Tuesday, December 6, 2011

Bajaj Allianz launchs ULIP

Bajaj Allianz Life Insurance has launched a new unit-linked plan- Guaranteed Maturity Insurance Plan (GMIP)- that provides at maturity at least 200% of the amount invested along with a secure life cover.

With the minimum single premium as low as ` 5000, the product is the lowest single premium ULIP available in India, thereby making the product affordable for all income segments.

Zonal Manager North-2, Bajaj Allianz Life Insurance, Ashwani Sharma, said, "People in City like Jammu and its adjoining rural areas rarely get a chance to invest in ULIPs due to the high premium sizes. Thus, in order to reach out to those segments, Bajaj Allianz has come up with "Guaranteed Maturity Insurance Plan" which provides a guaranteed maturity benefit of at least double the premium paid".

GMIP is simple to understand plan in which single premium invested will be kept in denomination of ` 5000 each called as "Guaranteed Maturity Certificates (GMCs)". The provision of GMCs facilitates liquidity and preserves guarantee since partial withdrawals can be made only in units of GMC, that is, in multiples of ` 5000. Thus, the investor will not have to compromise on the guarantee of other GMCs which he or she will hold till maturity.

The plan does not have any allocation charge and 100% of the single premium paid by the policy holder goes in to the unit account; Flexibility of partial withdrawal after five years; and Life cover throughout the term of 10 years.

Key benefits of GMIP included Income Tax benefit under Section 80-C; Partial withdrawal any time after 5th policy year; Higher of Guaranteed Maturity Value of all the GMCs held at maturity or the fund value as on maturity date; and Higher of Prevailing Sum Assured reduced by the value of the units withdrawn through partial withdrawals from fund value in the last 2 years prior to death or fund value as on date of receipt of the intimation of death.

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