ULIP Long Life Goal Benefits
Over the past few years, Unit Linked Insurance Plans have re-emerged after facing massive backlash in the market. Today, it is preferred by every investor due to a host of benefits it offers. From fulfilling long life goals to living a peaceful retirement life, it has quickly become the most suitable plan in accomplishing them.
But before you purchase ULIP plans to accomplish your long life goals, here’s everything you should know about the policy. Take a look below:
What Is Long Life Goal (LLG)?
Every individual strives hard to live a relaxed life after retirement. Due to the routine hustle during the earning years, people tend to sacrifice their dreams like traveling, pursuing a new hobby, learning a new language, and so forth.
Such goals are usually picked up after retirement and accomplished in the future. To fulfill all these post-retirement motives, Finserv MARKETS makes available the Bajaj Allianz Long Life Goal to all the buyers.
Features of LLG
Long Life Goal Plan offers you with a host of features, such as –
Partial Withdrawal
ULIPs have a 5 year lock-in period. Ideally, you cannot withdraw funds before the completion of five years. However, a Bajaj Allianz Long Life Goal allows partial withdrawal before the end of the lock-in period pertaining to specific terms and conditions.
Loyalty Additions
Loyalty additions are provided to you to stay locked in for a longer duration than five years. An insurance company offers loyalty additions to the fund value as a percentage of annualized premium at the end of the policy tenure, which begins after five years. These loyalty additions are offered only when you make the timely premium payments.
Top-Up Premium
As the name suggests, top-ups are paid on the top of the premium. Under the long life goal plan, top-up premiums are not applicable to the policyholders.
Settlement Option
You can opt to receive a maturity benefit in installments, i.e., yearly, quarterly, and monthly. One can also receive the maturity benefit after five years. If a policyholder passes away during the settlement period, the insurance company pays the fund value in a lump sum to the nominee.
LLG Benefits
The LLG benefits have explicitly been curated, keeping the needs of customers in mind. Given below are a few advantages offered by a Bajaj Allianz long life goal plan.
Death Benefit
Long life goal provides the nominees with a death benefit on the unfortunate event like the demise of the policyholder. The insurance company pays either the sum assured or the fund value, whichever is higher. Moreover, the death benefit is payable in the form of total premiums until the demise.
Surrender Benefit
In a Bajaj Allianz long life goal plan, an investor can surrender their policy at any given point of time. On the discontinuance of the policy, the surrender value is available to you in the form of fund value after the lock-in period. If you surrender the policy during the lock-in period, you will not be provided with the option to revive the policy.
Tax Benefits
In a long life goal plan, the premiums, maturity benefit, death benefit, partial withdrawal, Retired Life Income (RLI), and surrender benefit might be eligible for tax benefits. Therefore, an investor should check with their insurance provider to claim these tax-saving benefits.
Illustrations
Understanding the various benefits of LLG might be difficult. Hence, to simplify the complexity of the same, consider the following example:
A 35-year old named Arnav has a number of life goals. Therefore, to meet his life goals, he purchases a Bajaj Allianz Life Long Life Policy. He regularly pays a premium of Rs. 1 Lakh per annum for a policy term of 20 years. His sum assured value is Rs. 17.5 Lakhs. His opted RLI option is 8% of the fund value, and he chooses to receive it annually.
Let’s take a look at the benefits availed to Arnav under the Policy:
Survival & Maturity Benefit when RLI is opted-
Assumed Investment return |
Total Loyalty Additions (A) |
Total Periodical Return of Mortality Charge (B) |
Total RLI from 55-99 years of age along with return Enhancer |
Maturity Benefit at 99 years (Fund value of A &B) |
8% |
1,02,000 |
14,271 |
92,74,687 |
22,33,443 |
4% |
1,02,000 |
18,355 |
28,04,363 |
21,50,739 |
Survival & Maturity Benefit when RLI is not opted-
Assumed Investment return |
Total Loyalty Additions (A) |
Total Periodical Return of Mortality Charge (B) |
Total RLI from 55-99 years of age along with return Enhancer |
Maturity Benefit at 99 years (Fund value of A &B) |
8% |
1,02,000 |
14,271 |
|
6,25,80,708 |
4% |
1,02,000 |
18,355 |
|
76,90,854 |
Death Benefit when RLI is opted-
Assumed Investment return |
Total Loyalty Additions (A) |
Total Periodical Return of Mortality Charge (B) |
Total RLI from 55-99 years of age along with return Enhancer |
Death Benefit at 99 years (Fund value of A &B) |
8% |
1,02,000 |
14,271 |
30,31,729 |
33,56,558 |
4% |
1,02,000 |
18,355 |
10,70,606 |
21,50,739 |
Death Benefit when RLI is not opted-
Assumed Investment return |
Total Loyalty Additions (A) |
Total Periodical Return of Mortality Charge (B) |
Total RLI from 55-99 years of age along with return Enhancer |
Death Benefit at 99 years (Fund value of A &B) |
8% |
1,02,000 |
14,271 |
|
77,01,398 |
4% |
1,02,000 |
18,355 |
|
34,14,898 |
Buy LLG Online
Purchasing LLG online is an easy task. Given below are the four essential steps to buy the plan online:
Step 1: Select the variant of the plan. A policyholder can either select it with a waiver of premium or without it at the time of inception.
Step 2: Choose the premium amount.
Step 3: Check the allocated premium amount based on the portfolio strategy.
Step 4: Look for the deductions. The mortality charge, waiver of premium charge, and policy administration charge will be deducted every month through the cancellation of units. However, the fund management charge will be adjusted in the unit price.
ULIP Calculator
Since there are several products available in the market, customers tend to make a wrong decision while selecting the right product for themselves. However, an excellent way of choosing the right policy is by using a ULIP calculator. It is an online tool, which allows you to not only calculate the premium but also measure the returns. The tool calculates the returns based on the premium amount. Moreover, you can compare several plans based on ULIP returns and premium.
To Conclude
In India, the retirement age is between 55-60 years of age. However, many people opt for early retirement today due to multiple reasons.
To maintain a comfortable lifestyle during the retirement phase, seek a Bajaj Allianz Long Life Goal plan available on Finserv MARKETS. Moreover, you can benefit from features like tax benefits, least cost structure, great flexibility, and so much more.
Seek your Long Life Goals on Finserv MARKETS today!
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