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Chennai , Sept. 2

SBI Life Insurance Company proposes to launch a `unitised with profits' policy soon, the company's Managing Director, Mr R. Krishnamurthy, told Business Line.

He said that the market was witnessing a preference for unit-linked products. Unit-linked products leave the decision about where the premium money should be invested, entirely to the customer — the customer can opt for high growth, high safety or balanced investment, just as for a mutual fund.

However, according to Mr Krishnamurthy, the market is not really mature enough for unit-linked products, because customers could get influenced by the state of the stock markets and make a wrong investment choice.

An `unitised with profits' policy, on the other hand, provides the same benefits such as unit-linked policies — a customer can raise or reduce his cover, by buying or disposing of the units. But the investment decision is taken by the insurance company.

Mr Deepak Satwalekar, Managing Director of HDFC Standard Life, also had expressed similar views on unit-linked and `unitised with profits' policies.

Both have said that unit-linked products, because of their transparency about investment, are superior products, but the Indian market is yet to ripen for such products.

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