The growth of Life insurance sector in India

Posted by Jenny Dsouza on April 1st, 2017

Life insurance is one of the biggest investment vehicles in the uncertain economic environment and we expect the industry to fare reasonably well in near future. Factors like rising income of middle-class section, young insurable population and growing awareness of the need for financial protection will surely lead the path for the growth of life insurance in India.

With Indian insurance industry booming at a constant pace, it's been turning as one of the most preferred investment destinations for foreigners. Since Indian insurance market was opened for private players in 2000, several national and international players are competing and increasing their operations in India.

Life insurance policy in India offer two kinds of benefits. Many insurance policies Most offer a big financial cover in case of death of the insured person. It is the most basic form of life insurance in India that can bye purchased through leading life insurance policy companies either manually or by visiting online company websites.

However, it’s the permanent The second type of benefit offered by insurance policies that offer are an excellent form of capital investment to grow your funds, get a life cover in case of death and offer financial reward during your survival in the form of maturity earnings. In another way around words, it offers a return on investment and security of life insurance at the same time.

The insurance segment has witnessed rapid growth along with various moderations and intensifying competition. There are number of products and innovation necessitated by consumer needs and increased competition amongst the players. The strong industry fundamentals augur well for a roadmap to be drawn for sustainable long-term growth.

Online comparison helps you acquire rates, benefits & features of various insurance companies in India under a single umbrella. It will helps you save time and energy you have had to spend in visiting companies, collecting brochure, pamphlets or information leaflets for calculations. Once you have the quotes, compare the offers of different life insurance policy provider and then go for a suitable purchase.

The feedback for the insurance companies would be: it’s time for life insurance policy companies in India segment to are now re-committed themselves to offer customer-centric products, design them based on consumer needs, ethical market conduct, transparency, and governance.  

While buying your plan the first thing would be understanding your financial goal. You need to know the purpose of insurance plan. The objective could be protection, or financial security, saving for child’s higher education, daughter marriage or spouse survival needs. Having your insurance need identified will help evaluate your willingness to spend in the form of premium costs, towards your plan. You must ensure that the decision is taken wisely so that it’s affordable on your pockets in the long run and can be sustained over the life insurance policy tenure.

Your risk appetite is again crucial to determine the returns that you can expect on your investment plan. The basic principle of investment is higher the risk, higher would be the returns. It has to be planned well sitting with your financial expert. The fund choice and monitoring proves crucial for the returns especially in a unit linked plan where its linked to the performance of the fund you opt for, whereas, in a traditional, the returns are secured and at times will be pre-determined.