Bajaj Allianz, a well known name in the insurance industry has launched a new ULIP plan with the name of ‘Guaranteed Maturity Insurance Plan’. As name suggest this plan offers guaranteed returns, twice the amount invested at the time of maturity. Which means investor will get double the amount invested at the time of maturity.
Key Points Of ‘Guarantee Maturity Insurance Plan’
- An investor can purchase multiple plans without any restriction (Each maturity certificate values Rs 5000).
- There is no extra charge for the sake of ‘Premium Allocation’
- Part of amount invested under this scheme can be withdrawn after 5 years from purchase without any penalty which should not be more than 1/3 of the GMC.
- Investor between 8 to 50 Years can invest under this plan.
- Investor should be in the age range of 18 to 60 years at the time of maturity of plan.
- Tenure of policy is 10 years.
- Minimum/Maximum Sum Assured per Guaranteed Maturity Certificate :- 5 times Single Premium The Sum Assured under the product will be 5 times of the Single Premium for the first policy year and for subsequent years, will reduce to 1.25 times of the Single premium for age-at-entry less than 45 years and 1.10 times of the Single premium for age-at-entry 45 years & above.
- Investor can surrender policy anytime after 6 year from the date of purchase.
- Only a kind of plan which offers you assure double returns on maturity.
- Tax benefit under section 80C and section 10(10 D)
- Policy administration charges for this plan are 1.85% p.a of the total single premium in the first 5 years of the policy, subject to a maximum of 6,000 and 0.70% p.a of the total single premium subject to a maximum of Rs 6,000 p.a.
- Fund management charge is 1% p.a adjusted in the unit price.
- This policy is more like an investment plan which does not solve the purpose of insurance as it offers less life cover after 1 year from date of policy launch.
- Guaranteed returns offered by the policy are less than the interest rate offered by most banks, without taking tax benefits into account.