Option for Participating Policies Now : Life Insurance

Life insurance companies reported strong growth in non-participating or non-par products as corporations launched a host of guaranteed products when the interest levels were falling.

Policyholders, too, favored the guaranteed products for savings, protection, pension, and annuity as much saw their savings and earnings getting eroded because of job losses as a result of the pandemic. Moreover, they didn’t want to compromise on non-negotiable life goals such for example building a corpus for retirement or children’s education, especially during uncertain times.

Non-participating life insurance policies do not offer any bonus payout, but provide guaranteed benefits including the sum assured payable on the policyholder’s demise, or the maturity benefits payable when the plan matures. Alternatively, a participating life insurance policy pays both guaranteed benefits and non-guaranteed bonuses based on the company’s profits to the plan holder after the maturity of the policy or even to the nominee in the event of death before the end of the plan tenure.



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