Life insurance rule change: From October 1, 2024, you will get higher refund when you surrender your life insurance policy
Published by Economic Times
Abhishek Kumar's role: Quoted
Abhishek Kumar, founder of SahajMoney, worked through examples of the new special surrender value rules, showing a larger payout than before for a policy surrendered after four years and a refund of ₹31,295 on a ₹50,000 premium for exit after one year.
More of Abhishek's views on insurance
ET Wealth explains Irdai's special surrender value rules for traditional endowment policies, set out in a June 2024 master circular and in force from 1 October 2024. It describes the calculation using the 10-year G-Sec yield plus up to 50 basis points, gives worked examples of the higher refund on exiting after a year or more, and notes the values must appear in the benefit illustration. It includes comments from Abhishek Kumar.
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Life insurance rule change: From October 1, 2024, you will get higher refund when you surrender your life insurance policy
