Fulfilling other life goals at the expense of financial goals
Prashant is a 24 year old individual working in an IT company. He has been an enthusiastic traveller since his childhood. Now that he has started earning, he takes two trips in a year to locations that he always wanted to go to. His travel is well planned and totally enjoys each destination he visits. While Prashant has been fulfilling his travel wish list he has completely ignored a very important journey of life, which is his financial planning journey and hence hasn’t spent time or effort planning for it.
Just like Prashant, many of us are so busy fulfilling our other goals that we either tend to forget or ignore our financial goals. Prashant uses the services of a travel guide to make the most of his journeys. What if Prashant is given a guide for his financial planning journey?
Enter Bajaj Allianz Life Insurance. While individuals like Prashant are busy planning for their life goals, Bajaj Allianz Life can help such retail investors, life maximizers as they identify them, to fulfil their life goals from a financial point of view.
Bajaj Allianz Life Goal Assure
With Bajaj Allianz Life Goal Assure your financial planning journey is sorted out. It helps you identify your various life goals like having your own start-up venture, dream car, dream house, child’s education, child’s dream wedding, worry free retirement etc. and accordingly plan and achieve these life goals. Life Goal Assure is a value-packed goal-based Unit Linked Insurance Plan (ULIP) with two unique benefits that are one of their kinds for ULIPs in India.
Return of life cover Charges: This feature guarantees that a policyholder will get back the cost of the life cover when the policy matures. This will enhance the value of the corpus on maturity.
Return Enhancer: At maturity, the customer can receive the benefit as lump-sum or in instalments. If the instalment option of five years is chosen, then as per the return enhancer benefit, an addition of 0.5% will be made to each instalment.
Portfolio Strategy
The plan comes with four portfolio strategy options.
- If you are an active investor and would like to invest your premium in a fund of your choice, then you may opt for the Investor Selectable Portfolio Strategy.
- In case you want to leave fund allocation to the company’s experts, then you may opt for Wheel of Life Portfolio Strategy. In this case, depending on the years to maturity, in the initial years, the allocation will be high towards equity funds and low towards debt funds. Going forward, as the policy term progresses, the equity fund allocation will be reduced, and the debt fund allocation will be increased.
- If you opt for the Trigger Based Portfolio Strategy, then your premium will be allocated to Equity Growth Fund II (75%), an equity oriented fund and Bond Fund (25%), a debt oriented fund. On the occurrence of a pre-defined trigger event (15% upward movement in the unit price of Equity Growth Fund II), there will be rebalancing or reallocation of funds in the portfolio. During the rebalancing, any value of units in Equity Growth Fund II which is in excess of 3 times the value of units in Bond Fund is considered as gains and switched to the Liquid Fund.
- If you opt for the Auto Transfer Portfolio Strategy, your premium will be initially allocated in Bond Fund and / or Liquid Fund, as specified by you. Every month a portion of the fund value in the debt fund will be switched to the other fund/s as specified by you.
Triple benefit of growth, protection and tax saving
Growth: The product will help you grow your investments and fulfil your life goals as you move along in life.
Protection: As you move ahead in the journey of life, there can be roadblocks. In the event of your untimely death, the family will get a lump-sum amount. They can use this lumpsum amount to fulfil the financial goals.
Tax saving: The premium that you will pay under this product will be eligible for deduction from your taxable income, subject to the Income Tax Law. The amount received in the event of death or on maturity is tax free.
Other benefits
Apart from the benefits discussed above, the product comes with whole host of other benefits. Some of these include:
Fund booster: Under this benefit, an additional amount will be added to the fund value on the date of maturity. This will boost your returns on maturity. The fund booster is payable for policies where the policy tenure is 10 years and more.
Choice of investment funds: Depending on your risk profile, you can choose to invest in an equity fund or debt fund or a money market fund. You can also choose funds that invest in a combination of these funds in varying proportions. You can choose from eight different funds options available. These funds have consistently delivered one of the best Compounded Annual Growth Rate (CAGR) returns. Most of these funds enjoy high ratings from Morning Star rating agency.
Unlimited free switches: You can transfer your funds invested, from one fund to another fund without any charges.
Digital / online channel
Life Goal Assure can be bought online. So if you are one of those tech savvy persons, the company has made the product available at your fingertips. You can buy it from the convenience of your home with just a few clicks. The company has made available, a host of online tools like Risk Xplorer, Goal-based journey, Returns Calculator and others, to help you make informed decisions.
Conclusion
Life Goal Assure is a comprehensive product. It has been designed keeping mind the various life goals of the customer and how the goals can be accomplished. The product provides the triple benefit of growth, protection and tax savings. So, as we saw at the start of the article, Prashant can go about accomplishing his travel plans and leave the life goals to Life Goal Assure to accomplish them for Prashant. So, with Life Goal Assure, you can live your life worry free.