Bangalore: With signs of recovery in the global economy, the insurance sector has seen a renewed interest in insurance products, with investors once again betting on Unit Linked Insurance Plans (ULIP).
The economic meltdown and uncertainty over the length of
this downturn had impacted ULIP products, Deepak Sood, CEO,
Future Generali India Life Insurance Company, said while
announcing a new ULIP product, Future Freedom Plus.
During the peak recession, "traditional products got
greater attention", he said owing to their assured and safe
"Investors had turned cautious" and this was reflected in
an uptake in the traditional products.
However, with signs of recovery, the insurance sector is
again turning "bullish on ULIP products", he said, adding that
insurance players hope to see the scenario revert to the pre-
recession period when ULIPs were favoured products.
ULIPs forced investors to be disciplined in terms of
investment and to look at a beyond 10-period horizon, he said.
"The interest in ULIP products are back", he said, adding
the company felt that the time was now right for launching
such a product.
Keeping in mind the recession experience, anxiety and
apprehension of investors, Future Generali has factored in a
flexibility option of reduction in premium payment in the
second year, to ease fears of an investor unable to keep up to
high premium rates.
Future Genrali India Life Insurace Company, a Joint
Venture between Future Group of India and Generali Group of
Italy, is betting high on recovery targetting a five fold
growth in revenue, from Rs 150 crore last fiscal to Rs 750
crore by the end of this fiscal. The company is on track and
achieved around Rs 153 crore as of September 30, he said.
"The five times growth is expected from our new product,
distribution, expansion, scaling up advisors from 36,000 to
50,000, services", he said.
From the new product, the company expects to cross Rs 100
crore revenue this fiscal, he said.
On salient features of the product, he said it offers
three fund options, including a new future dynamic growth fund
offer with start up NAV of Rs 10. There are two plan options -
gold plan option with annual premium of Rs one lakh and
platinum option with premium of Rs one lakh and above. Minimum
premium is Rs 25,000.
It provides life cover till the policy matures for 10 to
20 year terms, with limited and regular premium paying
options.It provides a uniform cover throughout the term of
policy.The sum assured is available and in the event of demise
of the policy holder, nominee receives the sum assured over
and above the future dynamic growth fund value.
The highlight of the product is in the second year, the
policyholder can pay as low as 75 per cent of the year premium
without any reduction in the initial sum assured.