Market volatility nudges customer preference away from ULIPs in Q4FY25

The benchmark Nifty50 index fell almost 17 per cent amid sell-off by foreign investors, weak corporate earnings and global uncertainties due to the US tariffs

Amid increased volatility in equity markets, customer preference is likely to have moved away from Unit Linked Insurance Plans (ULIPs) in the last quarter of FY25.

 

For SBI Life Insurance and ICICI Prudential Life Insurance, the share of ULIPs in the product mix has reduced in the January-March quarter of FY25 (Q4FY25) from the year-ago period, while the share of traditional products increased.

 

ULIP is an insurance product which offers both the benefits of investment and insurance to fulfil long-term goals. The premiums for ULIPs are divided towards life insurance coverage and the remaining part for investment in market-linked funds