Financial Adviser

LIC To Take Advantage of Weak Market Sentiments

Written by The RupeeManager Team

Wednesday, 24 August 2011 10:00

LIC is launching a single premium product, just like it's best selling Jeevan Aastha, as per NDTV. 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. 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. Though 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.” 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. Read more at: http://profit.ndtv.com/news/show/lic-to-harness-volatile-markets-via-new-policy-173927?cp Next >