Page 1

1. Do you currently pay premium for traditional (endowment, whole life, money-back) plans?

Yes-80% No-18% Can’t say-2%

8. Did you actually surrender a life insurance policy?

Yes-29%

Four out of five respondents pay premium for traditional plans

No-62% Can’t say-2%

Almost 30% of respondents have already surrendered life insurance policy

Not Applicable-7% 2. Do you currently pay premium for ULIP?

Yes-50% No-48%

9. If you have surrendered a policy did you analyse alternate investment options?

Half of the respondents pay premium for ULIPs

Yes-34% No-14%

Can’t say-2%

Can’t say-2% Not Applicable-50%

3. Are you aware of the policy revival rules in case you miss premium payment for traditional, old/new ULIP?

Yes-64% No-30% Can’t say-6%

10. Are you aware of surrender value of traditional policy?

Two out of three respondents are aware of policy revival rules in case of missed premium payment

Yes-57% No-31% Can’t say-4%

4. Are you aware of switch option in ULIP to move funds from equity to debt option and vice-versa?

Yes-73% No-23% Can’t say-4%

28% of the respondents did not analyse the alternate investment options while surrendering the policy

57% of the respondents are aware of the surrender value of a traditional policy

Not Applicable-8%

Surprisingly, one in four respondents does not know about the switch option in ULIPs

11. Are you aware of surrender charges of old/new ULIP?

Yes-49% No-32% Can’t say-4%

5. Do you feel you are stuck with a life policy and want an exit?

Almost 50% of the respondents are aware of the surrender charges of old/ new ULIPs

Not Applicable-15% Yes-37% No-44% Can’t say-11%

A high 37% of respondents feel they are stuck with life insurance policy and want an exit

12. Have you considered policy ‘paid-up’ instead of surrender option for traditional policy?

Not Applicable-8%

Yes-25% No-41%

6. What are the reasons for wanting an exit from traditional plan (endowment, whole life, money-back)? (Multiple Choice) Answer Options

Can’t say-10%

Response Per cent

Response Count

Not Applicable

32.6

194

Low bonus or benefits

27.3

163

Want to get proper insurance through term life insurance

25.2

150

Better investment options

23.8

142

Do not understand how much returns I will get

21.3

127

Low insurance

21.1

126

Purchased it due to agent push. Did not really want it

17.8

106

Not Applicable-24% 13. Have you considered policy ‘cover continuance’ instead of surrender option for old ULIPs?

Yes-22% No-40% Can’t say-8%

14. Have you considered loan as an option instead of policy surrender for any immediate financial needs?

Yes-32%

None of the above

6.2

37

Can’t Say

3.2

19

Can’t say-3%

7. What are the reasons for wanting an exit from ULIP? (Multiple Choice) Answer Options

Response Per cent

Response Count

Not Applicable

39.3

232

Poor fund performance, low returns

29.6

175

High charges

27.9

165

Mis-sold by agent with big promises

20.3

120

Better investment options

16.9

100

Want to get proper insurance through term life insurance

13.9

82

Markets are volatile

10.8

64

None of the above

4.2

25

Can’t Say

3.0

18

Almost 30% of the respondents mention that poor fund performance and low returns are the major reasons for wanting an exit from ULIP

Of the eligible respondents, more than 57% had not considered cover continuance for old ULIPs

Not Applicable-30%

No-44%

Over 27% respondents stated that low bonus or benefits are the major reasons for wanting an exit from traditional plan

Of the eligible respondents, more than 55% had not considered paid-up option for traditional policy

Not Applicable-21%

Of the eligible respondents, more than 55% had not considered loan as an option instead of policy surrender for urgent financial needs


Moneylife Survey insurance  

But they have not explored options other than surrender—the reason for this article

Advertisement
Read more
Read more
Similar to
Popular now
Just for you