In the last six years, the insurance sector has introduced innovative products. The wide range of products are designed as per the needs of the people. Here are some of the interesting insurance products offered by different insurers.
General insurance
Event cancellation insurance:
It is designed to cover loss caused in case an event gets cancelled, relocated or postponed for defined triggers. Events like musical concerts, dance programmes, weddings and cricket matches can be covered under this product. Premium charged differs as the risk associated with each event is different. Poor weather conditions, non appearance of the performers and relocating the events due to security reason are a few triggers which may lead to cancellation of events. This insurance also covers public liability policies, where it can cover for any liability on the host or event planner for causing bodily injury or property damage to the guests at the venue. For wedding insurance, the premiums range between Rs2,200 and Rs8,200, where the cover is anywhere between Rs20 lakh and Rs73 lakh.
Card sure package policy: This covers customers of banks, financial institutions and customers from any other banking and financial service Industry (BFSI) which provide a credit, debit, ATM (automated teller machine) or any other cards launched by them. A person will be covered if he is a customer, account holder, unit holder (in case of mutual funds) or has taken loan from that respective financial institution. The policy offers combinations of coverages and the insured can opt for the relevant sections depending on the coverage requirements and limit of liability required by the insured. The premium ranges from Rs3 to Rs1000, where as the sum assured offered is from Rs10,000 to Rs50 lakh.
Life insurance VIP (Variable insurance plan): VIPs are modified form of universal life plans. VIPs ensure guaranteed returns like traditional plans. It has a more transparent charge structure as one knows the amount deducted from his premium before the balance amount is invested. In Ulips (unit-linked insurance plans) too the transparency is ensured but the benefits are market linked and hence, it depends on the market movements. In VIPs, the rate of interest is declared at the end of the year and is used to calculate the year-end fund value.
“The product is good for people having a low risk appetite,” Suresh Sadagopan, Ladder7 Financial Services, said.
Life stage based products (LSBP): The emergence of LSBPs ensures the fulfillment of specific customer needs falling into various age groups. Child plans and retirement plans fall under this category. Child plan covers the risk and helps parents in keeping sufficient amount for their child’s future. Both, traditional and Ulip plans are available under this. Increasing longevity and rise in cost of living makes people worried about their retirement hence, making retirement products more popular.
“Child plans seem to have taken off as majority of parents are keen on insuring their children and ensuring their financial security,” says V Viswanand, director and head- product management, Max New York Life.
Highest NAV (net asset value) guarantee: The rising concern of the customers during the financial crisis has led to the design of such a product. It provides security against the market fluctuations. It is a typical Ulip (unit-linked insurance plan) which gives returns on the performance of the fund’s NAV. Under this plan, even though the NAV is low on the maturity date, policy holder will be entitled to receive the maturity amount on the basis of highest NAV. In this plan, the fund is proportionally divided into equity and debt market. When the highest NAV under the plan is reached, it is secured by shifting equity proportion to debt and by doing so the customer will get the highest NAV on maturity. But it cannot promise a high return. People who are risk averse can opt for this plan and it is costlier than a normal Ulip.
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