of 1 year whereas the maximum age of the policyholder-cum-investor is 60 years.
Premium
In the case of Bajaj Allianz ULIP Plans, the premiums are cut out as per the investor-cum-insurer’s requirements. In Future Gain Plan, the investor-cum-insurer can choose the amount of premium, the premium payment term and the frequency of premium payment.
Based on this, together with the kind of investment strategy, the investment can be made as per the age of the policyholder. There is the scope of paying top-up premiums as well to spruce up the ULIP earnings.
Sum assured
Depending on the age of the policyholder and the term of the plan, the sum assured is calculated. This sum assured can be reduced at the behest of the policyholder.
Portfolio Strategies
The investment portfolio is chosen as per the 2 available strategies; viz.
1: Investor selectable portfolio strategy
Under this strategy, the investor can choose to invest in a host of funds from among the 7 given options. The premiums paid by the investor can be allocated among these 7 funds as per his choice. These 7 funds include:
- Liquid fund
- Bond fund
- Equity growth fund II
- Asset allocation fund II
- Pure stock fund
- Accelerator mid-cap fund II
- Blue chip equity fund
2: Wheel of life portfolio strategy
As the wheel of the time rotates, the investment goes on changing. The investment is made in 5 fund options in a ratio that is pre-decided. In the initial period of the plan term, the investment is made in equity funds; viz. the equity growth fund II, the blue-chip equity fund and the accelerator mid-cap fund II).
As the plan reaches towards the end of the term, towards maturity, gears are shifted towards investment on debt options rather than equity to protect the investment and give stable returns amidst high volatility in the market.
Allocation charges
The premium allocation charges are applicable only in the initial years. What’s more, the IRDA has put a limit of 1.35% on these charges. So, the charges do not gnaw away the corpus of premium paid.
Withdrawals and switching of funds
There are free switching options, so, the policyholder can monitor the performance of a fund and switch to more lucrative options of investment.
The Future Gain Plan of Bajaj Allianz ULIP Plans also gives withdrawal alternative after the initial 5 years. The minimum amount that can be withdrawn is INR 5,000.
Tax benefits
The premiums paid and the returns that a person gets, give effective tax benefits under Section 80C and 10 (10D) of the Income Tax Act.
Riders and benefits attached
There are 5 riders attached to this unit linked plan. Maturity benefits include the fund values accrued by payment of the designated premiums as well as through the top up premiums.
In case of death benefits, the beneficiaries will get either the sum assured or the fund value, whichever is higher. The sum assured includes the top up sum assured if any and the fund value includes the top-up fund value. Any withdrawals will be deducted from the total death benefit payable.
Bajaj Allianz ULIP Plans: Fortune Gain Plan
Of all Bajaj Allianz ULIP Plans, the Fortune Gain Plan is a single premium endowment plan which is non-participating in nature. This essentially means that the premium is paid only once. It has the following features:
Tenure
As in the case of all Bajaj Allianz ULIP plans, the policy term is chosen by the policy holder.
Premium
In this plan, premiums are paid once and for all. For single premiums above 10 lakh and above, there is 99.5% of the premium allocation. What is more, there is a loyalty addition of up to 3% of the single premium over and above the market value of the fund. This amount varies as per the premium amount and the tenure of the policy.
Sum assured
Sum assured it is calculated based on the age of policyholder and the term of the plan. This sum assured can be reduced at the behest of the policyholder.
Portfolio strategies
The policyholder is given a choice of 7 funds to choose from. The premium allocation is made to the funds in the ratio agreed upon by the policyholder. These 7 funds include:
- Liquid fund
- Bond fund
- Equity growth fund II
- Asset allocation fund II
- Pure stock fund
- Accelerator mid-cap fund II
- Blue chip equity fund
Allocation charges
The allocation charges of the Fortune Gain Plan are minimum, and this ensures that the returns are the highest.
Withdrawals and switching of funds for investing
Under this plan, the policyholder can make partial withdrawals after the initial lock-in of 5 years. Again, switching options are available for policyholders, so, they can switch to different funds based on the performance of the fund.
Tax benefits
Premiums paid are exempted under Section 80C, and the benefits on death or maturity are exempted under Section 10(10D) of the Income Tax Act.
Riders and benefits attached
In this plan too, maturity benefits include the single premium fund value as well as the fund value through top-up premiums.
In case of death benefits, the beneficiaries will get either the sum assured or the fund value, whichever is higher. The sum assured includes the top up sum assured if any and the fund value includes the top-up fund value. Any withdrawals will be deducted from the total death benefit payable.
Bajaj Allianz ULIP Plans: Retire Rich Plan
Amid the Bajaj Allianz ULIP Plans, the Retire Rich Plan is a non-participating unit linked retirement plan. The key features of this plan are:
Tenure
Since the Retire Rich variety of the Bajaj Allianz ULIP Plans, is an annuity plan, the term is usually till the retirement of the individual policyholder. The term is flexible and as per the needs of the policyholder.
Premium
For premiums, there are different options of either a single payment, a regular payment or limited payment as per the preference of the policyholder. There is the provision of top-up premiums as well.
Whatever be the premium, a certain part of that premium, whether single or annual, is given away as loyalty addition benefit during maturity. This is, however, applicable to policies with terms ranging from 11 to 30 years.
Tax Benefits
The premiums paid are exempted from tax under Section 80C, and the claims and benefits are exempt under Section 10(10D) of the Income Tax Act.
Riders and benefits
Guaranteed 105% is the main draw of this Retire Rich Plan, the annuity-oriented plan among the Bajaj Allianz ULIP Plans. In case of death of the policyholder, the beneficiaries get 105% of the total premium paid till the date of death of the policyholder.
The vesting benefits include 101% of the premium paid and top up premiums paid till the policyholder’s death. In case of maturity, the market value of the fund is paid.
Thus, in short, the Bajaj Allianz ULIP Plans in general, provide investment options to a wide range of investors from small-time investors to investors wanting retirement solutions in the form of income plus insurance. They throw a unique blend of debt and equity-based fund options for investment and make it investor-cum-insurer centric!
Keyword: ULIP Plan
Link: https://ulipplans.com
