Ulips becomes customer friendly

New Delhi: After the new norms on unit-linked insurance plans (Ulips) came into effect last month, the product has turned into a long-term vehicle for life cover and investment and will now be attractive to long-term investors, says V Philip, chief operating officer, Bajaj Allianz. In an interview with FE’s Saikat Neogi, he says the increased lock-in period will, in a way, reduce mis-selling since investors will seek more protection and investments for longer periods. Excerpts:

Now that new norms have been introduced, do you think customers will treat Ulips as another mutual fund product? What will happen to the existing customers of Ulips?

The new guidelines have made Ulips a very customer-friendly investment tool. Some of the notable features are enhanced minimum sum assured, an increased lock-in period of five years and capping of surrender charges which are extremely beneficial to policyholders. In addition to these, the capping of expense guidelines \.