Bajaj Life Insurance: ULIP Plan Guide

Quick Overview

Bajaj Life Insurance (formerly Bajaj Allianz) offers a range of Unit Linked Insurance Plans (ULIPs) that combine life insurance coverage with market-linked investments. These plans allow policyholders to invest in equity, debt, or balanced funds while maintaining life protection.

Some of the flagship ULIP plans offered by Bajaj Life include Goal Assure IV, Invest Protect Goal III, and Magnum Fortune Plus III. They come with flexible premium options, fund-switching features, and partial withdrawal facilities after the mandatory lock-in period.

However, like most ULIPs, these products involve multiple charges, market-linked risks, and a mandatory five-year lock-in period.

Bajaj Life, one of India’s major private insurers, offers multiple ULIP plans aimed at different financial goals. In this guide, we’ll break down Bajaj Life’s ULIP offerings, performance metrics, charges, and potential drawbacks so you can determine whether a Bajaj ULIP is actually worth considering.

Bajaj Life Insurance: Performance Metrics

Key Operational Metric	Bajaj Life FY 22-25	Industry Average (FY 22-25)
Claim Settlement Ratio (CSR)	99.21%	98.66% (Mean)
Amount Settlement Ratio (ASR)	93.42%	94.83% (Mean)
Complaint Volume (Per 10,000 Claims)	3.95	17.67 (Median)
Solvency Ratio	4.37x	2.04x (Median)
Annual Business Volumes (Crore)	₹11,508	₹3,411.73 (Median)
Amount Paid in Death Claims (Crore)	₹693.7	₹195.05 (Median)

Insights:

Bajaj Life’s CSR places the insurer in the list of the top 10 term insurance claim settlement ratios, where insurers are ranked by their CSR.
While the insurer’s ASR is slightly below the industry mean, it still suggests that both small and high-value claims are handled fairly.
Bajaj Life’s low complaint volume reflects relatively high customer satisfaction and fewer disputes in the claims process.
The insurer’s solvency ratio is among the highest in the industry and far exceeds the Insurance Regulatory and Development Authority of India’s (IRDAI) minimum requirement of 1.5x.
Bajaj Life’s annual business volume is substantially higher than the industry median, reflecting a strong market presence and large-scale operations.
The insurer also pays out claims well above the industry median, highlighting its significant policyholder base and active claims settlement activity.

Note: At Ditto, we prefer analyzing three-year averages rather than single-year metrics because insurer performance can fluctuate from year to year. Moreover, these numbers represent the entire product portfolio of Bajaj Life Insurance, which includes term insurance, ULIPs, and traditional savings plans.

Popular ULIP Plans Offered by Bajaj Life Insurance

Feature	Goal Assure IV	Invest Protect Goal III	Magnum Fortune Plus III
Minimum Sum Assured	7x annualized premium if entry age is below 50, 5x if entry age is 50+	7x annualized premium	7x annualized premium
Premium Payment Term (PPT)	5/ 7/ 10/ 15/ 20 years (depending on policy term)	Limited pay: 5 to 12 years, Regular pay: equal to policy term	5 to 25 years (depending on policy term)
Policy Term (PT)	10/ 15/ 20 years	20 to 40 years	10/ 15/ 20/ 25/ 30 years
Entry Age	0 to 60 years	18 to 60 years	0 to 65 years
Maturity Age	18 to 75 years	38 to 100 years	18 to 75 years
Loyalty Additions	At the end of policy years 10/ 15/ 20: 1.0%/ 1.5%/ 2.0%	At years 10/ 20/ 30/ 40: 1.25%/ 2%/ 3%/ 5%	Every year from the 10th policy year till maturity: 0.50% if the premium is below ₹1 Lakh, 0.70% if the premium is ₹1 Lakh+
Booster Benefits	Fund Booster at maturity: 2% of the average daily regular premium fund value of the previous 3 years, ROMC at maturity.	ROAC at the end of the 15th year, ROMC returned in stages from year 7 onward, Fund Maintenance Booster from the 4th policy year.	Maturity Booster for existing customers/ auto-pay, and ROMC at maturity.

Most Bajaj ULIP plans offer access to 20+ fund options across equity, debt, and balanced strategies, allowing investors to allocate their premiums to these strategies depending on their risk appetite.

These plans differ mainly in premium structure, investment strategy options, and policy flexibility. For instance, Fortune Gain II is a single-premium ULIP, whereas plans like Goal Assure IV allow regular premium payments over several years.

You can explore the official plan details on Bajaj Life’s ULIP page.

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Sample Premiums for Bajaj Life ULIP Plans

Since ULIPs combine investment and insurance, the premium amount varies depending on factors such as the policyholder's age, policy term, premium payment option, chosen sum assured, and fund allocation strategy.

For instance, younger policyholders typically receive lower mortality charges, allowing a larger portion of the premium to be invested in market-linked funds.

Consider the example of a 35-year-old covered by Bajaj Life Invest Protect Goal III until age 75 with a sum assured of ₹1 Crore.

PPT (in years)	Annual Premium	Total Premium	Estimated Maturity Value @6% Returns
7	₹1,33,334	₹9,33,338	₹36-₹38 Lakh
10	₹83,334	₹8,33,340	₹40-₹43 Lakh
12	₹71,429	₹8,57,148	₹42-₹45 Lakh

Note: The illustration above is from the Bajaj Life Invest Protect Goal III policy brochure.

If we assume a gross return of 8% per annum from the underlying market-linked funds, the policyholder's actual yields are typically lower due to ULIP-related charges. These can reduce the effective outcome by around 2%, resulting in a net return of approximately 6%.

Drawbacks of Buying a Bajaj Life ULIP Plan

High Initial Charges

ULIPs often include multiple fees, such as premium allocation, fund management, mortality, and policy administration fees. These can significantly reduce returns during the initial years.

Mandatory Lock-in Period

All ULIPs have a five-year lock-in period, meaning you cannot freely withdraw your investment before this period ends. Moreover, each top-up comes with its own 5-year lock-in for partial withdrawal purposes.

Market-Linked Risk and Lower Net Returns

Returns from ULIPs depend on market performance. After accounting for charges, long-term returns may be lower than those of comparable mutual fund investments.

Complex Structure

ULIPs combine insurance and investment into a single product, making them harder to understand than standalone mutual funds and term insurance policies.

Note: Partial withdrawals in ULIPs significantly reduce the effective sum assured calculation in these products.

ULIP vs Term Insurance: Which is Better?

From an Insurance Perspective

In the earlier example, a 35-year-old pays roughly ₹83,000 per year for a ULIP with ₹1 Crore coverage for 10 years.

But a pure term plan like eTouch II from Bajaj Life Insurance could provide the same ₹1 Crore coverage for roughly ₹17,000-₹19,000 per year (regular pay, 35-year-old, non-smoker, healthy profile), depending on factors such as age, health, and tenure.

That means nearly ₹64,000- ₹66,000 could be invested each year separately.

From an Investment Perspective

ULIPs include several costs that can reduce overall investment returns. As seen in the table, even with a long investment horizon, the maturity value reflects this adjusted return. While ULIPs offer the benefit of insurance plus investment, it is important for investors to evaluate the impact of charges on long-term wealth creation.

Many investors, therefore, prefer to separate insurance and investments by purchasing a term plan for protection and investing the remaining funds in low-cost instruments such as mutual funds.

You can also check out our detailed guide on ULIP plans to understand your best options.

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Ditto’s Take on Bajaj Life Insurance

Overall, Bajaj Life Insurance stands out for its excellent solvency ratio, strong claim settlement performance, and low complaint volume. Despite the insurer’s performance, ULIPs remain terrible investment products. If you’d like to judge them, look separately at charges, mandatory lock-in, taxes, fund choices, and whether buying a term plan and investing separately would yield better returns.

From an insurance perspective, you can check out the insurer’s term insurance products, such as eTouch II and iSecure II, which provide strong protection coverage.

However, when it comes to ULIPs, investors should carefully evaluate whether the investment-and-insurance combination suits their financial goals, especially given the charges and lock-in restrictions.

Full Disclosure: Bajaj Life is a partner insurer of Ditto, but we do not recommend or sell ULIPs at all because they tend to be inefficient as both insurance and investment products. This article is for informational purposes only, and all details have been taken from IRDAI reports, insurer websites, and publicly available data.

Frequently Asked Questions

What is a Bajaj ULIP plan?

A Bajaj ULIP plan is a life insurance product that invests a portion of your premium in market-linked funds while providing life insurance coverage.

What is the lock-in period for Bajaj ULIPs?

All ULIPs, including those offered by Bajaj Life Insurance, come with a five-year mandatory lock-in period.

Can I switch funds in Bajaj ULIPs?

Yes. Most Bajaj ULIP plans allow fund switching between equity, debt, and balanced funds during the policy term.

Is the maturity of a Bajaj ULIP taxable if the annual premium exceeds ₹2.5 Lakh?

Yes, for ULIPs, if the aggregate annual premium exceeds ₹2.5 Lakh for policies issued on or after 1 Feb 2021, the maturity proceeds are taxable. In such cases, gains are taxed as capital gains, and the Section 10(10D) exemption does not apply.

Are Bajaj ULIPs good investments?

ULIPs may work for long-term investors who want insurance and investment in one product, but many investors may find term insurance + mutual funds to be a more flexible combination.

Last updated on: 21 Mar, 2026