Life insurers modify ULIPs to attract investors
ICICI Pru Life, HDFC Standard and Max New York Life have recently launched ULIPs with a limited premium paying terms. Ten hot money-spinners in India
By Kumar Shankar Roy, TNN |
CHENNAI: With equity markets back on track, life insurance companies are trying to woo investors with unit-linked insurance plans (ULIPs) that require limited premium payments. Companies such as ICICI Pru Life, HDFC Standard and Max New York Life have recently launched ULIPs with a limited premium paying terms ranging from 1 to 5 years.
Experts say people are preferring to pay premiums for a shorter period and hence, life insurance companies are preparing products to bridge this gap.
ICICI Prudential Life has launched its SecureSave product aimed at retail customers, HDFC Standard's Unit Linked Wealth Multiplier targets High Networth Individuals while Max New York Life Insurance has played it safe with Smart Xpress, a limited premium pay ment ULIP product offering many options.
Pranav Mishra, senior vice-president and head, products, ICICI Pru, said: "Our experience shows that in the short term, equity investment is bound to be volatile. However, the growth potential of equity remains intact over a long term horizon. We realised that the investors want to invest in equity but still remains worried about the volatility, therefore they needed an investment with potential for upside, without the risk of loss."
ICICI Pru's SecureSave provides a guaranteed maturity benefit upto 150% of the sum of all the investment premiums paid as well as the additional advantage a limited premium payment term with minimum premium for 10-year tenure coming at Rs 20,000 per year.
Max New York's Smart Xpress offers single, threeyear and five year premium payment options. The minimum single premium payable is Rs 1,50,000.
Experts say people are preferring to pay premiums for a shorter period and hence, life insurance companies are preparing products to bridge this gap.
ICICI Prudential Life has launched its SecureSave product aimed at retail customers, HDFC Standard's Unit Linked Wealth Multiplier targets High Networth Individuals while Max New York Life Insurance has played it safe with Smart Xpress, a limited premium pay ment ULIP product offering many options.
Pranav Mishra, senior vice-president and head, products, ICICI Pru, said: "Our experience shows that in the short term, equity investment is bound to be volatile. However, the growth potential of equity remains intact over a long term horizon. We realised that the investors want to invest in equity but still remains worried about the volatility, therefore they needed an investment with potential for upside, without the risk of loss."
ICICI Pru's SecureSave provides a guaranteed maturity benefit upto 150% of the sum of all the investment premiums paid as well as the additional advantage a limited premium payment term with minimum premium for 10-year tenure coming at Rs 20,000 per year.
Max New York's Smart Xpress offers single, threeyear and five year premium payment options. The minimum single premium payable is Rs 1,50,000.
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