Max Life Insurance launches unit-linked child plan

Max Life Insurance Monday said it has launched a unit-linked child plan called "Shiksha Plus Super" focused on children education and career.

According to Rajesh Sud, chief executive officer and managing director of Max Life Insurance, the new product assures resources for the overall development of a child even in absence of resource provider.

With the launch of this product, the company also completes its product suite for all life stage-based needs.

"The launch of Shiksha Plus Super completes our suite of products required for all life stage needs that are compliant with the new guidelines effective Jan 1, 2014," Sud said in a statement.

The new plan offers customers the choice of investing premiums in five investment funds offered by Max Life Insurance with an option of Dynamic Fund Allocation and Systematic Transfer Plan.

Dynamic Fund Allocation frees the policyholders from selecting the investment funds manually since this function automatically invests between equity and debt oriented funds in a pre-defined proportion that keeps changing as policy nears maturity.

"This investment strategy endeavours to safeguard their fund from any capital erosion by increasing the fund allocation in debt funds as policy progresses towards maturity," the company statement said.

Systematic Transfer Plan, on the other hand, replicates the rupee cost averaging method thereby allowing the policyholder to benefit from the market volatility, it said.