DNA 
 
Jan 6: Insurance companies are making the most of the recent slump in equity markets to sell their policies. Apart from the usual tax-saving policies that are launched at this time of the year, many firms have unveiled innovative “guaranteed plans” that promise financial security.

Bajaj Allianz Life recently introduced “Bajaj Allianz Capital Shield”, a 5-year single premium insurance product, which, the company claims, will “bring back the cheer among investors, with its guarantee of investment and tax benefits”.

Kamesh Goyal, CEO, Bajaj Allianz Life, said, “Capital Shield provides five times life cover. It also offers the advantage of double tax benefits under Section 80C and 10 (10) D”.

Life Insurance Corporation has also recently launched Jeevan Aastha, a single-premium endowment plan with the tag line, “Guaranteed returns with the seal of trust”.

ICICI Prudential Life is offering LifeStage Assure, which promises a guaranteed return of up to 450% of the first year premium on maturity. “Return Guarantee Fund option is the recent addition to the existing bouquet of funds, providing guarantee on the first premium investment,” Pranav Mishra, senior V-P and head, products, ICICI Prudential Life, said.

Newer insurers like IDBI Fortis and Aegon Religare have also come up with guaranteed-returns plans. GV Nageswara Rao, MD and CEO, IDBI Fortis, said company is targeting customers who invest in tax saving instruments in the last quarter of the financial year. “With a one-time minimum investment of just Rs 20,000, ‘Bondsurance’ is crafted for those looking for guaranteed returns with the promise of insurance protection”.

Aegon Religare Life Insurance is targeting people who are parking funds in bank fixed deposits. “Our plan offers the highest tax-free return over these maturity values, while providing investors with a life cover equivalent to five times the single premium paid,” Rajiv Jamkhedkar, CEO, Aegon Religare, claimed.

Other companies have also lined up other innovations. HDFC Standard Life has launched HDFC Unit Linked Endowment winner, a regular premium plan for a term of 15 years. Paresh Parasnis, principal officer and executive director, HDFC Standard Life, said, “The uniqueness of the product lies in instant cover with no medical test and a bumper addition feature at maturity. We envision this to be an opportune time to invest in equities with a long-term horizon.”

Reliance Life Insurance has come up with its new Reliance Super InvestAssure Plan (RSIP) Plus with loyalty additions of 2.5% of the annual premium after third policy year. P Nandgopal, CEO, Reliance Life, said, “Apart from earnings growth, these loyalty additions can go up to 67.5% of the annual premium”.

The marketing campaign on capital protection is also on high decibel these days. Insurers like Kotak Life has introduced an interactive website to enable investors to witness the ongoing market fluctuations.

Elizabeth Venkataraman, head marketing , Kotak Life, said, “Capital guarantee lets an investor achieve dual objectives of safety as well as returns. The website aims at educating customers about investments that are not only safe but can also provide good returns.