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ULIP sales may slow down

ULIP sales may see a slow down on the account of monetary measures taken by RBI.

Apnainsurance.com Research Bureau

30 Jul 2008

ULIP sales may see a slow down on the account of monetary measures taken by Reserve Bank of India (RBI). RBI has recently increased interest rates which has negatively effected stock market returns. As a result of this, ULIP investments has also seen dip in their value in the third quarter of 2007-08.

It is expected that investors may shift from ULIPs to traditional plans. But around 85% of the premium collected by insurance companies comes from ULIPs.