Most of the 22 private life insurance companies as well as Life Insurance Corporation (LIC) of India have shown a huge increase in their individual single premium collections this year for the period up to February 2011 as compared to the corresponding period last year.
As per the latest business figures released by the Insurance Regulatory and Development Authority (IRDA), ICICI Prudential leads the pack with individual single premium collection of Rs. 1535 crore for April – February 2011 as compared to Rs. 108 crore for corresponding period in 2010. Last year in August, ICICI Prudential launched ‘Lifelink Wealth SP’ which is a single premium ULIP.
Except Birla Sun Life, Canara HSBC OBC Life and Bharti AXA Life, which have seen a dip in their individual single premium collections this year, all the other insures have seen an incremental increase in their single premium collections. SBI Life’s individual single premium collection has more than trebled since last year. The insurer has collected close to Rs. 1416 crore up to February 2011 as compared to Rs. 425 crore for the same period last year.
LIC of India, which is the only public sector life insurance company in India, has also seen a 23 per cent increase in its collection of individual single premiums this year.
This data clearly indicates that increasing number of individuals are now opting for single premium policies. Single premium policies are beneficial in many ways. Customer has to make a lump-sum payment only at the beginning of the term while he continues to enjoy the benefits throughout the policy term. It is convenient and hassle-free; and there is no chance of a policy-lapse in case the customer forgets to pay his regular premium.