People now prefer short term insurance plan, says LIC official

Written by Press Trust of India | Ahmedabad | Updated: Sep 2 2014, 16:52pm hrs
LIC"People still see life insurance as a tool of insurance." Ajay Kumar said. (PTI)
Life Insurance Corporation's (LIC) Senior Divisional Manager Ajay Kumar said here today that people are inclined towards short term insurance plans, rather than long term plans when it comes to life insurance.

Speaking at the launch of LIC's new insurance plan, Kumar said that people still see insurance as an investment rather than security for their family.

"Our research says that people are now inclined towards short term plans rather than opting for long term plans. Today, we are launching 'Jivan Shagun', which is a guranteed money back plan having a term of 12 years," he said.

"In the last three to four years, we have been seeing a trend where people have started showing interest in term policies, pension schemes and health insurance. However, people still see life insurance as a tool of investment" he said.