Rarely do we come across anybody who gets excited about watching a show or reading an article that reminds them to invest systematically or to insure their lives. Long term investments sound like a smack of wisdom and insurance makes a rather uninteresting proposition. On the other hand, the news about a trader who traded in stocks with borrowed money and became a millionaire makes thrilling headlines.
Best Investment advice is often boring
We tend to forget that what is exciting now can be terrifying later and the best advice is often boring. Perhaps Bajaj Allianz Life Insurance realizes this psychological barrier very well, so when the company launched its Future Wealth Gain plan last month, they tried to make the event as interesting and creative as possible.
I was invited to the event and had gone with the idea of hearing some serious talks. Instead, I found that the team had organized peppy talk show and games centred on the theme of saving money, to engage the audience while educating about the concept of the product. I will also try to keep this post as simple as possible.
As you have rightly guessed, this post is about:
Future Wealth Gain: a Unit Linked Endowment Life Insurance Plan
In an earlier post, I had elaborated on why preserving and growing money are two key investment objectives. Our other investment goals could be to create income from the capital base, to save tax, or to save for big expenses like buying a house, planning vacations abroad, or discharging financial responsibilities like funding children’s education or marriage.
Bajaj Allianz Life Future Wealth Gain by #BajajAllianzLifeInsurance aims to enable people to meet such future financial goals with ease while providing a cushion of security for their family. It offers the dual benefits of protection and growth.
Must Read: Are you making your money work for you?
Features of Future Wealth Gain Plan
This is a Non-Participating, Unit Linked, regular and limited premium payment plan, with a choice of two variants, ‘Wealth Plus’ and ‘Wealth Plus Care’. The policy term can be 10 years or it can range from 15 years to 25 years.
On Maturity, a person will receive the Fund Value plus top up premium fund value, as on maturity date. In addition, there are Loyalty Additions, which I will tell you of, in a while.
First, let us look at the attractive features of the Plan.
High Life Insurance Cover
The Death Benefit under the ‘Wealth Plus Variant’ is the higher of Sum Assured or the Fund Value as on receipt of the intimation of death. The death benefit is subject to the guaranteed benefit of 105% of premiums paid till the date of death.
Under the ‘’Wealth Plus Care Variant’’, in addition to the Death Benefit, the customer is entitled to an Income Benefit, which is paid if death or first diagnosis of Cancer of the Life Assured occurs during the premium payment term. The Income benefit is equal to the total of all the regular premiums due under the policy after the death or diagnosis of cancer.
The minimum premium for Bajaj Allianz Life Future Wealth Gain is capped at Rs. 50,000 annually, and the maximum policy term is 25 years.
Choice of Two Investment strategies
An investment savvy policy holder can opt for the Investor Selectable Portfolio Strategy, which gives him the flexibility to allocate premium under eight fund options to invest in the capital markets.
Others who are not so acquainted with the market or do not have the time to manage their portfolio can opt for Wheel of Life Portfolio strategy, wherein a fund manager would allocate the premium between five funds and invest in the capital markets.
It is also possible to switch between the two Investment strategies.
The plan provides the option to choose from multiple policy terms and to take the maturity benefit in instalments (Settlement option).
Unit linked insurance products do not offer any liquidity for the first five years of investment, which means that the policyholder will not be able to withdraw any money till the end of the fifth year.
After the 5th policy year, the policyholder can make partial withdrawals.
The plan rewards the policy holder with loyalty benefits.
Starting from the 10th policy year onwards, at the end of every five years, (15th, 20th and 25th) the policy holder receives Loyalty Additions (amounting to a total of 90% of one year’s premium for a policy term of 25 years).
On maturity of the policy, the policy holders who pay their premium regularly will be rewarded with Fund Booster (% of one Annualized premium), which enhances the maturity benefit.
With Future Wealth Gain, policyholders can gain Tax Benefits under Section 80C and Section 10 (10) D of the Income Tax Act.
How It Works!
With these seven simple steps, you can fulfil your financial goals with the cover of security and prosperity (#futurewealthgain).
When you know the facts and figures, you can #InvestBefikar and #JiyoBefikar
For more details refer to the Bajaj Allianz Life Insurance website
Image credit: Bajaj Allianz Life Insurance press release
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