SBI Life Insurance, the leading new generation life insurer, has launched an innovative ULIP which guarantees at inception a pre-specified NAV applicable at the end of the ten-year term. By opting for Return Guarantee Fund, the policyholder can create long term investment corpus based on minimum pre-determined NAV or prevailing NAV at the maturity, whichever is higher. The fund has a closed sub-fund(s) with subscription open for maximum of three months and fixed termination period of ten years.
Besides the Return Guarantee Fund, the policyholder can opt from Equity Fund or P/E Managed Fund or Bond Fund. Generally, following “Buy and Hold” strategy, the Return Guarantee Fund aims to provide guaranteed fixed return by investing mostly in fixed income securities namely debt instruments, money market instruments and cash, with maturities close to the termination date of the fund.
The equity fund has a higher equity exposure with atleast eighty percent in equity and equity related instrument, thus targeting a potentially higher return in long term. The premium under P/E Fund is dynamically allocated between equity and equity related securities and debt instrument, money market and cash, based on Forward Price Earning Multiple on NSE S&P CNX Nifty index.
M N Rao, MD & CEO, SBI Life Insurance said, “Our aim is to build a sizeable and attractive suite of “Simple and Smart” products so as to allow our customers to choose relevant solutions that best meet their needs, aligned to their income and risk profile.”
A single premium plan, SBI Life Smart Wealth Assure offers policyholders optional Accidental Death benefit and liquidity through convenient partial withdrawal facility from 6th policy year onwards. Available at a minimum amount of Rs. 50,000, SBI Life Smart Wealth Assure can be availed from 8 years to a maximum 65 years of age with a policy term of 10 to 30 years. The maturity age is up to 75 years.
With launch of Smart Wealth Assure, SBI Life now has an impressive bouquet of eight ULIPs that cater to the long term wealth creation and life insurance needs of varied customer segments. The other market linked products are HNI-targeted Smart Elite, NAV-Guaranteed Smart Performer, No Medicals ULIP – Saral MahaAnand, Flexible ULIP – Unit Plus Super, Child Plan – Smart Scholar, ULIP with Automatic Asset Allocation – Smart Horizon and Guaranteed Return pension plan – Smart Pension.
As per the latest IRDA report, as of January 2011, SBI Life ranks first amongst private players in new business premium. The company has a market share of 18.9% among private life insurers and a total market share of 5.6 %.
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