SBI Life, the joint venture between State Bank of India and BNP Paribas, has launched a new Variable Insurance Product (VIP) called the Flexi Smart Insurance. Under this the customer would pay a minimum premium of Rs 1500 per month to subscribe and with the flexibility to pay premiums at yearly, half yearly, quarterly or monthly. This premium is liable to earn an interim interest of 7% during 2011-2012 apart from the additional interest rate declared at the end of the financial year.
VIPs were earlier known as Universal Linked Plan. Earlier IRDA issued a new guideline to change its name to VIP and also asserted that these products be offered only on non-unit lined products. SBI Life is the first to introduce VIP with the launch of Bima Account Number 2. The Flexi Smart Insurance is their second offering so far.
The VIP offers choices across different levels of risk exposure. It can also provide stable returns and safe investments for the risk-averse customers. The key feature is that it gives the customer to vary the assured amount as well as premium payment.