Life Goals Loading…

12 Blue cross

Notifications12

  • Be Reborn as a Superstar After Retirement

    WATCH VIDEO
  • 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

In this policy, the investment risk in investment portfolio is borne by the policy holder.

Strong Long Term Fund Performance Track Record**

One Of The Most Trusted Brands#

What is Premium Redirection in ULIPs

Tax Benefits~ On Online ULIP Plans

Please enter a Name
Please enter a Mobile No.
Please check the box to proceed
WS_LIGuideHome_Banner_EN 307 38983691 WS_LIGuideHome_Banner_HI 307 38983695
WS_LIGuideHome_Banner_Mob_EN 307 38983693 WS_LIGuideHome_Banner_Mob_HI 307 38983677

Everything you Need to Know About Premium Redirection in ULIPs


calender-blue

Nov 11, 2021

By : Bajaj Allianz Life

 

What is the ULIP plan and how does it work?

 

The insurer collects money from all policyholders and invests it in funds that they select. The overall corpus is divided into 'units' with a certain face value once the money has been invested. Following that, each policyholder is assigned ‘Units' in proportion to the amount invested. The Net Asset Value (NAV) is the value of each unit at any given time (NAV). The effect of changes in the value of the underlying assets is represented in the ULIP NAV.

If you partially withdraw from the corpus (according to the policy's terms and conditions), the equivalent number of units is sold. In the same way, some policy fees are deducted in the form of units subject to terms and conditions specified.

 

What does premium redirection in ULIP mean?

 

  • Premium redirection in ULIP refers to how your upcoming premium will be allocated in the proportion that might have been selected by you into the respective funds
  • As a result, one of the most significant characteristics of your assets is flexibility. Their features, such as fund switching and premium redirection, make it easier to migrate between different type of funds and manage your returns.

 

How to redirect your premium in ULIP?

 

  • ULIP policyholders have the option of switching their investments from one fund to another within the same plan. Units can be transferred entirely or partially between the three fund types: equity, debt, and a combination of both. The former is referred to as a fund switching.
  • A fund switching is when you switch the funds where your existing units are housed. For example, in the past, you allocated 40% of your investments to debt and 60% to equity. You've now requested that 80 percent of your funds be converted to equity. As a result, your fund manager will convert 20% of your debt investments to equity. After the transfer, you'll have 80 percent of your investments in equity and 20 percent in debt funds.
  • The term "premium redirection in ULIP" refers to the process of shifting the funds in which future premiums are invested to purchase units. Let's look at the previous example again. You predict interest rates to fall a few months after authorising a fund move. So, you want to take advantage of the better yields currently available in the debt market. As a result, you direct the fund to apply 60 percent of your premiums to debt. As a result, 60 percent of your policy's future premiums will be invested in debt and 40 percent in equity. Meanwhile, your existing units will continue to remain in the funds where you have allocated before.

 

Wrapping Up

 

Bull and bear markets exist in the financial markets. So, why should you keep your investments the same? You can adjust your ULIPs asset allocation according to your investment view and outlook using the premium-redirection option. Of course, it's important to keep in mind that successfully timing the markets necessitates experience. Before making a transition, think about your risk appetite, age, aspirations, and dependents. So, before you reroute your funds, talk to your financial advisor or fund manager.

BJAZ-WEB-ECNF-02372/21

Bajaj Allianz Life Videos

Video Icon

Superstar After Retirement | Bajaj Allianz Life Guaranteed Pension Goal

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.