Unit-linked insurance plans (ULIPs) have become popular recently and some of the new offerings are boasting of zero premium allocation and policy administration costs. One of them is Bajaj Allianz Life Insurance Co. Ltd, whose new ULIP Goal Assure has a zero premium allocation charge and it also reimburses mortality cost on maturity.
A premium allocation charge is a straight deduction from the premium; the remainder is invested in the fund of your choice. It’s from this corpus that other costs like policy administration charge, mortality charge and fund management charge are deducted.
