The Insurance Regulatory and Development Authority of India (IRDAI) announced that it has brought some changes to the key norms of life insurance products in the country. 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 a Gazette notification issued by the IRDAI.
In the Unit-Linked Policies, if it 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. 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% of the insured money. The emergencies include serious illness, marriage and the education of children.
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