IRDAI vide Press Release dated September 01, 2023 has notified about measures which allow more choices and benefits, associated with withdrawn life Insurance Products. This was done in order to empower the policyholders and improve Insurance landscape. Reference can also be drawn to the Circular*.
Note: This shall be applicable to products that are no longer available for sale but still have existing policies serviced by Insurers.
Further, the objective of this Circular is to provide flexibility and safeguard the interests of the policyholders. The key provisions include:
- Adding Riders: Companies can offer new riders.
- Flexible Payments: Option to change the premium paying mode.
- Lower Interest Rates: Lower interest rates for policy revivals and policy loans.
- More Payment Options: Choose how often they receive certain benefits from their policies with income benefit payments.
Reference:
* IRDAI/ACTL/CIR/PRO/166/08/2023- “Circular on modification permitted to withdrawn Life Insurance Products” dated August 31, 2023.
Source category: IRDAI
Attachments
- /2023/255_IRDAI_PRESS_Release_on_Additional_Options_for_Withdrawn_Life_Insurance_Products.pdf
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