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Striving toward early retirement is the main agenda of the current working generation.
For this, you would need to build an investment portfolio & accumulate the required retirement corpus.
Will Bajaj Allianz Life Long-life Goal plan be an impeccable investment option for your Retirement in your portfolio?
Let us cognize the working of the plan before answering the suitability of the plan.
Table of Contents:
1.)What is Bajaj Allianz Life Long-life Goal Plan?
2.)Features of the Bajaj Allianz Life Long-life Goal Plan
3.)Eligibility Criteria of the Bajaj Allianz Life Long-Life Goal Plan
4.) Bajaj Allianz Life Long-Life Goal Plan at a Glance
- Variants of Bajaj Allianz Life Long-Life Goal Plan
5.)Investment Strategies & Fund Options available in the Bajaj Allianz Life Long-Life Goal Plan
6.) Benefits of the Bajaj Allianz Life Long-Life Goal Plan
- Maturity Benefit
- Death Benefit
- Retired Life Income (RLI) – Survival Benefit
7.)Other Benefits of the Bajaj Allianz Life Long-Life Goal Plan
8.) A Grace Period, Revival & Discontinuance of the Bajaj Allianz Life Long-Life Goal Plan
9.) Free Look period of the Bajaj Allianz Life Long-Life Goal Plan
10.) Surrendering the Bajaj Allianz Life Long-life Goal
11.)Various Charges under the Bajaj Allianz Life Long-Life Goal Plan
12.) Advantages of the Bajaj Allianz Life Long-life Goal Plan
13.) Disadvantages of the Bajaj Allianz Life Long-life Goal Plan
14.) Research Methodology
15.)IRR Analysis of the Bajaj Allianz Life Long-Life Goal Plan
16.) Bajaj Allianz Life Long-Life Goal Plan Vs. Comparison with Other Investment vehicles
17.) Bajaj Allianz Life Long-life Goal Plan Vs. Pure Term Insurance + PPF / ELSS
18.)Final verdict on the Bajaj Allianz Life Long-life Goal Plan
What is Bajaj Allianz Life Long-life Goal Plan?
It is a Non-participating, Life, Individual, Whole Life, Unit-Linked, Regular Premium Payment, and Endowment plan.
The policy provides life cover for the whole life & income benefit till 99 years of age of the policyholder. During your retirement period, it provides you with an ongoing income stream that sustains your lifestyle so that You continue to live your life.
Features of the Bajaj Allianz Life Long-life Goal Plan
- There is a choice of 2 plan variants: Long-life Goal without Waiver of Premium & Long-life Goal with Waiver of Premium.
- You have the choice to choose from 4 Investment Portfolio Strategies & 10 Fund Options.
- Every year from the 5th Policy Year till the 25th Policy Year, Loyalty Additions are added to your fund value.
- Periodical Return of the Life Cover charges & Waiver of premium charges.
- Retired Life Income till the age of 99 years with the Return Enhancer & Whole life cover.
- You also have the option to reduce the premium after your post-lock-in period.
Eligibility Criteria of the Bajaj Allianz Life Long-Life Goal Plan
The basic information we need to know about being eligible to enter this policy is given below
| Minimum Entry Age | 18 Years | |
|---|---|---|
| Maximum Entry Age | 65 Years | |
| Minimum & Maximum Age at Maturity | 99 Years | |
| Policy Term | 99 minus Age at Entry of Life Assured | |
| Premium Payment Term (PPT) | 10 to 25 Years | |
| Minimum Premium | Yearly | 25,000 |
| Half-yearly | 12,500 | |
| Quarterly | 6,250 | |
| Monthly | 2,500 | |
| Maximum Premium | No Limit | |
| Premium Payment Frequency | Yearly, Half-yearly, Quarterly, and Monthly | |
| Minimum & Maximum Sum Assured | 10 times Annualized Premium & Maximum – As per the Board | |
Bajaj Allianz Life Long-Life Goal Plan at a Glance
Variants of Bajaj Allianz Life Long-Life Goal Plan
There are two variants available in this plan which are mentioned below;
- Long-life Goal with Waiver of Premium.
- Long-life Goal without Waiver of Premium
Long-life Goal with Waiver of Premium:
If the Life Assured & Policyholder are the same, in the case of Accidental Permanent Total Disability of the Life Assured during the Premium Payment Term, Premiums for the rest of the 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 the 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 Policy will continue with all the Benefits.
Long-life Goal without Waiver of Premium:
The above Waiver of Premium benefit is not applicable.
Investment Strategies & Fund Options available in the Bajaj Allianz Life Long-Life Goal Plan
Bajaj Allianz Life Long-life Goal provides You with four unique portfolio strategies, which can be chosen at the inception of your policy. They are mentioned below;
- Investor Selectable Portfolio Strategy
- Wheel of Life Portfolio Strategy II
- Trigger-Based Portfolio Strategy
- Auto Transfer Portfolio Strategy
Investor Selectable Portfolio Strategy
If you want to allocate your Premiums based on your personal choice and decision, you can opt for this strategy and choose from among the ten Funds below to suit your investment needs.
| Fund Name | Risk Profile | Portfolio Allocation | ||
|---|---|---|---|---|
| Equity | Bank Deposit | Money Market | ||
| Equity Growth Fund II | Very High | Not less than 60% | 0-40% | 0-40% |
| Accelerator Mid-Cap Fund II | Very High | Not less than 60% (50% in Mid-cap) | 0-40% | 0-40% |
| Pure Stock Fund | Very High | Not less than 60% | 0-40% | 0-40% |
| Pure Stock Fund II | Very High | Not less than 75% | _ | 0-25% |
| Asset Allocation Fund II | High | 40-90% | 0-50% | 0-40% |
| Blue-chip Equity Fund | High | Not less than 60% | 0-40% | 0-40% |
| Bond Fund | Moderate | _ | 0-100% | 0-60% |
| Liquid Fund | Low | _ | 100% | 100% |
| Flexi Cap Fund | Very High | 65-100% | 0-35% | 0-35% |
| Sustainable Equity Fund | Very High | 65-100% | 0-35% | 0-35% |
Wheel of Life Portfolio Strategy II
In this Portfolio Strategy at the commencement of the 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.
| 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% |
Trigger-Based Portfolio Strategy
Under this Portfolio Strategy, Regular/Limited Premium and Top up Premiums if any, will be allocated between the 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%.
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 Bond Fund and/or Liquid Fund, as specified by you. At the start of each monthly anniversary of the Policy, a proportion (as mentioned below) of 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
Benefits of the Bajaj Allianz Life Long-Life Goal Plan
Maturity Benefit
The Maturity Benefit will be the Fund Value as of the Maturity Date, provided the Policy is in force.
Death Benefit
If all due Premiums are paid, then, in case of unfortunate death of the Life Assured during the Policy Term, the Death Benefit payable will be higher of:
- Prevailing Sum Assured
- Fund Value
- 105% of the Total Premiums paid, till the date of death.
Retired Life Income (RLI) – Survival Benefit
- RLI pay-out is through Systematic Partial Withdrawal.
- It is paid as a percentage of your Fund Value ranging from 0 to 12% per annum, as chosen by you, payable yearly, half-yearly, quarterly, or monthly.
- It is paid on Policy Anniversary, starting either on attaining Age 55 years or after 10 Policy Years, whichever is later.
- Each RLI installment will be hiked up by 0.5% over and above the percentage chosen by You. & It is called the Return Enhancer.
- During the RLI period, you are allowed to do partial withdrawals, surrender the policy, or even exit the RLI option.
Other Benefits of the Bajaj Allianz Life Long-Life Goal Plan
Partial Withdrawal
Partial withdrawals are allowed any time after the fifth Policy Year. The minimum amount of partial withdrawal at any time is Rs. 5,000.
The Fund Value should not fall below 105% of the prevailing Annualized Premium * Premium Payment Term (PPT), after a partial withdrawal.
Periodic Return of Life Coverage or Periodic Return of Mortality Coverage (PROMC)
The total amount of the life cover charges, i.e., Mortality charges deducted in the Policy, will be added back to the Fund Value at regular intervals.
The first addition will be at the end of the Policy Year in which You attain Age 60 years or at the end of the 15th Policy Year, whichever is later. After that, at the end of each subsequent 10th Policy Year. The last addition will be done on the Maturity Date.
Loyalty Addition
The Company shall allocate Loyalty Additions to the Fund Value as a percentage of one Annualized Premium at the end of each Policy Year commencing from the end of the 5th Policy Year.
| Loyalty Additions (% of One Annualized Premium) | |
|---|---|
| Year | Percentage |
| From the end of 5 years till the end of 9 year | 2% every year |
| From the end of 10 years till the end of 14 year | 4% every year |
| From the end of 15 years till the end of 19 year | 6% every year |
| From the end of 20 years till the end of 25 year | 7% every year |
Settlement option
Option to take Maturity Benefit in installments:
You will have the option to receive your Maturity Benefit in installments (payable yearly, half-yearly, quarterly, or monthly) spread over a maximum period of 5 years.
Each Installment Amount = [Fund Value / No. of Outstanding Installment] * 1.005.
Option to take Death Benefit in installments:
In case of death of the Life Assured during the Policy term, the nominee will have the option to receive the Death Benefit in installments (payable yearly, half-yearly, quarterly, or monthly) spread over a maximum period of 5 years.
Each Installment Amount = [Fund Value / No. of Outstanding Installment] * 1.005.
A Grace Period, Revival & Discontinuance of the Bajaj Allianz Life Long-Life Goal Plan
Grace period
A grace period of 30 days for yearly, half-yearly & quarterly Premium payment frequency, and 15 days is available for the monthly Premium payment frequency from the due date of the Regular Premium payment.
Revival
The policy can be revived within 3 years from the date of the first unpaid premium.
Discontinuance
On Discontinuance of Regular Premiums due during the first 5 Policy years, the Policy will be converted immediately to a Discontinued Policy at the end of the Grace period. The Fund Value less the Discontinuance/Surrender charge, 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 5 Policy years.
On Discontinuance of Regular Premiums due after the lock-in period of 5 Policy years, the Policy will be converted to a Paid-up Policy at the end of the grace period. The Paid-up Sum Assured will be the prevailing Sum Assured in the Policy multiplied by the proportion of the number of Premiums paid to the number of Premiums payable in the Policy.
Free Look period of the Bajaj Allianz Life Long-Life Goal Plan
If you are not satisfied with the terms & conditions of the policy, then it can be returned within 15 days of the date of receipt of this Policy and it can be extended up to 30 days in case of an electronic Policy or a Policy obtained through distance mode.
Surrendering the Bajaj Allianz Life Long-life Goal
On surrender during the lock-in period of the first five years of your Policy, the Fund Value, less the applicable Discontinuance/Surrender charge, as on the Date of Surrender, will be transferred to the Discontinued Life Policy Fund and risk cover under the Policy shall cease immediately.
On surrender after the lock-in period of the first five years of your Policy, the surrender value available will be Fund Value, as on the date of surrender, and will be payable immediately.
Various Charges under the Bajaj Allianz Life Long-Life Goal Plan
Premium Allocation Charge:
| Prevailing Annualized Premium | Policy Year 1 to 5 | Policy Year 6 till PPT |
|---|---|---|
| Less than Rs.10 lacs | 6% | 3% |
| Rs. 10 lacs & above | NIL | |
| For online sales – Nil | ||
Policy Administration Charge:
NIL
Fund Management Charge:
| Fund Name | Fund Management Charge per annum |
|---|---|
| Equity Growth Fund II | 1.35% |
| Accelerator Mid-Cap Fund II | 1.35% |
| Pure Stock Fund | 1.35% |
| Pure Stock Fund II | 1.30% |
| Asset Allocation Fund II | 1.25% |
| Blue-chip Equity Fund | 1.25% |
| Bond Fund | 0.95% |
| Liquid Fund | 0.95% |
| Flexi Cap Fund | 1.35% |
| Sustainable Equity Fund | 1.35% |
| Discontinued policy fund | 0.50% |
Miscellaneous Charge:
A miscellaneous charge of Rs. 100 will be charged.
Discontinuance /Surrender Charge:
It depends on the Annual premium amount & the year of discontinuance or surrender. It is nil from the 5th policy year.
Mortality / Waiver of Premium Charge:
| Age | Per thousand of sum at risk | |||
|---|---|---|---|---|
| Without Waiver of Premium | With Waiver of Premium | |||
| Life assured | Policy Holder | Life Assured & Policy Holder are the Same | ||
| 25 | 0.74 | 0.74 | 4.06 | 0.74 |
| 30 | 0.80 | 0.80 | 6.31 | 0.80 |
| 35 | 0.99 | 0.99 | 9.14 | 0.99 |
| 40 | 1.41 | 1.41 | 13.45 | 1.41 |
| 45 | 2.28 | 2.28 | 20.41 | 2.28 |
| 50 | 3.91 | 3.91 | 31.20 | 3.91 |
| 55 | 6.16 | – | – | – |
| 60 | 8.99 | – | – | – |
Advantages of the Bajaj Allianz Life Long-life Goal Plan
- There are 4 Investment strategies & 10 Fund options available to choose from.
- Partial withdrawals are allowed post your lock-in period.
- Death benefit / Maturity benefit can be taken in installments.
- Mortality charges are returned to you at regular intervals.
- Loyalty additions will enhance your fund value.
- Each RLI installment will be hiked up by 0.5% every year.
Disadvantages of the Bajaj Allianz Life Long-life Goal Plan
- The net premium is invested in your chosen fund option after the deduction of charges.
- The lock-in period is 5 years.
- Loan option is not available.
- Top-up premium is not available in this policy.
- Mortality charges that are deducted from your premium are added back to the fund at a later stage without considering the time value of the money.
For more details, you can refer to the Bajaj Allianz Life Long-Life Goal Policy Brochure.
Research Methodology
The above details are just factual info that you can read from any sales brochure or any insurance portal of Bajaj Allianz. You can understand the policy better with the help of a benefit illustration.
With the given figures, let us work out the Internal rate of return of the Bajaj Allianz Life Long-Life Goal. This can be compared with other investment vehicles so that we can make a final decision about whether to purchase this policy or not.
IRR Analysis of the Bajaj Allianz Life Long-Life Goal Plan
The Assumptions for Comparison
| Male | 35 Years |
|---|---|
| Sum Assured | Rs. 10 Lakhs |
| Premium Paying term | 20 Years |
| Policy Term | 99 Years of age (99-35=64 years) |
| Annual Premium | Rs. 1 Lakh |
| Plan option | Without Waiver of premium |
| RLI has not opted | |
| Pure Stock Fund II | |
| Life Expectancy | 65 Years |
Let us assume that a 35-year-old male has opted for this plan.
The following table shows the cash flow for each year.
The assumed rate of return of the fund in the worst-case & best-case scenario is 4% p.a.& 8% p.a respectively. The returns indicated at 4% and 8% are illustrative and not guaranteed, subject to Policy Terms & conditions, and do not indicate the upper or lower limits of returns under the Policy.
| At 4% p.a. | At 8% p.a. | ||||
|---|---|---|---|---|---|
| Age | Year | Annualized premium / Maturity benefit | Death benefit | Annualized 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 | 10,00,000 | 0 | 10,00,000 |
| 56 | 22 | 0 | 10,00,000 | 0 | 10,00,000 |
| 57 | 23 | 0 | 10,00,000 | 0 | 10,00,000 |
| 58 | 24 | 0 | 10,00,000 | 0 | 10,00,000 |
| 59 | 25 | 0 | 10,00,000 | 0 | 10,00,000 |
| 60 | 26 | 0 | 10,00,000 | 0 | 10,00,000 |
| 61 | 27 | 0 | 10,00,000 | 0 | 10,00,000 |
| 62 | 28 | 0 | 10,00,000 | 0 | 10,00,000 |
| 63 | 29 | 0 | 10,00,000 | 0 | 10,00,000 |
| 64 | 30 | 0 | 10,00,000 | 0 | 10,00,000 |
| 65 | 31 | 32,76,166 | 73,75,295 | ||
| IRR | 2.39% | 6.26% | |||
He invested for 20 years & stay invested for further 10 years. But the final value is meagre.
The IRR @4% return is 2.39% & @ 8% return is 6.26%. It doesn’t make sense to invest in Bajaj Allianz Life Long-life goal, as the bank FDs yield better returns compared to it. The value for money is not worth investing for 30 years. Also, it does not aid to combat inflation in the long run.
Bajaj Allianz Life Long-Life Goal Plan Vs. Comparison with Other Investment vehicles
Bajaj Allianz Life Long-life goal won’t help you in the process of Wealth Accumulation. As an investor, you should look for returns that will help you to build wealth for your life’s financial goals. The above illustration was worked out for an annual premium of Rs. 1 lakh. Let us find out the IRR if the same amount is invested in other investment products.
Bajaj Allianz Life Long-life Goal Plan Vs. Pure Term Insurance + PPF / ELSS
A Pure Term Insurance Policy will serve the purpose of providing you with life cover for your family in the case of your unfortunate absence.
| Pure Term Policy | |
|---|---|
| Sum Assured | Rs. 10 Lakh |
| Tenure | 20 years |
| Annual Premium | Rs.5500 |
| Contribution to other investment | Rs.94500 |
And for Investment purposes, let us choose both high-risk & low-risk investment instruments for each to compare. Investors can choose according to their risk appetite. For Pure Term Policy, the Premium is Rs. 5,500 for Rs.10 Lakh Sum insured. The balance amount of Rs. 94500 can be invested in other investment products like PPF or ELSS.
| Term Insurance + PPF | Term insurance + ELSS | ||||
|---|---|---|---|---|---|
| Age | Year | Term Insurance premium + PPF | Death benefit | Term Insurance premium + ELSS | 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 | 10,00,000 | 0 | 10,00,000 |
| 56 | 22 | 0 | 10,00,000 | 0 | 10,00,000 |
| 57 | 23 | 0 | 10,00,000 | 0 | 10,00,000 |
| 58 | 24 | 0 | 10,00,000 | 0 | 10,00,000 |
| 59 | 25 | 0 | 10,00,000 | 0 | 10,00,000 |
| 60 | 26 | 0 | 10,00,000 | 0 | 10,00,000 |
| 61 | 27 | 0 | 10,00,000 | 0 | 10,00,000 |
| 62 | 28 | 0 | 10,00,000 | 0 | 10,00,000 |
| 63 | 29 | 0 | 10,00,000 | 0 | 10,00,000 |
| 64 | 30 | 0 | 10,00,000 | 0 | 10,00,000 |
| 65 | 31 | 83,29,096 | 2,15,15,764 | ||
| IRR | 6.83% | 11.29% | |||
The Value you get at the end of your 30-year Investment Period is Rs. 83 Lakhs & Rs. 2.15 crores under the PPF & ELSS investment options respectively.
The IRR works out to be 6.83% for PPF & it works out to be 11.29% for 8%.
The ELSS investment option has a market-linked return similar to Bajaj Allianz Life Long-life Goal. But in the Bajaj Allianz Life Long-Life Goal Plan’s yield even under the best-case scenario is just at 6.26%.
But here risk-free PPF return is more than the Bajaj Allianz Life Long-Life Goal Plan’s best-case scenario rate of return. The ELSS option helps you to accumulate wealth for your life’s financial goals which are the main agenda of investing.
Final verdict on the Bajaj Allianz Life Long-life Goal Plan
The Bajaj Allianz Life Long-life Goal plan offers an opportunity to invest in the market at the same time it provides life cover.
Though it is a market-linked product, the potential return is not on par with other investment products available in the market. From an investment perspective, it is not a lucrative option.
If you opt for the Retired Life Income (RLI), then the income from the Bajaj Allianz Life Long-Life Goal won’t be sufficient to meet your post-retirement expense. Also, the sum assuredly provided in this plan is not adequate.
You should build a diversified portfolio based on your financial goals especially to achieve your Ideal Retirement Life. A Certified Financial Planner will help you to build a diversified portfolio based on your financial requirement within the time frame you want to achieve them.
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