IRDAI changes norms for life insurance products
The Insurance Regulatory and Development Authority of India (IRDAI) has changed some of the key norms pertaining to life insurance products. These are mentioned below:
For non-linked policy
- The minimum death benefit has been decreased from 10 times to seven times.
- Policyholders will get a fixed amount if the policy is surrendered after two years.
- The revival period for this policy has been increased from two years to five years.
Unit-Linked Policies
- if the policy has a surrender value during the first five years, it will become payable only after the completion of the lock-in period.
- After the lock-in period, the surrender value shall be at least equal to the fund value as on the date of surrender.
Pension products
- policyholders can withdraw 25 percent of the insured during an emergency, including serious illness, marriage and the education of their children.