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Wednesday, March 21, 2018

Plan your Life Goals with ULIP. Chapter 2 – How to invest



how to buy ULIP, Invest in ULIP, Save tax with ULIP, Bajaj Allianz G
Test Case – Bajaj Allianz Goal Assure, Step-by-step guide to invest in ULIP

Hi Friends, I have taken it up as my resolution for this year to guide or help you with step by step process of various investment options. To name a few would be how to make fixed deposits, how to buy life insurance, how to buy mutual funds etc. On this blog post, I would like to focus on the emerging life insurance cum investment products, which in recent times have gone through many upgrades, to promise superior return on investments for long term (10 years and above).

ULIPs are not only a convenient investment solution; they also offer tax benefits under 80c.
For a test case, I am choosing the newly launched BajajAllianz Goals Assure. Three reasons I have chosen this investment solution:it’s the latest ULIP plan which boasts of minimum cost structure of the policy, secondly the funds this ULIP invests in have proven track record and last but the most important part, this plan focuses on your goal, which gives many flexible options to switch investment within the plan, withdrawal options, free-switches and flexible maturity benefits.

This ULIP Policy address an important need of goal based financial planning. Often our financial plans are not aligned with the life goals,which proves to be inadequate in the times of need. Hence, more and more financial planners and experts are suggesting to move to goal-based planning to make the maximum out of the investment and lead a stress free happy life.  This policy comes handy as you will have to sit once, read through, choose your preferences and relax.

About Bajaj Allianz Goals Assure – Find the brochure
A life goal based investment plan (ULIP) that gives you the opportunity to plan once in a lifetime experiences with one investment. It offers choice of eight funds which can be invested through four investment strategies. The highlight of the plan is return of life cover charge on policy maturity, tax free returns on your investment and life cover. Investor also have an option of receiving the maturity benefit in instalments and receive the benefit of Return Enhancer, which is an addition of 0.5% of each due instalment. Funds continue to be invested during this time.
Important features of Bajaj Allianz Life Goal Assure–
  •         Option to take maturity in installments
  •          Return Enhancer benefit
  •          Return of life cover charges at maturity
  •          Choice of 4 investment portfolio strategies to meet your financial goals
  •          Unlimited free switches between funds, choice of eight (8) funds to achieve your financial goals
  •          Tax benefits under section 80C

Step by Step process to invest in this PLAN – with some screenshots to make your investment decision smooth.
To begin, Please Open

Step 1


Click Invest now.


Fill up the personal details like name, age, mobile, email and other mandatory fields.

It also gives you an option to choose your life goal – buying a house, child’s education, earn your first crore to name a few, you may also choose a different option by choosing ‘others’ as an option.


Step 3. Choose yearly premium 

On filling up and submitting the details, you reach the next page which asks about how much you wish to invest. 
Step 4. Choose your plan

I chose planning for child’s higher education hence to me the goal is 20 years away. I choose the payment term of 20 years and monthly premium of Rs. 5000. The payment term can vary between 15- 20 years basis your comfort, and the premium also can be chosen as per your wish and goal. You have an option here namely ‘multiplier’ it gives you a flexibility to choose the life cover on the premium you pay annually. In this the minimum life cover you are assured is 10 times of your annual premium. You can also increase it up to 20. 

In the same page you will be given an option to choose your investment style. You may consider wheel of Life or Trigger based portfolio if you want to just enjoy the returns without much of involvement.

If you are a savvy investor, you have options of choosing your funds actively. You will have range of funds to choose from, bonds to be the safest ones but lowest on returns. Depending on your age, risk appetite you may choose this. If you have a horizon below 10 years you may consider having an exposure to bond funds, more no. of years you have on your side you may choose to have higher exposure in equity. If you have invested in markets before and like the long term growth story of equity markets, you may have higher allocation in the Pure Stock fund II and Accelerator MidCap funds. If you see the window, you can choose multiple funds upto 6 funds. However, personally I want to have a complete equity exposure in 3 of its funds in equal proportion as I have 20 long years in hand, and I have an option to switch freely later.

how to buy ULIP, Invest in ULIP, Save tax with ULIP, Bajaj Allianz G

Step 5. Verify details

You check and verify the details you filled up so far. 


Step 6. 

Enter the payment mode 




how to buy ULIP, Invest in ULIP, Save tax with ULIP, Bajaj Allianz G
Step 7. 

Make the payment with Net banking or credit card or online wallet.
                                                                                                                     
Documents required
1.       Your PAN Card
2.       Adhaar Card
3.       Demat account (Optional)
4.       Address proof
5.       Bank account details

This is a simple process to invest in ULIP which is emerging as one of the best option for long term investment like buying house, child’s education, earning your first crore or funding your start-up. etc.

The website also features and Return calculator to help you get a sense of return you may get in your investments. Though the illustration shows a return on 4% and 8%, in real term with equity funds, the returns can go above 10% easily over 15-20% making it a substantial gain in compared to the traditional saving products.

I will come back to you with similar investment step-by-step guide for other investment products. Keep saving, Keep investing and do spend on yourself.
Live a stress free life with goal based investing. 

how to buy ULIP, Invest in ULIP, Save tax with ULIP, Bajaj Allianz Goal Assure

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