Bajaj Life Insurance introduces the Supreme plan, a ULIP offering market-linked investments, guaranteed wealth boosters, and long-term loyalty benefits, targeting investors comfortable with the product’s complexity and costs.
Bajaj Life Insurance’s Supreme plan is a unit-linked insurance policy, or ULIP, that pairs life cover with market-linked investments, but its main appeal is not the insurance itself. The insurer says the plan comes in three variants , Advantage, Gold and Horizon , and that policyholders can choose from 30 funds across equity, index, debt and liquid categories, using one of five investment strategies. The product also includes a guaranteed wealth booster on eligible premium allocation charges, return of mortality charges and loyalty additions for long-term stayers.
The structure is more complex than a standard mutual fund or term cover. According to Bajaj Life’s product material, the plan is open to buyers aged 0 to 65 for regular or limited-pay policies and up to 70 for single-pay versions. Policy terms run from 15 to 40 years or can extend to whole life, while the minimum premium starts at ₹12,000 a year for regular pay and ₹20,000 for single pay. The company also says fund management charges can be as high as 1.35% a year, and the policy carries a 5-year lock-in.
The most discussed feature is the refund of premium allocation charges. Bajaj Life says the charge deducted at entry is tracked separately and grows at a guaranteed 7% a year for the first 15 policy years before being added back to the fund value if the policy is still in force. But that guarantee applies only to the charge amount, not to the full investment. The policy document also states that the death benefit is the higher of the fund value, 105% of total premiums paid or the sum assured, while loyalty additions begin from the 16th policy year at 0.25% of the average fund value over the previous three years.
For investors, the question is whether the extra features justify the costs and restrictions. The company positions the plan as a long-term option for people who already have adequate protection and want a tax-efficient, market-linked wrapper with some built-in benefits. That makes it a very different proposition from pure term insurance, which offers far higher cover for the same outlay. In practice, the Supreme plan is likely to suit buyers who understand ULIP charges, are comfortable staying invested for at least 15 years and value the combination of insurance and disciplined investing more than simplicity.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
