Investment Flexibility with Bajaj Allianz Life ULIP Plans

A Unit Linked Insurance Plan (ULIP) combines life insurance and investment, offering financial protection and market-linked returns. Premiums are split between life cover and investments in funds chosen by the policyholder. Key benefits include potential for higher returns, flexibility to switch between equity and debt funds, and tax advantages under Section 80C and 10(10D) of the Income Tax Act. ULIPs cater to various financial goals, making them ideal for long-term wealth creation and security.



6/25/20245 min read

Bajaj Allianz Unit Linked Insurance Plan (ULIP)
Bajaj Allianz Unit Linked Insurance Plan (ULIP)

Investment Flexibility with Bajaj Allianz Life ULIP Plans

There are several types of life insurance plans you can choose from based on your financial goals and convenience. Some plans offer only a life cover while others come with investment cum insurance components. A ULIP, short for Unit Linked Insurance Plan, is one such insurance cum investment plan. It allows you to invest for your long-term financial goals while also providing the protection of a life cover. Read further to understand the various aspects of a ULIP policy.

What Is a ULIP?

The meaning of ULIP is quite simple: it is a market-linked plan wherein one can avail life insurance coverage and also invest in different funds. Similar to other types of life insurance, you are required to pay premiums for your ULIP. This ULIP premium may be invested in funds of your choice and also be directed towards building the life cover. When your plan matures, you get the fund value consisting of the amount you invested along with the returns you earned on it. In case of your unfortunate demise, your nominee may receive the death benefits of the plan.

How ULIP Works?

Here's how it works in detail:

  1. Premium Payment: The premium you pay is used to meet two key financial goals: life insurance and investment.

  2. Investment in Funds: Your money is invested in market-linked funds that you choose. The total amount invested may be divided into units, with each having a specific face value.

  3. Net Asset Value (NAV): The value of each unit is referred to as the NAV. It reflects any increase or decrease in the value of the underlying assets.

  4. Partial Withdrawals: If you make partial withdrawals from the accumulated corpus, the corresponding number of units are sold.

  5. Maturity Benefit: At the time of maturity, you may receive the total fund value.

  6. Death Benefit: In case of your demise within the policy tenure, your nominee can receive the death benefit which may be the sum assured amount or the total fund value of the plan, depending on the type of plan.

Why Should One Consider Investing in ULIPs?

A ULIP plan can offer a multitude of benefits:

  • Market-Linked Returns: ULIPs provide market-linked returns. The longer you stay invested, the higher the probability of earning expected returns, subject to market performance.

  • Multiple Investment Options: A ULIP investment portfolio offers a variety of fund options, ranging from aggressive equity funds to conservative debt funds.

  • Flexibility: ULIPs allow you to switch between different funds based on changing scenarios and risk appetite.

  • Tax Benefits: Premiums are eligible for deductions under Section 80C of the Income Tax Act, 1961.

  • Liquidity: In case of emergencies, you may use the partial withdrawal feature to meet your fund requirements.

ULIP Plans by Bajaj Allianz Life

Bajaj Allianz Life Goal Assure II

  • Type: Unit-Linked Non-Participating Individual Life Savings Insurance Plan

  • Features: SmallCap Quality Index Fund, return of mortality charges at maturity, loyalty additions, 4 investment portfolio strategies, fund booster at maturity.

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Bajaj Allianz Life Smart Wealth Goal

  • Type: Unit-Linked Non-Participating Individual Life Savings Insurance Plan

  • Features: Three variants, return of premium allocation charge, multiple investment portfolio strategies, return of mortality charge, option to reduce the premium.

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Bajaj Allianz Life Magnum Fortune Plus

  • Type: Unit-Linked Non-Participating Individual Life Savings Insurance Plan

  • Features: Life cover throughout the policy term, wide range of funds and portfolio strategy, loyalty additions, unlimited free switches.

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Bajaj Allianz Life Goal Based Saving II

  • Type: Unit-Linked Non-Participating Individual Life Savings Insurance Plan

  • Features: Regular, limited, and single premium payment options, additional premium allocation of up to 3% in the first policy year, return of mortality charges at maturity, option for partial withdrawals.

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Bajaj Allianz Life LongLife Goal

  • Type: Unit-Linked Non-Participating Whole Life Insurance Plan

  • Features: Retired life income till age 99, whole of life insurance cover, loyalty additions from the 5th policy year, periodic return of life cover charges, tax benefits under Section 80C and 10(10D).

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Steps for Buying a ULIP Online
  1. Visit the Insurer's Website: Go to the official website of the insurer offering ULIP products.

  2. Browse and Select a Plan: Choose a ULIP plan that aligns with your financial goals and risk appetite.

  3. Determine Policy Duration and Premium: Select the policy duration and premium payment amount.

  4. Proceed to Payment: Choose your preferred payment method and make the payment.

  5. Confirm Purchase: After payment, enjoy the benefits of your ULIP.

For Whom is a ULIP Investment Suitable?
  • People with Varying Risk Appetites: ULIPs offer a range of market-linked investment funds, from equity to debt funds.

  • Long-Term Investors: Optimal returns are achieved over a long-term horizon.

  • Hands-On Investors: ULIPs allow active involvement in managing investments.

  • Investors Across Life Stages: Customizable to cater to different life stages and financial goals.

Features of ULIPs
  • Dual Benefits: Provides life insurance coverage and wealth appreciation.

  • Fund Switching: Move your investments between different market-linked funds.

  • Partial Withdrawals: Withdraw a portion of investments as needed.

  • Top-Up Investments: Increase your investment amount annually.

  • Lock-in Period: Five-year lock-in period to build consistent investing habits.

Benefits of ULIP
  • Maturity Benefit: Receive the accumulated fund value at maturity.

  • Death Benefit: Provides financial support to your family in case of your untimely demise.

  • Asset Allocation: Allocate your capital across different ULIP funds.

  • Wealth Generation: Potential for market-linked wealth generation over the long term.

  • Tax Benefits: Enjoy significant tax advantages under Section 80C and Section 10(10D) of the Income Tax Act, 1961.

Why Monitoring Your ULIP Fund Performance Is Crucial
  • Managing Risks: Regular monitoring helps manage market-related risks.

  • Switching Funds: Allows informed decisions on fund switches based on market conditions.

  • Achieving Long-Term Goals: Ensures your investment remains on track with your financial goals.

ULIP Charges
  • Fund Management Charges: For managing your investments.

  • Policy Administration Charges: For administrative tasks.

  • Mortality Charges: For the life insurance component.

  • Premium Allocation Charges: Upfront charges for initial expenses.

  • Policy Discontinuance Charges: For early surrender of the policy.

  • Partial Withdrawal Charges: For withdrawals exceeding the permitted limit.

  • Fund Switching Charges: For switching between funds.

  • Miscellaneous Charges: For changes to your ULIP contract.

What Is NAV in ULIP?

NAV (Net Asset Value) is the daily calculated value of units held in a ULIP fund. It represents the market worth of the units and helps investors track their investment performance. NAV is calculated by dividing the total net assets of the fund by the total number of units outstanding.

Myths about Investing in ULIPs
  • Complexity: ULIPs are designed to be comprehensible and accessible.

  • High Charges: Charges are evaluated in the context of overall benefits.

  • Limited Investment Options: ULIPs offer a wide range of investment choices.

  • Lack of Transparency: Insurers provide clear and detailed information.

  • Low Returns: Returns depend on underlying funds and market performance.

Why Bajaj Allianz Life Insurance?

Bajaj Allianz Life, one of India's leading private insurers, is committed to offering value-packed and innovative products to meet your life goals.

  • Claim Settlement Ratio: 99.23%

  • Claim Approval Time: 1 day

  • CARE Stable Rating: AAA

  • Assets Under Management (AUM): ₹1,09,829 Crores

  • Number of Lives Covered: 4.19 Cr

  • Solvency Ratio: 432%

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