I was recently invited to attend the launch of Bajaj Allianz Life Insurance’s New Product – Future Wealth Gain. I told you a little about it during my post on the importance of Long Term Investments. I’ll tell you all about the new product right here!
But before the plan was revealed to us, an interesting game was conducted. We were divided into teams of 5 and given a sheet of paper on which there were 10 items listed that we had to buy within 10 years. The amount we had in hand was Rs. 10,000/- The items included things like a recliner for old age, a health check-up, gym membership, a trip to Goa and the like. We were also given market rumours – the price of so-and-so item would increase in 2 years or fall in 6; and we were given tips – You are 50 years old now. Buy the recliner before you hit 55.
Like the stock market, the year wise prices of these items flashed on screen for 30 seconds and we had to take our pick of what we wanted to buy. Should we save a fun trip for next year and buy a mobile this year? What if the mobile phone prices increase next year? Should we just get a gym membership instead?
The goal of the game was to purchase all the items from the list. The team that saved the most money at the end of the decade would win the game! It was an interesting game – showing us how the money we had in hand could get us less of a product in future or maybe even more! It also showed us how to spend wisely, curtail expenses and save! My team of girls won, by the way! Woot!
Coming to the launch of Bajaj Allianz Life’s New Product:
About The Plan:
Bajaj Allianz Life is one of India’s leading private life insurers. Their latest offering, Bajaj Allianz Life Future Wealth Gain is a unit-linked investment plan that gives you a choice of two variants – Wealth Plus and Wealth Plus Care. Besides protecting your loved ones and yourself, the plan aims at maximizing wealth by investing in capital markets to help you achieve your financial goals in future.
How does it work?
This non-participating, individual, unit linked, regular/limited premium payment plan offers the dual benefit of protection and growth. The most important advantages I can see are the high insurance cover, choice of 2 investment portfolio strategies, loyalty additions at each interval of 5 years from the 10th policy year onward, fund booster to enhance fund value at maturity, option to take maturity benefit in installments and the option to choose from multiple policy terms.
So how it works out is pretty simple to understand:
- Once you choose between Wealth Plus and Wealth Plus Care, you choose the premium you want to pay as well as the sum assured multiplier to decide your life cover.
- Next, choose your policy term and premium payment term.
- Choose the premium payment frequency
- Choose between two portfolio strategies
- Choose the riders (optional and with rider charges applicable)
At maturity, a person will receive the Fund Value plus top up premium fund value, if any including loyalty additions that help you get better returns as it provides up to 90% of one year’s premium for a policy term of 25 years. Loyalty additions are payable at the end of every 5 years starting from the 10th policy year.
That’s not all! To enhance one’s fund value, Future Wealth Gain offers Fund Boosters – amounts added to the regular premiums Fund Value at Maturity, when all premiums have been paid up to date and the policy is in force. This can be as high as 90% of one’s premium if the policy term and premium payment term is more than 15 years.
The death benefit under the ‘Wealth Plus’ variant includes the higher of the sum assured and fund value as on the date of receipt of intimation of death.
Under the Wealth Plus Care Variant, in addition to the death benefit, a customer also receives an income benefit that’s payable on death or first diagnosis of cancer of the Life Insured. The benefit payable will be the sum assured plus top up sum assured if any OR fund value as on date of receipt of intimation of death plus income benefit, whichever is higher. 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.
What’s interesting to note is that the company has introduced a NEW FUND-PURE STOCK FUND II. Earlier, an investor could select his portfolio strategy from from among 7 fund choices in the ‘Investor Selectable Portfolio Strategy.’ Now, with a new addition of ‘Wheel of Life,’ 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.
Got questions or opinions? Let me know by commenting below!