SBI Life Insurance Company will launch four new life products including a group insurance scheme tomorrow. Since the launch of its first product, Sanjeevan, a single premium cover, SBI Life is now eyeing the age bracket of 20 to 65 years. Sanjeevan targets voluntary retirees aged at least 40.
The company's two new single premium life products, which will be a variation of its existing scheme, will be of an investment nature. Policyholders can get back their amounts at the end of the fifth, seventh or tenth year, in a lumpsum amount. In contrast, Sanjeevan offers a money flow that is staggered across five to 10 years. The key difference will be the minimum age level.
The Life Insurance Corporation of India (LIC) also recast its single premium product, Bima Nivesh Plan, in late July. Even as it scaled down the rate of returns by reducing the minimum entry age from 35 to 18, LIC was able to sell more policies.
In August 2001, the public sector insurance major sold 21,700 policies against 7,600 policies in August last year when the rate of return was higher.
Unlike LIC and ICICI Prudential Life Insurance Company, SBI Life does not propose to revise its existing single premium product by scaling down the rate of return. Senior officials stated that when SBI Life proposed the guarantee, it was with a view that would continue for the next 20 years at least.
SBI Life is also offering a money-back product, which will be a child product oriented at young parents to help them plan the future of their children. The company will offer various riders with its products including accident and disability.
