Surrender Value News Today

Mumbai: From October 1, life insurance companies will pay you a surrender value even if you surrender your policy after completion of the first policy year. The Insurance Regulatory and Development...

LIC Dhan Vriddhi plan provides financial support for the family in case of unfortunate death of the life assured during the policy term. It also provides a guaranteed lump sum amount on the date of maturity to the life assured.

If IRDAI considers increasing the surrender value, it will likely impact insurance companiess profitability as well as policyholder’s behaviour, analysts said.

The surrender values for life insurance policies will see a decline when policies are surrendered within the first three year, as per the newly released guideline.

Life insurance premiums have undergone some revisions, mainly in the aftermath of COVID-19. I don’t see any significant movement happening this financial year, said Subhrajit Mukhopadhyay.

Some health insurance companies have proposed to introduce cohort-based pricing, which is akin to the claim-based loading that was abolished by regulator IRDAI in 2013. The proposal is completely illogical and immoral, says Kamesh Goyal

Life insurance savings plans such as endowment, money-back, or Unit-Linked Insurance Plans enable investors to accumulate wealth over time. These policies are meant to help individuals achieve their long-term financial goals

A higher surrender value on nonpar policies, which guarantee survival or maturity benefit without depending on insurers profit, could lead to an increase in more people giving up on policies prematurely, according to the insurers. This could result in a decline in persistence levels — or the proportion of policyholders who opt to pay premiums regularly — for the life insurance sector, according to them.

They add that IRDAI is aiming to boost insurance penetration in India, and the draft circular aims to do that.

Regulator has sought public comments on the paper till January 3