1. Do you currently pay premium for traditional (endowment, whole life, money-back) plans?
Yes-80% No-18% Can’t say-2%
8. Did you actually surrender a life insurance policy?
Yes-29%
Four out of five respondents pay premium for traditional plans
No-62% Can’t say-2%
Almost 30% of respondents have already surrendered life insurance policy
Not Applicable-7% 2. Do you currently pay premium for ULIP?
Yes-50% No-48%
9. If you have surrendered a policy did you analyse alternate investment options?
Half of the respondents pay premium for ULIPs
Yes-34% No-14%
Can’t say-2%
Can’t say-2% Not Applicable-50%
3. Are you aware of the policy revival rules in case you miss premium payment for traditional, old/new ULIP?
Yes-64% No-30% Can’t say-6%
10. Are you aware of surrender value of traditional policy?
Two out of three respondents are aware of policy revival rules in case of missed premium payment
Yes-57% No-31% Can’t say-4%
4. Are you aware of switch option in ULIP to move funds from equity to debt option and vice-versa?
Yes-73% No-23% Can’t say-4%
28% of the respondents did not analyse the alternate investment options while surrendering the policy
57% of the respondents are aware of the surrender value of a traditional policy
Not Applicable-8%
Surprisingly, one in four respondents does not know about the switch option in ULIPs
11. Are you aware of surrender charges of old/new ULIP?
Yes-49% No-32% Can’t say-4%
5. Do you feel you are stuck with a life policy and want an exit?
Almost 50% of the respondents are aware of the surrender charges of old/ new ULIPs
Not Applicable-15% Yes-37% No-44% Can’t say-11%
A high 37% of respondents feel they are stuck with life insurance policy and want an exit
12. Have you considered policy ‘paid-up’ instead of surrender option for traditional policy?
Not Applicable-8%
Yes-25% No-41%
6. What are the reasons for wanting an exit from traditional plan (endowment, whole life, money-back)? (Multiple Choice) Answer Options
Can’t say-10%
Response Per cent
Response Count
Not Applicable
32.6
194
Low bonus or benefits
27.3
163
Want to get proper insurance through term life insurance
25.2
150
Better investment options
23.8
142
Do not understand how much returns I will get
21.3
127
Low insurance
21.1
126
Purchased it due to agent push. Did not really want it
17.8
106
Not Applicable-24% 13. Have you considered policy ‘cover continuance’ instead of surrender option for old ULIPs?
Yes-22% No-40% Can’t say-8%
14. Have you considered loan as an option instead of policy surrender for any immediate financial needs?
Yes-32%
None of the above
6.2
37
Can’t Say
3.2
19
Can’t say-3%
7. What are the reasons for wanting an exit from ULIP? (Multiple Choice) Answer Options
Response Per cent
Response Count
Not Applicable
39.3
232
Poor fund performance, low returns
29.6
175
High charges
27.9
165
Mis-sold by agent with big promises
20.3
120
Better investment options
16.9
100
Want to get proper insurance through term life insurance
13.9
82
Markets are volatile
10.8
64
None of the above
4.2
25
Can’t Say
3.0
18
Almost 30% of the respondents mention that poor fund performance and low returns are the major reasons for wanting an exit from ULIP
Of the eligible respondents, more than 57% had not considered cover continuance for old ULIPs
Not Applicable-30%
No-44%
Over 27% respondents stated that low bonus or benefits are the major reasons for wanting an exit from traditional plan
Of the eligible respondents, more than 55% had not considered paid-up option for traditional policy
Not Applicable-21%
Of the eligible respondents, more than 55% had not considered loan as an option instead of policy surrender for urgent financial needs