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Can investing in the Bajaj Allianz Life Fortune Gain plan truly provide the growth and security needed to achieve your future financial goals?
Will the potential market-linked returns of this ULIP be enough to meet your long-term aspirations despite market volatility?
Can the dual benefits of insurance coverage and investment really offer the peace of mind and financial stability you seek for the future?
In this review, we will conduct an in-depth analysis of the Bajaj Allianz Life Fortune Gain plan by dissecting its advantages and disadvantages. This Bajaj Allianz Life Fortune Gain Plan analysis with IRR calculation will assist you in making informed decisions.
Let’s dive into the details.
Table of Contents:
What is the Bajaj Allianz Life Fortune Gain?
What are the Features of Bajaj Allianz Life Fortune Gain?
Who is Eligible for Bajaj Allianz Life Fortune Gain?
What are the Benefits of Bajaj Allianz Life Fortune Gain?
What are the Fund options in Bajaj Allianz Life Fortune Gain?
What are the Various Charges under Bajaj Allianz Life Fortune Gain?
Free-Look period of Bajaj Allianz Life Fortune Gain
Surrendering Bajaj Allianz Life Fortune Gain
What are the Advantages Bajaj Allianz Life Fortune Gain?
What are the Disadvantages of Bajaj Allianz Life Fortune Gain?
Research Methodology of Bajaj Allianz Life Fortune Gain Analysis
Benefit Illustration – IRR Analysis of Bajaj Allianz Life Fortune Gain
Bajaj Allianz Life Fortune Gain Vs Other Investment Product
Bajaj Allianz Life Fortune Gain Vs. Pure Term + ELSS
Final Verdict on Bajaj Allianz Life Fortune Gain
What is the Bajaj Allianz Life Fortune Gain?
Bajaj Allianz Life Fortune Gain is a Unit-Linked Single Premium Savings Plan. Bajaj Allianz Life Fortune Gain provides maximum Premium allocation to funds. Your valuable money is promised to be fully utilized towards building you a fortune.
What are the Features of Bajaj Allianz Life Fortune Gain?
- Up to 99.5% Premium allocation for Single Premium 10 lacs and above
- Loyalty Additions of 5.6% of the Single Premium depending on the Single Premium & policy term chosen
- Choice of nine funds
- Option to make partial withdrawals, any time after the fifth Policy year
- Option to pay Top-up to the extent of the Single Premium paid
Who is Eligible for Bajaj Allianz Life Fortune Gain?
| Minimum Age at Entry | 1 year |
| Maximum Entry Age | 63 years |
| Minimum Maturity Age | 18 years |
| Maximum Maturity Age | 70 years |
| Policy Term | 7 to 30 years |
| Minimum & Maximum Single Premium | ₹ 50,000 – No Limit |
| Premium Payment Frequency | Single |
| Minimum Sum Assured | 1.25 times of single premium |
What are the Benefits of Bajaj Allianz Life Fortune Gain?
i.) Death Benefit
The death benefit payable to the nominee as a lumpsum 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 Death Benefit is subject to the Guaranteed Death Benefit, which is at least 105% of the Total Premiums paid till the date of death.
ii.) Maturity benefit
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 policy is in force.
What are the Fund options in Bajaj Allianz Life Fortune Gain?
You can choose from among the 9 funds below to suit your investment needs.
| Asset Allocation | ||||
| Fund Name | Equity | Debt | Money Market | Risk profile |
| Equity Growth Fund II | Not less than 60% | 0% – 40% | 0% – 40% | Very High |
| Accelerator Mid-Cap Fund II | Not less than 60% (at least 50% in Mid-cap) | 0% – 40% | 0% – 40% | Very High |
| Pure Stock Fund | Not less than 60% | 0% – 40% | 0% – 40% | Very High |
| Asset Allocation Fund II | 40% – 90% | 0% – 60% | 0% – 50% | High |
| Blue-chip Equity Fund | Not less than 60% | 0% – 40% | 0% – 40% | High |
| Bond Fund | — | 40% – 100% | 0% – 60% | Moderate |
| Liquid Fund | — | — | 100% | Low |
| Debt Plus | — | 80% -100% | 0% – 20% | Moderate |
| Long-term debt solution Fund | — | 90% – 100% | 0% – 10% | Moderate |
The asset allocation differs under each fund. The risk profile is based on the asset allocation. So, it is wise to select a fund based on the risk appetite.
What are the Various Charges under Bajaj Allianz Life Fortune Gain?
A. Premium Allocation Charge
| 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% |
B. Policy Administration Charge (PAC)
₹ 10 per month inflating every month at 5% per annum every month, subject to a maximum of ₹ 500 per month in any year.
C. Fund Management Charge (FMC)
| 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% |
| Discontinued policy fund | 0.50% |
D. Miscellaneous Charge
A miscellaneous charge of Rs. 100 per transaction will be charged.
E. Discontinuance /Surrender Charge
It depends on the Annual premium amount & the year of discontinuance or surrender. There is no Discontinuance /Surrender Charge from the 5th policy year.
F. Switching charge
NIL
G. Mortality Charge
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.
Inference from Charges
Investing in Bajaj Allianz Life Fortune Gains incurs charges that are not found in other market-related products. In the long run, these charges can diminish your returns, impacting your long-term wealth accumulation.
Free-Look period of Bajaj Allianz Life Fortune Gain
If the policyholder disagrees with any of the terms or conditions, he has the option to return the Bajaj Allianz Life Fortune Gain policy within 15 days from the date of receipt of the policy document and a period of 30 days in case of electronic policies and policies obtained through distance mode.
Surrendering Bajaj Allianz Life Fortune Gain
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 (maintained by the company), and life cover shall cease immediately.
The discontinuance value as 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.
What are the Advantages Bajaj Allianz Life Fortune Gain?
- Enjoy extra coverage by choosing the optional additional rider benefits
- Option to decrease Sum Assured.
- Systematic switching option to manage your investments better
- Options to take death & maturity benefits in installments using the Settlement Option.
What are the Disadvantages of Bajaj Allianz Life Fortune Gain?
- The Bajaj Allianz Life Fortune Gain Plan does not offer any liquidity during the first five policy years
- No loan facility is available under the Bajaj Allianz Life Fortune Gain plan.
- The sum assured is too low to cover the basic needs of the family.
Research Methodology of Bajaj Allianz Life Fortune Gain Analysis
In this segment, we’ll compute the Internal Rate of Return (IRR) for Bajaj Allianz Life Fortune Gain. This analysis will aid in assessing the Bajaj Allianz Life Fortune Gain plan and compare it with other market-linked products.
Let’s determine the IRR based on the benefit illustration provided in the Bajaj Allianz Life Fortune Gain policy brochure.
Benefit Illustration – IRR Analysis of Bajaj Allianz Life Fortune Gain
A 35-year-old male buys Bajaj Allianz Life Fortune Gain Policy for a Policy Term (PT) of 24 years. He has decided to pay ₹ 2,00,000 as a Single Premium. The Sum Assured chosen by him is ₹ 8,00,000.
| Male | 35 years |
| Sum Assured | ₹ 8,00,000 |
| Policy Term | 24 years |
| Premium Paying Term | Single Premium |
| Single Premium | ₹ 2,00,000 |
At the end of the Bajaj Allianz Life Fortune Gain policy term 24 years, he is eligible for fund value. The returns indicated at 4% and 8% are illustrative and not guaranteed and do not indicate the upper or lower limits of returns under the Bajaj Allianz Life Fortune Gain 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% | |||
Based on the Bajaj Allianz Life Fortune Gain – Maturity Calculator, in the 4% scenario, the fund value stands at ₹2.31 Lakhs, with an IRR of 0.60%. There is negligible value addition in this scenario.
Based on the Bajaj Allianz Life Fortune Gain – Maturity Calculator, in the 8% scenario, the fund value stands at ₹ 7.51 Lakhs, yielding an IRR of 5.67%.
However, from this IRR calculation, it’s evident that investing in Bajaj Allianz Life Fortune Gain doesn’t generate significant real returns. This affects your corpus accumulation process significantly.
Bajaj Allianz Life Fortune Gain Vs Other Investment Product
Now, we’ll compare these returns with those of other investment options. Using the same metrics as outlined in the benefit illustration above, it’s crucial to seek investments that surpass the inflation rate in the long run. Let’s explore alternatives where you can achieve better returns on your investment.
Bajaj Allianz Life Fortune Gain Vs. Pure Term + ELSS
A term life insurance plan offering coverage of ₹ 8 lakhs can be obtained for a single premium of ₹ 61,400, with a policy duration of 24 years. After securing the insurance, you’ll have ₹ 1.38 lakh available for investment. Your investment options include various debt instruments or market-linked products, depending on your risk tolerance. We’ve opted for an Equity Linked Savings Scheme (ELSS) fund, which is market-linked.
| 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 | 19,17,242 | 8,00,000 | |
| IRR | 9.88% | ||
The ELSS fund matures at ₹ 21.03 lakhs pre-tax, with a post-tax value of ₹ 19.17 lakhs after accounting for capital gains tax. The IRR for both the pure-term life insurance and ELSS investment remains stable at 9.88%.
Opting for separate investments yields superior returns. Conversely, combining insurance and investment in products like Bajaj Allianz Life Fortune Gain leads to lower returns and limited liquidity.
| 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 | 1,00,000 |
| Taxable LTCG | 18,65,158 |
| Tax paid on LTCG | 1,86,516 |
| Maturity value after tax | 19,17,242 |
Final Verdict on Bajaj Allianz Life Fortune Gain
Bajaj Allianz Life Fortune Gain presents an opportunity for market investment, but its returns are not noteworthy due to hefty charges because of high agent commissions and other reasons. Additionally, the sum assured is insufficient to meet future family needs.
Therefore, investing in the Bajaj Allianz Life Fortune Gain plan offers no significant advantages, leaving one’s future financial plans at risk.
Pure-term life insurance stands out as the optimal choice due to its affordability and customizable coverage, offering peace of mind with adequate protection tailored to individual needs.
Avoid insurance cum investment products, and instead, focus on building a diversified investment portfolio to achieve future goals.
Is it wise to rely solely on social media platforms like Quora, Twitter, and Facebook for financial guidance? While these platforms can offer a useful starting point for financial information, they are not the most dependable sources for making critical decisions.
Seek guidance from a financial advisor to select the most suitable product. Proper selection of investment products aids you in achieving all your goals.
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