Bajaj Allianz Life Long-Life Goal III Plan: Good or Bad? An Insightful ULIP Review
Can Bajaj Allianz Life Long-Life Goal III truly deliver on its lifelong promises, or is it just ULIP in disguise?
Is Bajaj Allianz Long-Life Goal III the ideal blend of insurance and investment, or should you look beyond ULIPs?
Is investing in the Bajaj Allianz Life Long-Life Goal III Plan a smart long-term strategy, or are you better off elsewhere?
In this article, we’ll take a closer look at its key features, benefits, and drawbacks to help you make an informed decision.
What is the Bajaj Allianz Life Long-Life Goal III?
What are the features of the Bajaj Allianz Life Long-Life Goal III?
Who is eligible for the Bajaj Allianz Life Long-Life Goal III?
What are the benefits of the Bajaj Allianz Life Long-Life Goal III?
What are the Investment Strategies and Fund Options in the Bajaj Allianz Life Long-Life Goal III?
What are the charges in the Bajaj Allianz Life Long-Life Goal III?
Grace Period, Discontinuance and Revival of the Bajaj Allianz Life Long-Life Goal III
Bajaj Allianz Life Long-life Goal III Lock-in Period
Free Look Period for the Bajaj Allianz Life Long-Life Goal III
Surrendering the Bajaj Allianz Life Long-Life Goal III
What are the advantages of the Bajaj Allianz Life Long-Life Goal III?
What are the disadvantages of the Bajaj Allianz Life Long-Life Goal III?
Research Methodology of Bajaj Allianz Life Long-Life Goal III
Benefit Illustration – IRR Analysis of Bajaj Allianz Life Long-Life Goal III
Bajaj Allianz Life Long-Life Goal III Vs. Other Investments
Bajaj Allianz Life Long-Life Goal III Vs. Pure-term + PPF/Equity Mutual Fund
Who Should Avoid Bajaj Allianz Life Long-life Goal III?
Final Verdict on Bajaj Allianz Life Long-Life Goal III
The Bajaj Allianz Life Long-Life Goal III is a Unit-linked Non-Participating Whole Life Insurance Plan.
It invests your money in an investment portfolio selected by you and provides for market-linked returns over the long term, to help you accumulate a substantial corpus.
The Bajaj Allianz Long-life Goal III is essentially a ULIP offered by Bajaj Allianz Life Insurance, combining life insurance protection with market-linked investment opportunities through a range of equity and debt funds.
The Bajaj Allianz Life Long-life Goal III brochure also highlights that investors can actively manage their portfolio through fund switching, making the plan suitable for those who want some control over their ULIP investments.
The eligibility criteria for the Bajaj Allianz Life Long-life Goal III typically depend on factors such as the age of the life assured, policy term chosen, and minimum premium requirements specified in the Bajaj Allianz Long Life Goal 3 brochure.
The Maturity Benefit will be the Fund Value as on the Maturity Date, provided the Bajaj Allianz Long-Life Goal III Plan Policy is in force.
The maturity value depends on the performance of the underlying ULIP funds selected under the Bajaj Allianz Life Long-life Goal III plan.
If all due Premiums are paid, then, in case of the unfortunate death of the Life Assured during the Bajaj Allianz Long-Life Goal III Plan Policy Term, the Death Benefit payable will be higher of:
If the Long-Life Goal with Waiver of Premium is opted for
If the Life Assured & Policyholder are the same, in case of Accidental Permanent Total Disability of the Life Assured during the Premium Payment Term, Premiums for the rest of the Bajaj Allianz Long-Life Goal III Plan Policy Term will be waived and the Policy will continue with all the benefits
If the Life Assured & Policyholder are not the same, on the earlier occurrence of Death or Accidental Permanent Total Disability of the Policyholder during the Premium Payment Term, Premiums for the rest of the Policy Term will be waived, and the Bajaj Allianz Long-Life Goal III Plan Policy will continue with all the Benefits
You can choose for Retired Life Income, at inception or anytime during the Bajaj Allianz Long-Life Goal III Plan Policy Term.
You may decide to receive the RLI –
Many investors exploring the Bajaj Allianz Life Long-life Goal III calculator use this feature to estimate the income they may generate from their accumulated fund value during retirement.
(Applicable for policies with Annualised Premium less than ₹ 10 Lakhs)
Loyalty Additions shall be allocated to the Regular Premium Fund Value as a percentage of one prevailing annualised premium at the end of each Policy Year, commencing from the end of the 10th Policy Year, provided all due Regular Premiums have been paid up to date.
Bajaj Allianz Life Long-Life Goal III provides you with four unique portfolio strategies, out of which any one can be chosen at the inception of your Policy:
These strategies allow policyholders to manage their ULIP investments within Bajaj Allianz Life Long-life Goal III based on their risk appetite, investment horizon, and market outlook.
A). Investor-selectable Portfolio Strategy:
If you want to allocate your Premiums based on your personal choice and decision, you can opt for this Investment Strategy and choose from among the 21 Funds below to suit your investment needs.
Several of these funds, such as the Bajaj Allianz Flexi Cap Fund, Pure Stock Fund, and Accelerator Mid Cap Fund II, are often evaluated by investors when comparing ULIP fund performance within Bajaj Allianz life insurance plans.
| 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 | Pure Stock Fund II | Not less than 75% | — | 0% -25% | Very High |
| 5 | Asset Allocation Fund II | 40% – 90% | 0% – 60% | 0% – 50% | High |
| 6 | Blue-chip Equity Fund | Not less than 60% | 0% – 40% | 0% – 40% | High |
| 7 | Bond Fund | — | 40% – 100% | 0% – 60% | Moderate |
| 8 | Liquid Fund | — | — | 100% | Low |
| 9 | Flexi Cap Fund | 65% – 100% | 0% – 35% | 0% – 35% | Very High |
| 10 | Sustainable Equity Fund | 65% – 100% | 0% – 35% | 0% – 35% | Very High |
| 11 | Small Cap Fund | 65% – 100% | 0% – 35% | 0% – 35% | Very High |
| 13 | Dynamic Asset Allocation Fund | 10% 90% | 10% 90% | 0% – 80% | High |
| 15 | Individual Short-Term Debt Fund | — | 40% – 100% | 0% – 60% | Moderate |
| 12 | Midcap Index Fund | 65% – 100% | 0% – 35% | 0% – 35% | Very High |
| 14 | SmallCap Quality Index Fund | 65% – 100% | 0% – 35% | 0% – 35% | Very High |
| 16 | Nifty Alpha 50 Index Fund | 65% – 100% | 0% – 35% | 0% – 35% | Very High |
| 17 | Nifty 200 Alpha 30 Index Fund | 65% – 100% | 0% – 35% | 0% – 35% | Very High |
| 18 | Nifty 200 Momentum 30 Index Fund | 65% – 100% | 0% – 35% | 0% – 35% | Very High |
| 19 | Nifty 500 Multicap Momentum Quality 50 Index Fund | 65% – 100% | 0% – 35% | 0% – 35% | Very High |
| 20 | Focused 25 Fund | 65% – 100% | 0% – 35% | 0% – 35% | Very High |
| 21 | Nifty 500 Multifactor 50 Index Fund | 65% – 100% | 0% – 35% | 0% – 35% | Very High |
| 22 | BSE 500 Enhanced Value 50 Index Fund3 | 65% – 100% | 0% – 35% | 0% – 35% | Very High |
| 23 | BSE 500 Dividend Leaders 50 Index Fund | 65% – 100% | 0% – 35% | 0% – 35% | Very High |
| 24 | India Consumption Fund | 65% – 100% | 0% – 35% | 0% – 35% | Very High |
| 25 | Pure Stock Innovation | 65% – 100% | 0% – 35% | 0% – 35% | Very High |
| 26 | BSE 500 Quality 50 Index Fund3 | 65% – 100% | 0% – 35% | 0% – 35% | Very High |
B). Wheel of Life Portfolio Strategy – II:
In this Portfolio Strategy at the commencement of the Bajaj Allianz Long-Life Goal III Plan Policy, the Regular/Limited Premium, and the Top Up Premium, if any, would be allocated in the Funds mentioned (namely Equity Growth Fund II, Accelerator Mid-Cap Fund II, Bond Fund & Liquid Fund) in the proportion as mentioned in the table below, depending on the outstanding years to maturity.
This strategy gradually reduces equity exposure as the policy approaches maturity, which is intended to reduce market volatility risk for long-term investors.
| Proportion in Following Funds | |||||
| Years to Maturity | Equity Growth Fund II | Accelerator Mid-Cap Fund II | Bond Fund | Liquid Fund | Total |
| 10 & above | 40% | 45% | 15% | 0% | 100% |
| 9 | 35% | 50% | 15% | 0% | 100% |
| 8 | 30% | 55% | 15% | 0% | 100% |
| 7 | 25% | 60% | 15% | 0% | 100% |
| 6 | 25% | 60% | 15% | 0% | 100% |
| 5 | 20% | 65% | 15% | 0% | 100% |
| 4 | 20% | 55% | 15% | 10% | 100% |
| 3 | 20% | 50% | 15% | 15% | 100% |
| 2 | 10% | 30% | 30% | 30% | 100% |
| 1 | 0% | 0% | 35% | 65% | 100% |
C). Trigger-Based Portfolio Strategy:
Under this Portfolio Strategy, Regular/Limited Premiums and Top up Premiums if any, will be allocated between two Funds, Equity Growth Fund II (an equity-oriented Fund), and Bond Fund (a debt-oriented Fund), in a 75%: 25% proportion.
The Fund value proportions may subsequently get altered due to market movements.
Any appreciation over three times the value of units is considered a gain and is switched to the Liquid Fund.
Later, it will be switched to the Equity Growth Fund II and the Bond Fund such that, after the transfer, the ratio of the value of units in the Equity Growth Fund II to that in the Bond Fund is restored to 75%:25%.
This approach attempts to capture market gains by shifting profits from equity-oriented funds to safer funds when predefined triggers are achieved.
D). Auto Transfer Portfolio Strategy:
This strategy helps you to invest your money systematically by automatically transferring your money every month, from a low-risk Fund to the Fund(s) of your choice. In this Portfolio Strategy, your Premium will be allocated to the Bond Fund and/or Liquid Fund, as specified by you.
At the start of each monthly anniversary of the Bajaj Allianz Long-Life Goal III Plan Policy, a proportion (as mentioned below) of the Fund value in the Bond Fund and/or Liquid Fund as on that date will be switched to the other Fund/s (available in the plan) as specified by you.
The proportion of Fund value = 1/ Outstanding no. of months till the next premium due date.
The Auto Transfer strategy is designed to follow a systematic investment approach, similar to a staggered investment method used in other market-linked investment products.
1. Premium Allocation Charge:
2.Policy Administration Charge
3.Fund Management Charge
| Funds | Fund Management Charge per annum |
| Equity Growth Fund II | 1.35% |
| Accelerator Mid Cap Fund II | 1.35% |
| Pure Stock Fund | 1.35% |
| Flexi Cap Fund | 1.35% |
| Sustainable Equity Fund | 1.35% |
| Small Cap Fund | 1.35% |
| Dynamic Asset Allocation Fund | 1.35% |
| Pure Stock Fund II | 1.30% |
| Asset Allocation Fund II | 1.25% |
| Bluechip Equity Fund | 1.25% |
| Liquid Fund | 0.95% |
| Bond Fund | 0.95% |
| Individual Short Term Debt Fund | 0.95% |
| Midcap Index Fund | 1.35% |
| SmallCap Quality Index Fund | 1.35% |
| Nifty Alpha 50 Index Fund | 1.35% |
| Nifty 200 Alpha 30 Index Fund | 1.35% |
| Nifty 200 Momentum 30 Index Fund | 1.35% |
| Nifty 500 Multicap Momentum Quality 50 Index Fund | 1.35% |
| Discontinued Life Policy Fund | 0.50% |
| Focused 25 Fund | 1.35% |
| Nifty 500 Multifactor 50 Index Fund | 1.35% |
| BSE 500 Enhanced Value 50 Index Fund3 | 1.35% |
| BSE 500 Dividend Leaders 50 Index Fund | 1.35% |
| India Consumption Fund | 1.35% |
| Pure Stock Innovation | 1.35% |
| BSE 500 Quality 50 Index Fund3 | 1.35% |
Like most ULIPs offered by Bajaj Allianz Life Insurance, the fund management charge directly affects the net returns generated by the underlying investment funds.
4. Miscellaneous Charge
A miscellaneous charge of Rs. 100 per transaction will be charged.
5. 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.
These surrender charges are typical for ULIPs and apply if the Bajaj Allianz Long Life Goal 3 policy is discontinued during the lock-in period.
6. Mortality Charge:
Mortality Charges will be deducted at each monthly anniversary upon the cancellation of units. Female Life Assured will be eligible for an age setback of 3 years.
Sample mortality charge for Long-life Goal III per annum per thousands of sum at risk for a healthy male life is shown below
| Age (yrs) | 30 | 35 | 40 | 45 |
| ₹ | 0.98 | 1.2 | 1.68 | 2.58 |
7. Inference from charges
The Bajaj Allianz Life Long-Life Goal III ULIP plan comes with significant charges that add to the overall cost for investors.
The plan also lacks transparency in its fee structure, which can be a concern for those seeking clarity in their investments.
In contrast, most other market-linked investment options—such as mutual funds—offer lower costs and a more transparent investment process.
This makes them a more attractive choice compared to the Long-Life Goal III plan.
This is one reason why investors often compare ULIPs like Bajaj Allianz Life Long-life Goal III with mutual funds before deciding where to invest for long-term goals.
Grace period
A grace period of 30 days for yearly, half-yearly & quarterly premium payment frequency and 15 days is available for monthly premium payment frequency from the due date of the Regular/Limited Premium payment.
Discontinuance
On Discontinuance of Regular Premiums due during the first 5 Policy years, the Bajaj Allianz Long-Life Goal III Plan Policy will be converted to a Discontinued Life Policy and the Regular Premium Fund Value, less the Discontinuance/Surrender charge, along with Top-up Premium Fund Value, if any, will be transferred to the Discontinued Life Policy fund.
The Discontinuance Value shall be payable as the Surrender Benefit at the end of the lock-in period of five Policy years.
On Discontinuance of Regular Premiums due after the lock-in period of 5 Policy years, the Policy will be, immediately & automatically, converted to a Paid-up Policy.
The Paid-up Sum Assured will be the Sum Assured in the Policy multiplied by the proportion of the number of Regular Premiums paid to the number of Regular Premiums payable in the Bajaj Allianz Long-Life Goal III Plan Policy.
Revival
A policy that has been discontinued or is Paid-up due to non-payment of premiums can only be revived within 3 years from the date of the first unpaid premium.
The Bajaj Allianz Life Long-life Goal III has a mandatory lock-in period of five years, which is applicable to all ULIP plans.
During this period, the policyholder cannot withdraw or surrender the policy to access the invested funds.
If the policy is discontinued within the first five years, the fund value—after applicable charges—is moved to the Discontinued Life Policy Fund.
The amount will only be paid to the policyholder after the completion of the five-year lock-in period.
After the lock-in period ends, the policyholder can continue the plan, withdraw funds, or surrender the policy without discontinuance charges.
This lock-in restriction makes the plan more suitable for investors with a long-term investment horizon.
If the Bajaj Allianz Long-Life Goal III Plan policyholder disagrees with any of the terms or conditions, he has the option to return the policy within 30 days beginning from the date of receipt of the policy document, whether received electronically or otherwise.
During the lock-in period of the first 5 policy years: The Regular Premium Fund Value less the discontinuance/ surrender charge, along with the Top-Up Premium Fund Value, if any, as on the date of surrender, will be credited to the Discontinued Life Policy Fund.
The Discontinuance Value, at the end of the Lock-in Period, will be payable to the Bajaj Allianz Long-Life Goal III Plan Policyholder as Surrender Value.
On surrender after the lock-in period, the surrender value available will be the Total Fund Value as on the date of surrender.
Under the Bajaj Allianz Life Long-Life Goal III, you pay premiums for a limited term and either start receiving lifelong income benefits or receive a maturity benefit upon death or at age 99, whichever is earlier.
However, it’s essential to assess this plan not just by features but by evaluating the actual returns — especially in percentage terms — before deciding to invest.
Investors evaluating the Bajaj Allianz Life Long-life Goal III often rely on a ULIP benefit illustration to understand how the policy might perform under different market return assumptions.
Let’s examine a benefit illustration from the official policy brochure:
A 35-year-old male chooses the Long-Life Goal III plan without Waiver of Premium.
He is paying a Premium of Rs 1 lakh p.a. for a payment term of 20 years with a Sum Assured of Rs 10 Lakhs
Retired Life Income Option: Not chosen (hence, maturity benefit is paid at the end)
Assumed Life Span: 65 years
| Male | 35 years |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 20 years |
| Annualised Premium | ₹ 1,00,000 |
Illustrated Returns:
At a 4% projected return: ₹33.85 lakhs, yielding an IRR of 2.55%
At an 8% projected return: ₹76.42 lakhs, yielding an IRR of 6.43%
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 36 | 2 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 37 | 3 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 38 | 4 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 39 | 5 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 40 | 6 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 41 | 7 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 42 | 8 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 43 | 9 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 44 | 10 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 45 | 11 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 46 | 12 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 47 | 13 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 48 | 14 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 49 | 15 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 50 | 16 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 51 | 17 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 52 | 18 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 53 | 19 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 54 | 20 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 55 | 21 | 0 | 0 | ||
| 56 | 22 | 0 | 0 | ||
| 57 | 23 | 0 | 0 | ||
| 58 | 24 | 0 | 0 | ||
| 59 | 25 | 0 | 0 | ||
| 60 | 26 | 0 | 0 | ||
| 61 | 27 | 0 | 0 | ||
| 62 | 28 | 0 | 0 | ||
| 63 | 29 | 0 | 0 | ||
| 64 | 30 | 0 | 0 | ||
| 65 | 33,85,267 | 76,42,804 | |||
| IRR | 2.55% | 6.43% | |||
Even under the optimistic 8% scenario, the returns are modest.
Bank fixed deposits can potentially offer comparable or even better returns with greater liquidity and lower risk.
Moreover, this plan fails to beat inflation in the long run, making it a poor fit for those seeking real wealth creation.
The value for money in the Bajaj Allianz Life Long-Life Goal III plan is questionable.
With limited returns and a lack of inflation protection, it’s hard to justify choosing this over more efficient market-linked or fixed-income investment options.
While Bajaj Allianz Life Long-Life Goal III invests your premiums in the market, the actual returns are underwhelming.
If you’re aiming to build a meaningful corpus with flexibility and better liquidity, there are more efficient alternatives.
Let’s explore a more effective investment strategy and compare it with Bajaj Allianz Life Long-Life Goal III using the same assumptions from the Bajaj Allianz Long-Life Goal III Plan policy illustration.
Many investors comparing ULIPs such as Bajaj Allianz Long Life Goal 3 also evaluate how the same investment performs when separated into insurance and investment components.
A pure term life insurance policy with a sum assured of ₹20 lakhs would cost ₹4,900 annually.
The balance amount of Rs. 95,100 can be invested in other investment products like PPF (low-risk) or Equity Mutual Fund (high-risk).
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 20 years |
| Annualised Premium | ₹ 4,900 |
| Investment | ₹ 95,100 |
| Term Insurance + PPF | Term insurance + Equity Mutual Fund | ||||
| Age | Year | Term Insurance premium + PPF | Death benefit | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 35 | 1 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 36 | 2 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 37 | 3 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 38 | 4 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 39 | 5 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 40 | 6 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 41 | 7 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 42 | 8 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 43 | 9 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 44 | 10 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 45 | 11 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 46 | 12 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 47 | 13 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 48 | 14 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 49 | 15 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 50 | 16 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 51 | 17 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 52 | 18 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 53 | 19 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 54 | 20 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 55 | 21 | 0 | 0 | ||
| 56 | 22 | 0 | 0 | ||
| 57 | 23 | 0 | 0 | ||
| 58 | 24 | 0 | 0 | ||
| 59 | 25 | 0 | 0 | ||
| 60 | 26 | 0 | 0 | ||
| 61 | 27 | 0 | 0 | ||
| 62 | 28 | 0 | 0 | ||
| 63 | 29 | 0 | 0 | ||
| 64 | 30 | 0 | 0 | ||
| 65 | 83,81,979 | 2,11,09,592 | |||
| IRR | 6.86% | 11.20% | |||
The final value in the PPF investment is ₹ 83.81 Lakhs, with an IRR of 6.86% as per the Bajaj Allianz Long-Life Goal III Plan maturity calculator.
The final pre-tax value in the Equity Mutual fund is ₹ 2.38 crores.
The post-tax value is ₹ 2.11 Crores, with an IRR of 11.20% as per the Bajaj Allianz Long-Life Goal III Plan maturity calculator.
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 30 years | 2,38,35,676 |
| Purchase price | 19,02,000 |
| Long-Term Capital Gains | 2,19,33,676 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 2,18,08,676 |
| Tax paid on LTCG | 27,26,085 |
| Maturity value after tax | 2,11,09,592 |
Key Advantages of the Alternative Approach
Higher Returns: Even the low-risk PPF delivers better IRR than the ULIP.
Better Liquidity: You’re not locked in for 5+ years — partial withdrawals and reallocation are easier.
Transparent & Cost-Effective: No complex charge structures eating into your returns.
Goal-Oriented: You have full freedom to use the accumulated corpus as per your life goals — education, retirement, home, or health.
This Term + Investment strategy not only helps you accumulate wealth for your financial goals but also ensures your family is protected with adequate life cover.
Most importantly, it gives you complete control and flexibility, which the Bajaj Allianz Life Long-Life Goal III fails to offer.
Because of this structural difference, many investors evaluate whether ULIPs like Bajaj Allianz Life Long-life Goal III can compete with long-term equity investments or diversified mutual fund portfolios.
Who Should Avoid Bajaj Allianz Life Long-life Goal III?
The Bajaj Allianz Life Long-life Goal III may not be suitable for every investor.
Individuals who prefer simple and transparent investment products may find this plan complicated due to multiple charges, fund options, and long-term commitment.
Investors looking for high liquidity should also be cautious, as the plan comes with a five-year lock-in period, restricting access to funds during the initial years.
Similarly, those whose primary goal is maximising long-term returns may find more efficient alternatives in products like equity mutual funds, which typically have lower costs and greater flexibility.
Additionally, people who already have adequate life insurance coverage through a pure-term policy may not benefit from combining insurance and investment in a single product.
In such cases, separating insurance and investments can often provide better transparency, flexibility, and potential returns.
The Bajaj Allianz Life Long-Life Goal III is marketed as a market-linked solution for long-term wealth creation.
However, a deeper analysis reveals that the potential returns fall short when compared to other investment products available in the market.
If you choose the Retired Life Income (RLI) option, the pay-outs are unlikely to be sufficient to cover your post-retirement expenses.
Even without opting for RLI—as seen in the benefit illustration—the maturity benefits are modest and the Internal Rate of Return (IRR) is unimpressive.
Additionally, the life cover offered under this plan is not adequate, especially when compared to a standalone term insurance policy.
In essence, this is a long-term commitment with underwhelming returns and limited flexibility and it also has a high agent commission.
From a pure investment standpoint, it lacks value and does not align with the financial goals of most investors.
Rather than tying up your funds in a high-cost ULIP like the Long-Life Goal III, consider an alternate investment strategy where you opt for a pure-term policy and invest separately for life goals.
This strategy not only offers higher potential returns but also provides greater transparency, liquidity, and control over your investments.
If you’re interested in market-linked investments, it’s best to steer clear of ULIPs and instead explore direct investments through mutual funds or other diversified instruments.
For investors evaluating whether Bajaj Allianz Life Insurance plans are good or bad for long-term wealth creation, it is important to carefully analyse the benefit illustration, charges, and realistic return expectations before making a commitment.
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To build a personalised, goal-based investment strategy, consider consulting a Certified Financial Planner (CFP). They can help you construct a diversified portfolio aligned with your financial goals, risk tolerance, and time horizon.
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