Max New York Life today launched a new Insurance product, 'Secure Dreams', which would account for about 8-10 per cent of its total sales, a top company offical said.
Declining to give the first premium income figures they were targetting from the product this year, Manish Thakur, Chief Manager, Product Management Team, Guragon, told reporters here 'Secure Dreams', was the only Universal product in Indian market which offers the best of traditional and Unit linked life insurance products.
The premium would not be invested in the stock market, but in government or corporate bonds, he said. For the first 3 months from the date of launch,customers would get a minimum guaranteed interest of 6.5 per cent on the product,he said.
The total premium collections of Max life insurance last year was rs 2000 crore.
Indian markets experienced high volatality in the last 15 months.Investments linked to stock markets have been unfavourable.Customers preferred changing towards lower but more stable investments like fixed deposit and postal savings. They also look for guarantee returns in life insurance as well, he said.
As per a August 2009 survey, 43 per cent of policy buyers chose guaranteed funds and only 4 per cent of customers are high risk takers and invest in super growth fund.
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Dasappa K Kutty, Regional manager, Kerala, said this year till September they had already touched rs 32 crore in premium in Kerala compared to last year's rs 20 crore.
Nangia said that "we at Max New York Life are dedicated towards understanding the changing needs of our consumers and satisfying them by offering specially designed products to meet their requirements.
With dramatic shift in both global and Indian economic scenario in past 18 months, the customer is now looking for guarantee on investment, reasonable returns and transparency inproduct design".
"Our new offering 'Secure Dreams', built on Universal Life platform, is an attempt to answer these concerns of the customer. Universal Life insurance is the fatest growing product today globally and constitutes a majority of the product portfolio in advanced insurance markets like USA", Nangia said.
"Secure Dreams keeps in mind the current risk perceptions of the majority of Indian consumers. It is a great protection-cum-wealth creation option that assures safety and guaranteed returns on investment. With this offering we are now the only life insurers to introduce Universal Life policies in India," she said.
"For the first three months from the date of launch, we are providing the customers with a minimum guranteed interest of 6.5 per cent", Nangia added. Secure Dreams offers the customers a guranteed return of at least 3.5 per cent per annum ensuring increase in their account value irrespective of market volatilities.
The return is credited to the account value on monthly basis.
Besdies through a unique future of premium funding the policy continues and takes care of the customer's family's needs even in the unfortunate event of the policyholder's demise. This ensures that the family of policyholder gets sum assured and funds as per the plan till the end of policy tenure, Nangia said.