Kathmandu. The attraction of insurers buying life insurance policies has decreased significantly in life and advance payment nature.
While the sale of both these types of insurance has declined, the sale of single insurance policies has increased sharply.
According to the Nepal Insurance Authority, the life insurer last fiscal year 2081. The number of sales of life and advance payment term insurance policies decreased by 21 percent and 17 percent, respectively, while the single insurance policy registered the highest increase of 48 percent in 82.
According to the Nepal Insurance Authority, a total of 28,052 single insurance policies have been sold by life insurers in the last fiscal year. Similarly, 41,354 advance payment term and 6,327 life insurance policies were issued.
Last fiscal year 2080. In 1981, life insurance companies sold 19,647 units of single insurance policies. Similarly, 8,029 life insurance policies and 50,075 advance payment policies were issued during the same period.
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After the interest rate on fixed deposits has been limited to around 4 percent, the insured has started investing in the insurance by paying a lump sum insurance fee for 5 to 10 years in search of higher returns. As a result, the sale of single insurance policies has increased significantly.
On the contrary, after the lowest bonus rate of advance payment insurance, the advance payment policy has stopped falling in the choice of both the insured and the agent. Until the bonus rate was made public, after the completion of one year of the purchase of the policy by the insurer, the insured had issued a large number of annual payment policies to receive payment of 5 percent of the sum assured every year.
Apart from this, after the insurer stopped selling the old annual advance payment and life insurance policy by bringing the insurance policy with old features but expensive insurance fees, the agent started advising the insured to buy other insurance policies. In the last two years, most of the old insurers have stopped the sale of old insurance policies that are in circulation but are of loss-making nature and with the revision of the insurance fee, the trend of issuing new insurance policies with old features has increased.
