Bajaj Allianz Life has
recently launched a new non participating individual limited premium guaranteed
return endowment plan. The plan offers guaranteed maturity and death benefit of
115% of sum assured. Plan offers only two terms i.e. 15 years and 17 years and
policy holder has not to pay last five years premiums. In simple term you can
choose a term of 15 years in which premium paying term is 10 years or else you
can also choose a term of 17 years in which premium paying term is 12 years. Plan
also offers option to take policy benefit in monthly instalments over a period
of 5 years or 10 years. Minimum entry age in the plan is 1 year and maximum is
60 years. Minimum age at maturity is 18 years and maximum it is 75 years.
Minimum sum assured is 1lakh and there is no upper limit on the maximum sum
assured. The plan also gives the option of choosing four different options for
payment i.e. yearly, half yearly, quarterly and monthly. The policy holder has
to pay higher premium in case he/she chooses option other than yearly option.
The points to know this
before investing. The return is very poor as illustrated below and further
service tax of 3.09% in first year and 1.545% thereafter will further reduce
your return. The same can be understood with the help of following example. If
a 30 year healthy male takes this plan for sum assured of Rs. 5lakhs, then his
annual premium will be Rs. 30,605/- exclusive of service tax. He will get
guaranteed 115% of the sum assured i.e. Rs. 5.75lakhs at maturity. He has to
pay premium for 12 years only. The IRR is of the plan is only 3.75%, which is
calculated with the help of excel and using IRR formula. The detail is as
under. The premium is taken inclusive of service tax.
|
Year
|
Premium
|
|
1
|
-31551
|
|
2
|
-31076
|
|
3
|
-31076
|
|
4
|
-31076
|
|
5
|
-31076
|
|
6
|
-31076
|
|
7
|
-31076
|
|
8
|
-31076
|
|
9
|
-31076
|
|
10
|
-31076
|
|
11
|
-31076
|
|
12
|
-31076
|
|
13
|
0
|
|
14
|
0
|
|
15
|
0
|
|
16
|
0
|
|
17
|
0
|
|
18
|
575000
|
|
IRR
|
3.75%
|
