Bajaj Allianz Life Assured Wealth Goal is so called a non-linked, non-participating, individual, life insurance savings plan. This is said to be a savings plan combined with investment plan that offers the assurance of regular income in the future. This plan offers regular guaranteed long-term income up to 30 years. There is option to defer income payouts and option of return of premium at the end of income period.
Plan benefits and features:
Maturity benefit:
On maturity the policy holder will get the Sum of all premiums paid (if opted) + Last regular guaranteed payout.
Death benefit:
Death benefit will be payable to the nominee in equal monthly installments for a period of 5 years in case of death of policy holder.
The Death benefit will be higher of, a. Sum Assured on Death, or b. 105% of total premiums paid as on date of death or c. The prevailing surrender value.
Source: Assured Wealth Goal – Tax Saving Investment Plan by Bajaj Allianz Life
Do this plan help to reach my goal?
Definitely NO.
Why?
Here are the reasons.
Return generated is INSIGNIFICANT.
Bajaj Allianz Life Assured Wealth Goal provided you very low returns of 6.77%
Do you think the returns will satisfy your financial needs? NEVER
The below table provides the actual returns, calculated based on the values in the Boucher.
Considering Rs. 2lakhs p.a. as an annualized premium. The premium payment term is 12 years and policy term would be 44 years. This plan offers income for 30 years with ROP at the end of income period. This plan offers deferment period of 2 years. For the first year premium, GST is levied at 4.5% while for subsequent years, it is levied at 2.25%.
Considering the policy term as 44years and annualized income as 2,97,000 returns generated is significantly low.
Prime point to be noticed are,
All the above benefits are payable on survival of life assured (in a single life policy) or at least one life assured (in a joint life) and on payment of all due premiums under the plan.
On death of the life assured in the paid-up policy during the policy term, the paid-up sum assured on death will be paid (similar to variant wise death benefit details mentioned above) and the policy will terminate immediately.
The Life Cover do not make sense.
The life cover provided under the plan is too low relative to the premium paid.
The cover will not make any sense to the family members, in case of absence of the bread-winner.
The plan does not support emergency cash requirement.
Long term endowment plan will never satisfy your additional urgent requirements.
Summary:
Team financial wellness suggest you not to choose this Bajaj Alliance Life Income Wealth Goal plan.
Bajaj Alliance Life Income Wealth Goal plan will not support you to achieve your goal as it fails to give expected returns, providing purposeless life cover and not even satisfying urgent financial needs. Hence Team financial wellness suggest you stay away from this plan.
©Copyright of Karthikeyan Jawahar; 2021 and beyond. All Rights Reserved. Any modification or use for commercial purpose without prior written consent by Karthikeyan Jawahar is prohibited. This article is for knowledge sharing purpose and should not be deemed as an implementation plan. Contact Team Financial Wellness for a customized plan implementable for you
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