Global Courant
Emerging India’s share of the world life insurance market has grown marginally over the past year to 1.97%, compared to 1.68% a year ago. The premium on life insurance policies generated from India was the equivalent of $47.1 billion in the past year, up from $37.22 billion in 2006. However, this activity in India slowed down significantly in 2007-2008, as total revenue grew by more than 36% in US dollar terms. This decline is partly due to the strengthening of the rupee against the US dollar. The significant growth includes renewal premium. India’s real growth in this sector stands at 14.2% in 2007-2008 and is more than two and a half times the world average.
The main driver of growth in the life insurance business of the Indian economy has been the trend towards single premium policies and pension and annuity products. The Indian insurance industry shifted from offering traditional life insurance to these new sectors due to the aging population (more than 2% exceed 55 each year) and the reduction in government social security benefits. Although the Indian economy experienced a severe credit crisis in 2007, which led to turbulence in the financial market, sales of life insurance products remained unaffected.
The fury of sales in life insurance is due to a combination of factors. With the liberalization of the Indian economy, there is no shortage of investment options for a person to choose from. Today’s investment chart includes gold, real estate, fixed income, mutual funds and of course life insurance. Considering the number of choices, it becomes necessary to make the right choice when investing the hard-earned money. Life insurance has remained a unique investment that helps the investor meet his many needs: saving for life’s important goals and protecting his wealth and tax savings. Tax-saving insurance is in vogue among Indian youth whose real incomes have experienced spectacular growth due to the IT and retail boom.
From an investor’s point of view, an investment in the life insurance policy can play two roles: asset valuation or asset protection. This policy is unique in that it gives the client the assurance of asset protection along with a strong element of asset valuation. The main advantage of life insurance is that the financial interests of one’s family remain protected against circumstances such as loss of income due to serious illness or premature death of the policyholder. At the same time, insurance products also have strong wealth creation potential. Thus, the insured benefits in two ways and life insurance occupies a unique place in the investment landscape.
Life insurance is the only investment option that offers specific products for different life stages. Thus, it ensures that the benefits offered to the customer reflect the needs of the customer in a particular life stage, thus ensuring that the financial goals of that life stage are achieved smoothly. Therefore, despite a macroeconomic environment marked by somewhat lower economic growth and rising inflation, life insurance continued to grow in 2007, growing significantly by 5.4% to $2,393 billion.
The latest innovation in life insurance is the ULIPs. These policies have gained high adoption due to the attractive features they offer. These policies offer the flexibility to choose the amount insured, the premium amount, change the asset allocation by switching between funds and change the premium/amount insured level even after the plan has started. In the case of ULIPs, the policyholder has the option to withdraw money after a few years (comfort required in case of emergency). These policies have a low minimum term and partial or systematic withdrawal is allowed for the policyholder.
Economy looms, but the love of life flourishes
World News,Next Big Thing in Public Knowledg
#Economy #looms #love #life #flourishes
