Bullish outlook on equities and Indian stock market is reported to be attracting customers back towards ULIP (Unit Linked Insurance Plan) schemes, according to a top official of a private life insurer.
“According to initial data we have gathered, there have been increases in ULIP segment. We see traction for ULIPs across the industry. If market continues to perform well and economy shows improvement, we hope ULIPs will gain further momentum in the coming months,” said Deepak Mittal, Managing Director and CEO of Edelweiss Tokio Life Insurance Company Ltd., a joint venture between Edelweiss Financial Services and Japan’s Tokio Marine Holdings Inc.
The ULIPs are reported to be attracting customers due to twin benefits offered by them.
They offer life protection as well as a market-linked growth for the investment. However, in ULIPs risk cover is promised, but returns solely depends on the market performance. But traditional insurance products, which include whole-life, endowment and term policies, promise both risk cover and fixed returns.
Mr. Mittal said Edelweiss Tokio’s product offering was well-balanced between traditional and market-linked to meet the customer requirements.
The company was also planning to roll out a few online insurance policies soon, he said after announcing company’s expansion in southern region.
The company hopes to end the current fiscal with a total premium income of over Rs.100 crore when compared with Rs.65 crore in 2013-14. It is seeing traction for its ULIPs, health plans and retirement solutions.
