Private insurer Star Union Dai-chi Life (SUD Life) announced the launch of Dhan Suraksha Platinum, a non-participating traditional endowment plan. A premium collection from sales of this limited policy is aimed at around Rs. 300 crore.
Dhan Suraksha Platinum is a unique plan that has a strong combination of guaranteed savings for the future and guaranteed protection. They target to sell about 30,000 policies. There was a good demand for traditional insurance products and the company was aiming to reach Rs. 1,700 crore in respect of premium income including existing products.
This single premium non-participating traditional endowment plan is available till March. The plan offers a guaranteed return at the end of 10 years and a guaranteed death benefit of 5 times the premium paid. The minimum age for entry is 8 years and the maximum 55 years. The minimum exit age is 18 years and 65 years.
The minimum premium amount was fixed at Rs. 1 lakh and the sum assured at Rs. 5 lakh, working out to 5 times the single premium. In a 10-year period, the return after taking into account the tax benefits would work out to Rs. 1.97 lakh. Apart from tax benefits, this product also provides additional benefits for large, single premium policies, like 2% on a single premium of Rs. 5 lakh to R.s 40.90 lakh and 3% for policy premiums of Rs. 50 lakh and above.
Talking about the company's break-even target, SUD Life's plan is to hold on to their initial plan of 5 years as they are growing despite the slowdown in the industry. The company will continue to focus on its bancassurance model and offer comprehensive products to its customers.
Dhan Suraksha Platinum was targeted at high net worth individuals and the upper-middle income segment. Based on the results published by IRDA, SUD Life with strong domain expertise is fast moving up in the league table and as on financial year till November 2011, SUD Life has moved to 10th position on a gross premium basis among private life companies.
Star Union Dai-ichi Life Insurance Company Limited (SUD Life) is a joint venture of Bank of India, Union Bank of India and Dai-ichi Life Insurance, Japan.