Unit-linked plans from ING

Bangalore-based ING Vysya Insurance on Thursday announced its foray into unit linked insurance. The company's offerings till now were restricted to traditional and pension plans.

Despite the current high growth potential for unit linked plans, ING Vysya said it ideally will like this segment to contribute 30 per cent of new business. This forecast comes despite unit linked plans accounting for 69 per cent of private life insurers' new business this year.

The company has launched two unit linked plans"" Freedom and Future Perfect plan. Frank Koster, managing director and CEO ING Vysya Life Insurance said that the plans are structured to attract long term investors and not those willing to bet their money for under three years.

ING Vysya's entry into this arena comes when life insurers are upping this segment's focus. Even government owned Life Insurance Corporation recently announced unit linked plans and predicted a minimum 10 per cent new business under this head.

ING Vysya said the products have been launched in November to its insurance advisors and the entire ING Vysya network. Officials said that the products were finalised after extensive customer research in Mumbai and Bangalore.

The two plans will offer customers the option of choosing between debt, secure ( 20 per cent equity), balanced (40 per cent equity) and growth (60 per cent equity) funds. The products have a flexible time frame and customers can choose from five year to 25 year premium payment.

The Rs 100 crore ING Vysya Life Insurance is a JV between ING Insurance International, ING Vysya Bank and the Bangalore based GMR group.