Bajaj Allianz Life Insurance is focusing on traditional plans to grab a larger share of the insurance pie, a company official said. The company wants to use the customers’ recent aversion to equity-linked schemes to its advantage.

“In the past two years, traditional plans had lagged behind unit-linked insurance policies (Ulips). But recently we are seeing some risk aversion among our customers, which is helping the sales of traditional policies,” Akshay Mehrotra, head (marketing) of the company, said.

Traditional plans contributed 16 per cent to the total policies sold by the insurer last year. The number has increased to 25 per cent this year. Mehrotra expects it to increase to 30 per cent by year-end.

Bajaj Allianz has sold more than one lakh policies of its recently launched traditional product, Invest Plus Premier. Another 50,000 policies are expected to be sold over the next couple of months. The product is available in a kit form that offers guaranteed investment returns that is declared at the beginning of each financial year. For the present financial year, it is 7.05 per cent.

Mehrotra credits the plan’s success to customers seeking a modicum of guarantee on their investment as well as the simple nature of the offering.

“Customers are happy as they clearly understand where their money is being invested and the charges that they have to pay. Also, the fact that they already know how much returns they would be getting, makes them reassured,” he says.

The company is betting on is the InvestGain product. The plan provides four times life cover at a little extra cost, offering additional benefits, such as accidental death benefit and disability benefit, critical illness and hospital cash benefit and family income benefit.

sharanglimaye

@mydigitalfc.com