Higher refund on premature exit from life insurance policy as IRDAI introduces new surrender value rule; check how much you will get

Starting October 1, 2024, IRDAI’s new rules let you get a higher refund if you exit your life insurance policy after paying just one year’s premium, instead of waiting two years as before. The surrender value will now be based on the present value of your paid-up sum assured and future benefits, calculated using a formula linked to the 10-year government securities rate. This change means policyholders can expect a significantly higher payout on premature exits, improving flexibility and liquidity for those who need to surrender their policies early