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.

The single premium policy provides the flexibility of a sum assured from Rs50,000 onwards with no limit on the maximum contribution. The sum assured is for a term of five to 10 years is 110 per cent of the single premium, for 11 to 20 years 120 per cent and 21 years and above is 130 per cent.

Customised features of Unit Plus Regular and Unit Plus Single include:

• Redirection of funds: This facility is available free of cost and is limited to one per policy year. From the second policy anniversary the customer is allowed to change his investment options and thereby change the Risk Return Profile of the future investments.
• Switch across funds: Four free switches are available in a policy year where the customer has the option to switch from riskier to safer funds or vice versa to be able to actively manage his own investment.
• Systematic withdrawal facility: This option helps the policyholder to change the Unit Plus plan to a Money Back plan with only one signature. From the sixth policy year the policyholder may receive money back up to 20 per cent of the fund value every two, three, four or five policy years.
• Top up facility: This facility is available at any point of time. Top up will not affect the sum assured.

Features exclusive to Unit Plus Regular

• Increase/ decrease the premium contribution from the thirdpolicy year onwards.
• Increase in the Sum Assured cover by three times between the ages of 18 to 50 anytime during the policy term.
• Automatic cover continuance from the second year onwards, in the event of the policyholder being unable to pay regular premiums, the life / rider cover continues automatically. The charges will be deducted from the fund value.
• Guaranteed Additions in the form of additional units. For all 20-year term plans and above, if all the premiums due are paid, the company allocates free units at the end of the policy year 8, 15 and 20 at amounts equivalent to 15 per cent, 25 per cent and 60 per cent of the first annualised premium respectively.

By the end of the term, the company actually waives off the entry charges paid by the policyholder on the first year premiums. (Cumulative entry, free for a 20-year term, is 52 per cent to 80 per cent depending on the contribution amount and guaranteed additions is 100 per cent of the first year contribution)

Benefits:
Death Benefit: In the unfortunate event of death, the nominee will receive the higher of either Fund Value or Sum Assured less withdrawal made within 12 calendar months, preceding the death of the life assured.

Withdrawal Benefit: The first four withdrawals in a policy year are free of cost. This option can be availed anytime after the third policy year. In the fourth and fifth policy year the maximum withdrawal amount is limited to 25 per cent of the fund value. There is no restriction on the amount of withdrawal from the sixth policy anniversary.

Surrender Benefit: There are no surrender charges from the fourth year onwards for Unit Plus Single plan and from the 11th year onwards for Unit Plus Regular plan.

The plans also come with the flexibility to choose from two 'rider options' - critical illness rider, accidental death and accident total permanent disability rider. Charges like entry charges, mortality rider charges, administrative charges, fund management charges, withdrawal and switching charges, if any, are deducted under the Unit Plus plan.

The contributions, maturity death benefits made towards Unit Plus plan benefit from tax advantages subject to conditions u/s 80 C and 10 (10D) of the Income Tax Act and deductions made towards critical illness rider charges are eligible for tax benefits u/s 80 D. The plan comes with 15-days free look period.