In line with new unit-linked insurance plan (Ulip) launches this year, Max New York Life Insurance Co. Ltd and Bharti AXA Life Insurance Co. Ltd have come out with one unit-linked child plan each and Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd has launched three products.
Max New York Life’s Shiksha Plus allows the policyholder—the parent—to cover two children under a single policy. After having the second child, the parent can increase the premium by 50%; the sum assured would go up proportionately.
This is a type II Ulip that pays the nominee, the child, the sum assured as well as the fund value as death benefit. However, it works a little differently. It staggers the payment of the sum assured. The nominee will get 10% of the sum assured every year, till the amount lasts.
Simultaneously, the insurer pays all the premiums till maturity. The nominee gets the fund value only at maturity. This is known as the waiver of premium feature.
It pays loyalty bonus in the last six years and has seven fund options. An eighth option reallocates the portfolio depending on the years left to maturity.
Bharti AXA’s child Ulip, Bright Stars PLUS, is also a type II Ulip with an in-built waiver of premium feature. It also offers loyalty bonus. Here, you can choose from five funds.
The three Ulips launched by Canara HSBC Oriental Bank of Commerce are Life Stay Smart Plan, Life Retire Smart Plan and Life Saral Bima Plus.
Life Stay Smart Plan is a whole life plan that gives a cover till 99 years. It is a type I plan which offers the higher of the fund value or the sum assured to the nominee if the policyholder dies. There are five funds offering 0-100% equity exposure.
Life Retire Smart Plan is a unit-linked pension plan with an option to choose a sum assured along with the pension plan. The plan can run till the policyholder turns 70. It also offers loyalty additions and the choice of five fund options with 0-100% exposure in equity.
Life Saral Bima Plus is targeted at the semi-urban and rural segment. No medical test is required to avail this policy, which is issued on the basis of “declaration of good health”. The minimum annual premium is Rs6,000 and the maximum Rs1 lakh. The sum assured is fixed at five time the annual premium.