Traditional insurance plans saw higher growth in premium than Ulips in FY18

Claim settlement improves for life insurance companies in 2016-17

Even as the stock markets rose in 2016-17 (the Sensex was up 17 per cent over this period), insurance policyholders remained conservative and continued to prefer traditional plans over unit-linked insurance plans (Ulips), which can offer you a significant equity exposure. According to the Insurance Regulatory and Development Authority of India’s (Irdai’s) Annual Report 2016-17, the premium gathered by traditional products rose 14.24 per cent in 2016-17 over the previous year. In comparison, Ulip premiums rose only 12.70 per cent over the same period.
 
Experts say the decline in interest rates in 2016-17 made traditional plans more attractive. “Traditional