Notifications10

  • Get Life Cover worth Rs.1 Crore at Rs.17 per day2 – Bajaj Allianz Life Smart Protection Goal

    CALCULATE NOW
  • Apne life goals ki guaranteed1 hona Ye Bhi Sahi Hai

    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 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 showing your interest. A 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

X

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

banne-img banne-img

Get Market-Linked Returns with Tax Benefits$

calci-img

KNOW MORE

icon-img

* T&C apply | BJAZ-WB-EC-04728/23

×

$Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.

Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116.
×

$Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.

Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116.

Why Are Ulips So Popular In India?

ULIPs were first introduced in India way back in the year 1971 by the Unit Trust of India (UTI). So, what makes it so desirable and popular in the minds of the Indian investors? Continue reading to find out. But before that, what is a ULIP? Let’s quickly revisit the concept.

 

What is a ULIP?

 

A Unit-Linked Insurance Plan (ULIP) offers dual benefits of both insurance and investment. Offered by insurance providers, a ULIP requires you to make regular payments to the insurer, known as premiums. In exchange, the insurer provides you with a life cover and invests the premiums that you pay in market-linked funds that you choose at the time of purchase. Depending on your needs and requirements, you can choose either equity funds or debt funds or mix of both.

 

Reasons why ULIPs are attractive to the Indian Psyche

 

A Unit-Linked Insurance Plan offers you the ability to create market-linked wealth in the long run and also provides some much needed financial protection to your family if something were to happen to you. While this is a compelling reason for ULIPs to be popular among the Indian investors, it is not the only one. Here’s a quick look at a few of the reasons.

1. They’re one of the preferred instruments for satisfying long-term goals

As you’ve seen above, a ULIP is a long-term investment option. It works well when given enough time. Factors like compounding, which is basically reinvestment of your returns to generate higher returns, play a huge role when it comes to creating market-linked wealth, which a ULIP leverages.

Also, by staying invested for a long period of time, you can lower the effects of market volatility and achieve better and more stable returns. This makes ULIPs the suitable option for satisfying long-term goals such as the purchase of your own home or your child’s marriage.

2. They offer complete freedom of choice

Unit-Linked Insurance Plans are all about customizability and complete freedom of choice. You can not only customize the death benefit sum assured and the tenure out of the available options, but also choose how much to invest and the kind of funds to invest in as well.

For instance, if you’re a young investor with a high penchant for risk, you can choose to invest in equity funds. On the other hand, if you’re an older investor with a low-risk appetite, you may choose to invest in debt funds instead. You can also use a ULIP calculator to help you make investment decisions as well.

3. They allow switching of funds

Another major reason why ULIPs are popular amongst Indian investors has to do with the fact that you can switch funds at any point during the tenure of the plan. Let’s say that you chose to invest in equity funds at the time of purchase of the plan.

After a few years, if your risk appetite changes or the market underperforms, you can simply choose to switch over to debt funds. And if at any point you wish to go back to equity funds, you can simply make a request for switching from debt to equity once again.

4. They come with tax benefits

A typical ULIP in India offers several tax benefits. For instance, the premiums that you pay towards the plan can be claimed as deductions under section 80C of the Income Tax Act, 1961 to the tune of Rs. 1.5 lakhs per annum. That’s not all. The maturity benefits that you receive from the plan are also exempt from tax under section 10(10D) of the Income Tax Act, 1961. These deduction and exemptions are Subject to satisfaction of conditions mentioned in the Act. Note that if ULIP policy/policies are issued on or after 1 February 2021 with annual premium of Rs. 2.50 lakhs or more, gain form such policy/policies is treated as Capital Gain and taxed in the hands of recipient.

5. They offer a top-up facility

And finally, the versatility and flexibility that a Unit-Linked Insurance Plan offers is another one of the many reasons why they’re so popular in India. For example, if you have any excess unused funds with you or have received any windfall gains recently, you can choose to top-up your ULIP by paying a lump sum additional premium. This additional premium payment is used to enhance the fund value, thereby increasing the chance of generating higher returns.

 

Conclusion

 

A Unit-Linked Insurance Plan offers plenty of benefits to the policyholder. It’s no wonder then that it enjoys such popularity in India. That said, here’s something that you should know. Before you go ahead and purchase a suitable ULIP plan in India that suits your needs and requirements, always ensure to use a ULIP calculator. You can make more informed purchase decisions this way.

BJAZ-WEB-EC-00849/22

media-icon media-icon media-icon
Popular Blog

Bajaj Allianz Life Videos

Play

Presenting Shubman Gill as The New ACE Of India | Bajaj Allianz Life | Bajaj Allianz Life ACE

Contact Us

Bajaj Allianz Life Insurance Company Ltd.

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

Tel No: 020-66026773

Branch Visit Timings:

Monday to Friday - 9:00 AM to 3:30 PM (IST)

Saturday - 9:00 AM to 1:00 PM (IST)

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: +91-20-35125850 (Call charges apply)

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

Find Us Online

#Survey conducted by brand equity – Nielsen in March 2020

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

**Past performance is not indicative of future performance.

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.

In this policy, the investment risk in investment portfolio is borne by the policyholder. Investment in ULIPs is subject to risks associated with the capital markets. The policy holder is solely responsible for his/her decisions while investing in ULIPs. The views stated in this article is not to be construed as investment advice and readers are suggested to seek independent financial advice before making any investment decisions. For more details on risk factors, terms and conditions please read sales brochure & policy document (available on www.bajajallianzlife.com) carefully before concluding a sale.