With life insurance companies shifting their focus in selling insurance in tier II and III cities, the Unit Linked Insurance plans (Ulips) are also fast gaining popularity there.
Risk averse Indians in these cities earning a salary less than Rs 5 lakh, who earlier bought only term plans and traditional policies, are now preferring Ulips, said a Boston Analytic’s Indian consumer savings
and investment report for February 2010.
The report surveyed approximately 10,000 respondents in 15 cities and towns and found that as high as 80 per cent of the consumers in tier II cities and 75 per cent in tier III cities had invested in at least one Ulip in the past year. Compared to this, just 61 per cent of the consumers in metros and tier I cities had invested in Ulips in the previous year.
Debopam Chaudhuri, Economist, Boston Analytics said, “From July 2009 to February 2010, there has been a rise in the popularity of Ulips in tier II and III cities.
This is due to an increase in people’s confidence in the economic conditions, their own financial conditions and increasing confidence in the stock markets.”