Investors find insurance policies ‘safe'

After gold, life insurance policies are the second most “safe” investment avenues to investors in the country in the present financial condition, according to a recent survey by AC Nielson and Max New York Life.

Out of 1,000 respondents (unit-linked policy and other life insurance policyholders of various insurers) surveyed across six centres in the country between October 20 and 31, 59 per cent of ULIP holders said gold was a “safe bet” for investment, while 53 per cent said they considered life insurance products to be safe.

The same outlook was shared by other traditional insurance policyholders with 58 per cent and 56 per cent voting for gold and life insurance policies, respectively. Fixed deposits, mutual funds, National Savings Certificates and Public Provident Funds were the other safe investment areas, in order of preference.

Are you too risky for insurance?

While 49 per cent of the policyholders said they are holding on to their previous investments, 33 per cent of respondents said they are investing in life insurance and 22 per cent said they are investing in other safer options now.

Ten per cent of respondents said they have decreased investments in equity while an equal number said they withdrew savings from banks. Three per cent of respondents said they increased equity investment in recent times.

Across centres, around 90 per cent of the respondents claimed to have been affected by the financial crisis in some form or the other.

Almost 50 per cent of the respondents believed that it would take not more than six months for the financial crisis to end.