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Bajaj Allianz iGain ULIP

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Bajaj  Allianz has introduced a unit-linked life insurance plan called iGain. This policy available directly from Bajaj Allianz, it is easy to buy online and much simpler to understand the terms and conditions. Their website provides all the info with various charges on a yearly basis for individual premium amount, while purchasing the ULIP itself. Bajaj_Allianz_iGainThis will make a big dent to Insurance agents pocket since their commission part is completely excluded from customers money. Also, this will ensure that the agents can no more mislead the customers with the policy information.

My take on this policy:

  • Since iGAin is completely an online ULIP, it does not have an intermediary and hence you are the sole beneficiary.
  • The allocation charge is 5% in first year, if the premium is between 5K to 25K. However, it will be 2% if premium is 25K-200K & zero above that. They are able to offer such low charges since there is no agent in between customer and the company.
  • From the 11th year onwards, iGain increases the allocation of units by 2% to enhance your investments. So while you pay a 100% premium, 102% of it is invested.
  • Due to all these benefits, if you calculate the effective allocation charge for a term of 20 years, we can say that policy has zero allocation charges.
  • Now the question that comes to everyone’s mind is how are they able to offer iGain plan with very less initial premium allocation charge. The truth is in the administrative charge, which is very high that customer has to pay throughout the continuation tenure of the policy.
  • The choice of top-ups is good. Customer has the flexibility to make an additional investment through a top-up, which is over and above regular premium payments. Top-up can be made at any time while the policy is in force with minimal charges.
  • Unlimited switches are allowed. A switch will enable you to shift the existing units of your unit-linked policy into a new fund and will not change your future premium allocation.
  • Good thing is they have made it very clear on their site that monthly administration charge is 0.5% of yearly premium with a min of Rs 50 and a max of Rs 100, this means you are spending around 5% of yearly premium just as administration charge, which is too high. Hence, the company is not really selling the policy cheap, but the fact is they are cashing in from the administrative charges 🙂

More information about this policy can be found on their site here. Though it looks to be an attractive option, SBI smart ULIP seem to provide the best possible NAV among the existing ULIPs. In this SBI Smart ULIP, NAV is guaranteed while the  premium paying term is either 3 or 5 years.

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Comments

  1. Hi ,
    I have taken Kotak smatrt advantage plan before three years ,now login perios is completed,so I need your suggestion on this plan.Should I continue this plan for 15 years or should I surrendre it now with about 3600 per year (108000) tital invested and how much I have to received if I surrender it.

    Thanks,
    Raghuveer Singh

    Reply

  3. HI Mohan,
    I was wondering if you could give me some insight into the Cash Gain Economy plan of Bajaj. I have a regluar premium plan payable annually over 15 years at payout of 5 lacs.
    I’m suddenly not convinced that it is going to benifit me as I thought it would.
    Thanks in advance for your reply.
    – Ali

    Reply

  4. i have very bed experince bajaj alianz policy they r cheating with coustmer i all ready pay my 3primium but still my policy laps i m not recived any details from last 3yr when i call coustmer care no positive reply i will sayhim send your officer and agent who sale me this policy he didnt answer

    Reply

  5. i want to know about the information of igain life insurance….
    and please let me know what is the minimum ad maximum age…

    Reply

  8. hello,

    i am new to investment world. I am planning to invest up to 1 lac per month for at may be 3-5 yrs (it may be longer if policy is good). please help me in deciding whether i should go for ajaj allianz igain ii or other mutual funds.

    Is it wise to invest in bajaj allianz igain ii. U can pls suggest some more options

    saurabh

    Reply

    • Saurabh, since you are willing to invest huge amounts I suggest you get in touch with a professional financial advisor to make the best returns out of your investment.

      Reply

  9. Hello Mohan,

    Your interpretation of 5% admin charges is quite misleading to say the least. If i invest 50K as yearly premium, all i pay out is 100bucks monthly (as admin charges are capped at 100Rs per month).

    I believe u should modify your blog 🙂
    PS: i just invested in Igain and i think its a very good ULIP when compared to pro-agent ULIPS. Also, these IGain folks have a midcap fund as well, which is quite unlike most of the ULIPs..

    Reply

  10. Dear Vasanth,

    Please go through the entire comments history of some ULIP reviews plus some articles on financial planning and you will come to a final conclusion:

    NAV performance cannot be judged, cannot be guaranteed, cannot be assured. Can anyone tell if NSE, BSE would come together in future or there will be one or more Stock Broking Exchanges. We all will have to face the world’s financial markets as and when they function. Yes one thing is sure, Our money invested is safe as companies cannot dupe you coz of stringent IRDA, SEBI, Govt Laws as far as money market and ULIPs are concerned.

    By far I believe IRDA has agreed that realist return that ULIPs will yield in future (if managed for long term)is around 6 and 10% p.a. on an average though most economists believe that ULIPs if managed properly would yield around 15% per annum average. Just invest in good ULIP/ MF and relax. Book partial profits after regular intervals and invest in good FDs

    Turn away advisors/agents who show phenomenal returns. Just yesterday, one advisor told my friend since LIC has govt backing market plus would give min 100% return every year.

    Reply

  11. hai sir i want one answer hights nav how can calculte lic wealth plus if i buy 8 yeras after i get how mch money will returuns come .

    Reply

  12. Hi Mohan,
    Can u let me know that if I invest 1 lakh per annum in SBI ulip for 3 years then leave it there for next seven years. How much can I get back in total like minimum and maximum..
    And the same thing if I do it for 5 yrs i.e. pay 1lakh per annum for 5 yrs and leave it for another 5 yrs then what will be the minimum or maximum returns. Some one told me that it can be around 70 lakhs.. Is that true..? Pls guide me
    munavvar

    Reply

  14. hi mohan

    just gone through the Aviva Freedon life plan, and have compared with SBI Life SMart Ulip. can u Please help me out in deciding which one is better and which one among them will give better returns. i am planning to invest Rs. 3 Lakhs for 10 years period

    Thanks

    Reply

  16. Earn Minimum 4% Per Month on yourBajaj Allianz New UnitGain. These policies are one of the best policies around the country according to us by considering growth, risk coverage, and commissions provided by the company.

    Reply

      • Thanks Mohan for your fast reply and if possible to review it with day and I am really waiting for your review about it. bcz b4 I was plan to invest in sbi smart unit plan but now some one share it with me today and I wanna invest. So, I’ll choose any of plan after your reviews and other experts comments.
        Thanks!

        Reply

        • Virendar, I had a quick look at that kotak smart advantage plan. It seems to be way too long for an investment. 275% growth over 30 years! Also, the charges levied in this plan are comparatively more than other products in the field. Premium allocation charges are applicable if your annual premium is less than 36,000/-. Similarly there are other charges like Mortality charge, Fund management charge, Administration charge, switching charge, surrender charge, partial withdrawal charge etc., Final there is miscellaneous charge as well which is not clearly defined. For me it looks like a saying that wait for 30 years and you will get 275% returns on your investment!

          Reply

          • Thanks Mohan, but they said you can withdrawal partial amount after five years. And main thing is, it start with min amount. I was just compare this plan with SBI smart ulip. I have both options but confused…One thing in SBI plan lots of charges …and Ksap Kotek don;t have big changers in first year, they commit they will charge only 5% first year…next year charges is increase but it will be charged from your growth income not form your premium you will pay. So, Mohan I know its a hard to compare all planes…bcz their is lots of hidden charges we don’t know.
            THanks!

          • Virender, don’t ever go by what agents/sales folks say. Always ask them to show where is the mention of their words in the product brochure. Agents usually sell the product by giving false info at many a times just to make their living. So don’t go by whatever they say unless they have supporting docs on the company website.

          • Hi,

            what u say is right . The admin charges are 5% of the annual premium paid. But cant i easily get around with taking the minimum premium say 5k and adding the remaining amount as topup? topups are not charged for premium allocation charges.. so am i not saved from all the angles..?

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