Bajaj Life Gain Plan Review: Features & Charges [2026]

Overview

Bajaj Life Gain is a Unit-Linked Insurance Plan (ULIP) that combines life insurance with market-linked investing. It offers two variants, three investment strategies, and 30 fund options. The plan includes unlimited free fund switches and Systematic Partial Withdrawals (SPW) after the 5-year lock-in. Returns depend on market performance and applicable charges.

Key Features and Benefits

Market-Linked Investing: Choose from 30 funds across different asset classes.
Flexible Investing: Unlimited free fund switches and SPW after five years.
Life Cover: Minimum death benefit of 105% of total premiums paid, subject to policy terms.

Plan Parameters

Eligibility: Entry age starts from birth. Growth: Up to 55 years (5-year Premium Paying Term (PPT)) or 65 years (other eligible PPTs). Secure: Up to 50 years.
Minimum Premium: ₹48,000 annually or ₹2.5 lakh (single pay).
Lock-In: 5 years. Investment risk is borne by the policyholder.

Choosing a ULIP isn't just about comparing projected returns. You should also look at the charges, investment options, lock-in period, death benefits, and whether the plan offers better value than buying term insurance and investing separately in mutual funds.

In this Bajaj Life Gain plan review, we'll explain how the plan works, its fund options, charges, lock-in and surrender rules, tax treatment, key features, and the pros and cons.

What Is the Bajaj Life Gain Plan?

Bajaj Life Gain (UIN: 116L213V02) is a unit-linked, non-participating individual life savings insurance plan that combines life insurance with market-linked investments. Instead of earning guaranteed bonuses, your premiums are invested in the funds you choose, and your maturity benefit depends on their performance after applicable charges. The plan offers two variants, Growth and Secure, each with different eligibility criteria and policy terms.

Growth Variant: The available policy term depends on your entry age and premium-paying term, with a whole life option available for eligible combinations. In this variant, a rising fund value can reduce the sum at risk, which may partly offset higher age-based mortality rates.
Secure Variant: It offers policy terms from 15 to 40 years and pays the higher of the sum assured plus fund value or the guaranteed minimum death benefit, subject to policy terms. Its sum at risk can be higher than under Growth for comparable inputs, so mortality charges may also be higher. Actual charges depend on age, gender, sum at risk, and underwriting.

The minimum annual premium is ₹48,000 for regular/limited pay or ₹2.5 lakh for the single pay option. The policy also provides a minimum death benefit of 105% of the total premiums paid, while your maturity value remains linked to market performance. As with all ULIPs, the plan comes with a mandatory five-year lock-in period.

How Bajaj Life Gain Invests Your Premium

After deducting the applicable premium allocation charge, your premium is invested in market-linked funds based on the investment strategy you choose. You can choose from three investment strategies:

Investor Selectable Portfolio Strategy: Build your own portfolio by selecting one or more funds. The plan also allows unlimited free fund switches, so you can adjust your investments as your goals or market conditions change.
Target Asset Allocation Strategy: Choose two funds and specify your preferred allocation. The plan automatically rebalances your portfolio every quarter to maintain the selected ratio.
Automatic Transfer Portfolio Strategy: Your premium is initially invested in the Bond Fund and/or Liquid Fund and is systematically transferred every month to the other fund(s) selected by you. The proportion transferred depends on the number of months remaining until the next premium due date. This strategy is not available if you choose the monthly premium-payment mode.

For the complete list of funds, asset allocations, and risk profiles, refer to the Bajaj Life Gain brochure PDF.

Guaranteed Additions and Loyalty Benefits Under Bajaj Life Gain

Unlike many modern ULIPs, the Bajaj Life Gain plan does not offer guaranteed additions, wealth boosters, loyalty additions, a return of mortality charges, or a refund of premium allocation charges at maturity. In other words, every charge deducted from your policy remains deducted.

Instead, the plan offers a Family Benefit at maturity. If your spouse, child, sibling, grandchild, parent, or parent-in-law is an existing Bajaj Life Insurance customer, including someone whose policy has already matured, you may receive a one-time addition based on the average fund value during the last three policy years:

0.5% of the average fund value if the policy term is less than 20 years.
1% of the average fund value if the policy term is 20 years or more.

Note: The Family Benefit does not apply to top-up premiums and is forfeited if the policy becomes discontinued or paid up before maturity. While it offers an additional maturity benefit, it is not comparable to annual loyalty additions, mortality charge refunds, or premium allocation charge refunds available under some competing ULIPs.

Charges You Pay Under the Bajaj Life Gain Plan

Charge	What It Means
Premium Allocation Charge (PAC)	Deducted before your premium is invested. It is 2% for regular/limited pay during policy years 1 to 5 and nil from year 6 onwards. For single pay and top-up premiums, the charge is 2%.
Policy Administration Charge	Deducted monthly by cancellation of units. It is 0.25% of the annualized premium (regular/limited pay) or 0.033% of the single premium (single pay), subject to a maximum of ₹500 per month.
Fund Management Charge (FMC)	Charged for managing your investments and adjusted in the Net Asset Value (NAV). It ranges from 0.70% to 1.35% per annum, while the Discontinued Life Policy Fund has an FMC of 0.50% per annum.
Mortality Charge	A monthly charge for life insurance cover, based on your age, gender, chosen sum assured, and underwriting. It remains guaranteed throughout the policy term.
Miscellaneous Charge	₹100 per transaction for specified services. Unlimited fund switches under the Investor Selectable Portfolio Strategy are free.

Note: The premium allocation charge and mortality charge are guaranteed for the policy term. For the complete list of charges and applicable limits, refer to the Bajaj Life Gain brochure and policy document.

Lock-In, Partial Withdrawal, and Surrender Rules for Bajaj Life Gain

Partial Withdrawals

Allowed only after completing the 5-year lock-in. You can withdraw up to 50% of the regular/limited pay fund value per withdrawal or 25% of the single pay fund value, subject to the minimum fund balance requirements. The minimum withdrawal is ₹5,000. Importantly, the chosen sum assured is reduced by partial withdrawals made from the regular/single premium fund during the two years immediately preceding the life assured's death.

Systematic Partial Withdrawals

After five years, you can opt for monthly, quarterly, half-yearly, or annual withdrawals, making the plan suitable for creating a regular income stream.

Surrender Before 5 Years

If you surrender the policy during the 5-year lock-in, your fund value, after deducting the applicable discontinuance charge, is transferred to the Discontinued Life Policy Fund (DLPF). The proceeds are paid only after the lock-in period ends.

Discontinuance/Surrender Charge

Applies only during the 5-year lock-in period. The DLPF earns a minimum guaranteed return of 4% per annum. No discontinuance charge applies after the lock-in period ends.

Surrender After 5 Years

You receive the entire fund value immediately without any discontinuance charge.

Top-Up Premiums

Every top-up investment has its own separate five-year lock-in, starting from the date the top-up premium is paid.

Taxation of the Bajaj Life Gain Plan

The tax treatment of the Bajaj Life Gain plan depends on the prevailing income tax rules.

- Premiums: Under the Income-tax Act, 1961, premiums may qualify for a deduction under Section 80C (subject to the prescribed limits and if you opt for the old tax regime). Under the Income-tax Act, 2025 (effective 1 April 2026), the corresponding provision is Section 123 read with Schedule XV.

- Death Benefit: Tax-free under Section 10(10D) of the 1961 Act (corresponding exemption under Schedule II of the 2025 Act), subject to applicable conditions.

- Maturity Benefit: Tax-free only if the applicable conditions are met. For ULIPs issued on or after 1 February 2021, the aggregate annual premium across eligible ULIPs must not exceed ₹2.5 lakh, and the applicable premium-to-sum-assured condition must also be satisfied. Otherwise, the gains may be taxed as capital gains.

Since the Bajaj Life Gain plan allows minimum sum assured multiples below 10 times the premium in certain cases, not every policy automatically qualifies for a tax-free maturity benefit.

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Bajaj Life Gain vs. Term Insurance Plus Mutual Funds

Parameter	Bajaj Life Gain (ULIP)	Term Insurance + Mutual Funds
Life Cover	Limited life cover linked to the policy (1.1 to 15 times annual premium). Minimum death benefit is 105% of premiums paid.	Higher life cover at a significantly lower premium (20-30 times annual income).
Investment	Invests in market-linked funds after deducting policy charges.	Direct investment in mutual funds with lower costs.
Charges	Includes premium allocation, mortality, policy administration, and fund management charges (up to 1.35% per annum).	Mutual funds charge only the expense ratio and possibly exit loads, while term plans have separate premiums.
Liquidity	Mandatory 5-year lock-in with surrender restrictions.	Most mutual funds can be redeemed anytime (except Equity Linked Savings Schemes (ELSS), which have a mandatory three-year lock-in period).
Flexibility	Insurance and investments are bundled into one product.	Insurance and investments can be managed independently.

Bajaj Life: Performance Metrics

Metric	Average (FY 2024-26)	Industry Average
Claim Settlement Ratio	99.32%	99.00% (mean)
Amount Settlement Ratio (Average FY 2023-25)	93.42%	94.83% (mean)
Annual Business Volume	₹12,791.02 crore	₹3,778.58 crore (median)
Volume of Complaints (Per 10,000 Claims)	2.77	13.10 (median)
Solvency Ratio	3.52x	2.00x (median)
Annual Death Claims Paid	₹828.11 crore	₹237.24 crore (median)

Note: The figures shown above represent Bajaj Life'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.

Pros and Cons of the Bajaj Life Gain Plan

Pros	Cons
Offers 30 equity, debt, hybrid, index, and liquid funds across three investment strategies.	No guaranteed returns, as your maturity value depends on market performance.
Provides a minimum death benefit of 105% of total premiums paid, regardless of market performance.	Comes with a mandatory 5-year lock-in, limiting access to your money.
Allows unlimited free fund switches under the Investor Selectable Portfolio Strategy.	Multiple charges, including premium allocation, mortality, policy administration, and fund management, can reduce net returns.
Offers systematic partial withdrawals after the lock-in period to create a regular income stream.	The life cover is lower than what you can get through a standalone term insurance plan for the same premium.
Optional riders are available for enhanced protection, such as accidental death and critical illness benefits.	Family benefit and withdrawal features are subject to specific eligibility conditions and exclusions.

Who Should Buy the Bajaj Life Gain Plan?

The Bajaj Life Gain plan may be suitable if you want to combine life insurance and market-linked investing in one product. It is best suited for long-term investors (15 years or more) who are comfortable with market risk, the mandatory 5-year lock-in, and the plan's charges. If you value multiple fund options, flexible investment strategies, and the convenience of managing insurance and investments together, this plan may be worth considering.

Who Should Avoid It?

You may want to consider other options if your priority is higher life cover, lower investment costs, or greater liquidity. In such cases, buying a pure term insurance plan for protection and investing separately in mutual funds may offer better flexibility and potentially higher net returns. If you're comparing ULIPs, it's also worth evaluating the Bajaj Life Gain plan against other ULIPs before making a decision.

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Ditto's Take

The Bajaj Life Gain plan is a ULIP that combines life insurance with market-linked investing through 30 fund options and flexible investment strategies. However, returns are not guaranteed, and charges can reduce your long-term net returns.

If your priority is higher life cover, a pure term insurance plan is usually the better choice. You can invest the premium savings in low-cost mutual funds for greater flexibility and potentially better long-term returns. If you're considering a ULIP, compare the Bajaj Life Gain plan with other ULIPs on charges, fund performance, features, and tax benefits before investing.

Frequently Asked Questions

Is the Bajaj Life Gain plan a good savings option?

The Bajaj Life Gain plan can be a suitable savings option if you're comfortable with market-linked investments and have a long-term investment horizon. It combines life insurance with wealth creation through 30 fund options. However, returns are not guaranteed, and charges such as fund management and mortality charges reduce your net returns.

Where can I download the Bajaj Life Gain brochure PDF?

You can access the Bajaj Life Gain brochure PDF download from the official Bajaj Life Insurance website. The brochure contains detailed information on eligibility, fund options, charges, benefits, and policy terms before you purchase the plan.

Is Bajaj Life Gain a guaranteed return plan or a market-linked one?

Bajaj Life Gain is a market-linked ULIP, not a guaranteed-return plan. Your maturity amount depends on the performance of the funds you choose after deducting applicable charges. While the plan guarantees a minimum death benefit of 105% of the total premiums paid, it does not guarantee investment returns.

What is the minimum death benefit payable under a Bajaj Life Gain policy?

The policy has a guaranteed death-benefit floor of 105% of the total premiums paid up to the date of death, including top-up premiums. However, the actual death-benefit formula differs between the two variants. Under Growth, the nominee receives the highest of the prevailing sum assured (including applicable top-up sum assured), fund value, or 105% of total premiums paid. Under Secure, the nominee receives the higher of the sum assured plus fund value, or 105% of total premiums paid. Partial withdrawals made during the preceding two years can also reduce the prevailing sum assured.

Can I stop paying Bajaj Life Gain premiums after five years and keep the policy?

Yes, but your life cover will reduce. After completing the mandatory five-year lock-in, you can stop paying premiums and continue the policy as a paid-up policy. However, your sum assured will be reduced in proportion to the premiums paid. For example, if you stop paying premiums after 5 years under a 20-year premium-paying term, your life cover will reduce to 25% of the original sum assured. Your fund value will continue to remain invested, but applicable policy charges will keep getting deducted, which can reduce your investment value over time.

How do I check my Bajaj Life Gain policy fund value?

You can check your Bajaj Life Gain policy fund value through Bajaj Life Insurance's customer portal, mobile app, or the annual policy statement. Alternatively, you can contact customer care or your insurance advisor. Since the plan is market-linked, the fund value changes with the daily Net Asset Value (NAV).

Is the Bajaj Life Gain maturity amount tax-free?

Not always. For ULIPs issued on or after 1 February 2021, the maturity amount is tax-free only if the policy meets the applicable premium-to-sum-assured condition and the aggregate annual premium across eligible ULIPs does not exceed ₹2.5 lakh. For most policyholders, the annual premium should not exceed 10% of the sum assured (15% for specified persons). If these conditions are not met, the gains may be taxed as capital gains. However, the death benefit remains tax-free. From 1 April 2026, these provisions are governed by the Income-tax Act, 2025, with the exemption under Schedule II and premium deductions under Section 123 read with Schedule XV.

What do the brochure's 4% and 8% illustrations actually mean for my returns?

The 4% and 8% illustrations are not guaranteed returns. IRDAI requires all ULIPs to use these standard assumptions for comparison. Your actual returns depend on market performance and the plan's charges. For the brochure's Secure variant example, an 8% gross return translates to roughly 6% annualized after charges, while a 4% gross return works out to around 1.7%. Always check the benefit illustration, especially the Reduction in Yield (RIY), to understand the impact of charges on your returns.

Last updated on: 14 Aug, 2026

Bajaj Life Gain Plan: Features, Charges & Review