Surrender value rules will give the benefit of reduction in TDS rates, know how your life insurance policies will change.

Policyholders will get more benefits

Rule Change: With the beginning of October 2024, many new rules have come into force in the country, which includes an important change in the rules related to life insurance policies. New rules issued by insurance regulatory authority IRDAI have come into effect from October 1, 2024, which relax the rules for surrendering life insurance policies. Its objective is to provide more financial benefits to the policyholders and ensure their protection.

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You will get more refund on surrender

Under the new rules, if a policyholder surrenders his life insurance policy prematurely, he will now get a higher refund than before. Earlier, insurance companies used to give less refund on surrender of the policy, which caused loss to the policyholders. But now as per the instructions of IRDAI, the policyholder will get the benefit of increase in surrender value. This means that if for some reason the policyholder has to leave his policy midway, he will receive a better refund, which will compensate for his loss.

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Beneficial steps for policyholders

This move by IRDAI aims to protect the interests of policyholders and provide them with greater financial security when they leave the insurance policy. The new rules will also increase transparency towards insurance companies and policyholders will get better facilities.

This change will provide greater flexibility to life insurance holders, allowing them to reap greater financial benefits even when they abandon their policy if needed. These new rules of IRDAI may prove to be beneficial in the long term for policyholders, especially in circumstances when it is not possible to continue the policy.

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Guaranteed surrender value applicable from the very first year

According to the new rules of IRDAI, now life insurance policyholders will be able to get the guaranteed surrender value from the very first year. This means that if a policyholder surrenders his policy in the first year itself, he will also get a fixed refund. Under the earlier rules, policyholders would get less or equal to the new refund if they surrendered the policy in the initial years.

Now under the new rules, it has been ensured that policyholders get a minimum guaranteed surrender value from the first year itself, thereby providing them greater financial security.

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Disclaimer: Prabhat Khabar does not advise anyone to invest in shares of any company. It is subject to market risks. Before investing, definitely take advice from a market expert.