Recently IRDA revamped so many changes when it comes to Life Insurance. All these changes will be effective from 1st October 2013 (Now IRDA extended it to 1st Jan 2014) . It is very important for all Life Insurance buyersto understand these changes well before going ahead for any buying.
Non Linked Regulations-
- Non Linked products like traditional life insurance policies will be classified as “PARTICIPATING PRODUCTS OR “PAR PRODUCTS” and NON-PARTICIPATING PRODUCTS OR “NON-PAR PRODUCTS” .
- PAR PRODUCTS will be eligible for Bonus on annual basis + Interim Bonus + Final Additional Bonus.
- Minimum Death Benefit will be A) For Single Premium it is 125% for age up to 45 years, 110% for others. B) For Non Single Premium it is minimum 10 times of the annualized premium (for age up to 45 years), for the rest it is 7 times of annualized premium.
- For Non Single Premium it is minimum 10 times of the annualized premium (for age up to 45 years), for the rest it is 7 times of annualized premium.
- The minimum policy term will be 5 years and minimum premium paying term for non single premium policies will be more than 5 years.
- Guaranteed Surrender Value (for regular premium policies) will be as below. A) 30% of premium paid less any survival benefit already paid, if surrendered within 2nd Or 3rd Year. B) 50% of premium paid less any survival benefit already paid, if surrendered within 4th To 7th Year. C) 90% of premium paid less any survival benefit already paid, if surrendered in the last 2 years of policy , if term of the policy is less than 7 years.
- Premiums will be equal throughout the period of the policy.
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