The Best of Both Worlds: How ULIPs Help You Achieve Financial Freedom with Security

IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER. THE LINKED INSURANCE PRODUCT DO NOT OFFER ANY LIQUIDITY DURING THE FIRST FIVE YEARS OF THE CONTRACT. THE POLICY HOLDER WILL NOT BE ABLE TO SURRENDER/WITHDRAW THE MONIES INVESTED IN LINKED INSURANCE PRODUCTS COMPLETELY OR PARTIALLY TILL THE END OF THE FIFTH YEAR.

The origins of insurance stretch back centuries, from merchants insuring goods shipped across dangerous seas to individuals protecting their families' futures. However, as global capital markets grew in popularity during the 20th century, combining wealth building with life insurance emerged. This innovation led to the birth of Unit-Linked Insurance Plans (ULIPs)—an exciting financial tool combining investment growth and insurance security.

ULIPs: A Perfect Blend of Insurance and Investment

ULIPs gave life insurance a major facelift, transforming it into a goal-based wealth-building instrument while keeping the core purpose intact: financial protection for your loved ones. With a ULIP, part of your premium goes toward life insurance, while the rest is invested in market-linked instruments like equity, debt, or a mix of both, based on your risk appetite and financial goals.

Your ULIP investment's value grows as your chosen funds' performance improves. In the event of the policyholder's passing during the policy term, the nominee receives a life insurance payout, ensuring financial security when needed the most.

How Does a ULIP Work?

To understand ULIPs better, let’s explore a hypothetical journey of Srikanth, 35, a business owner. When Srikanth welcomed his daughter, Asmi, he wanted to secure her future and chose Bandhan Life’s iInvest Advantage ULIP for a 20-year policy.

• Annual Premium: ₹2 lakh per year for 10 years.

• Scenario 1 (Maturity Benefit): Scenario 1 (Maturity Benefit): If Srikanth stays invested until the policy matures, he will receive ₹53.03 lakh at an assumed ^##growth rate of 8% or if his fund grew by 4% he will receive ₹29.24 lakh. The growth of his fund will depend upon the performance of the funds at the stock market. The amount (whatever it is) will help him pay for Asmi’s college fees at a premier education institution.

• Scenario 2 (Death Benefit): If Srikanth passes away in the 16th year, his nominee will receive ₹41.01 lakh as a death benefit.

But here’s the exciting part, managed by experienced fund managers—ULIPs, such as the Bandhan Life iInvest Advantage, have the potential to offer higher returns. Since returns are linked to market performance, choosing well-performing funds can significantly enhance your investment value over time.

Building Wealth, Breaking Benchmarks***

This superior performance demonstrates the potential of ULIPs to create wealth over the long term, while simultaneously offering life cover.

Why Choose a ULIP?

ULIPs are a versatile financial tool suited for long-term planners comfortable with market fluctuations. Besides providing a substantial life cover for your nominees, there are other reasons why ULIPs can be a valuable addition to your portfolio:

• Goal-Based Savings: ULIPs help align investments with personal financial goals, such as a child's education, retirement, or wealth creation.

• Beating Inflation through Long-Term Wealth Accumulation: A 5-year lock-in period ensures discipline, encouraging long-term investments with high returns that help outpace inflation.

• Tax Efficiency: ULIPs enjoy tax benefits^% under Section 80C (up to 46,800) and tax-free maturity proceeds under Section 10(10D), provided conditions are met.

• Fund Switching Flexibility: Switch between equity, debt, or balanced funds within the policy to adapt to changing market conditions—without triggering capital gains tax.

• Lower Costs Over Time: ULIPs now have lower charges, thanks to regulatory changes. Bandhan Life iInvest Advantage, for example, has waived the administration and allocation charges and promises to return mortality charges on maturity.

Why is Now the Perfect Time to Buy ULIPs?

ULIPs are the ideal choice for proactive planners who want to build wealth systematically while securing their family’s future with life insurance. With the rising cost of living, creating a substantial financial corpus is essential to fuel future dreams, and ULIPs—offering market-linked returns!—are designed to meet this goal effectively.

As the year draws to a close, this is the perfect time to plan your financial future thoughtfully. With their unique blend of life protection, investment growth, and tax benefits, ULIPs make an excellent gift for yourself and your loved ones as you step into the new year.

Get started now! Explore Bandhan Life’s iInvest Advantage—with benchmark-beating fund performance, tax-free maturity, flexibility to switch funds and strategy, and up to 20X life cover, it’s designed to help you achieve your dreams and secure your future.

Disclaimers -

BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS/ FRAUDULENT OFFERS!

IRDAI is not involved in activities like selling insurance policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint.

Bandhan Life iInvest Advantage (UIN - 138L090V01) is a unit-linked non-participating individual life insurance savings plan. Life insurance cover is available under this product. IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER. THE LINKED INSURANCE PRODUCT DO NOT OFFER ANY LIQUIDITY DURING THE FIRST FIVE YEARS OF THE CONTRACT. THE POLICY HOLDER WILL NOT BE ABLE TO SURRENDER/WITHDRAW THE MONIES INVESTED IN LINKED INSURANCE PRODUCTS COMPLETELY OR PARTIALLY TILL THE END OF THE FIFTH YEAR. Unit-linked life insurance products are different from the traditional insurance products and are subject to risk factors.

[!] Premiums paid in unit-linked life insurance policies are subject to investment risks associated with capital markets, and NAVs of the units may go up or down, based on the performance of the fund and factors influencing the capital market and the insured is responsible for his/her decisions. Please make your own independent decision after consulting your financial or other professional advisor. The performance of the managed portfolios and funds is not guaranteed and the value may increase or decrease in accordance with the future experience of the managed portfolios and funds.

[%] Tax benefit of ₹ 46,800 is calculated at highest tax slab rate of 31.2% (including cess excluding surcharge) on life insurance premium u/s 80C of ₹1,50,000. Tax benefits under the policy are subject to conditions under Section 80C, 80D, 10(D), 115BAC and other provisions of the Income tax act, 1961. Goods and Services Tax and Cesses, if any, will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. The Company does not assume responsibility on tax implication mentioned anywhere in thus page. It is recommended to obtain professional advice for applicability of tax benefits.

[##] The values are based on assumed investment rate of return of 4% p.a. & 8% p.a. The values shown are not guaranteed and they are not upper and lower limit of returns, they have been shown for illustrative purpose only.

Bandhan Life Insurance Limited is only the name of the Life Insurance Company and Bandhan Life iInvest Advantage UIN - 138L090V01 is only the name of the unit-linked life insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns.

Please know the associated risks and the applicable charges from your insurance agent or intermediary or policy document issued by us.

[***] 5 year return of BSE 100 Index as on August 31^st 2024. The returns are not indicative of the future performance of the fund.

Please know the associated risks and the applicable charges from your insurance agent or intermediary or policy document issued by us.

Life Insurance cover is available in this plan. For more details on risk factors, terms & conditions please read sales brochures and benefits illustrations carefully before concluding a sale. Issuance is subject to board-approved underwriting policy.

Buying a Life Insurance Policy is a long-term commitment. An early termination of the policy usually involves high costs and the surrender value payable may be less than all the premium paid.

Various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns.

[*] T&C Apply.

Bandhan Life Insurance Limited (formerly Aegon Life Insurance Company Limited), IRDAI Reg. No. 138. Corporate Identity No: U66010MH2007PLC169110. Registered Office: Bandhan Life Insurance Limited. A – 201, 2nd Floor, Leela Business Park, Andheri-Kurla Road, Andheri (E), Mumbai – 400059. Tel: +91 226118 0100, Toll Free No.:1800 209 9090 (9 am to 7 pm, Mon to Sat), Email: customer.care@bandhanlife.com. Website: www.bandhanlife.com. ADVT No. II/Nov 2024/7336.