The Fixed Maturity Plan is an endowment policy that provides guaranteed benefit as lump sum on maturity, and is primarily targetted at those who prefer products such as fixed deposits
Aditya Birla Sun Life Insurance has announced the launch of a savings-oriented insurance plan. Named the Fixed Maturity Plan, it is a non-linked and non-participating endowment insurance policy that provides guaranteed benefits as a lump sum on maturity.
According to the insurer, the plan is designed to offer policyholders both short- and long-term financial security by integrating fixed deposit-beating returns along with life protection. It is targetted primarily at those who prefer products like fixed deposits.
The policy comes with a one-time single premium payment option with a minimum term of five years and maximum term of 10 years. One benefit the policy offers is no penalty on early surrender.
The sum assured has been provided at 1.25 times, 1.77 times, 10 times or 10.42 times the premium, depending on the option chosen at the time of buying the policy.
The rate of interest is 6.41 per cent, which the insurer claims is higher than the fixed deposit rates offered by major banks.
Kamlesh Rao, managing director and CEO, Aditya Birla Sun Life Insurance, said: “In this era of uncertainties, the ABSLI Fixed Maturity Plan will give our policyholders the required cushion of financial guarantee for all their dreams with industry best returns, thus allowing them to plan their investments accordingly. It also provides them with a comprehensive life cover which safeguards their family in case of an eventuality. Along with FD-beating returns the plan enables the policyholders to benefit from all the conventional features of a life insurance savings plan.”
Also, the surrender benefit will increase by 1 per cent every year, thus further ensuring that policyholders do not lose their money in case they have to surrender the policy.
The policy also offers other facilities, such as loan, which can vary from Rs 5,000 to anything between 65 per cent and 80 per cent of the policy depending on the plan chosen.
The maximum age to buy the policy has been fixed at 60 years for Option A and 50 years for Option B. The minimum annual premium is Rs 12,000. The insurer further said that Option A will provide sum assured to the tune of 1.25 and 1.77 times, while Option B will provide it 10 times or 10.42 times.