Life Insurance Product Mix Analyzed

Life insurance companies are changing what they offer to their customers. Specifically, they’re selling more products that guarantee a certain payout, instead of those that depend on the stock market’s performance. This shift happened because stock prices went down, making people nervous about investing. It also coincided with lower interest rates on savings accounts, making guaranteed life insurance more appealing.

• Stock market drop decreased demand for risky ULIPs.
• Lower interest rates boosted guaranteed product appeal.
• Non-par products offer fixed benefits at customer choice.
• SBI Life saw non-par increase to 19.5% in H1FY26.
• ICICI Prudential also reported a rise in non-par sales.
• Guaranteed products are now more attractive for customers.

Understanding the Change

Non-par insurance products are designed to give you a specific payout, regardless of how the stock market does. This is different from unit-linked insurance plans (ULIPs), where your investment grows depending on the stock market’s performance. When the stock market goes down, people are more worried about losing money, so they prefer the safety of a guaranteed payout.

Numbers Tell the Story

SBI Life Insurance increased its sales of non-par products to 19.5% of their total income (called Annual Premium Equivalent or APE) in the first six months of the financial year 2026 (H1FY26). This was a big jump from 15.1% in the same period last year. ICICI Prudential Life Insurance also saw an increase in its sales of these guaranteed products.

This shift highlights a growing customer preference for security and predictability in their life insurance investments.