Working as an Assistant in LIC of India, Rockfort BO, Trichy, TN.
Having a strong belief that LIC's welfare is our welfare and always trying to work towards that. Also functioning as an office bearer of AIIEA Thanjavur Division.
Volatile markets are giving way to products, which offer relief to investors and open new avenues to park their funds. Gauging market sentiments, Life Insurance Corporation of India (LIC) is all set to launch its best-selling product in the form of a single premium policy.
It's been two and half years since the last single premium policy from LIC Jeevan Astha came into the market. Response to Jeevan Astha showed that investors prefer policies, which involve a one-time premium payment even though that premium payment is much higher.
Jeevan Astha in 2009 garnered around Rs. 10,235 crore in 45 days with around 1.8 million policies being sold.
Sources have told NDTV that LIC is waiting to get the final approval from Insurance regulator IRDA and intends to launch this product in the first week of September.
LIC is launching a single premium policy after a gap of two and a half years and sources say that the insurance giant is expected to offer a fixed return in the range of 7-8 per cent per annum with insurance cover added to the product.
The single premium policy, which offers tax exemption will also give the option of choosing a tenure of 5-10 year with LIC aiming to raise in excess of Rs. 10,000 crore from this scheme.
But despite its huge success, prominent financial planners are not in favour of single premium policies, despite a brand like LIC offering it.
Gaurav Mashruwala, Financial Planner, “Instead of that if I invest that money on FD and every year erode little bit of returns and capital, I would still be better off as maneuvering that product at later stage remains with me and I would have generated better returns also.”
At a time when the insurance sector's premium collection for the quarter ended June is down by more than 25 per cent, LIC is trying to revive its premium collection through this product.
It is also ensuring enough liquidity to pump into the equity markets, especially into infrastructure companies with LIC being the largest institutional investor in the Indian equity markets.
LIC, which had set a target of pumping in Rs. 2 lakh crore investment with Rs. 60,000 crore for the equity markets hopes products like single premium policy will it achieve these stiff targets in the current market conditions.