Bajaj Allianz Life launches Smart Wealth Goal Ulip with return of mortality and premium allocation charges

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Updated: Oct 09, 2020 9:32 PM

The plan not only offers one insurance and investment under an integrated plan but also addresses a critical issue related to charges in ULIP.

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Bajaj Allianz Life Insurance has launched, a unit-linked insurance plan, Bajaj Allianz Life Smart Wealth Goal. This ULIP aims to create wealth for customers while fulfilling long-term financial goals that may be related to child, oneself, and or parents, amongst other long-term goals.

Bajaj Allianz Life Smart Wealth Goal, not only offers customers insurance and investment under an integrated plan, but also addresses a critical issue related to charges in ULIP.

The plan comes with a unique Return of Premium Allocation Charge (ROAC) feature – which promises to return the entire amount of ROAC at the end of 10th policy year or on maturity (whichever is earlier). The plan also Returns all the Risk cover charges at maturity.

The product is available in three variants – Wealth, Child Wealth and Joint Life Wealth.

The Wealth variant comprises of five investment portfolio strategies that are offered to customers. The variant offers periodic fund boosters to the customers wherein inclusions to fund are provided during the policy term. In addition to this, the customer will also have the flexibility to reduce the regular premium from the 6th policy year.

In the Child Wealth variant there is an in-built waiver of premium and income benefit on death/ accidental total permanent disability (ATPD) to secure child goals in this plan. The variant also has a feature to receive periodic income to meet child’s education goal from 4 child milestone payouts.

The Joint Life Wealth is a single pay variant offering an option to add spouse/ child/ parent/ grandparent/ co-borrower etc as joint life. The customer can also make partial withdrawals after 5th policy year, whenever there is need for funds.

Commenting on the launch, Tarun Chugh, MD & CEO, Bajaj Allianz Life, said “Indian equities as an asset class offer great prospect for long-term wealth creation. We as an organization constantly endeavor to keep customers Life Goals on track especially during times of crisis. In these times of uncertainty, ULIPs offer customers the opportunity to create wealth over the longer horizon and manage uncertain times. Bajaj Allianz Life Smart Wealth Goal has been designed to offer customers a value-packed option, which is backed by our prudent investment strategies, and will offer a strong start to several customers towards getting their Life Goals Done with us.”

The phased unlocking of the Indian economy and an improvement in corporate earnings have raised equity market optimism for long-term wealth creation.

The smart policyholder can choose any of the following investment portfolio strategies for wealth creation:

a) Investor Selectable Portfolio strategy
b) Wheel of Life Portfolio strategy II
c) Trigger Based Portfolio strategy II
d) Auto Transfer Portfolio strategy
e) Capital Preservation-Oriented Strategy

In addition, the plan also offers smart features such as – fund booster, a periodic inclusion to fund during the policy term; flexible option to reduce premium; return of 100% mortality and all other risk charges; liquidity to meet child’s education goal, amongst others. It offers customers five investment portfolio strategies for fund management to choose from.

Key features of Bajaj Allianz Life Smart Wealth Goal

The smart plan offers several value-packed features which include the following:

1) Return of Premium Allocation Charge (ROAC) – at the end of the 10th policy year or on maturity (whichever is earlier), the total of all the premium allocation charges deducted will be added into the fund.

2) Return of Risk Charges – to enhance the benefits of ULIPs for the customers, Bajaj Allianz Life Insurance pioneered the idea of returning back the mortality charges to the policyholders on maturity. All the risk cover charges like waiver of premium, income benefit charge etc are returned to the customer at maturity.

3) Fund Boosters – at the end of 15th, 20th, 25th and 30th year (as applicable in the Policy), fund booster as a percentage of the average of the daily regular premium fund value during the previous 3 years (including the current year) will be added into the fund as loyalty benefit.

4) Option of Periodical Money Backs – under Wealth variant the policyholder may choose to take the loyalty benefits as periodical money backs (through Systematic Partial Withdrawals), immediately after they have been added in the fund value. The policyholder opt his choice to receive periodical money backs before the end of 10th policy year.

5) Waiver of Premium Benefit (WOP) – under Child wealth variant on occurrence of ATPD or death, whichever is earlier during the premium paying term, all future prevailing premiums due under the policy will be paid by the company.

6) Income Benefit – under Child wealth variant on occurrence of death or ATPD, whichever is earlier, an additional benefit as income benefit will be payable each policy year till the end of the policy term. Each installment of the income benefit is equal to one prevailing annual premium and the first income benefit instalment will be due on the policy anniversary after the date of death or ATPD, whichever is earlier.

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