"Guaranteed Maturity Insurance Plan" (GMIP) was recently launched by private insurer Bajaj Allianz Life Insurance which would provide at least 200% of the amount invested, at maturity. It would also provide a secure life cover.
People who live in rural areas and small towns rarely get a chance to invest in ULIPs because of the high premium or the commitment to pay yearly premiums. To reach these segments, Bajaj Allianz Life has thus come up with GMIP, which provides a guaranteed maturity benefit of at least double the premium paid.
To make the product affordable for all income segments, GMIP is the lowest single premium ULIP at Rs. 5,000.
In GMIP, the single premium invested will be kept in denominations of Rs 5,000 each called as "Guaranteed Maturity Certificate" (GMCs).
The provision of GMCs facilitates liquidity and preserves guarantee. This is because partial withdrawals can be made only GMC units that is in multiples of Rs 5,000. Flexibility of partial withdrawal after 5 years, life cover throughout the 10 year term and eligibility for tax benefits are some of the other unique features of this plan.