Bajaj Allianz iGain II Policy: Returns & Investments: Finance Trading Times

Bajaj Allianz iGain II Policy: Returns & Investments

This is part II of Bajaj Allianz iGain II Policy Review. Please read Part I Bajaj Allianz iGain II Policy: Review, Analysis & Details
How about the returns from Bajaj Allianz iGain II Policy?
That's the million dollar question - Bajaj Allianz iGain II Policy is a ULIP - i.e. a mix of insurance and investments. So one will get some returns on his invested capital. However, let's see a demo taken from their site. Bajaj Allianz iGain II Policy The demo is for 10K annual premium payment, and shows INDICATIVE returns for 5 to 9 years period (indicative because returns will vary as per returns from where your money will ultimately be invested). So even with these indicative figures, the returns dont look that attractive. Say in 5 years at 10K per annum premium, you pay a total of 50K. and the indicative returns show just 58,551 as returns. Similarly, for 9 years, you pay 90K, get back around 1.248 Lakhs. Over that long period, it may not be that attractive. An alternative to that is buying a no-frill insurance policy, and also invest regularly in a market index based ETF or Exchange Traded Fund. The no-frill policy will cost you lowest and give you maximum insurance, while the index based ETF investment over this long horizon will build up good corpus of money in terms of SIP or systematic Investment plan.

However, you must not forget the tax benefit available. Premiums paid under iGain II are eligible for tax benefits under Sec 80C also the maturity benefits are tax free under Sec 10(10)D. Depending upon your tax bracket, you will get tax benefit. Again a lot of nos. need to worked out. Also your money gets locked in in ULIP.

Where will my money be invested ultimately?
There are a few funds where your money will get invested:
Equity Growth Fund II
Accelerator Mid Cap Fund II
Pure Stock Fund
Asset Allocation Fund
Equity Index Fund II
Liquid Fund
Bond Fund
Continue Reading about Charges you pay and how it affects your net returns from Bajaj Allianz iGain II Policy
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