ULIP sales down due to new Guidelines

Now days ULIp’s are loosing their popularity. Since last 2 or 3 months it has been observed for unit linked insurance plans. The new guidelines for ULIPS’s are encourage, but it’s effect is not taking place. According to new guidelines the overall charges on ULIP’s has been cutoff & also minimum guaranteed returns are also prescribed. Inspite of this no goal achieved.

Everyone is hoping that in next six months their may be some increase in ULIP”s sale. IRDA also claimed that premium for ULIP’s has been continuously decreased in last quarter. It is the effect of new norms and guidelines that the 23 life insurers have stopped promoting unit linked insurance plans. In this way near about 250 unit linked insurance plans have been stopped.

But the insurance and banking industry is still hope that ULIPs become more popular product because of new IRDA guidelines. The new norms are much favorable for investors as compare to the insurance companies.

Unit linked insurance plan (ULIP) is not a pure life insurance solution but it is mixup of Life insurance and investment both. If you have sufficient Life insurance cover, then you might be away from ULIP’s, because the primary focus of ULIP’s is over insurance not Profit earnings.