I came to know about the Bajaj Allianz Super Saver Guaranteed addition plan. I did some rough calculations and found that it gives around 14% (Based on terms in brochure – GA of 4% of SA) and around 15.6% (based on GA of 6% of SA as told by the agent ….. but need to confirm)
SA = 7x Annual Premium. Premium paying term : 3 years. Policy term 10 years.
So, for annual premium of Rs 50000 we get SA = 350000 and GA = 21000 p. a. @6% of SA /14000 p.a. @ 4% of SA
So on maturity:
Total premium paid = 150000
Accumulated guaranteed Additions: 210000
SA = 350000
So total return after 10 years = 560000
This gives me a return of 15.6%. Not sure if this is better than many of other types of investments. (debt funds and maybe even balanced/equity funds). I get personal loans at around this rate itself.
Any thoughts??