1600% jump in LIC's ULIP premium in a year- Business News
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1600% jump in LIC's ULIP premium in a year

The insurance behemoth had launched three ULIP products in February and March 2020 -- Systematic Investment Insurance Product (SIIP), Nivesh Plus and Endowment Plus

  • March 15, 2021  
  • |  
  • UPDATED   17:05 IST
1600% jump in LIC's ULIP premium in a year
ULIP products at LIC registered an year-on-year growth in premium of 1592.44 per cent

Which life insurance products are most sold at Life Insurance Corporation (LIC)? Traditional products, you would think. While LIC's traditional insurance products that give you guaranteed returns if you survive the policy period are most popular among customers, looking into last one-year data (February 2020 to February 2021) throws interesting insights.

The ULIP products at LIC registered an year-on-year growth in premium of a whopping 1592.44 per cent at a time when premium for term and guaranteed products slipped by 5.65 per cent and 18.86 per cent, respectively, data from the LIC showed.

The insurance behemoth had launched three ULIP products in February and March 2020 -- Systematic Investment Insurance Product (SIIP), Nivesh Plus and Endowment Plus.

"In our internal meetings, we were often told to give full thrust to ULIP products. LIC itself focussed on their marketing, especially on SIIP, by running TV commercials," says an LIC agent.

Avdesh Mishra, CEO, Caterpillar Insurance says while LIC is known to focus on Tier-2, Tier-3 cities, their latest TVCs, especially the ones on ULIPs, have been targeting millennials. "Earlier your fathers or uncles would buy an LIC endowment policy and ask you to buy one too. But, the times they are a-changin'. Millennials are much more aware about the stock market. LIC is changing its focus to market-linked products to capture this market segment, which is dominated by private players," he said.

LIC is quite candid in their message too. "While it is said that one should not mix their investments and insurance, the protagonist in the SIIP commercial upfronts says 'my journey of insurance and investment began at the same time'. They are not hiding it. The Law of Candor of marketing is working in their favour," adds Mishra.

Besides, as the stock market was on an uptrend after a sharp fall post COVID it may have helped LIC agents sell ULIPs convincingly, he adds.

Among other trends, even as LIC sold a lesser number of policies as on February 2021 compared to last year, the average premium per policy grew. "Though the number of policies sold as on February 2021 is less in comparison to February 2020, average premium per policy has increased from Rs 14,535 to Rs 2,07,000," says M R Kumar, Chairman, LIC.

"Term insurance products became very popular among customers initially. But, with COVID cases declining and vaccination drive starting, the idea of insurance as a primary protection product is going away. However, I do believe the awareness around pure protection plans will remain steady," says Kumar.

Also read: Life insurance sector sees 21% growth in Feb as financial year end looms

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