He added that the company expects to achieve this in three to six months.
Kotak Mahindra Life Insurance has launched TULIP (term with unit linked insurance plan). The unit-linked plan offers a life cover up to 100 times the annual premium.
The plan also offers various benefits like loyalty additions of up to 30% of fund value as a part of the maturity benefits added by the company. It offers a refund of double the premium allocation charges in the tenth, eleventh, twelfth and thirteenth year.
The plan offers a refund of one-to-three times of the mortality charges from the 11th policy year onwards. It also offers flexibility to withdraw money in case of a financial emergency, accidental death benefit and a critical illness rider. Besides, it offers eight fund options for policyholders to choose from, to invest money.
“TULIP offers our customers a comprehensive protection life term plan and the opportunity to grow their wealth like ULIP. It is aimed at taking care of the customer’s core financial needs,” said managing director Mahesh Balasubramanian.
A recent report by aggregator PolicyBazaar showed that the term insurance policies to the self-employed segment rose around 10% in the last one year. Around 41% of policy-holders in the self-employed category opted for unit-linked insurance plans.
Currently, the contribution of term plans to Kotak Mahindra Life’s overall premiums are at around 5%. The contribution of unit-linked insurance plans is at 14-15%. Going ahead, the company is focussing on increasing the combined contribution of term plans and unit-linked insurance plans to 30%.
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“If the premium contribution from protection goes to double digits, this product would have met its objectives,” Balasubramanian said at a press meet on Wednesday. He added that the company expects to achieve this in three to six months.
