Birla Sun Life Insurance Platinum Plus is an unit linked Insurance plan which was introduced long back. Here is a review and analysis of this plan. It may be noted that this is the first of its kind in the Indian insurance industry when Birla Sun Life introduced this in june 2008. Taking the cues from there on many companies introduced multiple products. LIC introduced Jeevan Aastha and Jeevan Varsha, ICICI introduced return guarantee fund and IDBI floated Bondsurance… and the list goes on.
This is how I would sum up this platinum plus plan – short pay, medium-term unit linked insurance plan, which aims to reduce the investment risk and optimize the returns. Also, the plan offers Guaranteed Maturity Unit Price. With the Platinum Plus, policy holders participate in the equity market as well as enjoy a Guaranteed Maturity Unit Price. What it means is that the maximum of unit price recorded on the 15th of each calendar month till June 15, 2015 will be the maturity price. Due to this option, the plan guarantees the unit price not lose its value and since there can be 84 such data points over the entire period, the customer would be on better side. Since NAV is guaranteed over a span of data points, given the current ups & downs of the equity market, which gives the policyholders the potential to earn market upside with downside protection.
Salient features of Birla Sun Life Insurance – Platinum Plus plan:
• Guaranteed Maturity Unit Price
• Highest unit price recorded on the 88 Reset Dates is guaranteed at Maturity
• New Fund Offering – Platinum Plus Fund I
• 10-year benefit period with 3 years premium paying term
• Option to reduce annual premium in the 2nd & 3rd year subject to minimum of Rs 1,00,000
• Partial withdrawals available after three policy years in case of any financial emergency
• Full liquidity without any penalty after three years
This fund is for the people who are not very comfortable with the volatility in the equity market but yet want to participate in the equity market to earn good returns. As per the company info, the fund will invest in an optimum mix of equities & fixed income instruments. The fund may have upto 100% exposure in both equities & fixed income assets while investment in money market instruments will be capped at 40%. Allocation between debt & equity would be dynamically managed. One thing that any individual who likes to invest in this policy must note – The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of the fund and factors influencing the capital market and the insured is responsible for his or her decision. For more details on the plan, please visit their website for more details.