Aditya Birla Sun Life Insurance on Wednesday said it has launched a fixed-maturity plan offering returns of up to 6.4percentnt to compete with fixed-deposit products offered by banks.
The company termed the plan akin to fixed-deposit rate products offered by banks and it expects to garner 5-10 lakh customers by 2023-end under the new scheme.
During an interaction, Aditya Birla Sun Life Insurance MD & CEO Kamlesh Rao said that the product is aimed at the 30-45 age group people who are largely fixed deposit holders.
There is a huge opportunity in this segment as fixed deposit holders are 10 times more than insurance policy holders, Rao said.
“We want to compete in that market segment,” Rao said.
The plan offers industry-best returns of up to 6.41 percent along with a life cover, Rao said, adding these interest rates are higher than the fixed deposit rates offered by most major banks in the country.
He said the prevailing fixed deposit rates are in and around percentnt only and that too are not fixed. ABSLI Fixed Maturity Plan on the other hand is a guaranteed product designed to cater to investment needs of policyholders.
“We are looking at acquiring 0.5-1 million customers through this product over the next 18 months,” he added.
It is a non-linked, non-participating endowment product providing fully guaranteed benefits as a lump-sum on maturity. This plan is designed to offer policyholders short and long-term financial security by integrating FD beating returns and protection.
“Through its new offering, ABSLI intends to cater to investors who prefer simplified products like fixed deposits,” Rao said.