A policy for risk cover or assured return

At the time before global economic crisis arrived on the planet and share market was seeing mostly the green side, most of the people were bullish on the insurance sector with a sufficient premium income coming in the sector in accounts of private and public insurers.

However, the time has changed now, the dark period of recession had recorded its presence in the month of September 2008, making investors snatching back their ready to be invested money in share as well as insurance market.

Except Life Insurance Corporation of India, which operates under the government roof, many other private insurance players like ICICI Prudential, Bajaj Allianz Life Insurance, HDFC Standard Life among many others have felt the heat of recession as the trust factor was almost lost among the customers.

Every single person in and out of insurance sector knows that investors are not ready to make their money go to that life or health insurance company which is feeling some cash crunch with it as this could create danger to the investor's money. Therefore state run companies are very much trusted now as every one wants safety of investments along with safety of life and health.

Now the sector is gaining control over the situation as economy is reviving with growing indices in share market and this has resulted in the customer's reviving trust in insurance industry.

However, the mentality of investors is not the same as many are looking for returns or profits out of their insurance plan or policy. One can say that people today standing with cash in their hands are not looking just for a risk free life but wants some assured returns out of their investments.

This development has resulted in customers giving more attention to Unit Linked Insurance Plans rather than simple term life insurance plan as Ulips provide regular as well as fixed return and not just security of life.

The plans like Life Stage Assure from ICICI Prudential, Birla Sun Life Dream Plan and Kotak Life Smart Advantage Plan are some Ulips provided by the major life insurance companies of the country which are not very much bullish on the term insurance portfolio.

At the time of reviving economy, the investors are ready to take big moolah out of their pockets to invest in insurance sectors but are also willing to get exact returns out of that and are not ready to get satisfied in simple risk cover.

Same is happening in health insurance segment where the customers are out in the search of one perfect policy which can provide maximum cover to an individual in the minimum cost. This has also resulted in increased subscription of family floater plans where a whole family of 1-5 members can get assured for the cost of one individual's policy.

Today some insurers are not ready to provide full claims in many hospitals and customers are looking for the one which is offering full settlement in maximum hospitals.

With one looking for more returns rather than security of life, one can expect many more changes in the customer's perspective which keeps on changing with economic conditions.