Consider benefits, costs before agreeing to insurance policy splitting

Last Update Date: 06-10-2026

Published by Business Standard

Abhishek Kumar's role: Quoted

Abhishek Kumar explained how splitting works in practice, giving the example of an agent advising a buyer to spread a ₹1 crore cover across four policies of ₹25 lakh each.

An IRDAI master circular says insurance policies may be split only when the customer asks for it and agrees. The article explains what policy splitting means, how it can raise premiums or lead to surrender charges, when holding several smaller policies can help, and why agents sometimes push for it.

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Consider benefits, costs before agreeing to insurance policy splitting

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