ULIP plans

Dual benefit

ULIPs offer the benefit of both insurance and investment. You stay financially protected, and at the same time, your money has the potential to grow.

Tax benefits

You can also enjoy tax benefits under Sections 10(10D) and 80C of the Income Tax Act (under the old tax regime). It is a good idea to speak with a tax expert to understand what applies to you.

Long-term wealth building

ULIPs are designed for long-term goals. They give your investments time to grow while keeping your loved ones protected through life cover.

Goal-based planning

You can align your ULIP with specific life goals — like your child’s education, saving for retirement, or building wealth for the future. The plan can be customised to match your priorities.

Flexibility

Investors have the flexibility to switch between different funds based on market conditions and investment objectives. ULIPs allow investors to customise their investment portfolio based on their risk appetite and financial goals.

Transparency

ULIPs provide transparent information regarding fund performance, charges, and policy terms.

Life cover

ULIPs offer financial protection to your family in case of an unfortunate event, ensuring their financial security.

Step 1: Click on Get Quote

Click on Get Quote. You will be asked to enter your mobile number so we can send you a one-time password (OTP).

Step 2: Enter the OTP

Check your phone for the OTP and type it in when prompted. This helps us verify it is you.

Step 3: Fill in your details

Once the OTP is confirmed, you’ll see our application form pop up.

• If you are an existing user, some of your details might already be filled in.
• If you are new, just enter your name, gender, date of birth, email ID, and PIN code.
• Do not forget to tick the checkboxes to proceed.

Step 4: Choose your plan

You will now be redirected to our partner’s page. This is where you can:

• Select the coverage amount
• Choose the policy tenure
• Pick your payment type
• Decide how much you want to invest

Once everything looks good, you can go ahead and complete your purchase.

Age criteria:

The minimum age to invest in a ULIP is usually 18 years, while the maximum age limit can vary, typically around 65 years.

Income criteria:

Some ULIPs may have a minimum annual income requirement, ensuring that the policyholder can afford the premium payments.

Medical fitness:

Depending on the age and the amount of coverage sought, medical tests might be required to assess the policyholder's health status.

Investment horizon:

ULIPs are suitable for individuals looking for long-term investment options. A minimum commitment of five to ten years is often recommended to reap significant benefits.

Following are the some of the ULIP charges levied. Understanding these ULIP charges helps in evaluating the overall cost and returns of ULIP plans.

• Premium allocation charge: This is a percentage of the premium deducted towards initial expenses like distribution and underwriting. It reduces the initial amount invested in ULIP plans.
• Fund management charge: Charged as a percentage of the fund's value, this fee covers the cost of managing the investment portfolio. It is deducted before calculating the net asset value (NAV) of the fund.
• Policy administration charge: A monthly fee for administrative expenses related to the ULIP plan, such as record-keeping and policy maintenance. It is either a fixed amount or a percentage of the premium.
• Mortality charge: This fee covers the cost of life insurance coverage provided by the ULIP. It is calculated based on the insured's age, health, and sum assured.
• Surrender and partial withdrawal charge: Fees levied for surrendering the policy or making partial withdrawals before the lock-in period ends. These charges vary depending on the policy terms.

What are the features of new age ULIP plans?
Modern ULIP plans have the following features and these innovations in ULIP plans cater to the evolving needs of investors, offering more control, transparency, and potential for growth:

• Enhanced flexibility: New age ULIP plans offer greater flexibility in switching between different fund options. Policyholders can adjust their investment strategies based on market conditions and financial goals.
• Lower charges: Modern ULIP insurance plans come with reduced charges, such as lower premium allocation and fund management fees, making them more cost-effective and transparent.
• Wealth boosters: Many new ULIP plans include wealth boosters or loyalty additions, where insurers add extra units to the policyholder’s fund value after a certain period, enhancing long-term returns.
• Digital management: These plans provide comprehensive digital management tools, allowing policyholders to monitor their investments, make premium payments, and switch funds easily through online platforms and mobile apps.
• Customisable options: New age ULIP insurance plans offer customisable options, including additional riders for critical illness, accidental death, and disability, providing enhanced coverage and benefits.
  

What are the income tax benefits of ULIP?
ULIPs offer tax benefits at various stages:

• Tax deduction: Premiums paid towards ULIPs are eligible for tax deduction under Section 80C of the Income Tax Act, subject to certain limits.
• Tax-free returns: The maturity proceeds or death benefit received from ULIPs are exempt from tax under Section 10(10D) of the Income Tax Act.

Who should invest in ULIP?
ULIPs are suitable for:

• Individuals looking for both insurance coverage and investment growth.
• Long-term investors willing to stay invested for a considerable duration to benefit from market returns.
• Investors seeking flexibility and customisation in their investment portfolio.

Why should you invest in ULIP?
Here are some compelling reasons why you must consider investing in ULIPs:

• Dual benefits: ULIPs offer the combined benefits of insurance protection and wealth creation, making them a comprehensive financial solution.
• Flexibility: ULIPs provide flexibility in terms of premium payment, fund selection, and investment tenure, catering to diverse investor needs.
• Tax efficiency: ULIPs offer tax benefits on premiums paid and maturity proceeds, enhancing the overall returns for investors.

ULIPs serve as a powerful tool for long-term savings due to several key factors:

• Market-linked returns: ULIPs invest in a diversified portfolio of equity, debt, or hybrid funds, offering the potential for higher returns over the long term compared to traditional savings instruments.
• Disciplined investing: ULIPs encourage disciplined investing by providing options for systematic investment through regular premiums, helping investors stay committed to their savings goals.
• Goal-oriented approach: ULIPs allow investors to align their investments with specific financial goals such as retirement planning, children's education, or buying a house. By investing systematically in ULIPs, investors can work towards achieving these long-term objectives.
• Tax benefits: ULIPs offer tax benefits on both premium payments and maturity proceeds, enhancing the overall returns and enabling investors to save more effectively for the long term while minimizing their tax liability.

Overall, ULIPs provide a structured and efficient way to save for the long term, offering the potential for wealth creation while simultaneously providing insurance coverage for financial security.

About ULIP calculator: Its usage and benefit
A ULIP calculator is an online tool designed to help investors estimate the potential returns from ULIP plans. By inputting details such as age, premium amount, policy term, and expected rate of return, users can calculate the maturity value of their investment. The calculator considers various charges associated with ULIP plans, like premium allocation, fund management, and policy administration charges, providing a clear picture of net returns. This tool helps investors make informed decisions by comparing different ULIP plans and choosing the one that aligns with their financial goals. Using a ULIP calculator simplifies the planning process, ensuring a transparent and efficient approach to long-term investment.

Read more: ULIP calculator

How to calculate ULIP returns with compounding?
Calculating ULIP returns with compounding involves reinvesting the returns earned on your investment to generate additional returns over time. Start by determining the annual premium and deducting charges to get the initial investment value. Each year, apply the expected rate of return to the investment value to calculate the earnings for that year. Add these earnings to the investment value to get the end-of-year value. Repeat this process annually, reinvesting the returns each year. For example, if you invest Rs. 1 lakh annually with an 8% return rate, the investment value grows significantly over time due to compounding, enhancing the overall returns from ULIP plans.

Types of ULIPs
Following are the different types of ULIPs and understanding these types of ULIP funds helps investors align their investment strategy with their financial goals and risk appetite effectively:

• Equity funds: These ULIP plans invest predominantly in stocks, offering higher growth potential but also higher risk.
• Debt funds: They invest in fixed-income securities like bonds and government securities, providing stable returns with lower risk.
• Balanced funds: These ULIPs strike a balance between equity and debt, offering moderate risk and returns.
• Money market funds: They invest in short-term, highly liquid instruments, suitable for investors seeking stability and liquidity.
• Hybrid funds: Combining equity and debt, these ULIP plans offer diversified investment options with varying risk profiles.
  

Each type of ULIP fund caters to different investor preferences, offering flexibility in risk exposure and potential returns over the policy term.

Also, check: Life insurance

What is a ULIP NAV?
The ULIP NAV (Net Asset Value) represents the market value of all the investments held by a ULIP fund, per unit. Similar to mutual funds, ULIP NAV indicates the fund's performance and is calculated daily. It reflects the current worth of each unit after deducting liabilities, expenses, and management fees.

Investors purchase units at NAV, which fluctuates based on market movements and fund performance. A higher NAV indicates better fund performance, potentially leading to higher returns when units are redeemed. Conversely, a lower NAV may indicate market downturns or underperformance.

ULIP NAVs are crucial for investors to track their investment's value over time. They can monitor NAV changes through fund updates and statements provided by the insurance company managing the ULIP. Understanding NAV helps investors make informed decisions regarding fund switches, withdrawals, or additional investments in their ULIP plans.

Tips to manage ULIP funds
Here are some effective tips to manage ULIP funds efficiently:

• Regular monitoring: Stay updated on the performance of your ULIP plans by tracking NAV movements and fund performance reports.
• Asset allocation: Adjust your asset allocation based on your risk appetite and market conditions. Balance between equity, debt, and other funds to optimize returns.
• Review periodically: Periodically review your investment goals and adjust your ULIP strategy accordingly to ensure it aligns with your financial objectives.
• Stay informed: Keep yourself informed about market trends, economic indicators, and regulatory changes that could impact your ULIP investments.
• Utilise fund switching: Take advantage of the fund switching option offered by ULIP plans to reallocate funds between equity, debt, or other funds based on market conditions or personal financial goals.

Managing ULIP funds effectively involves proactive monitoring, strategic asset allocation, and staying informed about market dynamics. These practices can help maximise returns and achieve long-term financial goals through ULIP investments.

Tips to maximise the ULIP returns
Here are practical tips to maximize ULIP returns effectively:

• Long-term perspective: Invest in ULIP plans with a long-term horizon to benefit from compounding and ride out market fluctuations.
• Choose funds wisely: Select ULIP funds based on your risk tolerance and financial goals. Consider diversifying across equity, debt, and balanced funds for balanced growth.
• Regular premium payments: Ensure timely payment of premiums to avoid policy lapses and take advantage of potential bonuses or additional allocations.
• Monitor performance: Keep track of ULIP NAVs and fund performance regularly. Consider switching funds if performance consistently underperforms or does not align with your goals.
• Utilise fund switching: Take advantage of the flexibility to switch between funds based on market conditions or changes in your risk profile.

By following these tips, investors can optimize their ULIP returns, making the most of market opportunities while managing risks effectively.

What are the different terms related to ULIP plans?
Here are key terms related to ULIP plans:

• Premium: The amount paid by the policyholder for the ULIP plan, which can be single, regular, or flexible premium payments.
• NAV (Net Asset Value): The per-unit value of the fund, representing the market value of the assets minus liabilities and expenses.
• Fund value: The total value of the units held in the ULIP plan, calculated by multiplying the NAV by the number of units.
• Fund switch: The option to transfer investments between different ULIP funds (e.g., from equity to debt) based on market conditions or investment goals.
• Surrender value: The amount received by the policyholder upon early termination of the ULIP plan, which may be subject to charges.
• Maturity benefit: The amount payable to the policyholder at the end of the policy term, including the fund value and any bonuses.
• Sum assured: The guaranteed amount paid to the nominee in case of the policyholder's death during the policy term.

Understanding these terms helps investors make informed decisions and manage their ULIP plans effectively.

Step 1 - Register your claim request

1. Register the claim request with the insurer through their website, e-mail or by calling their claim assistance contact number.
2. Contact No.: 1800-209-7272
3. Email at: customercare@bajajallianz.co.in

Step 2 - Submit the required documents

Submit the necessary documents along with the duly filled claim form online. You can also submit it to the nearest branch of the insurer.

Step 3 - Claim settlement

The insurer will assess the claim request. The claim initiator will receive the status via e-mail and SMS. The claim initiator can also check it online on the insurer’s website.

Original policy documents.

Age proof, such as PAN card, passport, voter’s ID, birth certificate.

Attested copy of death certificate issued by local municipal authority.

Death claim intimation form downloaded from the BALIC’s official website.

NEFT mandate form attested by bank authorities or copy of cancelled cheque or bank account passbook.