Saturday, July 31, 2021

Two of three individuals intend to invest in ULIPs in coming year, says survey

NEW DELHI: Two out of each three Indians intend to spend money on a unit-linked insurance coverage plan (ULIPs) within the coming yr, as per a survey carried out by Bajaj Allianz Life Insurance coverage Co, with about 92% feeling that their affinity for these merchandise rose put up the primary wave of the covid-19 pandemic as issues returned to regular.

The examine, carried out amongst 499 people within the age group of 21-50 years, was executed in affiliation with NielsenIQ. The important thing goal of the examine was to discover buyer views on life objectives and investments in life insurance coverage and perceive prospects’ affinity in the direction of ULIPs.

By way of prime 5 objectives in life, monetary safety for household was a very powerful for these surveyed at 41%, whereas retirement planning and investing was second at 39%.

Life insurance coverage was probably the most most popular product to plan for long-term objectives akin to retirement and youngsters’s training, as two in each three Indians mentioned that they make investments or intend to spend money on these merchandise to realize long-term life objectives.

For funding portfolio distribution, of the 499 surveyed, 23% of the allocation was in financial institution deposits akin to financial savings, fastened deposits, and recurring deposits; adopted by 18% allocation in life insurance coverage funding plans; 13% in well being, basic, and accident insurance policy; and 11% in equities or mutual funds.

When it got here to causes behind investing in market-linked merchandise, good returns obtained the best vote share, adopted by earnings tax advantages and fund efficiency. Notably, insurance coverage protection on dying was the least most popular choice for choosing market-linked merchandise.

Particularly, the highest three triggers for investing in ULIPs included a variety of fund choices, skilled recommendation by the corporate, and suppleness of partial withdrawals.

In keeping with brokers surveyed by the insurance coverage firm, flexibility and management are the 2 key areas that act as main obstacles to spend money on ULIPs.

“The survey signifies excessive affinity in the direction of ULIPs, throughout buyer profiles of age, earnings and geography. The important thing buy triggers in the direction of ULIP embody its potential to ship increased long-term return, flexibility to modify funds or withdraw and added good thing about life insurance coverage cowl. Prospects price life insurance coverage as one of the most popular funding devices to realize their long run life objectives,” mentioned Chandramohan Mehra, chief advertising and marketing officer, Bajaj Allianz Life.

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