Unit linked insurance plans (ULIPs) seem to be gaining more popularity amongst investors as stock markets remain bullish. A study by Bajaj Allianz Life Insurance revealed that two out of three Indians intend to invest in ULIPs in the coming year.
It also revealed that the affinity towards ULIPs have increased for nine out of 10 investors, post the first wave of pandemic. “The affinity for ULIP is higher in non-metros at 67 per cent and among mass-affluent Indians (66 per cent) compared to average Indians,” the firm said.
Ease of tracking
For affluent customers, ULIPs are attractive as it offers ease of tracking of investments, low-cost structure and convenience of adding rider or top-up and withdrawal of money, the survey revealed.
Also read: No tax benefit on ULIPs, high PF contribution
Further, middle-income Indians seek the facility of partial withdrawal in ULIPs. “More than one in three middle-income Indians rate this as key feature in ULIPs. For more than 50 per cent mass-affluent Indians, guidance of experts in managing funds is a key feature in ULIPs,” it further said. Amongst the younger investors, SIP was found to be the most preferred mode of investing.