I hope you have read my post on 5 reasons you need to start saving at 25. As I had mentioned, I was invited by Bajaj Allianz Life Insurance to a blogger’s meet where they launched a new product called Future Wealth Gain. I am sure you are buzzing with questions about the product. Well, let’s get cracking and answer all your questions.
Ok, so what is Bajaj Allianz Life Future Wealth Gain?
It is a unit-linked endowment plan that offers you two variants, ‘Wealth Plus’ and ‘Wealth Plus Care’. This plan invests your money in capital markets to maximize your wealth. It is a non-participating ULIP plan with a regular and limited premium payment option.
So what do I get on maturity?
As Maturity Benefit, you will receive the Fund Value plus top up premium fund value, if any, as on maturity date, including Loyalty Additions which helps one get higher returns. It provides you upto 90% of one year’s premium for a policy term of 25 years, payable at the end of every five years, starting from the 10th policy year.
No! Bajaj offers something called as Fund Boosters that are added to the Fund Value on maturity when all premiums have been paid up to date and the policy is in-force. Fund Booster returns can be as high 90% of one year’s premium, if the policy term and premium payment term is more than 15 years.
Nice! Does this ULIP give me any more benefits?
If you opt for the Wealth Plus variant, you get a death benefit which is higher of , either Fund Value plus Top up if any or is subject to a minimum of 105% of premiums paid including top-up premiums paid, if any, till the date of death.
If you opt for the Wealth Plus Care Variant, on death or first diagnosis of cancer , you would be eligible for Income Benefit.
Cool, anything else I need to know about this policy?
As a part of this policy you have 8 fund choices to invest in, if you opt for it. You can also opt for Wheel of Life portfolio strategy where the regular premium fund value and top up premium fund value, if any, will be reallocated among various funds in the pre-defined ratio based on years to maturity.
How do I get the benefits at maturity?
You can opt for maturity benefit in installments (Settlement Option) over a maximum period of 5 years.
In theory this sounds great, but can you give me an example please?
Say a 30-year-old woman buys a Bajaj Allianz Life Future Wealth Gain policy with Wealth Plus variant and chooses to pay an annual premium of Rs.50,000 for a 15 year policy term, with 15 years of Premium Paying Term. Assuming that the premium will be invested using Investor Selectable portfolio strategy (Let’s assume she invests in accelerator midcap fund II). The Sum Assured she stands to gain is Rs 5,00,000 and the maturity benefit available will be Rs.12,64,107 (at 8% return), and Rs.9,27,772 (at 4% return). On Maturity Date, a person will receive the Fund Value plus top up premium fund value, if any.
As Death Benefit, she will get:
- The higher of the Sum Assured, plus top-up Sum Assured, if any, or
- Fund value, as on the date of receipt of intimation of death,
Quick Facts at a glance
The minimum premium for Future Wealth Gain is capped at Rs.50,000 annually. The maximum policy term is 25 years and the minimum premium payment term is 5 years.
Bajaj Allianz’s Pure Stock Fund has outperformed benchmark and has generated a CAGR of 16.4% for 10 years vs 9.2% of benchmark (as on 31st March 2017). The fund is consistently rated “5 star” by Morning Star.
Bajaj Allianz has recently crossed INR 50,000 Crores Assets under Management (AUM). Do you realize how many people love and trust their products!
And a disclaimer
Investing money is a personal matter and I urge you to carefully go through all the documents yourself before taking the plunge. In the meanwhile, if you have any questions for me, please feel free to comment below.
Hope you enjoyed reading the post 🙂 For more information, please do visit their website