Planning for your retirement may not be an easy task while you are in your 20s or 30s. However, wanting a stable financial backing for the second innings of your life is something we all wish for. Here’s when, the idea of long-term investment arises. Investing regularly plays a vital role in building a corpus for yourself that could last a lifetime that would not seem small in comparison to the future inflation rates. With the ULIP retirement plan, Bajaj Allianz Life LongLife Goal, you can stay rest assured! Being a whole life insurance plan, it allows you to pay premiums only for a limited period of time, while you get regular income during your retirement age. Moreover, ULIPs not only offer tax benefits, but also give you annual loyalty additions, periodical return of mortality charges and a hike-up income with the return enhancer benefit.
In the unfortunate event of your death, your nominee receives the death benefit as a lump-sum which is the assumed investment returns until the age of death.
With the Bajaj Allianz Life LongLife Goal, you gain a survival benefit, wherein on maturity, you receive the total fund value along with return of total mortality charges.
With four different investment strategies available to choose from - Investor Selectable Portfolio Strategy, Wheel of Life Portfolio Strategy II, Trigger Based Portfolio Strategy and Auto Transfer Portfolio Strategy, you can take control of your investment and opt for one depending on your risk appetite.
For those opting for Investor Selectable Portfolio Strategy, Bajaj Allianz Long Life Goal ULIP plan allows unlimited free switches between the eight fund options available. This means, you can switch between funds as per your risk appetite.
After the completion of 5th policy year you can partially withdraw a minimum of Rs 5,000 any time during the policy years. This means that you get an easy access to use a share of your money while the rest of the invested amount continues to grow.
In a ULIP pension plan, the amount that you contribute as premiums is accumulated as investments till your retirement. One third of this invested amount is paid back to you while the remaining is invested in an annuity scheme. The returns from this scheme are then paid to you as pension on a monthly/ quarterly /half-yearly or annual basis. A unit linked pension plan invests in equity markets and gives high returns.
Ashish, 35 years, has bought a Bajaj Allianz LongLife Goal ULIP plan (without Waiver of Premium variant) with the aim to build a corpus for his retired life. He believes that the plan will help him build a corpus that will help him live a comfortable and worry-free retirement. He is paying an annual premium of Rs. 1 lakh for a payment term of 20 years with a Sum Assured of Rs 17.5 lakh. He has opted for Retired Life Income option at 8% of fund value and has chosen for the payout to be received annually. Let's see what the benefits available to Rahul under the Policy are:
Total Fund Value Received by Rahul at the age of 99 years is ₹ 22,33,443 (Amount is inclusive of Fund Value on the date of Maturity + Return of Total Mortality Charge ₹ 14,271 + Loyalty Additions ₹ 1,02,000)
Total Sum of Retired Life Income received by Rahul from Age of 55 years is ₹ 92,74,687
To reap ULIP benefits, as a policyholder you can allocate the premiums based on your personal choice among the 8 given funds, as per your risk appetite and investment needs. For more details please refer to the policy brochure.
Your personal financial goals may change at different life stages and your investment strategy hence needs to be realigned to these goals. This strategy offers a “years to maturity” based portfolio management approach, for your ULIP plan. When you choose this strategy, the premium paid, and the fund value gets allocated in the funds mentioned (namely Accelerator Mid-Cap Fund II, Equity Growth Fund II and Bond Fund & Liquid Fund), in the proportion depending on the outstanding years to maturity. The auto allocation of premium helps in averaging out the risk factor as the percentage of allocation year on year is linked to the risk appetite (with respect to increase in age). For more details please refer to the policy brochure.
As a policyholder, you can opt for this strategy only at the commencement of the ULIP plan. This strategy is not only helpful in securing the gains but also helps in the maintenance of asset allocation. At a ratio of 75:25, your premiums get allocated in Equity Growth Fund II and Bond Fund and this ratio gets re-balanced/re-allocated based on a pre-defined trigger event. The trigger event is defined as 15% upward movement in NAV (unit price) of Equity Growth Fund II since the previous rebalancing or from the NAV (unit price) at the inception of the policy, whichever is later. For more details please refer to the policy brochure.
As a policyholder, this strategy allows you to invest your money in a systematic way over the years, by transferring the money automatically from a low risk fund(s) to a fund of your choice. The switching proportion depends upon the number of outstanding months, till the next premium due date of your Bajaj Allianz ULIP. However, this strategy won’t be available to you if you’ve opted for a monthly premium payment mode. For more details please refer to the policy brochure.
The best part about Bajaj Allianz Long Life Goal ULIP plan is that it allows unlimited switches between the fund options available. Therefore, it helps me make the right investment by evaluating my risk appetite.
By investing in Bajaj Long Life Goal ULIP, I’ve ensured that my life post retirement is comfortable. Also, after the completion of lock-in period, I can opt for partial withdrawals to meet my financial requirements. Thanks to Finserv MARKETS.
Bajaj Allianz Long Life Goal ULIP allows me to make investment according to my risk appetite. Moreover, by using the online risk calculator, I can get a better understanding of the most suitable investment option for me.