SBI Unit plus II is essentially a Unit Linked Policy (ULIP) in which the investment risk entirely borne by the policy holder.
In this policy you have the option to choose the term viz., limited (min: 5 years and max:40 years) or Entire Life (life cover will be applicable till you attain 99 years of age) and also the allocation of funds can be changed between 5 funds (4 changes are free each annum). The 5 funds available are Equity fund in which the risk is high as majority of the funds are allocated to the Equity and equity related markets.
Equity Optimizer Fund: The risk is although high in this fund, the allocation to the equity markets is comparatively less than the Equity Fund.
Growth Fund: In which the risk is medium to high as the Equity allocation is normally more than the Debt markets allocation.
Balanced Fund: The risk in this fund is medium as allocations are equally distributed across Debt and Equity markets.
Bond fund: In which the risk is Low to medium.
Since this is essentially an ULIP, the return on investment depends on the Unit NAV value at the time of Maturity and there is always a chance of NAV value being lower just at that time. If you cannot bear that risk, you may also consider Aegon Religare’s Star Child Plan which has a ‘Auto Protect mode’ which gradually shifts your allocation to Debt market as the Maturity date comes closer in order to reduce the risk of lower NAV.
In SBI Unit Plus 2, You can also choose to either opt for Single Premium or Regular premium.
In single premium payment option, the minimum premium amount is Rs.40000 and in Regular premium payment, the minimum premium amount is Rs.24000/annum. There is no maximum limit for either of the options.
Any person who is in good health condition in the age group of 0 to 65 years can enter into this policy.
For regular premium payment option (including both limited and whole life cover), the minimum Sum Assured (SA) is 5 times the Annual premium amount.
The maximum SA for Regular premium is as follows:
Age group of 0 – 40 years: 50 times’ annual premium
41 – 50 years: 40 times’ annual premium
51 – 60 years: 25 times’ annual premium
61 – 65 years: 20 times’ annual premium.
As on 24 June 2013, NAV of SBI Life Unit Plus 2 are as follows:
Balanced fund: 21.2759
Equity fund: 41.5685
Equity Optimizer: 12.445