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Century Plus
– A premium ULIP plan from Bajaj Allianz
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Century Plus is a 10 year endowment ULIP Plan with an option
of limited premium payment term. The sum assured in this plan is fixed at
5 times the annual premium. The highlight as projected by the insurer is
that it offers highest allocation for funds as compared to any ULIP
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Year 1 & 2
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98 % allocation
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2 % allocation charge
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Year 3 onwards
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100 % allocation
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0 % allocation charge
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Hence, prima facie this plan looks most attractive of all
ULIPs. Contrary to this, in L.I.C., we have Money Plus 1, which is a endowment
ULIP plan. The allocation rates in this plan when the annual premium is
above Rs.75000 p.a. are as below:
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Year 1
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74.5 % allocation
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25.5 % allocation charge
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Year 2 & 3
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95 % allocation
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5 % allocation charge
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Year 4 onwards
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97.5 % allocation
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2.5 % allocation charge
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Hence, based on these facts, it obviously seems that Century
Plus is by far a much more exciting and a customer friendly ULIP plan as
compared to apparently expensive Money Plus-1 plan.
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However, now consider these other costs:
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Description
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Century Plus
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Money Plus-1
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Policy Admin Charges
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1.75% p.a. of the sum assured
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Rs.60
p.m. in 1st year
Rs.20 p.m. in 2nd yearRs.20 p.m. increasing @ 3% p.a. every year
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Fund Management Charges
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1.75% p.a. in Growth Fund
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1.20% p.a. in Growth
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If a person pays a premium of Rs.1,00,000 p.a. in both Bajaj
Allianz Century Plus and LIC Money Plus 1 (10 year, 5 lacs sum assured), the
comparison of impact of allocation and policy admin charges is as below:
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Year
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Premium
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CENTURY PLUS
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Allocation
Charge
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Policy
Admin
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Total
Expense
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MONEY PLUS - 1
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Allocation
Charge
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Policy Admin
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Total
Expense
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1
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100000
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2000
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8750
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10750
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25500
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720
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26220
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2
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100000
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2000
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8750
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10750
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5000
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240
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5240
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3
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100000
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0
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8750
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8750
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5000
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240
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5240
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4
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100000
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0
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8750
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8750
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2500
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247
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2747
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5
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100000
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0
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8750
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8750
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2500
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255
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2757
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6
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100000
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0
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8750
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8750
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2500
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262
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2755
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7
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100000
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0
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8750
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8750
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2500
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270
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2762
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8
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100000
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0
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8750
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8750
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2500
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278
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2770
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9
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100000
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0
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8750
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8750
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2500
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287
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2787
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10
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100000
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0
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8750
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8750
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2500
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295
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2795
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91500
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56094
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