Bajaj Allianz Life Insurance has launched a Life Assure Insurance Plan. The product offers the benefit of protection along with financial planning. Life Assure is a unit-linked endowment plan available at a minimum monthly premium of Rs 1,000.
A unit-linked endowment plan, it provides a policyholder with one or more choices of funds to invest in. Such plans charge a premium towards protection and allocate the balance premium towards investment by buying units of the fund chosen. These units will be bought at the NAV of the chosen fund and the fund value will be derived by multiplying the number of units accumulated by the current NAV.
Rituraj Bhattacharjee, head - market management at Bajaj Allianz Life Insurance says, “We believe small savings on a regular basis is the best way to achieve a long term financial goal, and this is the thought behind Life Assure. The plan is ideal for those looking to invest in market-linked financial instruments but may not have large surplus funds or the investment know-how. With a low monthly premium of only Rs 1000, we believe it will become more accessible to those who may have been apprehensive about doing so earlier.”
The plan offers two variants – Life Assure ‘Sure’ and Life Assure ‘More’ to cater to varying risk appetites of different customers. The plan also offers three riders – Accelerated Critical Illness, Super Premium Waiver and Extra Cover Benefit. Three riders give the policyholder an immediate payment of sum assured in case of being diagnosed with a critical illness.
Super Premium Waiver benefit, when taken with Accelerated Critical Illness Benefit Rider would ensure continued creation of the corpus in case of death or critical illness. Thus, if both these riders are taken together, the plan offers a comprehensive protection for the policyholder and his/her spouse, in case of critical illness or untimely death. The third rider, Extra Benefit Rider gives an extra sum assured on unfortunate death during the policy term, he added.
Accelerated Critical illness rider provides the vase sum assured of the policy in case of being diagnosed with a critical illness and the rider will be terminated. This rider can be taken on the spouse’s life only if the primary life assured has opted for this rider. Super premium Waiver provides the benefit of waiver of all future premiums payable under the base policy on death or diagnosis of critical illness, whichever is earlier.
Life Assure offers two variants – Life Assure ‘Sure’ which gives a guaranteed maturity value for risk adverse investors, and Life Assure ‘More’ with option of seven funds to choose from and fund switch facility, for the more market savvy customers.
Other key features of product are that it offers both single and joint life coverage, that is, lives of two individuals can be covered at the same time, like in case of a married couple. In-built accidental death benefit for life assured and spouse is also available, which gives an additional sum assured in case of death due to accident. Risk averse policyholders get guaranteed maturity value.
Financial experts do no favour investment-cum-insurance products simply because these are costlier than any other investment instrument and hence does not form a part of financial planning for achieving long-term financial goal. “Insurance products should be bought only for cover against risk to life, health and so on and not for investment. There are better priced and better yielding products in the market for planning for future goals. Importantly, critical illness plans are not a necessity if you have a comprehensive health insurance in place, “ says a financial planner.