#1
June 7th, 2016, 04:02 PM
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IRDA Term Insurance
Hello sir I am a Policy Holders and I want to know about the IRDA’s Term Insurance Guidelines which Helps Policy Holders please tell me ??
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#2
June 7th, 2016, 04:25 PM
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Re: IRDA Term Insurance
As you want to know about the IRDA’s Term Insurance Guidelines which Helps Policy Holders IRDA’s Term Insurance Guidelines Helps Policy Holders The IRDA was comprised with the aim to standardize and regulate the insurance segment in India. The regulatory body has put forth regulations and guidelines for all types of insurance, including whole life and term insurance plans. A key part of the IRDA’s role is to protector the rights and interests of policyholders. Here is Highlights of the IRDAs Rules to Aid Life Cover Holders The IRDA brought in some changes in 2013, to be made effective from January 1, 2014. These new guidelines are said to be more transparent and customer-centric. The major changes are with regards to the life insurance sector, mainly in standard policies like endowment, money-back, ULIPs and term insurance plans. 1. A Long Term Perspective : The new guidelines urge customers to look at insurance products for long term gains. To this end, the least period for which premium is payable for non-linked changeable products has been set at five years. 2. Guaranteed Capital Return: Variable insurance products will come with a sure rate of guaranteed return. This is decided when the customer chooses their plan. So, efficiently, they will be able to make a decision if the policy fits their needs at a very premature stage. In case they find that it is not profitable enough, they may make a switch to another plan. 3. Surrender Value: Although we plan to hold the policy until maturity, it might not always work out. In case you need to withdraw the plan midway, you can need an optimum surrender value. The new guidelines provides for this, if definite conditions are fulfilled. For instance, if you have a term insurance policy with a maturity benefit raider, for a period more than ten years; then you are eligible to the surrender value after paying premium for three years. Such a provision may show to be very beneficial to the consumer, especially in situations requiring high liquidity. 4. Death Benefits: The IRDA guidelines specifies that the minimum value of the sum assured on a life plan will have to be ten times the worth of the annual premium, in case of individuals below the age of 45. For those above 45 years, death benefits or the sum assured should be seven times the value of the agreed annual premium. Also, at any provided incidence, the benefit must be no less than 105% of the increasing premiums paid till date. |