ING Vysya Life Insurance has launched what it claims to be India’s first capital-guaranteed unit-linked insurance policy (ULIP). The policy has a minimum return of 5% per annum, compounded, and residual upside linked to the local stock market.The single fund has two terms: ten years and 15 years, and can be purchased either single premium or with a premium payment term of two to three years. Life cover is included. Debt instruments in India yield around 7.5-8% per annum.
Local insurance regulator, Insurance Regulatory & Development Authority has issued notification requiring agents to hand out benefit illustrations, spelling out charges and other benefits. ING Vysya Life managing director Kshitij Jain said that although the move might initially cause sales to slacken, it is welcome for ensuring greater transparency.
The provider plans to launch its first unit-linked pension policy next month.
The ULIP is open now and closes mid-March at the latest.
