SBI Life focuses on ULIPs

16 November 2005

Mumbai: Ever since SBI Life Insurance Company Ltd launched Horizon, its first unit-linked plan, in January this year, the company plans to launch more unit-linked products. It has launched a Unit Plus with the regular and single premium options.

In the regular premium plan Unit Plus provides guaranteed additions by allocating free units for a 20-year term and above. The plan also provides policyholders an opportunity to handle their investments according to their market perception and get market related returns.

According to S Krishnamurthy, MD and CEO, SBI Life Insurance, "We are extremely delighted to offer our second unit- linked insurance plan Unit Plus and believe that this plan is an ideal long term insurance product with attractive life cover options for those who want flexibility and an opportunity to invest in diverse funds. Unit Plus is designed to suit the specific financial requirements of the customers at various stages of their life. It is a single product with many solutions."

The plan provides the option of choosing amongst a variety of funds, which include two pure funds – equity and bond funds. The equity fund invests in listed equity shares whereas the bond fund invests primarily in debt instruments. Additionally, the plan offers two diversified funds – growth and balanced funds. The growth fund provides long term capital appreciation through investment primarily in equity and equity related instruments, whereas balanced fund provides accumulation of income through investment in various fixed income securities and maintains a suitable balance between returns, safety and liquidity.

The plans are open to those in the ages between 7 years and 65 years, with an option to choose a limited term (from a minimum of five years to a maximum term of 40 years) or whole life (with a maturity period of 99 years or death whichever is earlier).

Unit Plus Regular offers the option of yearly, half yearly and quarterly premium payment and is available for a minimum sum assured of Rs24,000 pa to a maximum of Rs50 crore (multiples of Rs1,000). The sum assured is 5 to 20 times the annualised premium.