ANALYSIS OF ULIPS IN INDIA.
heavy hand of government still dominates the market, with price controls, limits onownership, and other restraints. They private players are still in their initial daysand would take some more time to capture a good market share. At present theyare coming up with new and innovative ideas.Since the last decade the life insurance industry in India has been growing very fastand many new companies have entered this business insurance. The Indian lifeinsurance industry has recorded a robust growth of more than 16 % for the nine-month period which ended on December 31, 2009.It is expected to grow at anamazing rate of 20 per cent this year Also in the present scenario the most soughtafter insurance plans are the Unit Linked insurance Plans (ULIPs).
WHAT ARE ULIPs
Most of you might have heard of ULIPs? Rather most of you might have heardyour parents talking about an insurance cover? If your answer is yes, you are at theRIGHT place!Unit-linked insurance plans, ULIPs, are distinct from the more familiar ‘withprofits’ policies sold for decades by the Life Insurance Corporation. ‘With profits’policies are called so because investment gains (profits) are distributed topolicyholders in the form of a bonus announced every year.In other words A ULIP is a life insurance policy which provides a combination of risk cover and investment. ULIPs have gained high acceptance due to attractivefeatures they offer like flexibility, transparency, liquidity and a vast variety of fundoption. Unit linked plans are suitable for all customer profiles; however as ageneral belief the risk averse investors tend to choose traditional plans and aninformed customer prefers a ULIP.
REGIONAL INSTITUTE OF COOPERATIVE MANAGEMENT COLLEGE.3