By Vipin Agnihotri
Birla Sun Life Insurance has come up with a unit-linked life insurance product, Saral Jeevan. In my opinion, the main emphasis of Saral Jeevan is on first-time insurance buyers. The best part about Saral Jeevan is that it’s an over the counter plan that is straightforward to buy and the life cover there on comes into immediate effect.
Another intriguing thing about Saral Jeevan is that it is among the first to give an option to invest in mid-cap stocks. It is worthwhile pointing that Saral Jeevan offers investors eight investment options to choose from. Another thing that struck me was the fact that Saral Jeevan allows you an exposure of around 100 per cent in equities.
However, point to be noted here is that the 100 per cent equity plan allows a maximum exposure of 70 per cent to mid-cap stocks, while the remaining 30 per cent will go into the big cap stocks.
In theory, Saral Jeevan will invest only in those kinds of stocks that have a minimum market capitalization of Rs 1,000 crore or more. Apart from that, Saral Jeevan allows multiple switches between different investment plans on a yearly basis. In other words, you have an option to switch between funds to suit market conditions and also risk profile.
After a time period of three years, Saral Jeevan allows free unlimited partial withdrawals. The target audience of Saral Jeevan is the young generation as well as mutual fund investors that have a high-risk appetite for equities.
Saral Jeevan is quite easy to buy, as there is no need of any medical tests. What’s more, documentation is also pretty straightforward in Saral Jeevan. .
The India Street Rating:
8/10
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