Mumbai, 12th January 2011 -
Strengthening its series of “Simple and Smart” products, SBI Life, the leading new generation life insurer, has launched an innovative Unit Linked Insurance Product (ULIP) - Smart Horizon. The investment-hassle-free product offers investors the opportunity of long-term capital appreciation through exposure to the markets and investment expertise of SBI Life.
The uniqueness of the product stems from the proprietary Automatic Asset Allocation (AAA), an algorithm-based active investment allocation mechanism. This IT – based system developed by testing over 5000 potential scenarios in the Indian equity & bond markets, determines the optimal risk – return combination. Higher exposure to equities for the initial years, followed by increasing exposure to debt and money markets as the plan nears maturity. Thus, AAA mechanism ensures better returns for investors, while protecting their capital.
Mr. M. N Rao, MD & CEO, SBI Life Insurance said “The unique Automatic Asset Allocation feature makes Smart Horizon ideal for many evolving Indian investors who do have the time to make fund allocation decisions on an on-going basis’.
To avail the benefit of Automatic Asset Allocation facility, the customer can choose either Plan A or Plan B, depending on his risk appetite. Under Plan A, the equity exposure is higher as compared to Plan B. The product also provides the flexibility to allow the customer to actively manage his investment through a choice of four funds namely, Index, Equity, Balance and Bond Fund. This option is possible under Plan C.
Flexibility to increase or decrease Sum Assured from 6th year onwards, switch and premium redirection facility and a low premium allocation charge of 2% in first policy year are other attractive features of Smart Horizon. Additionally, the wide range of riders including Criti Care 13, Accidental Death Benefit, Premium Payor Waiver Benefit and Income Sustainers enable policy holder to customize the product based on protection needs.
The company, now, has a strong bouquet of six ULIPs that cater to the long term wealth creation needs of varied customer segments. The other market linked products are HNI-targeted Smart Elite, NAV-Guaranteed Smart Performer, No Medicals ULIP – Saral Maha Anand, Flexible ULIP – Unit Plus Super and Child Plan – Smart Scholar.