Encouraged by the rising equity markets, life insurance companies are once again launching unit-linked plans (Ulips) to attract investors. One such Ulip is Bajaj Allianz Life Principal Gain, launched last week. It assures 101 per cent of premiums paid as return even if the market sees a slowdown. It also offers a guaranteed loyalty addition for those who stay invested till maturity. According to Anuj Agarwal, managing director and chief executive of Bajaj Allianz Life Insurance, the guarantee of the principal amount by protecting the downside is the most important part of the plan.
This product is suitable for those who are slightly conservative because they can take part in the equity markets, without taking too much risk, says Agarwal.
