Aditya Birla Sun Life launches savings-focused insurance scheme

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Aditya Birla Sun Life Insurance has announced the launch of a savings-driven insurance scheme. Called the Fixed Maturity Plan, it is an unlinked, non-participating endowment policy that provides guaranteed benefits in the form of capital at maturity.

According to the insurer, the plan is designed to provide policyholders with short- and long-term financial security by incorporating fixed returns above deposits as well as life protection. It is aimed primarily at those who prefer products like term deposits.

The policy comes with a single premium payment option with a minimum term of five years and a maximum term of 10 years. One of the advantages offered by the policy is the absence of penalty in the event of early redemption.

The sum insured was provided at 1.25 times, 1.77 times, 10 times or 10.42 times the premium, depending on the option selected at the time of policy purchase.

The interest rate is 6.41%, which the insurer says is higher than the fixed deposit rates offered by major banks.

Kamlesh Rao, Managing Director and Chief Executive Officer, Aditya Birla Sun Life Insurance, said: “In this era of uncertainties, the ABSLI fixed term plan will give our policyholders the required financial security cushion for all their dreams with the best returns in the industry, allowing them to plan their investments accordingly. It also provides them with comprehensive life coverage that protects their family in case something happens. With higher returns than FD, the plan allows policyholders to benefit from all the conventional features of a life insurance savings plan.

Additionally, the surrender benefit will increase by 1% each year, further ensuring that policyholders do not lose their money in the event that they need to surrender the policy.

The policy also offers other facilities, such as loan, which can vary from Rs 5,000 to anything between 65% and 80% of the policy depending on the plan chosen.

The maximum age to take out the policy has been set at 60 years for option A and 50 years for option B. The minimum annual premium is Rs 12,000. The insurer further stated that option A will provide sum assured at 1.25 and 1.77 times, while Option B will provide 10 times or 10.42 times.

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