Life insurance: IRDAI retracts on low surrender value proposal; know applicable surrender charges from April 1, 2024
Published by Economic Times
Abhishek Kumar's role: Quoted
Abhishek Kumar, founder of SahajMoney, said IRDAI's final rules keep early surrender values low, which favours insurers, and that many policyholders may stay in costly non-term policies to avoid a sunk cost.
More of Abhishek's views on insurance
Economic Times reports that IRDAI's final insurance product regulations, effective 1 April 2024, largely kept existing surrender value norms for life insurance policies instead of a December 2023 draft that would have cut surrender charges. It sets out the slabs, from 30% of premiums paid in the second year to 90% in the last two years, compares an example under both versions and gathers reactions, including from Abhishek Kumar.
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Life insurance: IRDAI retracts on low surrender value proposal; know applicable surrender charges from April 1, 2024