Why ULIPs in their new avatar are not popular?

 

Why aren't New ULIPS selling in the Indian Market?

Volatile equity markets
High interest rates
Negative public perception
ULIP commission has come down
Insurance is a push product, therefore, it depends which product is being pushed
Increased Lock in period
Non availability of loan

ULIP must be sold - Why ?

ULIP commission has come down which is in the favour of Customers
Charges have been slashed substantially which is in the favour of Customers
Higher return on the investments
Increased Lock in period also in the favor of Customers

An Example :-

	Old ULIP	New ULIP
Annual premium	50,000/-	50,000/-
Policy term and premium payment term	20 years	20 years
Investment fund	Balanced fund	Balanced fund
Return on investment	10%	10%
Fund at maturity	23,60,164	25,43,372
Commission payable	47,500	13,000
Fund Management charges	2,96,378	2,19,352
Admin, premium allocation & mortality charges	61,527	30,809
Mortality charges deduced up to	9th year	8th year
Net rate of return	7.62%	8.95%

Journey of Bombay Stock Exchange who proved it that ULIPs will give you handsome return in long term investment

1^st January 1986           =          100

25^th July 1990               =          1000
11^th February 2000      =          6000
9^th December 2005      =          9000
5^th December 2006      =          14000
8^th January 2008          =          21000
21^st August 2012                 =          17885
07^thNovember 2012    =          18902

ULIP must be sold - Why ?

"Sensex may cross 50,000 mark by 2020” 

                                                           - World's leading investment bank Morgan Stanley

“We might see the 1,00,000 mark for the Sensex index in our lifetime”

                                                                   - Tata Mutual Fund MD Ved Prakash Chaturvedi

 

Benefits of ULIP:-

Provides flexibility in investments

Transparency

Liquidity

Disciplined and regular savings

Multiple benefits bundled in one product

Spread of risk

 

"Looking to the above facts it is strongly recommended that the Insurance Advisors they must sell ULIPs Product and Customer must purchase ULIPs Products, because it is in the favour of both i.e. Insurance Advisors and Customers.