Big news from IRDAI (Insurance Regulatory and Development Authority of India) for insurance companies and customers! They’ve made important changes for life insurance.
Now, surrender value, which is the money you get if you end your policy early, will be decided based on how long you’ve had the policy.
Longer time means more money back. These new rules start from April 1, 2024. Let’s break it down.
For regular premium policies
1) If you surrender in the second year, you get back 30% of what you paid.
2) In the third year, it’s 35%.
3) From the fourth to seventh year, you get 50% back.
4) Surrendering before two years? You’ll get 90% back.
For single premium policies
1) In the third year, you get 75% back.
2) In the fourth year, it’s 90% back.
3) Surrendering before two years? You’ll also get 90% back.
Good news for customers
1) If you surrender in the first three years, there’s not much change.
2) After three years, surrender value goes up a bit.
3) Most policies can’t be surrendered after seven years.
Also, IRDAI approved 8 new rules, which will help regulate things better. They’ve changed 34 regulations and introduced 2 new ones.
