Tarun Chugh, MD and CEO, Bajaj Allianz Life Insurance explained the latest ULIP and better ROMC for customer

Tarun Chugh, Managing Director and CEO, Bajaj Allianz Life Insurance Company at a press conference in Kolkata -2
Tarun Chugh, Managing Director and CEO, Bajaj Allianz Life Insurance Company at a press conference in Kolkata -2

• Introduces two unique features to increase maturity corpus for customers
• First of their kind features: Return of Mortality Charges and Return Enhancer
• Sets tone for ULIPs being introduced by the company

Kolkata, June 14, 2018: Bajaj Allianz Life Insurance Company Limited, one of the country’s leading private life insurers, is changing the game for ULIPs in the industry. The company recently introduced two, first of their kind features, in ULIPs that will enable a significant increase in the maturity corpus for customers. These features are in line with the company’s philosophy of empowering customers enjoy their life goals when they choose the company’s products for it.

Return of Mortality Charges (ROMC) and Return Enhancer are key features that the company has introduced. The company first launched these features with their Bajaj Allianz Life Goal Assure, and have brought them back with Bajaj Allianz Life Goal Based Saving. Both the ULIPs come with their own key features, but are designed to enable customers to invest towards any of their life goals in a simple and effective manner.

Speaking to the media on the new product and the unique ULIP features, Tarun Chugh, Managing Director and CEO, Bajaj Allianz Life Insurance Company, said, “As a company we are reorienting ourselves to become life goal enablers for our customers. We have a strong and consistent fund performance track record and to leverage it for our customers it was essential that we re-engineer and further innovate our ULIPs. With the introduction of ROMC and Return Enhancer, which are first of its kind in the industry, we are making our ULIPs more attractive with a very strong value proposition for our customers. This works especially for those who are looking at building their corpus and achieving their life goals through the equities market.”

Return of Mortality Charges: Explained
The primary objective of a life insurance contract is to cover the life assured against the risk of dying early. Hence, as a life insurer, we manage a pool of risk i.e. life cover or mortality. For every life insurer there is a cost applicable for covering this risk of mortality. In other words, mortality charge is the cost paid by customers towards the first service life insurers provide i.e. life cover. In a ULIP such cost of life cover is called mortality charge and is deducted for all customers through the policy term.

Mortality Charge is typically calculated basis the policyholder’s age, gender and sum at risk. By being the first life insurance company to return the life cover charges, Bajaj Allianz Life Insurance will not only add these amounts to the customers’ maturity amount, but will also encourage them to stay invested in the policy, as this amount will come to them on maturity.

Bajaj Allianz Life will be the first insurer in the country to return the price deducted for providing life cover. This feature will raise the benchmark for ULIPs in the industry and will make ULIPs more attractive and cost-effective for customers.

Return Enhancer: Explained
Every life goal has a financial implication, and typically there is a long-term investment horizon towards achieving this life goal. Investing towards these life goals regularly and in products that take advantage of India’s growing equities market is an effective way to achieve your life goals.

Now imagine if you are further rewarded to have stayed invested in a product that would bring you closer to your life goal! Return Enhancer is just this. On maturity of Bajaj Allianz Life Goal Assure or Bajaj Allianz Life Goal Based Saving, if the customer opts to take the maturity benefit in installments (and not as a lump-sum) over a period of five years then they will receive an addition of 0.5% of each due installment, thereby significantly increasing the value of each installment. During this period, the customer’s fund value will continue to participate in the fund(s) of his/her choice.

Bajaj Allianz Life Goal Based Savings: The latest ULIP
The company today launched Bajaj Allianz Life Goal Based Savings, a ULIP for customers who are keen to take advantage of the country’s equities market. The product comes with a host of unique features for customers who would like to invest towards their life goals in a regular manner.

Key features of Bajaj Allianz Life Goal Based Savings
• Non-participating ULIP
• Flexibility to opt for single or regular premium payment option
• Systematic Switching Option available for single premium
• Premium can be paid monthly, quarterly, half-yearly or yearly
• Comes with ROMC + Return Enhancer
• Options to choose from eight funds, with Investor Selectable Portfolio Strategy
• Unlimited switches available
• Sum assured is the multiple of premium chosen