Life Goals Loading…

10 Blue cross

Notifications10

  • Fulfill your Life Goals with Bajaj Allianz Life Goal Assure

    KNOW MORE
  • Here's a Comprehensive Tool To Plan Your Child's Future

    START NOW
  • There is lot to remember in Life, Set renewal premium payments to Auto Pay

    WATCH VIDEO
  • Get Life Cover worth Rs.1 Crore at Rs.21 per day2 – Bajaj Allianz Life Smart Protect Goal

    CALCULATE NOW
  • Life Insurance Term Plan with Return Of Premium

    WATCH NOW
  • Get your Life Goals Done with Bajaj Allianz Life Smart Assist – BINA MILEY MIL-KAR

    KNOW MORE
  • Paying your Renewal Premium is Quick and Easy!

    PAY NOW
  • Know the right amount of Insurance you need in just a few steps!

    START NOW
  • Avail Term Insurance Tax Benefits under Section 80D

    READ MORE
  • Know how to invest money during the covid-19 pandemic!

    READ MORE

Thanks for sharing your details, A Sales representative from
Bajaj Allianz Life will contact you shortly.

Dear Customer, we request you to connect with us in our next business working hours, (Monday to Saturday 24*6) Thank you, Have a great day ahead

Have Us Call You
X

Terms & Conditions

I hereby authorize Bajaj Allianz Life Insurance Co. Ltd. to call me on the contact number made available by me on the website with a specific request to call back. I further declare that, irrespective of my contact number being registered on National Customer Preference Register (NCPR) or on National Do Not Call Registry (NDNC), any call made, SMS or WhatsApp sent in response to my request shall not be construed as an Unsolicited Commercial Communication even though the content of the call may be for the purposes of explaining various insurance products and services or solicitation and procurement of insurance business

 

Please refer to BALIC Privacy Policy

Mortality Charges In ULIP

Mortality charges in ULIP

Mortality Charges In ULIP


calender-blue

Sept 27, 2018

By : Bajaj Allianz Life

Mortality Charge is the bone of contention in ULIPs because many consider it primarily an investment vehicle. However, the fact is that mortality charges are part of any insurance product and it is easy to see why. The insurer provides a life cover which is the sum assured payable to the nominee in case of death of the insured. The mortality charges are for providing the life cover under the policy. It is for this reason that an amount is deducted from the fund value as mortality charge.

Let's understand this with the help of an example. A 35-year old Mr X purchases a ULIP with an annual premium of ` 100,000 and a sum assured of ` 10,00,000. The death benefit payable in this policy is higher of sum assured or fund value. In case of unfortunate death of Mr X in the 4th year of purchasing the policy, the amount receivable by the nominee is higher of the fund value which is assumed to have grown to ` 5.5 lakhs or sum assured of ` 10 lakhs. In this example, the nominee will receive ` 10 lakhs as the death benefit. This risk of providing life cover is borne by the insurer, and mortality charges are deducted towards covering this risk.

 

How is Mortality Charge calculated?

 

Mortality Charge depends on factors such as age, amount of coverage (sum assured) of the policyholder, gender, smoking habits, health factors, etc. and is deducted on a monthly basis. It is generally lower for younger & healthier individuals. It increases, with the advancement of the policyholder's age.

The mortality rate (as on attained age) is per ` 1,000 of the cover or the sum at risk. It is calculated monthly based on the following formula :

Mortality charge = mortality rate (for the attained age) x sum at risk/1000 x 1/12

 

What if you get back the entire Mortality Charge?

 

Looking at customer's expectation from a ULIP, Bajaj Allianz Life Insurance has pioneered the concept of Return of Mortality Charges (RoMC) with its recently launched products Bajaj Allianz Life Goal Assure & Bajaj Allianz Life Goal Based Savings. It makes ULIPs more investor-friendly and increases the return on maturity.

With this feature, the policyholder gets back all the mortality charge deducted over the course of the policy term at the time of maturity. This amount is added to the Fund Value at maturity. The only factor that the policyholder needs to ensure is that the policy is not surrendered or discontinued and all the premiums have been paid on time.

It is easy to see that mortality charge is an integral part of any insurance product. At the same time, features like RoMC enhance the benefit for the policyholders and help them to reach their life goals faster.

Bajaj Allianz Life Videos

Video Icon

ULIP Ek, Fayde Anek | Bajaj Allianz Life

Contact Us

Bajaj Allianz Life Insurance Company Ltd.

Bajaj Allianz House, Airport Road, Yerawada, Pune - 411 006, Maharashtra

Tel No: 020-66026773

Fax No: 020-66026789

Branch Visit Timings:

Monday to Friday - 9:00 AM to 3:30 PM

Saturday - 9:00 AM to 1:00 PM

Customer Care Helpline:

1800-209-7272

Monday to Sunday: 9:00 AM to 7:00 PM (IST)

NRI Services Helpline

24/7 (All week days)

Sales Enquiry Helpline:

1800-209-4040

Monday to Saturday: 9:00 AM to 7:00 PM (IST)

For NRI: +91 20 67688888 (Call charges apply)

Monday to Saturday: 9:00 AM to 7:00 PM (IST)

Find Us Online

~Tax benefits as per prevailing Income tax laws shall apply. Please check with your tax consultant for eligibility.

The above information is for general understanding and is meant to educate the general public at large. The reader will have to verify the facts, law and content with the prevailing tax statutes and seek appropriate professional advice before acting on the basis of the above information.