Despite current high volatility witnessed by Sensex, the domestic life insurance companies are recording brisk sales in their Unit Linked Insurance Products (ULIP) where equity option is at the higher side. ”If the Sensex is low, the premium of the policy holder for buying ULIPs can buy more units. On this basis we have received many requests from the policy holders to switch over to equity dominated ULIPs,?? said Anjana Grewal, senior vice-president, Birla Sunlife adding that the company would double its premium base in the current year.
She explained that life insurance products are long-term products and equity-linked scheme can provide higher returns in the long run.Bryce Johns, Kotak Mahindra Old Mutual Life Insurance, chief investment officer said, ?We increased our equity exposure when the Sensex had touched 16,000 and will continue to do it until it crosses the mark of 19,000 which may take three months from now.??
”Rather than return, an investor should take his own risk profile before asking for higher equity exposure,?? she suggested. Focusing on the infrastructural base to strengthen its distributional network Birla Sunlife is adding another 260 branches to its existing 340 branches by April.
The asset under management for Birla Sun Life Insurance is in excess of Rs 6200 crore as on January 31, 2008.