Bajaj Life Supreme Plan: Features & Review

Choosing a ULIP isn't just about comparing projected returns. You also need to understand the charges, lock-in period, fund options, and whether the benefits justify the costs. That's where this review can help. 

In this Bajaj Life Supreme plan review, we'll explain how the plan works, what the 7% allocation charge refund actually means, its key features, charges, pros and cons, and who should consider buying it.

What Is the Bajaj Life Supreme Plan?

The Bajaj Life Supreme plan (UIN: 116L211V02) is a Unit-Linked Insurance Plan (ULIP) that combines life insurance with market-linked investments. It offers 30 fund options across five investment strategies, along with features such as the guaranteed wealth booster, Return of Mortality Charges (ROMC), loyalty additions, free fund switching, and partial withdrawals after the mandatory 5-year lock-in period.

Bajaj Life primarily markets three variants: Advantage, Gold, and Horizon. However, the policy brochure includes nine variants: Advantage, Builder, Classic, Diamond, Elite, Fortune, Gold, Horizon, and Inspire. Your chosen variant is fixed at policy inception and cannot be changed later.

The only difference between the nine variants is the Premium Allocation Charge (PAC). All other features, including policy terms, fund options, investment strategies, charges, and benefits, remain the same. 

The Gold variant has a 0% Premium Allocation Charge (PAC), while the remaining variants levy different PAC rates in the initial years.

How the 7% Guaranteed Allocation Charge Refund Works in Bajaj Life Supreme

• Premium Allocation Charge (PAC): When you pay your premium, Bajaj Life deducts a PAC before investing the remaining amount into your chosen funds.
• Guaranteed 7% Accrual: The deducted PAC is tracked separately and grows at a guaranteed 7% per annum (compounded annually) throughout the first 15 policy years.
• Refund at the End of Year 15: At the end of the 15th policy year, the accumulated amount is credited back to your fund value as additional units, provided the policy is active.
• Not a Guaranteed Return on Your Investment: The 7% guarantee applies only to the deducted premium allocation charges, not to your total premium or fund value. Since the refunded amount earns 7% p.a., it may underperform compared to the market-linked funds if they generate higher long-term returns.
• Policy Must Remain in Force: The guaranteed wealth booster is not available if the policy is surrendered, discontinued, or converted to paid-up status.
• Top-Up Premiums Excluded: Premium allocation charges deducted on top-up premiums are excluded from the guaranteed wealth booster.

Note: Loyalty additions are credited from the 16th policy year onwards and equal 0.25% of the average fund value over the previous three years, including the current year, provided all due premiums have been paid. They are not available on the top-up fund value or if the policy is surrendered, discontinued, or converted to paid-up status.

Fund Options and Investment Strategies Under the Bajaj Life Supreme Plan

You can either create your own investment portfolio or choose from one of five investment strategies based on your financial goals and risk appetite. 

Fund Options

• Equity Funds: Invest primarily in equities for higher long-term growth potential (e.g., Pure Stock Fund, Flexi Cap Fund, Small Cap Fund).
• Index Funds: Track benchmark indices like Nifty Alpha 50 to provide diversified, passive market exposure.
• Debt Funds: Invest in fixed-income securities to offer relatively stable returns with lower risk.
• Liquid Funds: Invest in short-term money market instruments for capital preservation and liquidity.

Investment Strategies

• Investor Selectable Portfolio Strategy: Choose the available funds you want to invest in, decide the allocation across them, and switch between funds subject to policy terms.
• Wheel of Life Portfolio Strategy II: Automatically shifts your investments from equity-oriented funds toward debt and liquid funds as the policy nears maturity to manage risk. This strategy is not available for whole life policies.
• Trigger-Based Portfolio Strategy II: Starts with a 75:25 allocation between the Equity Growth Fund II and Bond Fund and automatically rebalances when specified 15% market-movement triggers are met.
• Automatic Transfer Portfolio Strategy: Invests premiums initially in the Bond Fund and/or Liquid Fund and systematically transfers a portion to your selected funds at monthly policy anniversaries. This strategy is not available if you pay premiums monthly.
• Capital Preservation Oriented Strategy: Allocates investments across five predefined funds and gradually reduces market risk as maturity approaches. It can only be selected at policy inception, requires a policy term of at least 10 years, and requires a gap of at least five years between the policy term and premium payment term. It is not available for whole life policies and does not guarantee a minimum maturity value.

Note: For a detailed breakdown of all applicable charges, refer to the Bajaj Life Supreme policy document (Part E: Charges) on pages 37–45 on Bajaj Life’s website.

Eligibility and Premium Illustration for the Bajaj Life Supreme Plan

Premium Illustration

Bajaj Life's benefit illustration assumes a 55-year-old male purchasing the Gold variant with a whole life policy term and a 10-year premium payment term.

Note: The 4% and 8% returns are illustrative assumptions mandated by IRDAI and are not guaranteed. These illustrations are intended only to show how the policy may perform under assumed gross investment returns.

After accounting for applicable policy charges, the effective returns in the illustration are around 2% and 6%, respectively. Actual returns will depend on fund performance and policy charges.

Note: The figures shown above represent the insurer's overall insurer-level performance, based on Bajaj Life’s public disclosures and IRDAI annual reports. For more such data, explore the Ditto Data Lab.

Who Should Buy the Bajaj Life Supreme Plan?

The Bajaj Life Supreme plan may be suitable if you have already secured adequate life insurance through a pure term plan and are looking for a long-term, market-linked investment with insurance benefits. It is better suited to investors who are comfortable remaining invested for 15 years or longer and specifically value multiple fund options, the guaranteed wealth booster, ROMC, and loyalty additions.

Who Should Avoid It?

You may want to consider other options if you are primarily looking for high-life cover, need short- or medium-term liquidity, or prefer a low-cost investment. In such cases, buying a pure term insurance plan for protection and investing separately in mutual funds may be a more cost-effective approach. 

If you are comparing ULIPs, it is worth evaluating the Bajaj Life Supreme plan against other ULIPs and alternative investment options before making a decision.

Why Choose Ditto for Life Insurance?

At Ditto, we’ve assisted over 12,00,000 customers choose the right insurance policy. Why customers like Vijay love us:

• 100% Free Consultation
• No Spam. No Sales Pressure.
• Rated 4.9/5 on Google Reviews by 30,000+ Happy Customers
• Backed by Zerodha
• Dedicated Claim Support Team
• Compare Plans and Premiums with a Trusted Insurance Advisor

Confused about the right insurance? Speak to Ditto’s certified advisors for free, unbiased guidance. Book your call now or chat with us on WhatsApp. Slots fill up fast!

Ditto’s Take 

The Bajaj Life Supreme plan is a ULIP designed for long-term investors who want to combine life insurance with market-linked wealth creation. Its standout feature is the 7% guaranteed growth on refunded premium allocation charges, along with return of mortality charges and loyalty additions for policyholders who stay invested over the long term. However, these benefits apply only under specific conditions, while your investment returns remain market-linked. 

If your primary goal is financial protection, consider buying a pure term insurance plan first. If you prefer Bajaj Life Insurance, eTouch II or iSecure II can provide higher life cover at a lower cost. You can then invest the premium savings in mutual funds or evaluate the Bajaj Life Supreme plan purely as a long-term investment option.