Bajaj Allianz Life Assured Wealth Goal-An Insightful Review (2024)-Good or Bad?

What are your financial life goals?

Do you plan & work towards reaching them?

Bajaj Allianz Life claims that it has a very promising scheme to support your financial goals. What are the advantages and disadvantages of this plan? Will it give the returns promised in the brochure? What are the pros and cons of the 5 various income options?

We have answers to all your questions about the Bajaj Allianz Life Assured Wealth Goal plan with illustrations and precise calculations!

Table of Contents

1.) An Overview of Bajaj Allianz Life Assured Wealth Goal
2.) Features of Bajaj Allianz Life Assured Wealth Goal
3.) Eligibility Criteria of Bajaj Allianz Life Assured Wealth Goal: Analysis
4.) Review of Benefits under 5 Variants of Bajaj Allianz Life Assured Wealth Goal
5.) Review of Additional benefits-Bajaj Allianz Life Assured Wealth Goal
6.) How to Cancel/Surrender Bajaj Allianz Life Assured Wealth Goal?
8.) Advantages [Pros]of Bajaj Allianz Life Assured Wealth Goal
7.) Disadvantages [Cons] of Bajaj Allianz Life Assured Wealth Goal
9.) Research Methodology of Bajaj Allianz Life Assured Wealth Goal Analysis
10.)Bajaj Allianz Life Assured Wealth Goal vs Other Investment Plans – Comprehensive Review

• Benefit Illustration Analysis & Comparison with bank FDs- Bajaj Allianz Life Assured Wealth Goal
• Bajaj Allianz Life Assured Wealth Goal vs Bajaj Allianz Life Long-life Goal Plan
• Bajaj Allianz Life Assured Wealth Goal vs Bajaj Allianz Life Flexi Income Goal Plan

11.)Bajaj Allianz Life Assured Wealth Goal. Good or Bad than other investment plans? Review Conclusion
12.) Final Verdict on Bajaj Allianz Life Assured Wealth Goal

An Overview of Bajaj Allianz Life Assured Wealth Goal:

Bajaj Allianz Life Assured Wealth Goal is a non-linked, individual life insurance, savings plan. It assures you of income in achieving your Life Goals with a guarantee. You can select from any of the five variants. All the variants ensure the regular guaranteed payouts as a percentage of Annualized Premium.

Please refer to the Bajaj Allianz Life Assured Wealth Goal Brochure(pdf) for an overall better perspective.

Features of Bajaj Allianz Life Assured Wealth Goal:

• Five variants – Lifelong income, Second Income, Step up income, Extra income, and Wealth creation.
• Premium paying terms can be chosen as per convenience – Single, Regular, or Limited.
• The sum of all premiums paid will be returned at the end of the Income Period.
• A deferment period can be chosen out of the given option.
• The income period depends on the chosen variant among the five.
• Life cover throughout the policy term.

Eligibility Criteria of Bajaj Allianz Life Assured Wealth Goal: Analysis

Plan Variants	Premium Payment Term (PPT) (in years)	Policy Term (PT) (in years)	Income Period (in years)
Lifelong Income	7/ 8 / 10 / 12	99 minus Age at-Entry	PT minus PPT minus Deferment Period
Second Income	5	30 to 44	25/ 30
	7 / 8 / 10 / 12
Step Up Income	5	25 to 32	20
	7 / 8 / 10 / 12
Extra Income	5 / 7	15 to 29	10 / 15
	8 / 10 / 12
Wealth Creation	Single Pay (Joint Life)	5 / 10 years	Not applicable
	5 / 8 / 10 / 12	10 /15 / 20 /25/ 30

Plan Variants	Age at Entry (years)	Age at Maturity (years)	Min/ Max. Premium (Rs.)
Lifelong Income	51 to 65	99	50,000 to no limit
Second Income	5 to 50	35 to 99	30,000 to no limit
	5 to 60
Step Up Income	5 to 50	30 to 92	30,000 to no limit
	5 to 60
Extra Income	5 to 50	20 to 89	5,000 to no limit
	5 to 60
Wealth Creation	Primary life 18 to 50 Secondary life 8 to 50	18 to 60	12,000 to no limit
	0 to 65	18 to 75

Review of Benefits under 5 Variants of Bajaj Allianz Life Assured Wealth Goal:

Option1:

Review of Benefits in ‘Lifelong Income’ Option – Bajaj Allianz Life Assured Wealth Goal

Death benefit:

On Death of the life assured during the policy term, the benefit shall be payable to the nominee in equated monthly instalments for 5 years. The nominee has an option to receive the future instalments as a Lumpsum as well.

The Death benefit in the Lifelong Income variant will be higher of –

1. Sum Assured on Death, or
2. 105% of Total Premiums paid as of the date of death, or
3. The prevailing surrender value.

Maturity benefit:

The sum of all premiums paid + Last regular guaranteed pay-out

Income benefit:

Receive regular Guaranteed Pay-outs as a percentage of Annualized Premium starting after the end of chosen Deferment Period till the age of 99 years.

Option 2:

Review of Benefits in ‘Second Income’ Option – Bajaj Allianz Life Assured Wealth Goal

Death Benefit:

On Death of the life assured during the policy term, the benefit shall be payable to the nominee in equated monthly installments for 5 years. The nominee has the option to receive future installments as a Lumpsum as well.

The Death Benefit in the Second Income variant will be higher of –

1. Sum Assured on Death, or
2. 105% of Total Premiums paid as of the date of death, or
3. The prevailing Surrender Value.

Maturity benefit:

The sum of all premiums paid (if opted) + Last regular Guaranteed Pay-out

Income Benefit:

Receive regular guaranteed pay-outs as a percentage of Annualized Premium starting after the end of chosen deferment period till the life assured is alive or for chosen Income period (25/30 years) whichever is earlier.

Option 3:

Review of Benefits in ‘Step up Income’ Option – Bajaj Allianz Life Assured Wealth Goal

Death Benefit:

On Death of the life assured during the policy term, the benefit shall be payable to the nominee in equated monthly instalments for 5 years. The nominee has the option to receive the future instalments as a Lumpsum as well.

The Death benefit in the Step up Income Variant will be higher of –

1. Sum Assured on Death, or
2. 105% of Total Premiums paid as of the date of death, or
3. The prevailing Surrender Value.

Maturity Benefit:

Sum of all premiums paid + Last regular guaranteed pay-out

Income Benefit:

This bajaj Allianz plan Life Assured Wealth Goal regular payout is not a 5 years or 10 years plan. But, you can receive regular pay-outs for 20 years or till the life assured is alive. Here the income payout starts after the Premium Paying Term without any deferment period.

Guaranteed payouts increase by @10% of 1st instalment of Regular guaranteed pay-out every five years during the Income Period.

Option 4:

Review of Benefits in ‘Extra Income’ Option – Bajaj Allianz Life Assured Wealth Goal

Death Benefit:

On Death of the life assured during the policy term, the benefit shall be payable to the nominee in equated monthly instalments for 5 years. The nominee has the option to receive the future instalments as a Lumpsum as well.

The Death benefit in the Extra Income variant will be higher of –

1. Sum Assured on Death, or
2. 105% of Total Premiums paid as of the date of death, or
3. The prevailing surrender value.

Maturity Benefit:

Only the last regular guaranteed payout. Here the sum of all premiums is not returned.

Income Benefit:

Receive regular guaranteed payouts as a percentage of Annualized Premium starting after the end of chosen deferment period till the life assured is alive or for chosen Income period (10/15 years) whichever is earlier.

Option 5:

Review of Benefits in ‘Wealth Creation’ Option – Bajaj Allianz Life Assured Wealth Goal

Death Benefit:

For the Limited/ Regular Pay option

The Death benefit in the Wealth Creation Variant will be higher of

Sum Assured on Death, or

105% of Total Premiums paid as on date of death, or

The prevailing surrender value.

For Single Pay with Joint life options

On 1st Death during the Policy Term, 1.25 times of Single Premium will be payable to the nominee and the plan will continue.

On 2nd Death during the Policy term, the Death benefit will be higher of –

Sum Assured on Death, or

105% of Total Premiums paid as on date of death, or

The prevailing surrender value.

Maturity Benefit:

Guaranteed Maturity Benefit (GMB) will be a percentage of Total Premiums paid. It is payable at the end of the chosen policy term. In the case of Joint life, the Guaranteed Maturity Benefit will be payable on at least one life surviving till maturity.

Income Benefit:

There is no Income Benefit under the wealth creation option.

Review of Additional Benefits – Bajaj Allianz Life Assured Wealth Goal

Option to take Death Benefit Instalments in Lumpsum (For variants 1- 4): 

The default option is Death benefit in monthly equated installments. At any time, the policyholder or nominee (as applicable) can change the option to take the outstanding death benefit installments in a lump sum.

Option to take Death Benefit in Instalments (For variant 5):

At the time of intimation of death of the Life Assured (in a Single Life Policy or Joint Life Policy), the policyholder or the nominee, as applicable will have the option to take the Death Benefit in monthly or yearly installments (along with appropriate rate) over a period of five (5) years from the date of intimation of death.

Option to avail of Maturity Benefit in Instalments (under Variant 5):

Option to take Maturity Benefit in monthly or yearly installments over a period of 5 years; which can be chosen at any time before the maturity date.

Option to avail Income on date of your choice (under Variants 1 to 4):

Option to receive the regular guaranteed payouts at any special date of the year like a birthday, wedding anniversary, or any other date of your choice. The regular guaranteed payouts will be payable on the policy anniversary if this option has not been opted for.

Option to take Death Benefit in annual installments (under Variants 1 to 4):

The policyholder has the option to take the Death Benefit in yearly installments. This option once opted cannot be changed subsequently.

Riders:

• Bajaj Allianz Accidental Death Benefit Rider
• Bajaj Allianz Accidental Permanent Total/Partial Disability Benefit Rider
• Bajaj Allianz Critical Illness Benefit Rider (UIN:116B035V02)
• Bajaj Allianz Family Income Benefit Rider (UIN:116B037V02)
• Bajaj Allianz Waiver of Premium Benefit Rider (UIN: 116B031V02)

Alteration of premium Review – Paying frequency & income pay-out frequency – Bajaj Allianz Life Assured Wealth Goal

The policyholder will have the option to change the premium payment frequency or Income/ Guaranteed Maturity Benefit (GMB) frequency at any policy anniversary.

Premium frequency	Wealth Creation variant	Pay-out frequency
		Yearly	Half-yearly	Quarterly	Monthly
Single/ Yearly	1	1	0.491	0.243	0.0805
Half-yearly	0.982	0.982	0.481	0.238	0.0785
Quarterly	0.972	0.972	0.474	0.234	0.0775
Monthly	0.966	0.966	0.471	0.233	0.0765

You can use this Bajaj Allianz Insurance Premium Calculator to calculate your premium for various Bajaj Allianz policies.

Policy Loan:

Provided the policy has acquired surrender value, during the policy term, the policyholder will have the option to take a policy loan, subject to a maximum limit of 80% of the surrender value available under the policy.

The Grace period, Revival, Paid-up – Comprehensive Review

Grace Period:

The Grace Period is thirty (30) days for frequencies other than monthly and fifteen (15) days for monthly frequencies during which the Policy is considered to be in force with the risk cover.

Revival:

The policyholder can revive their lapsed or paid-up policy that is subjected to a few conditions

Paid-up:

If the first 2 years’ premium is unpaid: Then, your policy will immediately and automatically lapse at the expiry of the grace period and no benefit will be payable under the policy.

How to Cancel/Surrender Bajaj Allianz Life Assured Wealth Goal?

Free Look Period:

If the policyholder disagrees with any of the terms & conditions, he/she will have the option to return the policy within 15 days of the receipt of this policy and 30 days in case of electronic policy and policy obtained through distance mode.

Surrender:

The policy can be surrendered at any time during the policy term under a single premium policy or provided at least the first two (2) full Policy years’ regular premiums have been paid in a limited/regular premium policy.

The surrender value payable will be higher than the guaranteed surrender value (GSV) or the special surrender value (SSV).

GSV factors will be applied on Total Premiums received less the sum of all in-force or paid-up Income pay-outs paid (as applicable), to arrive at the GSV.

Advantages (Pros) of Bajaj Allianz Life Assured Wealth Goal:

• The policy has a variety of options to choose from according to the requirement.
• The return on the premium is an added advantage.
• The wealth creation variant offers the compounding effect of the corpus.
• A joint life option is available under the Single pay option (variant 5).
• Life-long income variants can act as a secondary source of income during post-retirement.
• All future pay-outs (Income benefits) are guaranteed.
• Riders are available.
• The loan option helps to meet any emergency.

Disadvantages (Cons) of Bajaj Allianz Life Assured Wealth Goal:

• The income benefit is constant throughout life except in the Step-up variant. It is not adjusted to inflation.
• The sum assured on death is not adequate.
• The lock-in period is 2 years.
• This is not a monthly Income Plan

Research Methodology of Bajaj Allianz Life Assured Wealth Goal: Analysis

Till now we have seen all the details on Bajaj Allianz Life Assured Wealth Goal Plan. But, it is not enough to decide whether we should buy this plan or not.

So, now we are going to do research and analyze the IRR(Internal Rate of Return) of Bajaj Allianz Life Assured Wealth Goal Plan. In this way, we can see whether the Bajaj Allianz Life Assured Wealth Goal plan will benefit us or not.

In this research methodology, first, we are going to see the IRR(Internal Rate of Return) of Bajaj Allianz Life Assured Wealth Goal by using the Bajaj Allianz Life Assured Wealth Goal Online Calculator.

Then we are going to use the same value to calculate the return on other investments.

Later, we are going to compare the IRR(Internal Rate of Return) of Bajaj Allianz Life Assured Wealth Goal vs. other investments.

This method of review can give us a clear view to decide whether we should buy this plan or not.

Bajaj Allianz Life Assured Wealth Goal vs Other Investment Plans – Comprehensive Review

Benefit Illustration Analysis & Comparison with bank FDs- Bajaj Allianz Life Assured Wealth Goal

The benefit illustration under each variant is explained in the following table.

	Lifelong Income	Second Income	Step Up Income	Extra Income	Wealth Creation
Age	53	35	35	35	30
Premium Payment Term (PPT) (in years)	10	10	8	10	8
Deferment Period (in Years)	2	2	0	2	0
Income Period (in years)	35	30	20	15	0
Policy Term (PT) (in years)	47	42	28	27	15
Annualised Premium (in Rs.)	1,50,000	1,50,000	1,50,000	1,50,000	1,50,000
Income Benefit (in Rs.)	1,51,125	1,74,000	90,0000 – 1,17,000	2,44,875	21,39,000 (lumpsum)
Return of Purchase Price	15,00,000	15,00,000	12,00,000	0	0
IRR	5.95%	6.96%	6.18%	6.52%	5.18%

IRR (Internal Rate of Return) of 5 different variants is calculated in the above illustration.

On analyzing each variant, it is evident that Income benefit would be the least in Life long income variant and also in the Step up variant.

If you receive the income benefit for a predefined period, then the income benefit amount would be higher. It would be even higher for 15 years (Extra income) when compared to the income benefit calculated for 30 years ( second income).

Since the second Income variant has a limited income benefit period & also has an option for return of purchase price, the IRR(Internal Rate of Return) works out to 6.96%. This rate is more or less equal to the bank FD rate.

On the whole, the return range would be between 5% and 7%. This is equivalent to any debt instrument return. This return is not sufficient to build the corpus for life goals. These are not inflation-beating ones.

Bajaj Allianz Life Assured Wealth Goal vs Bajaj Allianz Life Long-life Goal Plan

A non-participating, life, individual, whole-of-life unit-linked, regular premium payment endowment plan is Bajaj Allianz Life Long Life Goa Planl.

Whereas, Bajaj Allianz Life Assured Wealth Goal is a non-linked, individual life insurance, savings plan.

Bajaj Allianz Life Long-life Goal Plan has 2 plan variants:

• Long-life Goal without Waiver of Premium &
• Long-life Goal with Waiver of Premium.

To know more about Bajaj Allianz Life Long-life Goal Plan check out the below review with precise calculations and illustrations.

Bajaj Allianz Life Long-life Goal Plan Review: Is It Good or Bad?

Bajaj Allianz Life Assured Wealth Goal vs Bajaj Allianz Life Flexi Income Goal Plan 

Bajaj Allianz Life Flexi Income Goal – Income Benefit Plan is a Life Insurance Plan. It is Non-Linked, Participating, and provides Guaranteed Income.

This plan has two options

• Income Benefit
• Enhanced Benefit

Please check out the review below of this plan with a comprehensive analysis of the pros and cons.

Bajaj Allianz Life Flexi Income Goal Plan Review – Is It Good or Bad?

Bajaj Allianz Life Assured Wealth Goal. Good or Bad than other investment plans? Review Conclusion

As we discussed earlier, since the second Income variant has a limited income benefit period & also has an option for return of purchase price, the IRR(Internal Rate of Return) works out to 6.96%. This rate is more or less equal to the bank FD rate.

After a detailed and brief review of all other alternative investment plans for Bajaj Allianz Life Assured Wealth Goal, we have concluded that bank FDs give almost the same returns as this plan and they are even more safe bets.

Final Verdict on Bajaj Allianz Life Assured Wealth Goal:

In today’s uncertain world, it is imperative to have guaranteed return (fixed income) products in their portfolio.

Bajaj Allianz Life Assured Wealth Goal plan may look like it is suitable for investors who like to save systematically & invest towards their long-term goals. The step income option & return of purchase are added advantages to this plan.

But keeping in mind the inflation rate, the return on investment of this plan won’t be sufficient to meet the inflated cost of goals. The potential return of Bajaj Allianz Life Assure Wealth Goal Plan won’t beat inflation consistently over a long duration.

The rising inflation across the globe has reduced the purchasing power of money. To prevent the loss of your money, just saving is not enough.

If you do not invest in the appropriate asset class, then you are essentially allowing inflation to take away your hard-earned money from you.

But still, why do insurance agents try to sell you this plan? Because like many policies in the bazaar, there is a high agent commission involved in this plan. It is solely for their benefit and not for you!

Please refrain from wasting your hard-earned money by making crucial financial decisions while merely browsing social media platforms like Quora, Facebook, Twitter, etc.

It is always advisable to seek the advice of a qualified financial planner.

If you have any comments or questions, write them in the comment box below.

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