A recent survey by Bajaj Allianz Life insurance shows that more than 90% of investors have shown interest in ULIPs (Unit-linked Insurance Plans) investment. In fact, two out of three i.e. 67% of respondents have said they will invest in ULIPs in the coming year.
The study shows that the affinity for ULIP is higher in non-metros (67%) and among mass-affluent Indians (66%) compared to average Indians.
Ease of tracking investments, low-cost structure and convenience of adding rider or top-up were the key reasons for ULIPs popularity amongst affluent investors, said the report. For the middle-income group, partial withdrawal facility is the main attraction, said the report.
The study further shows that while majority of Indian investors especially young investors prefer investing in financial product through SIP, people in their 40s and above prefer lump sum investment.
In a press release, Chandramohan Mehra, Chief Marketing Officer, Bajaj Allianz Life, said, “The survey indicates high affinity towards ULIPs across customer profiles of age, income and geography. The key purchase triggers towards ULIP include its potential to deliver higher long-term returns, flexibility to switch funds and life insurance cover.”
The online survey was conducted in association with NielsenIQ across metros and non-metro in India with a sample size of 499 in the age group of 21 – 50 years. The sample was further divided into two groups – current investors and prospective investors.
Current investors profile:
1. People investing in ULIP for up to Rs.12 lakh income
2. People investing more than Rs.2.5 lakh annual premium in ULIP for Rs.12 lakh income
Prospective investors:
1. Income up to Rs.18 lakh and willing to invest any amount per year in market linked products (MF, ULIP, Equities) and non rejectors of ULIP
2. For Rs.18 lakh income segment and willing to invest Rs.2.5 lakh per year in market linked products (MF, ULIP, Equities) and non rejectors of ULIP