Mumbai: SBI Life Insurance Company Ltd., a joint venture between State Bank of India and Cardif SA, today introduced a investment-cum-protection life insurance policy with guaranteed additions of 5.75 per cent on the sum assured, compounded annually. Depending upon the amount of sum assured, the rate of return can range from 5.86 per cent to 6.29 per cent on the gross single premium.

The plan is available for both Resident Indians and Non Resident Indians (NRIs).

Called Dhana Vriddhi, this non participating single premium plan is available for a fixed period of five years. It offers "high value" rebates for sum assured above Rs5 lakh, no medicals and an increasing life cover with each passing year. For resident ndians the premium paid under this plan is eligible for tax benefit under section 80(C) of the IT Act and tax-free. death benefits.

According to S Krishnamurthy, MD and CEO, SBI Life Insurance, "Dhana Vriddhi is specially designed to cater to those individuals who are looking for single premium products with high guaranteed additions. Unlike unit-linked plans, this product is not subject to market fluctuations and provides a stable return."

Both Resident Indians and NRIs between the ages 13 - 70 years can avail the benefits of Dhana Vriddhi. The plan is available for a minimum sum assured starting Rs25,000 up to a maximum of Rs10 crore (multiples of Rs. 1,000) for a fixed term of five years. The guaranteed maturity benefit at the end of is years is Rs1,322.52 for Rs1,000 sum assured.

The policy has a surrender value option from the sixth month onwards, which can be used to get a loan against the policy. The product is available with a 15-day free-look period. There are no riders available in this plan.

SBI life is looking at its India Millennium depositors to reinvest the redemption amounts. The policy will open for initial subscription up to December 15th, 2005.