Life insurance rules will change from october 1!!!

A big change has been made in the rules regarding Life Insurance Policy. Now you will get more money than before on surrendering the policy. Insurance sector regulator IRDAI is going to implement these new rules from october 1. Now insurance companies will have to give Special Surrender Value on the policy. Due to this, you will be able to surrender the policy easily and will also get more refund. Also, it will be easy for you to change the plan. Let's try to understand how the rules that are going to change from october 1 will prove beneficial for you.

Refund will have to be given even if the policy is surrendered in the first year

According to the new Special Surrender Value rules, the policyholder will have to be given a refund even if the policy is surrendered in the first year. IRDAI has instructed all insurance companies to give the benefit of these rules on all endowment policies. Many companies including lic had demanded to change them. According to the circular issued by IRDAI on june 12, all insurance companies will have to improve the special surrender value. It will be seen how much premium you have paid and what benefit you were going to get on it. Special surrender value will also be reviewed every year.

More money will be available under special surrender value rules

According to the report of Economic Times, earlier the rule was that if the policy is surrendered within 4 to 7 years, then you will be paid 50 percent of the premium. According to the analysis, if you had paid a premium of Rs 2 lakh and surrendered the policy in 4 years, then you would get back about Rs 1.2 lakh. But now according to the special surrender value rules, you will get back up to Rs 1.55 lakh.

The insurance company will also have to give information about the special surrender value

Till now, if you surrender the policy within a year, then you do not get anything back of the premium. But, according to the rules that are going to be implemented from october 1, you will get a refund. For example, if you took a policy for 10 years and paid a premium of Rs 50,000. But, due to some reason, you had to stop the policy in the first year itself, then your Rs 50,000 would have been lost. However, under the new rules of IRDAI, you will get back up to Rs 31295. While giving the policy, the insurance company will also have to provide information about the special surrender value.