Bajaj Allianz Life Super Life Assure Plan Review: Good or Bad?
Can the Bajaj Allianz Life Super Life Assure plan support your financial goals effectively?
Is the Bajaj Allianz Life Super Life Assure plan a suitable option for increasing your savings over time?
Would including the Bajaj Allianz Life Super Life Assure plan enhance the diversity and stability of your investment portfolio?
This article reviews the features, costs, advantages, disadvantages, and potential returns of the Bajaj Allianz Life Super Life Assure plan through an IRR analysis, assisting you in making an informed decision.
What is the Bajaj Allianz Life Super Life Assure plan?
What are the features of the Bajaj Allianz Life Super Life Assure plan?
Who is Eligible for the Bajaj Allianz Life Super Life Assure plan?
What are the benefits of the Bajaj Allianz Life Super Life Assure plan?
Grace period, Non-payment of Premium and Revival of Bajaj Allianz Life Super Life Assure plan
Free Look Period of Bajaj Allianz Life Super Life Assure plan
Surrendering Bajaj Allianz Life Super Life Assure plan
What are the Advantages of the Bajaj Allianz Life Super Life Assure plan?
What are the Disadvantages of the Bajaj Allianz Life Super Life Assure plan?
Research Methodology of Bajaj Allianz Life Super Life Assure Plan
Benefit Illustration – IRR analysis of Bajaj Allianz Life Super Life Assure plan
Bajaj Allianz Life Super Life Assure Plan Vs. Other investment product
Bajaj Allianz Life Super Life Assure Plan Vs. Pure Term + ELSS / PPF
Final Verdict on Bajaj Allianz Life Super Life Assure
Bajaj Allianz Life Super Life Assure plan is a non-linked, life, individual, participating, regular premium payment endowment savings plan. It brings the dual benefits of savings and life cover in one policy. Bajaj Allianz Life Super Life Assure plan helps you save in a disciplined manner towards your life goals.
| Super | Life | |
| Minimum Entry Age | 18 years | 0 years |
| Maximum Entry Age | 50 years | 55 years |
| Minimum Maturity Age | 30 years | 18 years |
| Maximum Maturity Age | 70 years | |
| Policy Term | 12 to 20 years | |
| Premium Paying Term | Equal to Policy Term | |
| Minimum Sum Assured | 100000 | 50000 |
| Maximum Sum Assured | No Limit | |
| Premium payment Frequency | Yearly, Half-yearly, Quarterly and Monthly | |
If all due premiums are paid, then in case of an unfortunate death of the Life Assured during the policy term, the death benefit will be:
If the Life variant is opted, a higher of:
If the Super variant is opted, a higher of:
Income Benefit: The nominee would get an additional 100% of the Sum Assured as an Income Benefit, payable in 120 monthly installments, over the next 10 years.
The maturity benefit will be the same for both variants.
If you have paid all due premiums under your policy, the Sum Assured plus Vested Bonus plus Terminal Bonus, if any will be payable.
The minimum guaranteed maturity benefit is 100.1% of the total premiums paid
You will be allowed a grace period of 30 days for premium payment frequencies other than monthly and 15 days for monthly frequency to pay the due premium.
If you have not paid at least the first 2 full years’ premiums, then the Bajaj Allianz Life Super Life Assure plan policy will lapse at the expiry of the grace period and no benefits under the plan will be paid.
If you have paid at least the first 2 full years’ premiums and subsequent premiums are not paid, then the Bajaj Allianz Life Super Life Assure plan policy will be converted to a paid-up policy at the expiry of the grace period.
You may revive a lapsed/paid-up policy during the revival period of 5 years from the due date of the first unpaid premium, subject to the revival conditions mentioned under the plan.
If you disagree with any of the terms & conditions, you will have the option to return the Bajaj Allianz Life Super Life Assure plan policy within 15 days of receiving the policy and 30 days in case of electronic policy and policy obtained through distance mode.
You will have the option to surrender your Bajaj Allianz Life Super Life Assure plan policy anytime, provided at least 2 full years’ premiums have been paid. The surrender value shall be higher than the Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV).
The cash flow of the Bajaj Allianz Life Super Life Assure plan should be analysed in terms of return percentage. By paying premiums throughout the policy term, you receive a maturity benefit at the end of the term.
The following benefit illustration is based on a quote from the portal, detailing the Internal Rate of Return (IRR) calculation.
A 30-year-old male purchases the Bajaj Allianz Life Super Life Assure plan with a sum assured of ₹10 lakhs. The policy term and premium paying term is 15 years, with an annual premium of ₹65,305. He opts for the Super Variant.
| Male | 30 years |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 15 years |
| Premium Paying Term | 15 years |
| Annualised Premium | ₹ 65,305 |
He receives the maturity benefit based on the bonus declaration. The Maturity Benefit demonstrated at 4% and 8% is not guaranteed and is for illustrative purposes only.
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 30 | 1 | -65,305 | 10,00,000 | -65,305 | 10,00,000 |
| 31 | 2 | -65,305 | 10,00,000 | -65,305 | 10,00,000 |
| 32 | 3 | -65,305 | 10,00,000 | -65,305 | 10,00,000 |
| 33 | 4 | -65,305 | 10,00,000 | -65,305 | 10,00,000 |
| 34 | 5 | -65,305 | 10,00,000 | -65,305 | 10,00,000 |
| 35 | 6 | -65,305 | 10,00,000 | -65,305 | 10,00,000 |
| 36 | 7 | -65,305 | 10,00,000 | -65,305 | 10,00,000 |
| 37 | 8 | -65,305 | 10,00,000 | -65,305 | 10,00,000 |
| 38 | 9 | -65,305 | 10,00,000 | -65,305 | 10,00,000 |
| 39 | 10 | -65,305 | 10,00,000 | -65,305 | 10,00,000 |
| 40 | 11 | -65,305 | 10,00,000 | -65,305 | 10,00,000 |
| 41 | 12 | -65,305 | 10,00,000 | -65,305 | 10,00,000 |
| 42 | 13 | -65,305 | 10,00,000 | -65,305 | 10,00,000 |
| 43 | 14 | -65,305 | 10,00,000 | -65,305 | 10,00,000 |
| 44 | 15 | -65,305 | 10,00,000 | -65,305 | 10,00,000 |
| 45 | 11,87,103 | 15,35,432 | |||
| IRR | 2.37% | 5.44% | |||
In the 4% scenario, the maturity benefit is ₹11.87 lakhs with an IRR of 2.37% based on the Bajaj Allianz Life Super Life Assure plan maturity calculator. In the 8% scenario, the maturity benefit is ₹15.35 lakhs with an IRR of 5.44%. Even a bank fixed deposit offers better returns than these rates.
Both returns are lower than the inflation rate. After 15 years, the maturity proceeds would not be sufficient to meet the inflated cost of your goals.
Additionally, the sum assured under the Bajaj Allianz Life Super Life Assure plan is relatively low. Therefore, the Bajaj Allianz Life Super Life Assure Plan is not a suitable investment option.
Next, we will compare the returns of the Bajaj Allianz Life Super Life Assure plan with other investment options. For this comparison, we’ll assume a similar policy term and sum assured.
A pure-term life insurance policy can provide the necessary life cover, while investments can be made separately without combining them with insurance.
A pure term life insurance policy with a sum assured of ₹10 lakhs costs ₹4,100 annually, with a policy term and premium paying term of 15 years. In the previous illustration, the premium for the Bajaj Allianz plan is ₹65,305.
By choosing a pure term life insurance policy, you save ₹61,205 per year, which can be invested according to your requirements and risk appetite.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 15 years |
| Premium Paying Term | 15 years |
| Annualised Premium | ₹ 4,100 |
| Investment | ₹ 61,205 |
The investment vehicle should support your long-term goals. For a low-risk investor, a PPF account is chosen, and for a risk-tolerant investor, an ELSS fund is selected.
| Term Insurance + PPF | Term insurance + ELSS | ||||
| Age | Year | Term Insurance premium + PPF | Death benefit | Term Insurance premium + ELSS | Death benefit |
| 30 | 1 | -65,305 | 10,00,000 | -65,305 | 10,00,000 |
| 31 | 2 | -65,305 | 10,00,000 | -65,305 | 10,00,000 |
| 32 | 3 | -65,305 | 10,00,000 | -65,305 | 10,00,000 |
| 33 | 4 | -65,305 | 10,00,000 | -65,305 | 10,00,000 |
| 34 | 5 | -65,305 | 10,00,000 | -65,305 | 10,00,000 |
| 35 | 6 | -65,305 | 10,00,000 | -65,305 | 10,00,000 |
| 36 | 7 | -65,305 | 10,00,000 | -65,305 | 10,00,000 |
| 37 | 8 | -65,305 | 10,00,000 | -65,305 | 10,00,000 |
| 38 | 9 | -65,305 | 10,00,000 | -65,305 | 10,00,000 |
| 39 | 10 | -65,305 | 10,00,000 | -65,305 | 10,00,000 |
| 40 | 11 | -65,305 | 10,00,000 | -65,305 | 10,00,000 |
| 41 | 12 | -65,305 | 10,00,000 | -65,305 | 10,00,000 |
| 42 | 13 | -65,305 | 10,00,000 | -65,305 | 10,00,000 |
| 43 | 14 | -65,305 | 10,00,000 | -65,305 | 10,00,000 |
| 44 | 15 | -65,305 | 10,00,000 | -65,305 | 10,00,000 |
| 45 | 16,59,965 | 24,01,766 | |||
| IRR | 6.35% | 10.58% | |||
With a PPF account, the final maturity value is ₹16.59 lakhs with an IRR of 6.35%, along with a pure-term insurance policy. ELSS fund maturity proceeds are subject to capital gains tax.
After accounting for the tax liability, the pre-tax value is ₹25.55 lakhs, and the post-tax maturity value is ₹24.01 lakhs, with an IRR of 10.58% (post-tax return).
| ELSS Tax Calculation | |
| Maturity value after 15 years | 25,55,510 |
| Purchase price | 9,18,075 |
| Long-Term Capital Gains | 16,37,435 |
| Exemption limit | 1,00,000 |
| Taxable LTCG | 15,37,435 |
| Tax paid on LTCG | 1,53,743 |
| Maturity value after tax | 24,01,766 |
By investing separately according to your personal risk tolerance, you can comfortably accumulate the necessary corpus for your life goals. These returns surpass inflation in the long run, making it a straightforward win.
Conversely, investing in the Bajaj Allianz Life Super Life Assure Plan will make your investment journey bumpy and less favourable.
The Bajaj Allianz Life Super Life Assure plan offers the dual benefits of comprehensive protection and mandatory savings for your financial goals. However, neither of these benefits justifies the investment.
The life cover provided is insufficient to meet a family’s basic needs in the event of an unfortunate incident. The potential return analysis indicates that the returns are inadequate for wealth accumulation. Investing in the Bajaj Allianz Life Super Life Assure plan may derail your financial plan due to its poor returns and many other reasons, including the high agent commission
Instead, consider handling investments and insurance separately. This strategy allows for customization based on your personal preferences and typically results in better returns than endowment plans. The flexibility and higher returns achievable with separate investments are absent in the Bajaj Allianz Life Super Life Assure plan.
Although social media sites like Twitter, Facebook, and Quora may be excellent starting points for financial education, you shouldn’t end up there. Even while you might read some insightful stories and advice, it is devoid of the components you need to make wise financial decisions.
To create a customized financial plan, consult a Certified Financial Planner. They can address all your requirements and draft a personalized plan tailored to your needs.
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