The Insurance Regulatory and Development Authority of India (IRDAI) have announced that it has brought changes to some of the key norms pertaining to life insurance products.
“The minimum death benefit in the non-linked policy has been decreased from 10 times to seven times. In the non-linked policy, 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,” As per the Gazette notification, issued by the regulatory,
In the Unit-Linked Policies, if during the first five years it has a surrender value, it will become payable only when the lock-in period is completed. Once the lock-in period is finished, the surrender value should be at least equal to fund vale as it was on the date of surrender.
In the non-linked policy, if the policy is surrendered after two years, the policyholders will get a fixed amount.
However, during emergency policyholders are allowed to withdraw 25 percent of the insured money. The emergency includes serious illness, marriage and the education of their children.