For years, experts have cried themselves hoarse that the primary function of life insurance is protection. It appears that policyholders will see this for themselves in 2009. For too long now, they have treated life insurance as a taxplanning tool. Finally, they will see it more as a financial cushion for their dependants than as a longterm investment product.
In the coming year, one can expect protection plans that will cover all family members. Other plans will look at long-term healthcare options. Companies may offer plans that take care of rising prices by linking the insurance cover to inflation. There could also be Ulips that invest in global markets and in various asset classes; they might also come with index fund options.
• New insurers to enter; greater competition may result in lower premium rates.
• More capital guarantee plans and variants to be launched.
• Inflation-adjusted covers to be prevalent.
• Cover for lifestyle-related ailments such as obesity, hypertension, even depression.
• Online purchase of life insurance will be finally allowed.
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