Life insurers are feeling the heat after COVID

#LifeInsurance companies are facing the heat post #COVID. Over the past five years, they have seen a 75% increase in death claims, while there has been a 25% drop in the number of lives covered by the country's top private insurers.

What's behind the decline in new policyholders?
- Rising premiums (up by 5–10%)
- 18% #GST burden on the premiums paid
- Vanishing tax incentives under the #NewTaxRegime

To boost premium collections, companies are now pushing hard for #ULIPs (Unit-Linked Insurance Plans). These products bundle insurance with market-linked returns, which sounds wonderful!
But here’s the catch: ULIPs fail investors!
– Only a part of your premium is invested in the market
– Often layered with high charges and commissions
– Historically, they’ve underperformed the benchmarked indexes

So why are they popular?
Because they sell a dream, protection, plus returns. We Indians always love something in return for the money paid!

What is a better approach, to keep #insurance and #investment goals separate
– Buy a vanilla Term Insurance for financial protection in case things go wrong
– Invest separately in Index #MutualFunds for long-term growth, based on your risk profile

What’s your take on ULIPs? Have you ever invested in one?

And if you need any help with #PersonalFinance, #Taxation, or #CreditCards optimization, feel free to reach out.