Bajaj Life Flexi Income Goal Plus – Enhanced Benefit Plan: Good or Bad? A Detailed Review
Can Bajaj Life Flexi Income Goal Plus provide the cash flow needed to meet your financial goals?
Is Bajaj Life Flexi Income Goal Plus suitable for financial goals that require a regular stream of income?
Can Bajaj Life Flexi Income Goal Plus help meet financial goals that require a substantial lump sum?
Why is it important to understand the structure of bundled insurance products before investing?
This article examines the plan’s key features, advantages, and limitations.
It also explains how bundled insurance products work and why understanding their structure is important for making informed financial decisions and managing your finances effectively.
Table of Contents
Bajaj Life Flexi Income Goal Plus – Enhanced Benefit is a Non-Linked, Participating, Individual Life Insurance Savings Plan.
It is designed to support your journey with a unique combination of income and lump sum benefits—helping you stay prepared for today and tomorrow.
| Eligibility Parameters | Minimum | Maximum |
| Age at Entry | 0 year | 55 years |
| Age at Maturity | 18 years | 80 years |
| Premium Payment Term (PPT) | 5 to 22 years | |
| Policy Term (PT) | PPT plus 5 years to 27 years | |
| Annual Premium | As per the Minimum Maturity Sum | No limit (subject to the prevailing Board-approved underwriting policy) |
| Sum Assured on Death Multiple | Entry Age < 50: 7 times of Annualised Premium | 11 times of Annualised Premium |
| For Entry Age >= 50: 5 times of Annualised Premium | ||
| Premium Payment Mode | Annual/ Half-yearly/ Quarterly/ Monthly | |
It is an amount the insurance company pays you on a fixed date during your policy, on the survival of the life assured, provided that the policy is in force.
You will receive a regular income (Survival Benefit) on the due dates, subject to all due premiums being paid and the Life Assured being alive.
The sum of the following Survival Benefit shall be payable:
Guaranteed Lump Sum-1 (GLS-1): At the end of your Premium Payment Term, you’ll receive a Guaranteed Lump Sum-1 which is equal to one Annual Guaranteed Monthly Income.
Alternatively, you can choose to accumulate it within the policy to earn Investment Returns.
Guaranteed Monthly Income (GMI): If the life assured is alive at the end of the Premium Paying Period and the policy is in force, Guaranteed Monthly Income will be paid every month.
The first GMI payment will be due at the end of the PPT and will be paid for the Income Period, as chosen. If the life assured dies during the Income Period, GMI payments will stop immediately.
The number of instalments of GMI payable will be Income Period * 12. If the life assured dies during the Income Period, the GMI will be stopped immediately.
Any GMI paid during the period from the date of death to the date of intimation will be deducted from the death benefit.
Cash Value (CV): If you choose to accumulate Guaranteed Monthly Income (GMI) or/and Guaranteed1 Lump Sum-1 (GLS-1) instead of receiving them as payouts, you will build a Cash Value (CV).
This Cash Value will include:
During the Bajaj Life Flexi Income Goal Plus – Enhanced Benefit Policy Term, you have the flexibility to withdraw this Cash Value, either partially or in full, whenever you need.
Provided that the policy is in force, and the Life Assured is alive, as on the Maturity date, you will receive the following benefits;
In the unfortunate event of death of the Life Insured during the Bajaj Life Flexi Income Goal Plus – Enhanced Benefit Policy Term while the policy is in force and all due premiums have been paid as on the date of death; the nominee or beneficiary shall receive the following benefits:
At all times, the Death Benefit will be at least equal to the Guaranteed Death Benefit, which is 105% of the Total Premiums Paid.
Grace Period
A grace period of 15-days would be offered where the premium payment frequency is monthly, and 30 days would be offered for all other premium payment frequencies.
Discontinuance
Lapse: If you have not paid at least one full Policy Year’s premium, the Policy will immediately & automatically lapse at the expiry of the Grace Period, and no benefit other than Accumulated Cash Bonus, if any, will be payable under the policy.
The Accumulated Cash Bonus, if any, will be paid out at the end of the grace period.
Paid-up: If you have paid at least one full Policy Year’s premium and not paid the subsequent Premiums, then the Bajaj Life Flexi Income Goal Plus – Enhanced Benefit Policy will be immediately & automatically converted to a reduced paid-up Policy at the expiry of the Grace Period.
Under a Paid-Up Policy, all benefits will be reduced. The reduced benefits will be calculated by multiplying the benefit amount with the Reduced Paid Up (RPU) factor.
Revival
In case you were unable to pay towards the policy, and it lapses or becomes paid-up, it can be revived within 5 years from the date of non-payment of premium.
You shall be provided with a Free Look Period of 30 days beginning from the date of receipt of the policy document, whether received electronically or otherwise, to review the terms and conditions of such policy, except if the tenure of the policy is less than a year.
In the event you disagree with any of the policy terms or conditions, or otherwise and have not made any claim, you shall have the option to return the policy.
At any time of the policy period after completing the first Policy Year, and if at least one full Policy Year’s premium has been paid, if you wish to close this Policy, you may surrender it.
If there is any surrender value payable, it would be the higher of the Special Surrender Value (available only after completion of first Policy Year) or Guaranteed Surrender Value (available only if two full years’ premiums have been paid).
The Bajaj Life Flexi Income Plan provides regular income after the premium-paying term, along with a maturity benefit that includes bonuses.
However, before committing to the plan, it is important to evaluate its potential returns.
Using the figures provided in the policy brochure, we calculate the Internal Rate of Return (IRR) and compare it with alternative investment options.
Consider a 35-year-old male opting for a 25-year policy term, with a 10-year premium-paying period and an annual premium of ₹1 lakh. The sum assured is ₹11 lakh.
| Male | 35 years |
| Sum Assured | ₹ 11,00,000 |
| Policy Term | 25 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 1,00,000 |
After completing the premium-paying period, he begins receiving annual survival benefits. At maturity, he receives the final survival benefit along with the applicable bonuses. The policy illustration shows assumed returns of 4% and 8%. These are illustrative rates and are not guaranteed; the actual benefits will depend on the policy terms and performance.
| 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 | 11,00,000 | -1,00,000 | 11,00,000 |
| 36 | 2 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 37 | 3 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 38 | 4 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 39 | 5 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 40 | 6 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 41 | 7 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 42 | 8 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 43 | 9 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 44 | 10 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 45 | 11 | 0 | 11,00,000 | 0 | 11,00,000 |
| 46 | 12 | 74,340 | 11,00,000 | 74,340 | 11,00,000 |
| 47 | 13 | 74,340 | 11,00,000 | 74,340 | 11,00,000 |
| 48 | 14 | 74,340 | 11,00,000 | 74,340 | 11,00,000 |
| 49 | 15 | 74,340 | 11,00,000 | 74,340 | 11,00,000 |
| 50 | 16 | 74,340 | 11,00,000 | 74,340 | 11,00,000 |
| 51 | 17 | 74,340 | 11,00,000 | 74,340 | 11,00,000 |
| 52 | 18 | 74,340 | 11,00,000 | 74,340 | 11,00,000 |
| 53 | 19 | 74,340 | 11,00,000 | 74,340 | 11,00,000 |
| 54 | 20 | 74,340 | 11,00,000 | 74,340 | 11,00,000 |
| 55 | 21 | 74,340 | 11,00,000 | 74,340 | 11,00,000 |
| 56 | 22 | 74,340 | 11,00,000 | 74,340 | 11,00,000 |
| 57 | 23 | 74,340 | 11,00,000 | 74,340 | 11,00,000 |
| 58 | 24 | 74,340 | 11,00,000 | 74,340 | 11,00,000 |
| 59 | 25 | 74,340 | 11,00,000 | 74,340 | 11,00,000 |
| 60 | 4,47,890 | 16,55,579 | |||
| IRR | 2.68% | 5.93% | |||
At a 4% assumed return:
He receives an annual survival benefit of ₹74,340 and a maturity benefit of ₹3.73 lakh. The resulting IRR is only 2.68% as per the Bajaj Life Flexi Income Goal Plus – Enhanced Benefit maturity calculator, which is relatively low for a long-term commitment.
At an 8% assumed return:
The annual survival benefit remains ₹74,340, while the maturity benefit increases to ₹15.81 lakh. Even then, the IRR is only 5.93% as per the Bajaj Life Flexi Income Goal Plus – Enhanced Benefit maturity calculator, which may be lower than the prevailing returns available from some conventional fixed-income alternatives.
A fixed income stream over a long period may also lose purchasing power due to inflation if the payouts do not increase over time.
Although the plan extends over 25 years—with 10 years of premium payments followed by 15 years of survival benefits—the projected returns need to be carefully evaluated against the long-term opportunity cost of committing funds to the policy.
The plan also provides a relatively limited sum assured compared with the total premium commitment.
Therefore, investors should assess whether the combination of life cover, cash flows, and potential returns adequately aligns with their financial goals before investing.
The Bajaj Life Flexi Income Goal Plus – Enhanced Benefit Plan combines life insurance and investment in a single product.
However, separating these two components can provide greater flexibility in managing your finances.
By allocating the same overall premium towards a pure-term insurance policy and a separate investment, it may be possible to achieve similar or higher cash flows.
Let us examine this using the previous example.
A pure-term insurance policy providing a sum assured of ₹11 lakh costs ₹10,800 annually for a 25-year term, with premiums payable for 10 years.
This leaves ₹89,200 per year available for investment.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 11,00,000 |
| Policy Term | 25 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 10,800 |
| Investment | ₹ 89,200 |
Investors with a lower risk appetite may consider debt-oriented investments such as PPF, while those comfortable with higher market risk may consider equity mutual funds.
For this comparison, we use the equity mutual fund approach.
The accumulated equity mutual fund corpus is subsequently moved to an investment assumed to generate 7% annually.
This corpus is then used to provide regular withdrawals, while the remaining amount is withdrawn as a lump sum at maturity.
| Age | Year | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 35 | 1 | -1,00,000 | 11,00,000 |
| 36 | 2 | -1,00,000 | 11,00,000 |
| 37 | 3 | -1,00,000 | 11,00,000 |
| 38 | 4 | -1,00,000 | 11,00,000 |
| 39 | 5 | -1,00,000 | 11,00,000 |
| 40 | 6 | -1,00,000 | 11,00,000 |
| 41 | 7 | -1,00,000 | 11,00,000 |
| 42 | 8 | -1,00,000 | 11,00,000 |
| 43 | 9 | -1,00,000 | 11,00,000 |
| 44 | 10 | -1,00,000 | 11,00,000 |
| 45 | 11 | 0 | 11,00,000 |
| 46 | 12 | 74,340 | 11,00,000 |
| 47 | 13 | 74,340 | 11,00,000 |
| 48 | 14 | 74,340 | 11,00,000 |
| 49 | 15 | 74,340 | 11,00,000 |
| 50 | 16 | 74,340 | 11,00,000 |
| 51 | 17 | 74,340 | 11,00,000 |
| 52 | 18 | 74,340 | 11,00,000 |
| 53 | 19 | 74,340 | 11,00,000 |
| 54 | 20 | 74,340 | 11,00,000 |
| 55 | 21 | 74,340 | 11,00,000 |
| 56 | 22 | 74,340 | 11,00,000 |
| 57 | 23 | 74,340 | 11,00,000 |
| 58 | 24 | 74,340 | 11,00,000 |
| 59 | 25 | 74,340 | 11,00,000 |
| 60 | 27,89,456 | ||
| IRR | 7.71% |
Based on the assumptions in this illustration, the equity mutual fund investment grows to a pre-tax corpus of ₹17.53 lakh.
After accounting for capital gains tax, the post-tax corpus is ₹16.61 lakh.
When this amount is subsequently invested at an assumed 7% annual return, it can generate cash flows broadly comparable to those illustrated under the 8% scenario of the Bajaj Life Flexi Income Goal Plus plan, while also providing a final lump-sum withdrawal.
The resulting IRR is 7.71%.
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 10 years | 17,53,189 |
| Purchase price | 8,92,000 |
| Long-Term Capital Gains | 8,61,189 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 7,36,189 |
| Tax paid on LTCG | 92,024 |
| Maturity value after tax | 16,61,165 |
The investment route also offers greater flexibility. If the investor does not require the entire withdrawal amount, the corpus can be retained, or withdrawals can be adjusted according to actual financial needs.
This flexibility is generally not available to the same extent with the predetermined cash flows of the insurance plan.
Thus, separating insurance for protection from investments for wealth creation can provide greater control over cash flows, investment choices, and liquidity.
Based on the assumptions used in this illustration, the alternative strategy also produces a higher IRR than the insurance plan, highlighting the importance of evaluating bundled products against separately structured financial solutions.
The Bajaj Life Flexi Income Goal – Enhanced Benefit Plan provides regular income after the completion of the premium-paying term, with an option to defer the survival benefits.
However, since the plan combines insurance and investment, the returns may be relatively low.
Moreover, the fixed payouts may not be sufficient to meet substantial or increasing financial requirements, particularly as expenses rise over time.
An analysis of the plan’s projected returns highlights another concern: the returns may fall below inflation, potentially reducing purchasing power over the long term.
The combination of fixed cash flows, limited flexibility, and relatively modest returns makes it important to carefully evaluate whether the plan is aligned with long-term financial goals and it also has a high agent commission.
For life protection, a pure-term insurance policy can provide a higher sum assured at a relatively affordable premium.
The remaining investable surplus can then be allocated separately to investments based on the investor’s risk profile, financial goals, and investment horizon.
This approach allows insurance and investments to serve their respective purposes while providing greater flexibility in managing cash flows.
A well-diversified, goal-based investment portfolio can help build the required corpus and generate cash flows according to changing financial needs.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
Consulting a Certified Financial Planner can further help in structuring an appropriate combination of insurance and investments based on individual financial circumstances and objectives.
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