Despite recent stability in the stock market, insurance buyers are continuing to be risk-averse and preferring to buy polices that offer guaranteed returns.
Life Insurance Corporation of India (LIC) last month launched Wealth Plus, a Unit-linked Insurance Plan (Ulip) that guarantees that it will pay the highest net asset value (NAV) of the fund over the first seven years or NAV at maturity whichever is higher. It has collected Rs 1,800 crore premium so far.
Companies such as Bajaj Allianz Life and Reliance Life have launched similar products this year. Other insurers such as Bharti Axa Life, HDFC Standard Life, which don’t have schemes that guarantee results, are also eyeying such products.
DK Mehrotra, Managing Director, Life Insurance Corporation of India (LIC), said, “We had launched Wealth Plus last month and have collected Rs 1,800 crore so far. Customers still want the comfort of guarantee products as capital market can not be predicted.”
LIC had garnered a business of Rs 10,000 crore when they had launched Jeevan Aastha in January, and are hoping for similar revenue from Wealth Plus.
“If you look at market volatility from a longer perspective, the market has not stabilised much,” said Kamesh Goyal, CEO, Bajaj Allianz Life.