ICICI Prudential Life launched its third unit-linked insurance product (ULIP) named ICICI Pru LifeLink Wealth SP, which is also in accordance to the new Insurance Regulation and Development Authority (IRDA) regime.
ICICI Prudential Life's CEO and Managing Director Sandeep Bakhshi said, "ICICI Pru LifeLink Wealth SP is a single premium product that will save customers the hassle of remembering premium payment dates or policies getting discontinued because of non-payment within a stipulated time".
About the product:
• Minimum premium is set at Rs 40,000,
• Provides customers the flexibility of choosing between 125 % and 500 % of the premium.
• Assures a loyalty benefit of up to 2.5 % of the fund-value at the end of every fifth policy year, which will start from the tenth policy year.
• In addition to this, ICICI Pru LifeLink Wealth SP also gives tax benefits on the premium paid and Change in Portfolio Strategy (CIPS), which means the customer is given an opportunity to choose from two unique portfolio strategies.
• For passive customers, the product has Trigger portfolio strategy, which gives them the opportunity to automatically capitalize and protect gains made from equity investment based on market movement.
Thursday, September 23, 2010
Monday, September 20, 2010
Old strategy good for new ULIPs as well
Unit-linked Insurance Plans (Ulips) are back. Insurance companies are busy presentation new versions of the products which had earned a bad name for the whole industry in their earlier avatar due to rampant mis-selling. According to financial experts, the new Ulips, which meet the latest strategy issued by the Insurance Regulatory and Development Authority (Irda), are definitely more transparent and investor-friendly.
For example, the charges are now consistently spread across the tenure of the policy, there is a longer lock-in period and surrender charges are capped. But is the new version a better product now or is it just old wine in a new bottle? “The new guidelines lay great stress on promoting Ulips, primarily as insurance products. The insurance component in the new Ulip will be significantly higher than earlier. Further, higher initial allocation could result in better returns,” says G Murlidhar, chief operating officer, Kotak Life Insurance.
Evenly spread allocation charges, or the insurer’s fee for managing a policyholder’s money, through the policy term will allow the customer to see a gradual build-up of his funds over time, encouraging him to pay premiums regularly and staying invested for the entire period of the policy, he adds.
For example, the charges are now consistently spread across the tenure of the policy, there is a longer lock-in period and surrender charges are capped. But is the new version a better product now or is it just old wine in a new bottle? “The new guidelines lay great stress on promoting Ulips, primarily as insurance products. The insurance component in the new Ulip will be significantly higher than earlier. Further, higher initial allocation could result in better returns,” says G Murlidhar, chief operating officer, Kotak Life Insurance.
Evenly spread allocation charges, or the insurer’s fee for managing a policyholder’s money, through the policy term will allow the customer to see a gradual build-up of his funds over time, encouraging him to pay premiums regularly and staying invested for the entire period of the policy, he adds.
Friday, September 17, 2010
New ulip launched in accordance with the IRDA guidelines | Kotak Wealth Insurance
Kotak Life Insurance launched Kotak Wealth Insurance – a new unit-linked insurance plan which is in accordance to the new guidelines proposed by IRDA.
Kotak Wealth Insurance is a complete package that provides investment growth along with comprehensive triple benefits in the event of death. Its power-packed range of eight fund options allows customers to balance their risk profile with the tenure their investments.
Kotak Wealth Insurance is a complete package that provides investment growth along with comprehensive triple benefits in the event of death. Its power-packed range of eight fund options allows customers to balance their risk profile with the tenure their investments.
Thursday, September 16, 2010
New ulip launched in accordance with the IRDA guidelines | Kotak Secure Invest Insurance
Kotak Life Insurance launched Kotak Secure Invest Insurance – a new unit-linked insurance plan which is in accordance to the new guidelines proposed by IRDA.
Kotak Secure Invest Insurance is an equity exposure insurance plan and is backed by capital guarantees with in-built investment advice of the guarantee fund. It also helps the customer gain from market participation through the guarantee fund that aims at stable capital appreciation while limiting the downside risk in falling market conditions.
Kotak Secure Invest Insurance is an equity exposure insurance plan and is backed by capital guarantees with in-built investment advice of the guarantee fund. It also helps the customer gain from market participation through the guarantee fund that aims at stable capital appreciation while limiting the downside risk in falling market conditions.
Wednesday, September 15, 2010
Higher Returns Assured – New Ulip | HDFC Standard Life Insurance
HDFC Standard Life - private life insurance player - launched a new ULIP - HDFC Standard Life Crest - which assures higher returns.
HDFC Standard Life Crest has
• a 30-day free look-in period against the usual 15 days so that investors understand the new ULIP (Unit Linked Insurance Products) better, in compliance to with the IRDA regulations which came into effect.
From now onwards all HDFC Standard Life insurance plans will carry a 30-day free look in period. This is for the convenience of an investor in case he/she feel that the product purchased is not very suitable to his/her requirement. The investor will be given a choice to switch over to an alternative product offered from the company within a year although at a nominal additional cost.
HDFC Standard Life Crest has
• a 30-day free look-in period against the usual 15 days so that investors understand the new ULIP (Unit Linked Insurance Products) better, in compliance to with the IRDA regulations which came into effect.
From now onwards all HDFC Standard Life insurance plans will carry a 30-day free look in period. This is for the convenience of an investor in case he/she feel that the product purchased is not very suitable to his/her requirement. The investor will be given a choice to switch over to an alternative product offered from the company within a year although at a nominal additional cost.
Wednesday, September 8, 2010
Investors can expect better Ulip products and services
Several new unit-linked insurance plans (Ulips) have started hitting the market after the Insurance Regulatory and Development Authority’s (IrDA) new strategy on Ulips came into effect from September 1. So what has changed?
Existing Ulip customers have nothing to worry as the regulations will only apply prospectively and will not affect them in any way.
Cap on charges between gross and net yields throughout the policy term that will be mostly evenly spread, and increase of lock-in period from 3 to 5 years will enable the customer to reap higher returns.
The new guidelines restrict the penalty that an insurer can levy on premature surrender. This cap on surrender penalty will ensure greater liquidity for the customer and reduce his loss even if he surrenders early.
Enhanced customer disclosures will improve transparency and drastically decrease mis-selling. Companies on their own accord can also be projected to add check layers beyond those mandated by the regulator to weed out mis-sales.
Insurance companies will invest more in better equipping intermediaries both in terms of knowledge and advisory capability.
Further, mandatory Need Based Selling, whereby insurance agents will be required to assess the customer’s exact insurance needs based on his financial and filial profile may also soon become an integral part of the sale process.
Customers can look forward to far better product and service experience. Greater customer affinity is likely towards life insurance in general and Ulips in particular and more customers can be expected to ride out the entire policy term.
As for companies, most of the old Ulips will be off-the-shelf and they will introduce a swing of products to adhere to the new guidelines. However, margins may come under pressure. Emphasis will now be on higher business volumes, increasing average ticket size and bettering persistency levels. Insurers will qualitatively enhance the customer value proposition by introducing simpler, more transparent products, better service and support during the policy term and, improving the overall quality of engagement.
Current levels of lapsation and surrender may consequently reduce. Insurers may also look at innovative platforms to rationalise cost and enhance appeal. The product mix will also change. From the current Ulip-heavy portfolio, insurers will strive to achieve greater balance between traditional plans and Ulips. However, insurance firms which had planned to list may revisit their plans, since valuations may get affected now.
Existing Ulip customers have nothing to worry as the regulations will only apply prospectively and will not affect them in any way.
Cap on charges between gross and net yields throughout the policy term that will be mostly evenly spread, and increase of lock-in period from 3 to 5 years will enable the customer to reap higher returns.
The new guidelines restrict the penalty that an insurer can levy on premature surrender. This cap on surrender penalty will ensure greater liquidity for the customer and reduce his loss even if he surrenders early.
Enhanced customer disclosures will improve transparency and drastically decrease mis-selling. Companies on their own accord can also be projected to add check layers beyond those mandated by the regulator to weed out mis-sales.
Insurance companies will invest more in better equipping intermediaries both in terms of knowledge and advisory capability.
Further, mandatory Need Based Selling, whereby insurance agents will be required to assess the customer’s exact insurance needs based on his financial and filial profile may also soon become an integral part of the sale process.
Customers can look forward to far better product and service experience. Greater customer affinity is likely towards life insurance in general and Ulips in particular and more customers can be expected to ride out the entire policy term.
As for companies, most of the old Ulips will be off-the-shelf and they will introduce a swing of products to adhere to the new guidelines. However, margins may come under pressure. Emphasis will now be on higher business volumes, increasing average ticket size and bettering persistency levels. Insurers will qualitatively enhance the customer value proposition by introducing simpler, more transparent products, better service and support during the policy term and, improving the overall quality of engagement.
Current levels of lapsation and surrender may consequently reduce. Insurers may also look at innovative platforms to rationalise cost and enhance appeal. The product mix will also change. From the current Ulip-heavy portfolio, insurers will strive to achieve greater balance between traditional plans and Ulips. However, insurance firms which had planned to list may revisit their plans, since valuations may get affected now.
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