Insurance products to have death benefit and surrender value

 IRDA revises norms for traditional policies.

IRDA in its recent board meeting has revised the norms for traditional life insurance products by adding minimum death benefit and minimum surrender value to the products.

J. Hari Narayan, Chairman, IRDA shared with Cafemutual, “The life insurance products has been revised and aligned with the pension products in some aspects of benefits. The aim was to enhance customer protection keeping in view the long-term nature of life insurance products.”

As per the draft guidelines released by IRDA in June last year, it was proposed that the minimum sum assured should be higher by 10 times the annual premium or 0.5 times of the annual premium multiplied by the term of the policy for those who are below 45 years.

For below 45 years, the minimum sum assured is higher by 10 times the annual premium or 0.5 times the annual premium multiplied by the term of the policy or 105 per cent the premium paid as on the date of the policyholder’s death.