However, people who view insurance as an investment, do not get the real essence of it. Life insurance is a form of investment but it is meant for reaping rewards later in life. Insurance can also provide medium-to-high returns in due course of time. However, they do not promise a huge sum of money in one go, with even 5 – 10 percent of interest rates.

Unit-Linked Insurance Plans (ULIPS) were launched in the market, policy holders were intensely drawn towards it. This was because they wanted higher returns on the premiums shelled out by them – again a wish to gain money and not protect life. Eventually, ULIPS began to sell like hot cakes. This instigated a major change in product offerings of insurances, which were miles away from the core purpose. These new products focused on higher returns but did not assure proper life cover. Due to this, the average amount of life insurance plummeted down the years. This shook the very existence of life insurance – protection.

Still, lately there has been a change of mind and heart among both policy holders and insurance firms. This has led to the focus re-shifting to the main track of acting as a life shield. Both agencies must understand that life insurance is to help the beloved in times of need and not accumulate moolah in bank accounts.