A simple cover
Birla Sun Life Insurance has launched a unit-linked life insurance product, Saral Jeevan, which is targeted at firsttime insurance buyers. It’s an over-the-counter plan that is easy to buy and the life cover thereon comes into immediate effect.
This ULIP plan is among the first to offer an option to invest in mid-cap stocks. Investors have eight investment options to choose from. The policy also allows you an exposure of up to 100 per cent in equities.
However, the 100 per cent equity plan allows a maximum exposure of 70 per cent to mid-cap stocks, while the balance 30 per cent will go into large cap stocks.
BEHIND THE SCREEN |
| The policy offers an OTC product and can be purchased easily |
| It offers investors an option to invest in mid-cap stocks |
| Investors can also opt for up to 100 per cent equity investments |
| The policy offers eight different investment plans for investors |
| It will invest only in stocks with a market cap of Rs 1,000 crore or more |
The policy will invest only in those stocks that have a minimum market capitalisation of Rs 1,000 crore or more. Additionally, the new policy allows multiple switches between different investment plans in a year.
One can switch between funds to suit market conditions and also one’s risk profile.
After three years, the plan allows free unlimited partial withdrawals. Says Vikram Kotak, CIO, Birla Sun Life Insurance: “We are targeting the young generation as well as mutual fund investors that have a high risk appetite for equities.
It’s an OTC product which invests in mid-cap stocks, and it’s a good time to invest in these stocks.”
It’s easy to buy the policy — medical tests are not required and documentation is simple. For investors who want to take higher exposure to equities with a blend of mid-cap stocks as well as get a life cover, one can consider locking in for three years.
