Seeking to cash in on investors’ need for protection of capital and safety from

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volatility, Bajaj Allianz Life Insurance on Thursday announced the launch of a unit-linked plan that offers a minimum guarantee of 170 per cent at maturity.

This single-premium life insurance policy, known as Shield Plus, has fixed term of 10 years and the minimum premium requirement is Rs 25,000.

This is the first guaranteed product from Bajaj Allianz Life on the unit-linked insurance policy (Ulip) side because it already has a product called Invest Plus on the traditional platform, which guarantees returns.

Strategically positioned to compete with deposits in banks as well as post offices, which offer capital protection, this Ulip allows the customer to fix a sum assured to be equal to 1.1 times or five times of the single premium paid. However, for individuals aged between 56-65 years, the maximum sum assured is 1.1 times of the single premium.

While the product offers a choice of six funds, the minimum guaranteed unit price at maturity is only available in the Shield Plus Fund I, company officials said.

"A minimum 170 per cent for a 10-year period equals to a year-over-year growth rate of 5.45 per cent. The Shield Plus Fund I is a fund with a medium risk profile because it will invest 50-100 per cent in debt securities. We are guaranteeing the minimum return as we are confident of building a portfolio out of AAA-rated, high-yielding debt," said Sashi Krishnan, chief investment officer, who oversees assets worth Rs 29,000 crore at the insurer.