Bajaj Allianz Life Fortune Gain II
Is the Bajaj Allianz Life Fortune Gain II a good fit to complement your financial goals?
Can the Bajaj Allianz Life Fortune Gain II Plan perfectly balance wealth creation and life insurance?
Is Bajaj Allianz Life Fortune Gain II the plan that not only grows your wealth but also secures your family’s future?
In this review, we’ll explore the plan’s features, benefits, drawbacks, and associated costs. This comprehensive analysis will help you make an informed decision. Let’s delve into the specifics.
What is the Bajaj Allianz Life Fortune Gain II?
What are the features of the Bajaj Allianz Life Fortune Gain II?
Who is eligible for the Bajaj Allianz Life Fortune Gain II?
What are the benefits of the Bajaj Allianz Life Fortune Gain II?
What are the fund options in the Bajaj Allianz Life Fortune Gain II?
What are the charges of the Bajaj Allianz Life Fortune Gain II?
Free Look period for Bajaj Allianz Life Fortune Gain II
Surrendering Bajaj Allianz Life Fortune Gain II
What are the advantages of the Bajaj Allianz Life Fortune Gain II?
What are the disadvantages of the Bajaj Allianz Life Fortune Gain II?
Research Methodology of Bajaj Allianz Life Fortune Gain II
Benefit Illustration – IRR Analysis of Bajaj Allianz Life Fortune Gain II
Bajaj Allianz Life Fortune Gain II Vs. Other investments
Bajaj Allianz Life Fortune Gain II Vs. Pure-term + ELSS
Final verdict on Bajaj Allianz Life Fortune Gain II
Bajaj Allianz Life Fortune Gain II is a Unit-linked Non-Participating Individual Life Savings Insurance Plan.
Bajaj Allianz Life Fortune Gain II Plan is a Single Premium Savings Plan and provides maximum Premium allocation to funds. Your valuable money is fully utilized towards building you a fortune.
| Minimum Age at Entry | 1 year |
| Maximum Entry Age | 63 years |
| Minimum Maturity Age | 18 years |
| Maximum Maturity Age | 70 years |
| Minimum Policy Term | 7 years |
| Maximum Policy Term | 30 years |
| Minimum Single Premium | ₹ 50,000 |
| Maximum Single Premium | No Limit |
| Premium Payment Frequency | Single |
| Minimum Sum Assured | Age at Entry<50 Years: Rs. 1.25 times Single Premium Age at Entry>=50 Years: Rs. 1.10 times Single Premium |
| Maximum Sum Assured | X*Single Premium, where X is based on age at entry and Policy term |
| Minimum Sum Assured on Top-up Premium | Age at Entry=50 Years: 1.25 times Top-up Premium Age at Entry>=50 Years: 1.10 times Top-up Premium |
| Maximum Sum Assured on Top-up Premium | 1.25 times Top-up Premium |
Under Bajaj Allianz Life Fortune Gain II, the maturity benefit will be the Single Premium Fund Value plus Top-Up Premium Fund Value, if any, both as on the maturity date, provided the Bajaj Allianz Life Fortune Gain II Plan policy is in force.
It will be payable on the survival of the life assured to the maturity date.
The death benefit payable to the nominee as a lump sum (subject to the Guaranteed Death Benefit) is:
The higher of,
The Prevailing Sum Assured % or Single Premium Fund Value
PLUS
The higher of,
Top-Up Premium Sum Assured or Top-Up Premium Fund Value, if any
The loyalty addition, expressed as a percentage of the Single Premium, will be added to the Single Premium Fund Value at the maturity date of your Bajaj Allianz Life Fortune Gain II Plan policy.
Investor selectable Portfolio Strategy: You can choose from among the eleven funds below to suit your investment needs.
| Asset Allocation | |||||
| S no | Fund Name | Equity | Debt | Money Market | Risk profile |
| 1 | Equity Growth Fund II | Not less than 60% | 0% – 40% | 0% – 40% | Very High |
| 2 | Accelerator Mid-Cap Fund II | Not less than 60% (at least 50% in Mid-cap) | 0% – 40% | 0% – 40% | Very High |
| 3 | Pure Stock Fund | Not less than 60% | 0% – 40% | 0% – 40% | Very High |
| 4 | Asset Allocation Fund II | 40% – 90% | 0% – 60% | 0% – 50% | High |
| 5 | Blue-chip Equity Fund | Not less than 60% | 0% – 40% | 0% – 40% | High |
| 6 | Bond Fund | — | 40% – 100% | 0% – 60% | Moderate |
| 7 | Liquid Fund | — | — | 100% | Low |
| 8 | Debt Plus | — | 80% -100% | 0% – 20% | Moderate |
| 9 | Long-term debt solution Fund | — | 90% – 100% | 0% – 10% | Moderate |
| 10 | Nifty Alpha 50 Index Fund | 65% – 100% | 0% – 35% | 0% – 35% | Very High |
| 11 | Nifty 200 Alpha 30 Index Fund | 65% – 100% | 0% – 35% | 0% – 35% | Very High |
| Single Premium | Premium Allocation charge |
| 50,000 – 99,999 | 3% |
| 1,00,000 – 4,99,999 | 2.50% |
| 5,00,000 – 9,99,999 | 2% |
| 10,00,000 & above | 0.50% |
₹ 10 per month inflating every month at 5% per annum every month, subject to a maximum of ₹ 500 per month in any year.
| Fund Name | Fund Management Charge |
| Equity Growth Fund II | 1.35% |
| Accelerator Mid-Cap Fund II | 1.35% |
| Pure Stock Fund | 1.35% |
| Asset Allocation Fund II | 1.25% |
| Blue-chip Equity Fund | 1.25% |
| Bond Fund | 0.95% |
| Liquid Fund | 0.95% |
| Debt Plus | 0.70% |
| Long-term debt solution Fund | 0.70% |
| Nifty Alpha 50 Index Fund | 1.35% |
| Nifty 200 Alpha 30 Index Fund | 1.35% |
| Discontinued policy fund | 0.50% |
A miscellaneous charge of Rs. 100 per transaction will be charged.
It depends on the Annual premium amount and the year of discontinuance or surrender. There is no Discontinuance /Surrender Charge from the 5th policy year.
NIL
Mortality Charges will be deducted at each monthly anniversary by the cancellation of units. Female Life Assured will be eligible for an age setback of 3 years.
| Age | 20 | 30 | 40 | 50 |
| Rs. | 1.13 | 1.34 | 2.35 | 6.52 |
Inference from Charges – Investing in Bajaj Allianz Life Fortune Gain II comes with charges that are typically absent in other market-linked products. Over time, these charges can erode your returns, potentially affecting your ability to build wealth in the long run.
If the Bajaj Allianz Life Fortune Gain II Plan policyholder disagrees with any of the terms or conditions, he has the option to return the policy within 30 days from the date of receipt of the policy document, whether received electronically or otherwise.
On surrender during the lock-in period of the first five years, the Single Premium Fund Value, less the discontinuance/surrender charge plus the top-up premium Fund Value, if any, as on the date of surrender, will be transferred to the discontinued life Policy fund, and life cover shall cease immediately.
The discontinuance value at the end of the lock-in period will be available to you as surrender value.
On surrender after the lock-in period of the first five years, the surrender value available will be Single Premium Fund Value plus top-up premium Fund Value, if any, as on the date of surrender.
In this section, we will evaluate the potential returns of the Bajaj Allianz Life Fortune Gain II plan.
By calculating the Internal Rate of Return (IRR), we can analyse the plan’s performance and compare it with other market-linked products. Let’s calculate the IRR based on the benefit illustration provided in the Bajaj Allianz Life Fortune Gain II Plan policy brochure.
Consider a 35-year-old male who opts for the Bajaj Allianz Life Fortune Gain II plan with a policy term of 24 years. He pays a single premium of ₹2,00,000 and selects a sum assured of ₹8,00,000.
| Male | 35 years |
| Sum Assured | ₹ 8,00,000 |
| Policy Term | 24 years |
| Premium Paying Term | Single Premium |
| Annualised Premium | ₹ 2,00,000 |
At the end of the 24-year policy term, he receives the fund value as his benefit. The projected returns at 4% and 8% are purely illustrative, non-guaranteed, and do not represent the upper or lower limits of returns under the policy.
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -2,00,000 | 8,00,000 | -2,00,000 | 8,00,000 |
| 36 | 2 | 0 | 8,00,000 | 0 | 8,00,000 |
| 37 | 3 | 0 | 8,00,000 | 0 | 8,00,000 |
| 38 | 4 | 0 | 8,00,000 | 0 | 8,00,000 |
| 39 | 5 | 0 | 8,00,000 | 0 | 8,00,000 |
| 40 | 6 | 0 | 8,00,000 | 0 | 8,00,000 |
| 41 | 7 | 0 | 8,00,000 | 0 | 8,00,000 |
| 42 | 8 | 0 | 8,00,000 | 0 | 8,00,000 |
| 43 | 9 | 0 | 8,00,000 | 0 | 8,00,000 |
| 44 | 10 | 0 | 8,00,000 | 0 | 8,00,000 |
| 45 | 11 | 0 | 8,00,000 | 0 | 8,00,000 |
| 46 | 12 | 0 | 8,00,000 | 0 | 8,00,000 |
| 47 | 13 | 0 | 8,00,000 | 0 | 8,00,000 |
| 48 | 14 | 0 | 8,00,000 | 0 | 8,00,000 |
| 49 | 15 | 0 | 8,00,000 | 0 | 8,00,000 |
| 50 | 16 | 0 | 8,00,000 | 0 | 8,00,000 |
| 51 | 17 | 0 | 8,00,000 | 0 | 8,00,000 |
| 52 | 18 | 0 | 8,00,000 | 0 | 8,00,000 |
| 53 | 19 | 0 | 8,00,000 | 0 | 8,00,000 |
| 54 | 20 | 0 | 8,00,000 | 0 | 8,00,000 |
| 55 | 21 | 0 | 8,00,000 | 0 | 8,00,000 |
| 56 | 22 | 0 | 8,00,000 | 0 | 8,00,000 |
| 57 | 23 | 0 | 8,00,000 | 0 | 8,00,000 |
| 58 | 24 | 0 | 8,00,000 | 0 | 8,00,000 |
| 59 | 2,31,061 | 8,00,000 | 7,51,661 | 8,00,000 | |
| IRR | 0.60% | 5.67% | |||
At a 4% return: The fund value is ₹2.31 lakh, with an IRR of just 0.60% as per the Bajaj Allianz Life Fortune Gain II Plan maturity calculator, indicating negligible value addition.
At an 8% return: The fund value rises to ₹7.51 lakh, with an IRR of 5.67% as per the Bajaj Allianz Life Fortune Gain II Plan maturity calculator, which is lower than the interest rates offered by many debt instruments.
Despite being a long-term investment with a 24-year horizon, the returns fail to outpace inflation. The IRR analysis shows that Bajaj Allianz Life Fortune Gain II provides limited real returns, which can significantly hinder your wealth accumulation goals.
Let’s now compare the potential returns of Bajaj Allianz Life Fortune Gain II with alternative investment options. Using the same parameters as outlined in the benefit illustration, it’s essential to choose investments that consistently outperform inflation over the long term.
A pure-term life insurance plan offering a sum assured of ₹8 lakhs can be purchased for a single premium of ₹61,400 with a 24-year policy term. This leaves ₹1.38 lakh available for investment in other financial instruments.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 8,00,000 |
| Policy Term | 24 years |
| Premium Paying Term | Single Premium |
| Annualised Premium | ₹ 61,400 |
| Investment | ₹ 1,38,600 |
| Term insurance + ELSS | |||
| Age | Year | Term Insurance premium + ELSS | Death benefit |
| 35 | 1 | -2,00,000 | 8,00,000 |
| 36 | 2 | 0 | 8,00,000 |
| 37 | 3 | 0 | 8,00,000 |
| 38 | 4 | 0 | 8,00,000 |
| 39 | 5 | 0 | 8,00,000 |
| 40 | 6 | 0 | 8,00,000 |
| 41 | 7 | 0 | 8,00,000 |
| 42 | 8 | 0 | 8,00,000 |
| 43 | 9 | 0 | 8,00,000 |
| 44 | 10 | 0 | 8,00,000 |
| 45 | 11 | 0 | 8,00,000 |
| 46 | 12 | 0 | 8,00,000 |
| 47 | 13 | 0 | 8,00,000 |
| 48 | 14 | 0 | 8,00,000 |
| 49 | 15 | 0 | 8,00,000 |
| 50 | 16 | 0 | 8,00,000 |
| 51 | 17 | 0 | 8,00,000 |
| 52 | 18 | 0 | 8,00,000 |
| 53 | 19 | 0 | 8,00,000 |
| 54 | 20 | 0 | 8,00,000 |
| 55 | 21 | 0 | 8,00,000 |
| 56 | 22 | 0 | 8,00,000 |
| 57 | 23 | 0 | 8,00,000 |
| 58 | 24 | 0 | 8,00,000 |
| 59 | 18,73,738 | 8,00,000 | |
| IRR | 9.77% | ||
For this analysis, we’ve selected an Equity Linked Savings Scheme (ELSS) fund, a market-linked investment option. The investment grows to ₹21.03 lakh (pre-tax) over 24 years.
After deducting capital gains tax, the post-tax value is ₹18.73 lakh. The combined IRR for the pure-term insurance and ELSS investment is 9.77%.
| ELSS Tax Calculation | |
| Maturity value after 24 years | 21,03,758 |
| Purchase price | 1,38,600 |
| Long-Term Capital Gains | 19,65,158 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 18,40,158 |
| Tax paid on LTCG | 2,30,020 |
| Maturity value after tax | 18,73,738 |
This alternative strategy results in a significantly larger corpus and superior returns compared to the Bajaj Allianz Life Fortune Gain II plan.
Investing separately in insurance and investment products not only provides better returns but also offers greater flexibility and liquidity. In contrast, combining insurance and investment in a plan like Fortune Gain II yields lower returns and restricts liquidity.
Bajaj Allianz Life Fortune Gain II offers market-linked investment opportunities, but its returns are underwhelming due to high charges. Moreover, the sum assured is inadequate to meet the long-term financial needs of a family.
A market-linked product delivering returns comparable to a debt instrument does not benefit investors, as the risk-return balance under this plan is misaligned.
Consequently, the Bajaj Allianz Life Fortune Gain II plan provides no significant advantages and may jeopardize future financial plans and it also has a high agent commission.
It’s advisable to avoid insurance-cum-investment products and instead focus on building a diversified investment portfolio tailored to your financial goals.
Opting for a pure-term life insurance policy is a more practical choice, as it is cost-effective, provides adequate coverage, and can be customized to meet individual needs, ensuring peace of mind.
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