Since this plan can be purchased online through credit card/debit card, it is hassle free compared to other ULIP plans that involve intermediaries like insurance agents etc.
In short, this is really an investment plan with a pretence of insurance. So if you have already covered yourself and are now looking to basically invest your money for higher returns, this could be one option.
The advantage of the plan is that it gives you access to some rather well-performing funds. And depending on your risk appetite at given point in time, you could always switch between them.
Ø This plan offers a high allocation of 98% of the premium paid from the start itself.
Ø From the 6th policy year, this plan offers 100% allocation.
Ø Inbuilt accidental death cover.
Ø This plan provides policyholders the flexibility of selecting policy term of 10/ 15 or 20 years and premium paying term of 5 years to policy term.
Ø An automatic annual increase in sum assured from 6th policy anniversary is provided to suit the policyholder’s needs.
Ø You can choose between 7 investment funds to invest as per the risk appetite of the policyholder.
Ø Maturity Benefit – Upon the maturity of your policy, you receives the Fund Value as on the maturity date.
Ø Two investment portfolio strategies to manage the policyholder’s investments better; including the Wheel of Life portfolio strategy, which will help the policyholder to balance and safeguard his investment.
Ø Surrender Benefit – This policy allows a policyholder to opt out of the policy anytime after the 6th year. The surrender value in that case would be equal to the Fund value as on the date of surrender of the policy.
Ø Optional Riders for the benefit of the policyholder
Ø Flexibility of
Having gone through the key benefits of Bajaj Allianz iGain III Insurance Plan, let’s now examine its various aspects in detail.
|Minimum Entry Age||1 years(18 years in case of Additional Rider Benefits)|
|Maximum Entry Age||60 years (50 years in case of Additional Rider Benefits)|
|Minimum Age at Maturity||18 years|
|Maximum Age at Maturity||75 years (Additional Rider Benefits ceasing Age 65 years)|
|Policy Term||10, 15 and 20 years|
|Minimum Regular Premium||
|Maximum Regular Premium||No Limit|
|Minimum Premium Paying Term||5 years|
|Maximum Premium Paying Term||Policy Term|
|Premium Payment Frequency||Yearly, half-yearly, quarterly and monthly. The monthly
mode will be allowed through ECS only
|Premium Frequency factor for
alteration from yearly to other mode
|Minimum Top Up Premium||Rs. 5,000|
|Maximum Top Up Premium||No Limit|
|Minimum Sum Assured||10 times of Annualized Premium for entry age below 45 years
7 times of Annualized Premium for entry age 45 years & above
|Maximum Sum Assured||Policy Term times Annualized Premium with base cover only
[Only 10 times of Annualized Premium if any Rider has been
Investment Options (Funds)
This unit-linked policy gives you the following array of 7 investment options (funds), each having a varied proportion of equity and debt, for you to choose from (based on your risk appetite and expectations of returns) –
|Fund name||Asset classes invested in (as a % of overall fund portfolio)|
|Bank Deposits & Money Market Instruments||Equities||Government Securitiess, Bonds, Fixed Deposits|
|Pure Stock Fund (shuns unethical sectors like gambling)||0-40%||60-100%|
|Bluechip Equity Fund (invests in NSE NIFTY-listed stocks, seeking to replicate returns registered by the benchmark index)||0-40%||60-100%|
|Equity Growth Fund II (investment in specific equity stocks having high growth potential)||0-40%||60-100%|
|Bond Fund (invests in high-quality fixed income securities)||0-100%||0-100%|
|Liquid Fund (invests in liquid money market and short-term instruments)||0-100%|
|Accelerator Mid-Cap Fund II (invests in a diversified pool of mid-cap and large-cap stocks, with at least 50% of equities exposure to mid-cap companies)||0-40%||60-100%|
|Asset Allocation Fund (allocates assets across equities, bonds and cash to build a balanced portfolio)||0-100%||0-100%||0-100%|
Test case for investment returns –
Age – 30 Years; Policy term – 10 years; Annual Premium – Rs. 10,000; Sum Assured - Rs 100,000
|Fund name||Fund track record (rate of returns delivered till date from inception)||Projected Maturity Benefit (based on fund track record till date; no guarantee, however) (in Rs.)|
|Pure Stock Fund||23.24%||342,962|
|Bluechip Equity Fund|
|Equity Growth Fund II||18.07%||254,544|
|Accelerator Mid-Cap Fund II||11.41%||173,619|
|Asset Allocation Fund||8.86%||150,131|
If the policyholder has chosen Investor selectable portfolio strategy:
The Bajaj Allianz iGain III Insurance Plan policy holder is entitled to making any number of partial withdrawals he wants, anytime after the fifth policy year–conditional upon several factors, a few of which are shortlisted below:
You can, if you want, surrender the Bajaj Allianz iGain III Insurance policy after five years. In that case, you’ll get your money back with whatever returns the fund generates.
Premiums paid towards the Bajaj Allianz Wealth Insurance Plan are eligible for tax benefits under section 80C. On the other hand, you can claim tax relief for maturity benefit, death benefit and surrender value under section 10(10) D of the Income Tax Act.
The Bajaj Allianz iGain III Insurance Plan shall automatically become void on the earlier occurrence of either of the following events:
Appendix – Wheel of Life Portfolio Strategy
|Years to Maturity||Proportion in following three Funds (%)||Bond Fund (%)||Liquid Fund
|Blue-chip Equity Fund||Equity Growth Fund 2||Accelerator Mid-Cap Fund 2||Total|