New ULIPs have a big ticket size. But Bajaj Allianz has come out with a small ticket plan with high charges

Money Secure is a regular premium ULIP that provides security for your investment with guaranteed maturity benefits. The selling proposition is a minimum annual premium of Rs7,000, which is low compared to premiums for new ULIPs that are commonly high.

The maturity guarantee of net cash flow (premium paid, less all charges) accumulated at 3% per annum is pathetic and will result in investments mostly in the debt market. The equity allocation of 0% to 50% means there will be times when nothing will be in equity and hence the returns will be average.
Pension ULIPs like LIC's Pension Plus offer 4.5% per annum guarantee on gross premium (not net of charges) and are a far better option for conservative investors than the Money Secure plan. Most insurers have avoided pension ULIP products since the new regulations, even though the 4.5% per annum guarantee does not seem much, because of the uncertainty of  interest rates over the long term of such plans.

Money Secure has premium payment term (PPT) flexibility. For a policy term of 10 years, it is 5 to 10 years. For a policy term of 15 years, it is 10 to 15 years. According to Rituraj Bhattacharya, head - product development, Bajaj Allianz Life Insurance, "The policyholder has to make an informed decision about how long s/he wants to pay the premium. If the premium payment term chosen is 12 years for a 15 years policy term in Money Secure plan, then the premium payment obligation on the part of the policyholder ceases on payment of the 12th year's premium and the policy will remain in force for 15 years." PPT flexibility will help to continue the insurance cover and remain invested without paying premium after the period of PPT till the end of policy term.

The premium allocation charge is 10% for years one and two, 7% for year three through year five and 2% thereafter. The policy administration charge is nil for the first five years of the policy and Rs25 per month thereafter, inflating at 5% per annum annually. There is also a guarantee charge of 2% of premium when received by the company. All top-up premiums have an allocation charge of 2%.

The plan also has seven optional riders. There is an option to decrease the sum assured to the level of 115% of the regular premium paid, subject to the minimum allowed under the product; such reduction shall be allowed at policy anniversaries only.

The minimum sum assured for age less than 45 years is 10 times the annualised premium and seven times the annualised premium for others. The maximum sum assured is 10 times of the annualised regular premium for policyholders who opt for riders such as critical illness, hospital cash benefit or family income benefit and 20 times of the annualised regular premium for others.