Bajaj Life Invest Protect Goal III

What is Bajaj Life Invest Protect Goal III?

Bajaj Life Invest Protect Goal III is a ULIP that protects your family while also providing you with market-linked returns on your premiums. The insurance cover lets you provide your family with a financial safety net in your absence; the investment allows for long-term wealth creation directly influenced by the market. 

Note that this plan is a successor to Bajaj Life Invest Protect Goal and Bajaj Life Invest Protect Goal II. The aforementioned plans are no longer provided by Bajaj Life. However, pre-existing plans before discontinuation continue to remain active under IRDAI guidelines. 

Key Features of Bajaj Life Invest Protect Goal III

• Lock-in period: A mandatory 5-year lock-in period, which allows for no partial withdrawals.
• Partial withdrawals: Allowed from the 6th year of policy term. However, the fund value should remain at least 3 times the annualised premium. 
• Top-up premiums: Policyholders can top up their investment at any point during the policy term except for the last 5 years of the policy term.
• Customisation: The plan allows for high flexibility and customisation, allowing the policyholder to customise premium frequency, switching between portfolio strategies and increasing or decreasing the sum assured. 
• Enhanced protection: Policyholders can opt for additional riders to increase the protection on their policy. 

Eligibility criteria for Bajaj Life Invest Protect Goal III

Benefits of Bajaj Life Invest Protect Goal III

1. Death Benefit

   If the life assured by the policy passes away during the policy term, the nominee receives the higher of the sum assured or the regular premium fund value. Additionally, the nominee also receives the higher of any top-up premium fund value or top up value sum assured. The plan, in total, guarantees 105% of the total premium paid up to the date of death.

2. Maturity Benefit

   If the policyholder survives by the time the policy matures. The total fund value is paid to the policyholder. 

3. Loyalty Advantages

   The plan aims to encourage long-term investors and provides them with several benefits through different mechanisms.

   • Return on premium allocation charge: if the policy completes 15 years, all the premium allocation charges deducted from the premiums (excluding cess and GST) are credited back to the fund. 
   • Mortality charges: Mortality charge is a form of ULIP charge which includes the cost of providing life insurance coverage that pays out to the beneficiary in case the policyholder dies. It is also duly returned to the policyholder at different periods throughout the policy term.

   The following table lists the percentage of mortality charges returned to the policyholder at different periods of time. 

   Percentage of return	Time
   25%	7 years
   50%	15 years
   75%	20 years
   100%	of any subsequent mortality charges deducted from the 21st year onwards are returned every five years or at maturity

   • Loyalty Additions: Extra units are added to the fund at the end of a predefined time throughout the policy term. The following table lists the addition percentages of units at different times. Note that these percentages are based on the average fund value over the previous three years. 

   Percentage of addition	Time
   1.25%	10 years
   2%	20 years
   3%	30 years
   5%	40 years

   

4. Fund management booster

   After the 4th year of policy term, if the total fund value falls below one annualised premium at the start of the month, the company adds a booster to restore the lost value to one annualised premium. This is to ensure that the fund remains large enough to cover the charges and the policy remains active. 

5. Liquidity and flexibility

   • Partial withdrawal: After the policy has completed its sixth year, it allows the policyholder to make partial withdrawals provided that the fund's value remains three times the value of the annualised premium. 
   • Top-up facility: You can increase your investment amount by a minimum of ₹5000 throughout the policy term except during the last 5 years before maturity.
   • Investment control: You can choose between 2 investment strategies and 28 funds as per your investment goals and risk appetite. 

6. Riders 

   You can add additional security to your policy by adding various riders such as Accident Protection Rider II, Care Plus Rider, or New Critical Illness Benefit Rider.

How does Bajaj Life Invest Protect Goal III Work?

The working of the Bajaj Life Protect Goal III can be divided into three main steps. 

Step 1: Plan Customisation 

• Determine Term
  • Choose your policy term, a minimum of 20 years 
  • Choose your premium payment term 
  • Choose between limited pay or regular pay. 
• Set Life Coverage

  Set your sum assured. Note that the minimum sum assured should be at least 7 times your annualised premium.

• Select Investment Strategy

  Choose how your money will be invested in various funds in the market. 

Step 2: Investment 

You can use 2 strategies to invest your money in the market

• Investor scalable portfolio strategy: You can choose between 28 funds manually and distribute your investments as per long-term goals. This plan allows for unlimited switches for better risk mitigation. 
• Automatic Transfer Strategy: This is a mechanism designed to deal with market volatility by allocating the funds into low-risk funds initially and then transferring a fixed proportion to a higher-risk equity fund every month.

Step 3: Value additions and payout

• Value Additions: The plan commences returns of various charges such as mortality charges and premium allocation charges after the policy has completed a part of its term. Extra units are also added as loyalty benefits starting from the 10th year of policy. 
• Payout
  • On maturity: The total fund value is paid to the policyholder
  • On death of the policyholder: The nominee receives a lump sum amount which is a minimum of 105% of the total premiums paid throughout the term of the policy.