IRDA Life Insurance Regulations 2013-Do you know these changes?

Recently IRDA revamped so many changes when it comes to Life Insurance. All these changes will be effective from 1st October 2013 (Now IRDA extended it to 1st Jan 2014) . It is very important for all Life Insurance buyers to understand these changes well before going ahead for any buying.

Non Linked Regulations-

  1. Non Linked products like traditional life insurance policies will be classified as “PARTICIPATING PRODUCTS OR “PAR PRODUCTS” and NON-PARTICIPATING PRODUCTS OR “NON-PAR PRODUCTS” .
  2. PAR PRODUCTS will be eligible for Bonus on annual basis + Interim Bonus + Final Additional Bonus.
  3. Minimum Death Benefit will be   A) For Single Premium it is 125% for age up to 45 years, 110% for others.  B) For Non Single Premium it is minimum 10 times of the annualized premium (for age up to 45 years), for the rest       it is 7 times of annualized premium.
  4. For Non Single Premium it is minimum 10 times of the annualized premium (for age up to 45 years), for the rest       it is 7 times of annualized premium.
  5. The minimum policy term will be 5 years and minimum premium paying term for non single premium policies will be more than 5 years.
  6. Guaranteed Surrender Value (for regular premium policies) will be as below.  A) 30% of premium paid less any survival benefit already paid, if surrendered within 2nd Or 3rd Year. B) 50% of premium paid less any survival benefit already paid, if surrendered within 4th To 7th Year. C) 90% of premium paid less any survival benefit already paid, if surrendered in the last 2 years of policy , if term of the policy is less than 7 years.
  7. Premiums will be equal throughout the period of the policy.
  8. One can pay their premium only 30 days before the date of premium due. This move has both negative and positive effects. Negative effects are like if your employer ask you submit investment proof before 31st January of FY and your Life Insurance premium is due by 1st March then you are unable to produce it buy paying advance. So you need to ask for the TDS done from your employer afterward. Earlier to this, there was a provision to pay the advance premium and avail discount on this. Agents used to woo policy holders to pay advance payment and have a discount on this. Reason is, they will get a handsome commission immediately.
  9. For monthly premium payment mode only during the start of policy insurance company may accept 3 months advance payment.
  10.  Service tax will be collected over and above the contractual premium. Now there will be a clear idea about how much you are paying as tax and how much will go towards premium. So this move will actually bring transparency.
  11. Selling of same plan and same tenure by splitting plans will not be allowed henceforth. It means from now onward your agent will not be able to sell the one product with same tenure by splitting Sum Assured (which increases his number of policy count but cumbersome for policy holders to maintain the data.) Like Jeevan Anand with tenure of 20 years can not be split like 5 policies of  each SA Rs.5,00,000. Instead you have to buy only one Jeevan Anand for tenure of 20 years and SA Rs.25,00,000. But your agent can sell with different terms.
  12. Existing plans of insurance companies will be revamped to suit the new regulations. Hence plans of LIC’s Jeevan Anand or Jeevan Tarang may come out with new features.
  13. Policies sold during the transition period (from 20th Feb 2013 to 1st Oct 2013) will have the option either to have continued their policies with existing features or move to new features.
  14. Your premiums will come down drastically as from now onward new mortality table will be referred to fix insurance premium.  Especially LIC which is using the 1994-96 Ultimate Mortality Rates will move to IRDA’s Indian Assured Lives Mortality (2006-08).
  15. The agents commission structure was revamped. Details of the same will be available in my recent post “Do you know your life insurance agents commission?“.
  16. The product literature must indicate whether the policy is protection oriented or saving orientd.
  17. Benefit illustration like guaranteed and non guaranteed at gross investment returns of 4% and 8% respectively signed by both prospective policyholder and agent. It must form the part of the policy document.

IRDA Regulation 2013

                                                        Buying Life Insurance By moolanomy, CC-BY-SA-2.0.

Linked Regulations

  1. Death Benefit will be either of below. A)  The Sum Assured as agreed in the policy plus the balance unit of fund. B)  Higher of Sum Assured or balance unit of a fund.
  2. But the minimum maturity value should be equal to the value of units available on maturity date.
  3. Minimum Death Benefit will be as below. A) For single premium 125% of premium paid (if age at entry is under 45 years) or 110% of premium paid (if age at  entry is above 45 years). B) For regular premiums 10 times of annualized premiums or 0.5 * Term of the Policy * annual premium whichever is higher (if age at entry is under 45 years). Else 7 times of annualized premiums or 0.5 * Term of the policy * annual premium whichever is higher (if age at entry is above 45 years).
  4. Single premium health insurance products will not be available from now onward.
  5. In case of death within 12 months of the start of the policy or from the date of revival of the policy then nominee will be entitled for fund value available on the date of death.
  6. For policies issued for minors the date of commencement of policy and risk commencement will be same.
  7. At any point of time death benefit will not be less than 105% of total premiums paid including top up but excluding service tax.
  8. Minimum policy term will be 5 years and premium payment will be 5 years.
  9. Grace period will be 15 days  monthly premium paying and 30 days for in all other cases.
  10. Lock in period will be 5 years.
  11. If policies discontinued within 5 years then they can revive the policies within two years or complete withdrawal without any risk.
  12. Partial withdrawal will be available after 5 years only. But for child policies one can not withdraw until minor insured attained the age of 18 years.
  13. Benefit illustration like guaranteed and non guaranteed at gross investment returns of 4% and 8% respectively signed by both prospective policyholder and agent. It must form the part of the policy document.
  14. Loan will not be available under linked products.
  15. Heighest NAV Guaranteed Plans are not allowed to operate.
  16. Closed ended funds are not allowed to operate.
  17. One can pay their premium only 30 days before the date of premium due and 3 months for monthly premium payment schedule.
  18. Splitting of policies will not be allowed in the case of linked policies.
  19. Same day NAV will be applicable if the premium received or redemption request received within 3 P.M. Else next day NAV will be applicable.
  20. Yearly statement will be sent showing the charges and the current fund values.

These are the major points which one must know. The list is big to go by, but I mentioned the major changes one most know.

375 Comments

  1. I have read lot of literature on term insurance, but nowhere the eligibillity for getting the same is not shown any where. can a common man whose annual income is around 2 lakhs or below, get term policy for 1 crore with premium of Rs.6000 p a. I am telling this because when I approached a
    company they say only professionals can opt with IT returns Etc. I think this is nothing but discrimination and violation of fundamental rights of individual. I am sure even IRDA has no such restrictions.can u help me ?

    Reply
    • Dear Shridhar,
      I hope you did not understand the concept of Life Insurance. Do you feel a person whose yearly income is Rs.2 lakh or less than that will incur a FINANCIAL LOSS of Rs.1 Cr if he is not there? The concept of Life Insurance depends on HUMAN LIFE VALUE. Otherwise, Rs.2 lakh earning person may opt for Rs.1 Cr and Rs.20 lakh earning person may opt for Rs.20 Cr. Life Insurance concept not work in this way.

      Reply
  2. Sir I passed recently irda exam and iam joinedas kotak agent is it possible to take Lic agent also or we have to pass one more exam

    Reply
    • Dear Srilatha,
      As per my knowledge, you can’t be an agent of two life insurance companies at the same time (as an individual agent).

      Reply
  3. Sir I have purchased my kevan surksha plan from pnb MetLife with 20 years term. It is a life protection plan and I have paid only one premium and next is due in March 2019. I requested pnbmetlife to convert it to guaranteed life product plan.but they refused . Is there any IRDA regulation for converting whole life protection plan to limited plan or short term pla.

    Reply
    • Dear Malik,
      They are right and you can’t convert from one product to another product.

      Reply
  4. Sir,
    “Total amount of insurance sold during the year” and “total sum assured during the year ” are same in meaning or not?

    Reply
    • Dear Priyanka,
      First one is numbers and second one is Sum Assured.

      Reply
  5. I would like to ask you few questions about the term plan. I am planning to take the Insurance cover of 4.2 CR for 74 Yrs where by salary is 20 L PA (I hope i am eligible to take that amount ) my age is 37 and i work abroad i am a NRE. I have shortlisted HDFC

    1) I am confused if i should go for lump sum plan or Return of investment plan ?
    2) What is the average Claim settlement time taken for insurance companies normal to settle the claims ?

    Can you share your taught ?

    Reply
    • Dear prasad,
      1) Lump sum payment to nominee at death is best.
      2) Hard to say as it depends on case to case.

      Reply
      • Dear Sir,

        Some of the companies provide riders like

        waiver of Premium on Critical illness
        waiver of Premium
        Early claim on Terminal illness
        Accidental Disability

        Should we go for it ? or it is better to go with plain Term insurance ? Can you share your taughts and views on this ?

        Reply
  6. Respected Sir, One of my friends had taken Housing Loan from HDFC. They had issued a Policy through HDFC ERGO Insurance Company(which is a General Insurance Company. Actually this policy was selected by the HDFC only as most suitable for the borrower(without explaining the contents to the Insured). The Policy term was only for five years for which period the entire premium was deducted at the commencement. It was observed that no where in the policy, the scope of cover and/or benefits were mentioned. It only says major medical illness and procedures,without mentioning whether it is a hospitalisation expenses reimbursement policy or Life Insurance Policy. The Insured, my fried passed away recently, after some heart problem. My friend’s wife preferred a death claim on the HDFC ERGO General Insurance Company.
    The Insurance Company has rejected the claim for the reason “The said ailments are not covered under the policy hence the claim is rejected:
    Now My questions are (1) Whether a General Insurance Company can issue a policy covering natural death (2) Whether an Insurance Company covering life or health, has a right to cover only selected health problems? Sir I am in the Insurance field for the past 49 years and according to me it is not permitted. In All other General Insurance Companies , Health Insurance Policies cover all diseases excluding Pre- Existing Diseases for specific period. But the Home Suraksha Policy issued by HDFC ERGO defies these norms. Please clarify and guide me

    Reply
    • Venkata-First understand the basics that HDFC ERGO is not a life insurance. But the death of your friend might be covered in that policy if it is an ACCIDENTAL POLICY and that also death occurred due to an accident. However, in your friend’s case, it has not happened.
      1) NO.
      2) YES, in all policies there are some exclusions involved.
      First, approach any branch of HDFC ERGO and try to understand the policy feature. Then you will come to know.

      Reply
  7. Dear Sir,

    I am planning to take Axix Max Life Forever Young Pension Plan and I have been advised to pay Rs 3 Lakhs per annum for 5 Years even though the minimum policy term is 10 Years.As per the agent after 5 years of premium payment I can continue the plan as a Paid Up Policy.Is it advisable to go ahead ? Will I get all the benefits of a normal plan even If I make it as a Paid up policy.

    Regards,
    Aneesh Kumar.M

    Reply
    • Aneesh-Try to avoid any products which are meant for PENSION or RETIREMENT.

      Reply
      • Hi Basavaraj,

        Do you have any reasons to avoid these type of products and what is your suggestion for some retirement plans for a person like me who’s working abroad now.

        Reply
        • Aneesh-The issues are like LIQUIDITY, TAX ISSUES, NO PAST RECORD and no control over your money.

          Reply
  8. Dear Sir,

    I took a loan from Tata Capital for 15 years and they book a Life and Health Insurance Policy in Tata AIG for 15 years for Rs.146000, i took this poilcy in October-2015 and in July-2017 i cancelled the policy after making full payment of Loan, now they have refund me only 11% of Premium. Is it correct refund policy.

    Reply
    • Arun-It may be as they might have calculated the surrender value. Check with them as I dont’ have much details about product and policy details.

      Reply
      • Thanks very much for your reply, but never send me Policy Document , now they have send which is as below,

        can you see and tell what exactly it means as i am unable to understand it.

        Year of Cancellation Policy Period Years
        2 3
        Year 1 25% 45%
        Year 2 11%

        Reply
          • Actually this policy is against Loan , so they keep original policy with them, and issued me only receipt and other basic details. I think this is due to this money goes to them in case of any mishappening with me. Its not my insurance actually this is risk coverage for banks. But i am also surprised why dont they send a copy to me too.

            Anyhow sir, can you tell me how i can make a complain to IRDA regarding refund of premium, because any Banking or Insurance company can not make their own rule of refund or charges, they have to comply with IRDA or RBI. So i think i can take action, but i dont know the procedure to file complaint with IRDA.

            Reply
            • Arun-Check and first discuss on what basis they surrendered. Let them show the reasons (in writing or email). Based on that you can take forward the case with Ombudsman.

              Reply
  9. Dear Sir ,
    I have taken home loan from Indiabulls for a sum of rupees 2500000 in the month of august 2016. But they bundle it HDFC life home loan protection insurance plan for Rs,76688(home equity)along with the housing loan though the EMI of hlpp premium I.e Rs.710 is paying by me separately. I made a letter to branch head of INDIBULLS regarding termination of policy. However the branch head of indiabulls has not given any reply so far. I did not pay the semi of this month. I want your expert advise for cancellation of the same

    Reply
  10. sir i have taken a home laon in andhra bank for 400000 lakhs and they asked me take a insurance policy so that after my death the loan ammnt to be paid by the insurance company . i opted for my sefl and and my wife also and paid the the preminum of 2 lakhs and converted to emi.unfortunately i needed to overtake the loan to other bank,the execting bank people asked me to clear the loan ammnt with insurance policy ammnt also,i cleared that ammnt also . now the policy company is saying they will give me only 40% of 2 lakhs so what should i do.

    Reply
    • Jagan-I am not sure of which product it is and on what basis they sold. If you have no clarity, raise the issue with an insurer and complain against the bank with a respective ombudsman.

      Reply
  11. Dear Basu,

    I had applied for a Critical Illness policy from Max Bupa online. I had indicated in the proposal itself that I have a pre existing disease. I paid the premium by online banking. The Insurer has rejected my proposal citing that I have a pre existing disease. The premium paid by me is more than Rs. One lakh(for 3 years). Now, the Insurer is asking me to provide scan copies of KYC documents and has asked me to send those documents in hard copy also by courier to refund the premium paid by me. He says it is mandatory as per IRDA rules. In this case, I have following queries;

    1. Since the premium paid is through my bank, how far the Insurer is correct in demanding for the KYC documents?
    2. The Insurer has not indicated this requirement any where in their website.
    3. Other insurers are turning down the proposal at the time of filling the proposal online itself when the applicant mentions that he has a preexisting disease. Max Bupa has no such system. First they make us to submit the proposal and the premium amount and now harass the people for refunding.

    Is it true that IRDA has made it mandatory to submit KYC documents for return of deposit/premium in case of rejection of proposal as claimed by Max Bupa?

    Reply
    • Nagaraj-1) I don’t think your KYC required for refund.
      2) Yes, even I am also hearing it first time.
      3) True.
      I am not aware of such IRDA guidelines. If it is, let them show and then ask you.

      Reply
  12. i have a policy from max life insurance and i will pay 3 year only now i go to surrender my policy. Explained about the surrender value. i.e. 30 % of the Total premium paid – 1st year premium, which is mentioned in the policy document.

    But i am not satisfied about the surrender value and also i wants to know the complete break up of 70% of the rest amount which is not mentioned in the cash value calculation.

    Anybody know this details please share

    Reply
    • Sankaranarayana-Check with the insurer. I explained what the rule is.

      Reply
  13. Thanks for giving such useful info to us.

    My question is very basic . If i take a term plan from recently opened life insurance company for 30 years term and Unfortunately this company got shut down due to some reason then what about my term plan?
    Please reply me. Thanks

    Reply
  14. Sir, I have recently purchased Kotak Life insurance policies – money back plan and endowment plan. The annual premium is more than 10% of the basic sum assured. What are the tax implications?

    Also, the sum assured is less than 110% of the annual premium (my age is 43 and the policy term is for 10 years). Is it against IRDA regulations?

    Please advice, as I have a free look period of 15 days time if I need to cancel the policies.

    Reply
  15. Does these regulations apply to policies bought in 2010?
    Because my insurer is still giving me old calculations for surrender value, i.e:
    30%(Total premium paid – 1st year premium) + Bonus (if any)

    Reply
      • Thanks for prompt reply.
        Can you please suggest as i am very confused. I have a Max life life partner plus limited pay endowment to age 75 policy.

        Policy Maturing in 2062
        Premium Paid for 8 years
        Premium Term is 10 years
        Premium Amount paid 1,46,000
        Surrender Value as per Insurer’s Customer care is around 40,000 . I will be losing hard earned more than 1 lac 🙁

        Should is surrender this policy or turn it into paid up.

        Reply
  16. Hi Basavaraj,

    I had invested in Max Life Smart Invest Pension Super plan in June 2010 and have paid a total of 7 installments of 25K each. It was meant for 30 years originally.

    I wish to surrender it prematurely with current value of around 2 lacs.

    The customer care executives mentioned that it may attract a tax of max 2% but I wanted to know whether I would be able to withdraw entire 2 lacs without any other Tax implications.

    I do not wish to get into any Annuity as of now.

    Reply
    • Parag-It is not tax but TDS. They are correct as I feel in your case the premium is more than 10% of your sum assured.

      Reply
      • Thanks for the quick revert – I am okay with a TDS of 2%. I am only worried if it would attract any other Taxation on my this year’s tax.. Ideally I would want entire amount deducting TDS of 2% I.e. close to 196K in my bank account.

        Reply
        • Parag-TDS is a flat rate, which not reflect your actual tax dues. You have to file IT return and based on the period of your policy and the sum assured to premium ratio, it will be taxed.

          Reply
  17. hello sir

    i have paid a max life pension plan worth 50000/- paid only one premium.
    i am unable to renew it because of financial problems.i am looking to tack back the money.is it possible and how much money will i get back.

    Reply
    • Sagar-I am not sure whether it is endowment or ULIP. However, in both the cases with single premium it is not possible to take back. Still suggest you to contact insurer for the same and discuss.

      Reply
      • sir it is endowment policy.they are say that there will be 3 yrs of lock period.and the amount will be deducted in the form of fine and no amount will come back.is that true.

        Reply
        • Sagar-If it is endowment then you have to pay minimum of 3 years to get back PART of it.

          Reply
  18. Hi,

    I had taken up an ICICI Unit Linked Pension Plan (Life time Super Pension) in 2007 and surrendered it in 2016 i.e. this year . The lock in period was 5 years and so I received the whole surrender amount without any deduction of charges.

    Could you please let me know 1) if the tax will be levied on the whole surrender amount as per my tax slab i.e. if the surrender value I received is 1 Lakh and I am in 30% tax slab I need to pay Rs. 30,000 as tax.
    2) Do I still need compulsorily go for annuity
    3) In case I utilize the funds to buy a single premium deferred pension product – can i avoid paying the tax.

    Regards
    Subhro

    Reply
    • Subro-1) No tax.
      2) Not required.
      3) Annuity returns are taxable income.

      Reply
  19. Dear Basavaraj

    I have taken Max Life Whole life Participating plan in 2008. My premium is 20K p.a. I have been regularly paying my premiums. The Sum assured is 10 L. However i do feel it is worthless as i need to pay premium till I am alive or cross 100 Years as the policy term is till 100 years. If i surrender now, i will be getting 33% of premium paid value-taxes & charges. Please give your expert opinion on what should I do?

    Reply
  20. Sir- I’m a minor(under 18 age) policyholder of LIC. Is it possible to avail the surrender value before maturity date. If not, what is the other options by which i may get the benefits without discontinuing the policy ?

    Reply
    • Gaurav-If policy completed 3 years then your proposer can surrender it.

      Reply
  21. Sir, I was having Aviva Life insurance policy named -AVIVA DHAN VRIDDHI sum assured was Rs. 1,05,000.00 . My policy was started on 10 th June 2011 and the full maturity date was on 10th June 2031, and i have paid my 5 th premium that was Rs 11,104.00 in time , and when i have recieved survival benefit of Rs 21,000.00 after 5 years of policy from Aviva Life Insurance Company . I have surrendered my Policy in the year 6 th July 2016 and I have recieved surrendered amount of Rs 5,519.00 from Aviva Life Insurance in last.
    Details of premium paid from starting-
    1. 10 June 2011 – Rs 11,104.00
    2. 10 June 2012 – Rs 11,104.00
    3. 10 June 2013 – Rs 11,104.00
    4. 10 June 2014 – Rs 11,104.00
    5. 10 June 2015 – Rs 11,104.00
    So, sir will you kindly tell me how much surrendered amount I would have got in actual ?
    From
    Mahesh Sharma

    Reply
    • Mahesh-You already received the surrender amount, then why to calculate now? Also, it is not possible for me to calculate surrender value without knowing the performance or bonus rates of the products.

      Reply
  22. Dear Sir,

    I want to know that if customer having term plan from three different life insurance company with cover of 2 Cr each
    Can I know that each company will be paid claim after the death, that is 6 Cr.

    Reply
    • Rajesh-Yes, obviously subject to the terms and conditions of the company and claim.

      Reply
  23. Hi Basavaraj sir,

    I need your advice for Postal Life Insurance (PLI) Endowment Policy. Below are the details:

    Plan : Santosh

    Sum Assured : 5 Lacs

    Installment Premium : Rs.1375/Monthly (Rs.1401 with Service tax)

    Issue Date : 30/10/2012

    Maturity Date : 30/10/2039

    Last Premium Paid Till : 31/08/2016

    Paid up Value (as per PLI Website) : 72530.86

    Current Surrender Amount (as per PLI Website) : 24370.00

    I have taken advice of Sreekanth sir of “Relakhs.com”. He said to surrender the policy. However, after reading the Guidelines above, I have a query.

    In Point No. 6. Guaranteed Surrender Value (for regular premium policies) will be as below.
    A) 30% of premium paid less any survival benefit already paid, if surrendered within 2nd Or 3rd Year.
    B) 50% of premium paid less any survival benefit already paid, if surrendered within 4th To 7th Year……….

    30/10/2012 to 30/09/2013 >> 1st year
    30/10/2013 to 30/09/2014 >> 2ndt year
    30/10/2014 to 30/09/2015 >> 3rd year
    30/10/2015 to 30/09/2016 >> 4th year

    My query is: Am I getting 30% or 50% Surrender value.? If I am getting 30% then is it beneficial to pay 1 or 2 premiums and get back 50% of Surrender value.?

    Kindly suggest me.

    Reply
    • Sanjay-Forget all, if the surrender value is showing in PLI, then it is the correct one. If you feel it is good value to surrender NOW, then go ahead.

      Reply
  24. Sir me dhfl me dhokha Dari se 25000/- Ka tredencial plan le betha or ak hi kist Di kya o mughe return hoga kabi

    Reply
  25. Dear friend,

    I have a HDFC Classic assurance Plan, with premium of 86K per annum, for 7 years payment and will receive money in 10th year. already paid for 3 and half years, after reading here i realized that i have been trapped.

    What is best for me now, plz answer

    Reply
  26. Whatever you have explained will it hold good for LIC policies taken in the year 2008-2009

    Reply
      • You Mean The policies bought during the period of 2008-2009 will not come under the above rules and regulations?

        Reply
  27. Dear Basavaraj,
    in one of the qurries raised the customer was asking about premium to be paid through out ones life in a whole life par plan with MNYL.
    in this plan one has to pay through his life.
    at the same time he has a option to premium offset against PUA(BONUS) same can be suggested to the customer.

    Reply
      • HEY Basavaraj,
        I have a whole life participating policy from max life but i was not informed by my agent that i will have to pay for the policy for rest of my life i want to know if there is a way out without losing too much money on it or is portability an option for the same it is a whole life participating up to the age of 100
        thank you
        gautam
        Gautam-Check the premium paying term. In my view it is not for life-long premium payment.
        I spoke to customer service agent assigned to me and he says I have to pay till the time of my death.
        Duration of coverage to age 100
        Insured event maturity or death of life insured
        Thank you
        Gautam-Check the policy document first.
        i have checked it and have spoken to max life representatives also
        Gautam-Strange to hear. Check with the insurer of how much you get if the policy is surrendered now. Then you can decide of continue or to stop.
        V Jairaman says
        July 29, 2016 at 12:34 PM
        Dear Basavaraj,
        in one of the qurries raised the customer was asking about premium to be paid through out ones life in a whole life par plan with MNYL.
        in this plan one has to pay through his life.
        at the same time he has a option to premium offset against PUA(BONUS) same can be suggested to the customer.
        I hope now it’s clear to you

        Reply
  28. We are facing a strange situation where a life insurance pension plan for which premium was paid for initial 3 years and stood in waiting period for next 2 years has been compulsorily subject to surrender. The Company has cut the TDS and remitted the cheque before march 2016; however the cheque has not reached us and we have come to know about this only now on seeing the TDS entry in Form 26AS. We have contacted the company and asked for a re-issue of cheque. The problem now is whether we need to offer this surrender value in our return for AY 2016-2017 ie FY 2015-2016 OR for FY 2016-17 in which we would actually receive the proceeds from the company. Can we carry forward this TDS and offer the proceeds received in FY 2016-2017 when we actually receive the cheque?

    Reply
      • Thank you for the link. So now that the we know that the surrender value and the previous year premiums claimed will be taxable, only one question remains. Can we carry the TDS forward and offer the whole income to tax in the financial year 2016-2017 (which would be the actual year of receipt) instead of financial year 2015-206 as insurance proceeds are taxable in the year of receipt?

        Reply
        • Shweta-If they not re-issue the cheque then 2015-16 will be receipt for you. If your TDS rate is more than tax rate, then you have to revise the IT return and show it.

          Reply
          • Thank you so much for the clarification. Highly appreciated!

            Reply
  29. We are in a very bad situation with ICICI PruLife Guranteed Savings Insurance Plan and 2 HDFC Life endowment plans (HDFC Life Super Income Plan and HDFCSL Life Classic Assure).

    After surfing the blogs and other sources, it seems we did a mistake and we should stop these policies at the earliest. Is it correct? Need your valuable inputs. It’s really frustrating to have these kind of policies and you know what some of our closed friends or relatives who are in this fields selling these to us and making us fool…..

    Reply
  30. Dear Basavaraj Tonagatti,

    I sincerely appreciating the effort made by you for spreading awareness & advising the peoples.
    i also been cheated by agent of Exide life insurance & their team. They had showed me a plan of Guarantee Income Insurance plan and promised a special agreed benefit on the policy document. When the policy document i received their was no special benefit. When i discussed the same with their agent, they told me since it is a special benefit on launch of policy, that special benefit will come to you on separate policy bond paper after 15 days. Then after certain days i realized it was fraud network which are regularly misguiding me. Actually they want to sell the policy and wants to cross free lock period of 15 days.
    Now, recently i come to know, if i continue the policy for 3 year and then surrender it, the whole amount will be returned after deduction of applicable Taxes as per IRDA rule.
    SO i want to confirm, is their really any such kind of IRDA rule or again exide trying to misguide???

    Thanks in advance

    Reply
    • Anchal-After 3 years if you surrender, then you receive less of what you paid. In my view, it is better to STOP NOW. I know it hurts of losing money. But the reality is best decision.

      Reply
  31. Hi Basu, my husband had taken a policy for my son. He was the proposer and my son was insured with reliance money guarantee plan. He demised last year and only one year was left for policy to mature. In this event, we decided to transfer the policy on my son’s name and make the insured into the proposer. We were asked to make a legal heir certificate for that. The cost of the legal heir certificate is multiple times the instalment left. We have submitted all evidence to prove the relationship between my husband and my son but reliance is not willing to give us a reasonable alternative. Is there any other way you can suggest to help me claim the policy?

    Reply
    • Anila-I am not sure why they are behaving so. In this case in my view, even legal heir certificate is not at all required. Because the insured is alive. Only proposer of policy died. You ask them to give this reason in written to raise with IRDA. Can you ask in this way to them?

      Reply
      • Thank you for your prompt response Basu. I am going to take this up with Reliance as per your advise and will let you know how this goes. What you said makes complete sense to me but reliance has been a pain to deal with. I have been following up on this with them since may 2015 but they have not been giving me anything in writing or on email. Not even a simple list of documents required for surrender.

        Reply
        • Anila-Communicate with them in written. Go to their office and submit all communication in written and force them to reply in written.

          Reply
          • Thank you Basu.i want to ask in this policy after maturity on whose name company is entitled to issue cheque in the name of proposer or my son’s name who is insured?

            Reply
            • Anila-If the insured is minor then it will be issued in the name of proposer.

              Reply
              • The insured is a major as of 2016. He was a minor when policy was bought. According to you, is it adviseable to pay the pending premium. 2016 is last year of premium. The policy matures in 2017.

                Reply
                • Anila-Then once the minor change to major, the policyholder will be your kid but not proposer. You pay the premium, there is no issue.

                  Reply
                  • Thank you basu. I am hopeful about it after talking to u.

                    Reply
  32. Dear sir
    I parked 10 lakhs in a life insurance policy with one time premium and 5 yr lock in period now its worth is 20 lakhs..some agents are asking me not to take the amount in bank as it will attract paying income tax and they are advising me to take out some money and take another policy from it..and if I pay 1% tax on premium of new policy then my maturity amount after 5 yrs will be tax free..are they suggesting me right??

    Reply
    • Nisha-In first years Rs.10 lakh turned to Rs.20 lakh?? May I know the product name? Agent’s looking for an opportunity to get one more plan from you 🙂

      Reply
  33. HEY Basavaraj,
    I have a whole life participating policy from max life but i was not informed by my agent that i will have to pay for the policy for rest of my life i want to know if there is a way out without loosing too much money on it or is portability an option for the same it is a whole life participating upto the age of 100
    thank you
    gautam

    Reply
    • Gautam-Check the premium paying term. In my view it is not for life-long premium payment.

      Reply
      • I spoke to customer service agent assinged to me and he says I have to pay till the time of my death.
        Duration of coverage to age 100
        Insured event maturity or death of life insured
        Thank you

        Reply
          • i have checked it and have spoken to max life representatives also

            Reply
            • Gautam-Strange to hear. Check with the insurer of how much you get if the policy is surrendered now. Then you can decide of continue or to stop.

              Reply
            • in this plan one has to pay through his life.
              at the same time he has a option to premium offset against PUA(BONUS) same can be suggested to the customer.

              Reply
                • I personally feel that every one of us must have a whole life policy as a part of our investment portfolio.
                  further not all investents in life are to make profits.
                  their are a few like life insurance which are to be done for covering risk.
                  i perticularly advocate two plans 1. a term insurance 2. a whole life plan.

                  a term insurance to cover your income and liabilities while the whole life plan to leave a specific financial support to your spouse when you are gone leaving her/him (can say token of love /responsibility)

                  Reply
                    • Basavaraj may be i differ in the way i look at it as mentioned earlier one needs to balance it between investment and risk cover.
                      the two products i mentioned are not meant for delivering returns in the form of profits working out roi’s.
                      and more over as i mentioned you can control the cost(premium inflow using premium offset option.)

                    • Jairaman-But do you feel such products suitable for long term ESTATE creation??

                    • Basavaraj- as a sesoned financial planner just dont look at financial planing from only one point of view and advise.
                      risk management and metigation is also a important and intigral part of finanacial planning ….. this is what i had been thought by my gurus and practiced and preached over the last 40 years.

                    • Jairaman-My first priority towards client is RISK MITIGATION OR MANAGEMENT but with proper tools not like endowment or whole life plans 🙂

                    • Basavaraj – a whole life is just extended term insurance which normally financial planners to keep customers happy show case it as a return based wealth /estate planner. i do not advocate endowment or unit linked for metigating or managing risk.
                      for me from the day one starts earning to the time he is burnt or burried on should be taken care of financially(which includes his responsibilities he has created in this journey)
                      some tools of saving/investments give you good return and some great. but any saving/investment without back up is not advisable.
                      when it comes to savings and investment using insurance as a tool if any person has not gone through the product or has been mislead while purchasing its better he sits back for once looks again the pros and cons in the product and also takes his current health and life style conditions into consideration before making a decision of continuing or dropping it.

                    • Jairaman-You are not responding to question 🙂 At what cost one must have whole life as AN EXTENDED TERM INSURANCE product?

                    • Basavaraj- The answer is in your question itself.
                      if one is alive a 100 years its costly proposition
                      if he dies after paying the 1st instalment premium its best business proposition

                    • Jairaman-Business proposition to whom? 😛

                    • Basavaraj – To the customer off course

                    • Jairaman-May I know the returns this plan generate or in what way it at least beat inflation?

                    • Basavaraj – dont worry it will beat all inflation and be the best product on returns basis if unfortunatly the customer has untimely (early)death. im sure you too will be happy to service a family in distress. hahaha

                    • Jairaman-May I know on what basis you are CLAIMING that such products beat INFLATIOn and provide us positive real return??

                    • Basavaraj- i think you didnt go through my answer …..

                    • thanks for the understanding…..

                    • Jairaman-I understood the agent’s view long back. Don’t worry 🙂

                • basavaraj – dont know your understanding of a agent but i understand very well the so called qualified financial planners / consultants ….. by the way no were during our discussion i have mentioned agent / agency . please go through again…. hahaha

                  Reply
                  • Jairaman-By the way in my any comment I NOT POINTED THAT YOU ARE AN AGENT 😛

                    Reply
                    • hahaha bye the way i like your advise on all most all the cases …. but i still hold on to my points.

                    • Jairaman-Pleasure 🙂 But I too still hold on my points.

  34. sir
    i had purchased Jevan Anand policy with quarterly payment option in 2013. After 2 quarterly payment, i had requested to surrender my policy and get my money back , my agent assured that i will get my money back shortly but, till date i haven’t been refunded. and my agent is also not picking my call not providing me any feedback on this.
    please tell me what to do ??

    Reply
    • Deepak as suggested by basavaraj please contact the branch immediatly and check if you can revive the policy.
      if you wish to surrender im afraid you will not get any money back as you have paid only 2 quaterly premiums.
      also personally i feel its not a great idea to surrender the policy.

      Reply
  35. Hello Sir , I have a LIC policy , for which the Premium Date was in Month of April 2016 , But till today 23 May 2016 , I have not paid the same , Please advise maximum grace period for paying the installment , Also tell me that if i would pay the same in June 2016 with Fine there would not be any problem.

    Reply
    • Vinod-Grace period will be 1 month from the due date. If you not paid the same, then they charge interest from the due date.

      Reply
  36. Hello Basavaraj,

    Is it good to invest in HDFC Life Super income plan ?
    I want good return

    Reply
  37. On a/c of non delivery of regular service for Insurance products – eg Fund Value, Shifting of Funds into different slabs for both my ULIP and non ULIP policy ( afte initial 3 year period), i responded to their customer care (Insurance company name withheld) of my disgruntlement and asked them to avoid paying commissions to these one time sales agents ( my mistake that i did not track the fund performance or the due date very actively & trusted their reminders). Thereafter i was directed to a customer grievance resolution centre manned by someone from IRDA who said these policies can be transferred to a direct mode and only then commission payouts and bonus to earlier agent stopped. To this end, i was asked to buy traditional product from any insurance agency and give the policy details to them to create a direct code. Pl advise a) if this type of conversion is possible to direct mode and commissions redirected to me and b) if the need of a new policy purchase to affect the commission transfer is the correct method ( to generate Fund Trf Request eff changes from 04 Apr 2016 ) — I have bought the traditional policies but as free look period is for 10 years more i can return the same timely – pl advise as the commison and bonus due to agent that can be recovered is more than 2 lakh as per the IRDA person’s details (he claimed to be from IRDA Insurance service quality department)

    Reply
    • AK-a) A policy once sold will not be converted to DIRECT. Also, there is no such provision of transferring the commission to you.
      b) Free lock in 10 years?
      I feel it is fake call. IRDA will never call customers and also there is no such department in IRDA called “IRDA Insurance service quality department”. Someone faked you.

      Reply
      • adding to basavaraj if you have the number from were you recieved the call file a police complaint.

        Reply
  38. Hello Sir,

    My father applied for an IFLIC liability insurance for a loan taken through bank. Although the premium amount was taken , we never got a rejection or approval and did not receive a policy number. This continued till 6 months. Unfortunately, my father expired and we want to claim the insurance, as the premium amount is still with the insurance company. Could you please suggest what we could take the next steps in this case.

    Thanks,
    Raj.

    Reply
    • Raj-If premium not received means it is not acceptance of your proposal. Risk starts only after the proposal accepted. Check with insurance company regarding status. Comment once again to me to guide you in a better way.

      Reply
    • Basavaraj- in this case if this is a group insurance its most likely that the bank would have a tie up with the insurance company and the premium would have been directed through the bank …. if so then raj needs to contact the bank and help will be available.
      in case he has proposed directly with the insurance company either through a agent or online he may get in touch with the insurance company with relevant reference details.
      if the proposal is not accepted he may get a refund.

      Reply
  39. i have bought maxlife insurance policy in which i have to pay for 10 years and wait for another 10 years for maturity.but due to some reasons i dont want to continue it.on talking to them they said that first instalment would be deducted and 24% of the raemaining amount will be given to me..but thats a complete loss..what should i do..kindly help

    Reply
  40. Dear Sir,
    I have purchased these three traditional insurance policies –
    1- Aviva Dhan Sammradhi – March 2014, premium amount 110,000 INR – paid two premiums.
    2-Aviva Dhan Sammradhi – Dec 2014, premium amount 105,000 INR – paid single premium.
    3-Aviva Wealth Builder – November 2014, premium amount 154,000 INR – paid single premium.

    Now I am planning to continue one policy for which I have paid two premiums, but want to discontinue two policies for which I have paid only one premium. Is it advisable?

    Or shall I go and pay premium for all the policies for five years and, then withdraw the money?

    Or Shall I just wait for five years without paying any further premium and then how much money would I get?

    Regards,
    Pradeep

    Reply
    • Pradeep-Both are crap products. Visit the insurance company and try to come out as soon as possible. In my view, you can easily come out of these three after three years. But check the policy document for the same.

      Reply
    • Dear Basavaraj,

      I taken Life Insurance unit Gain plan from Bajaj alliance in 2004 and paid 2 installment (100000 x 2 = 200000 ), but not paid further because my business is very loss, can I get it any amount. any further way to approach from company.

      Reply
      • Parthiban-You will not get any amount. To get money you have to pay the minimum period. For this minimum period, contact the insurer.

        Reply
  41. DEAR SIR,

    pls advise on followings:

    -why the illustrations to be submitted to proposer for benefit of 4% and 8%? can i have guidelines on this…

    -NRI – premium is coming from NRE account regularly. what would be the tax effect on maturity when the amount is repatriated to USA, if maturity is in normal case of survival?

    _NRI- what would be the tax effect for maturity for death benefits and repatriated to USA? it is learnt that any surplus over premias paid would be subject to tax at receving end in USA and that too at the same rate the person is subject to…

    would appreciate for timely response.

    Shishir Parikh

    Reply
    • Shishir-1) Because to understand of how the plan works. You get the guidelines in IRDA portal.
      2) It is same as that of regular buyer.
      3) I am not sure about USA laws. Hence, can’t comment on this part.

      Reply
  42. what is the compound intrest at the Rakshak + scheem of DHFL PRAMERICA LIFE INSURANCE of 15/20 plan?

    Reply
    • Shashi-Compound interest means let us say you invested Rs.100 at the rate of 10% yearly interest of compounding. After a year the principal (Rs.100) and interest of Rs.10 will convert to total earning of Rs.110. This Rs.110 will be principal for next year’s interest calculation at 10% interest rate. So at the end of second year you will receive Rs.110+Rs.11=Rs.121 as a return. It continues till the investment period. Please mention a particular scheme name to go through and let you.

      Reply
  43. Dear Sir

    I have Purchase Aviva Dhanvrudhi Policy Year 2011 March i have paid premium half yearly 4 installment (2 Year) To aviva life insunce said your policy is laps and surender value is 000 i am ready to due premium paid with intrest aviva life insurance is said not posible police continue please help me i have premium paid aprox 1 lakh i am middel class men please help me

    Reply
    • Ashvinkumar-You can renew the policy by paying the dues and interest penalty on that. But think whether it is worth pay and continue or forget.

      Reply
  44. Dear Basavrajaji, good evening. I have single premium SBI RinRaksha policy for home loan. Home loan repayment term is 18 yrs. It’s HLPP policy. If I want to surrender the policy within 1 to 2 year how much value I will get. Pl provide me IRDA guidelines in this respect because captioned company’s surrender policy may not as per IRDA instructions. Thanks.

    Reply
    • Samual-It is a pure term insurance which covers your loan amount. There is no surrender, paid up or maturity value in it.

      Reply
      • adding to this you may check with the insurer its policy on refund of surplus premium effected due to premature closure/surrender of loan& policy …. some insurer have a defined policy on this in case of group loan cover term insurances.

        Reply
  45. Dear Basavaraj,

    I taken Life Insurance unit liked traditional plan from Bajaj in 2008 and paid 1st installment, but not paid further, can I get it.

    Reply
    • Naveen-First understand which product you bought. Unit Linked and Traditional Plans are two different products. Second thing, if you paid only one premium, then you will not get any amount from that policy.

      Reply
  46. Hello Sir,

    Can you please provide some information about Attract Tax for NRI’s while surrender the SBI Life (Horizon) policy -Unit linked plan, recently same policy got matured (I paid 12000 for 10yrs, which is total 1,20,000/-) while surrender (Maturity value- 167094/-) the SBI folks are deducting attract tax (30.9%) which is 14550Rs on final bonus amt 47094Rs.. not sure whether this is legitimate?

    Since I’m NRI they just deducting 30% of total bonus amount (47094 RS) as Attract tax, let me know if this is acceptable? appreciate your early response!

    Reply
  47. I have 2 policy already in lapsed condition I have paid only 13-14 months premium now I want to know can my deposited money will lost or I can get my deposit money.

    Vaishnav Kumar
    Policy No. : AID6001713
    Product Name : Aviva i Shield

    LIC Policy No 117204810 V 9806111S

    Please provide me related information…..

    Reply
    • Vaishanav-If your policies not completed 3 years, then you will not get anything. This is the beauty of endowment plans 🙂

      Reply
  48. Can I lower the premium amount that I pay for my existing insurance policy as I am not able to continue the current premium amount. Is it possible?

    Reply
    • Mitra-Yes, in that case the plan features may change. Check with your insurer.

      Reply
  49. My wife is opting for Jeevan Anand (21 years)( she is 35 years of age) and also a Jeevan Tarun for my Child who is 4 (This was proposed by the BDO of the company as we were looking at options based on returns around these year brackets).
    Any precautions to be exercised & do you think it is a good plan or would you suggest considering anthing better.
    Thanks in Advance.

    Reply
    • Naresh-Go with these plans only if you are satisfied with returns of around 5% to 6%. Otherwise, say a BIG NO. I personally suggest you to stay away.

      Reply
  50. Sir
    A insurance agent taken documents from me for opening bank account and used the same for making Insurance policy and he made fake signatures of mine on policy documents few days back i got noticed he also attached my premium with bank account. For the sake of commision this person has make a fraud with me.
    Even HDFC Insurance company did’nt varified about policy during commensment.

    He has also given wrong address of my residence and supporting documents.

    I have written to company but they are not handling my request properly what should i do, pl. guide me.

    Reply
    • Yogesh-You raise the complaint with HDFC Life and police station that he did fraud by signing in your name.

      Reply
  51. i am having a Bajaj Allianz Ulip policy i.e Unit Gain Plus Gold. i have booked in 2007 . Maturity is on octber 2017. now i want to close /surrender .
    i just want to know whether surrender charge will be deducted or as per IRDA regulation it will be waived off. please intimate.

    Reply
    • Subrata-These regulations came into picture from 2013, but these regulations not apply to you as your policy was started from 2007. Check with insurance company.

      Reply
  52. Hi, My gross salary right now is 176000. I purchase a term plan from ICICI Prudential of sum assured around 3500000. Somebody told me that minimum gross salary should be 200000 p.a. So please tell me that is it right time to buy or wait until gross salary should be 200000. I fill all the details of my salary also. So please suggest is it mandatory minimum salary should be 200000 to purchase a term plan

    Reply
    • Karan-First thing, don’t postpone your buying. Second thing, you propose according to your requirement, let insurance company decide. Usually life insurance companies offers around 20-25 times of your earnings. There is no such mandatory income requirement for buying term insurance.

      Reply
    • Karan- i agree with basavaraj in this case if you are below 35 years you will be eligible for the amount mentioned by you as SA . if not ICICI you can reach out to any of the rest 23 companies.

      if in case you are going through a agent then i have a feeling that he is misguiding you for getting a higher premium their by higher comission.

      Reply
        • you are welcome

          Reply
  53. Hello Basavaraj,
    Greetings.!!

    I have taken one LIC Jeevan Anand for 21 years on 22nd Feb’14 from Faridabad Branch.
    Now I have moved to Hyderabad on permanent basis.
    Can I change my Policy branch from Faridabad to Hyderabad.
    And will this impact on any of the situation like ,
    1. withdrawal of amount on maturity or
    2. claiming money on accident/death by the nominee or
    3. change in nomination,postal address?

    Your help will be appreciated.

    Thanks

    Reply
    • Rishu-You can change it. Write a letter to the branch where your policy docket currently is. Request them to shift to new branch (provide complete address details of the branch where you want to shift). They do it. It is not a big issue. There is no changes in policy feature or service feature after shifting the branch.

      Reply
      • Thank You So Much Basavaraj.
        Have a good day.!!

        Reply
  54. Dear Basavaraj,

    I have taken Bajaj Allainz ULIP Policy with 25,000 as annual premium. I continued to pay 9 premiums till date and recently found that in the policy document there was no mention of term. I contacted their call center and they mentioned it’s for 35 years and they said I will incur 2% charges on surrender amount if I terminate the policy now.
    Is this true? If term is not mentioned in the policy document[the agent told me to pay for 10 years], should I contact IRDA
    I went through the whole policy document and there is no menion of term duration anywhere. What are my rights now.
    the life cover is only 1,25,000 and want to take the funds out.

    Reply
    • Rajesh-I don’t think there is a missing. Please check it or contact your agent. He may guide you.

      Reply
  55. Dear Basav
    can you pl explain if a person is having 13 policies sum assured 150000 to 300000. What will be the risk value of insured person in case of life causality in accident or natural?

    Please advice
    Thanks in advance for your valuable advice.

    Regards
    vinod

    Reply
    • Vinod-Without knowing details of all 13 policies, how can I presume and guide you?

      Reply
  56. Can we close an ULIP in 6th year (term is 17 year ) where the Insured is a Minor(1 year) and proposer is the Parent.

    Reply
    • Kiran-I think yes. But without understanding the product hard to advice.

      Reply
      • The Product is Bajaj Fortune Gain ,Single Premium ULIP. In your post you had mentioned
        12.Partial withdrawal will be available after 5 years only. But for child policies one can not withdraw until minor insured attained the age of 18 years. Will ULIP in the name of Minor will be called as ‘Child Policy”

        Reply
  57. I HAD SOME DEPOSIT IN AXIS BANK IN 2012. WHILE WITHDRAWING THAT AMOUT ,THAT BANK MANAGER EMOTIONALY CONVINCED ME (3TIMES OR MORE)N MADE THE PROCESS OF WITHDRAWAL LATE. I ALREADY LEFT THE JOB AT THAT TIME ,I DID N’T HAVE TIME TO STAY THERE BCZ THIS PLACE WAS DISTANT FROM MY NATIVE. SO I INVESTED 25000 P.Y IN MAX LIFE INSURANCE POLICY. N I ASKED HOW MANY YEARS TO PAY. HE SAID ONLY 3 YEARS. SO ALL MY SAVED MONEY I INVETED THERE FOR THREE YEARS. NOW I M STRUGLING FOR JOB. I WANT TO WITHDRAW THAT MONEY. WHILE CALLING ,CUSTOMER CARE IS SAYING U WILL GET ONLY 45000. HOW ?
    THAT IDIOT AGENT IS ALSO NIT PICKING MY CALL. I M IN BANGALORE NOW. WHAT TO DO .SIR. PLS SAVE ME.

    Reply
    • Sunil-I think he sold you traditional endowment plan. You have to complain with insurance company or IRDA for the same. This is how insurance were sold and that is why you have to be cautious.

      Reply
  58. I am a house wife and had been working till 2013 with proper IT return for 12 Lacs/PA. Now i need to buy a term policy .Please tell me if this is possible as i dont have income now but just my savings. Can i buy a Single premium ULIP plan with increased coverage if term policy is not possible. My husband is covered by term plan but i am not.

    Reply
    • Asha-If you are not earning and no financial dependents on you, then it is waste to buy any type of insurance. Stay away.

      Reply
      • Thanks for the reply. If is let go objective of coverage and want to invest my Money in ULIP as investment (since it has flexibility of Debt/Equity shift with no charges) . Is this a good idea as they charge 1.35% FMC while MF charges 2.5% FMC. Does this make sense from a long term view or is it better to invest in Mutual Funds directly.

        Reply
        • Asha-Who said ULIPs have no charges? There are other charges apart from FMC charges. Whereas in case of mutual funds, the MAXIMUM cap of such expenses is 2.5%. Hence, based on AUM of funds, it varies but the maximum limit is 2.5% in mutual funds. The bad part of ULIPs are-Illiquidity, no control over it and hard to track the performance. Why to risk my money by investing in such illiquid, no control and no past track record product? Instead use one equity-oriented balanced fund, that itself manages 65% to 35% in equity and debt. I don’t think it is worth to go ahead with ULIP.

          Reply
  59. sir I am nelson, I’m having HDFC Classic assure Benefit plan,my premium paying term is : 7 years, policy term 20 years,, already I was paid 3 years,now I would like to close my policy,if I will close 3 yrs.”, or 5 yrs.’ what are the benefit I will get from bank for both years, let me know thank you,surrender amount calculation .

    Reply
  60. Hello Sir,

    Need your help urgently.

    My employer had asked to submit investment proof before 24th December 2015 of FY but my 2nd installment of LIC was due by 26th March 2016.

    I pay LIC permium in 2 installments.
    1st in Sept – 50k.
    2nd in March – 50 K.

    While submitting the proof I only have uploaded the E-receipt of 1st installment mentioning 1 Lac as exemption amount.
    I could not show the proof of second premium(50k) as it is due by 26th March.

    Please tell me the procedure to claim Income Tax exemption for 2nd Premium.

    Regards,
    Vijay Singh Jamwal

    Reply
    • Vijay-Either you can pay it in advance and show it otherwise let them compute tax and deduct TDS. After the financial year, you can file IT return on your own.

      Reply
  61. is the agent commission mentioned in our policy documents ?

    Reply
  62. Hi Basuvaraj,

    I have an Aviva ILife protection policy for a sum insurance of 1Crore for a policy term of 25 years.

    I recently heard from an insurance agent that the insurance companies do not pay 100 percent of sum insured in term policies and pay only about 40% of it.

    Kindly let me know if this so. And also suggest me a plan amongst all insurance co.panies suitable for my son of age 4 years.

    Thanks in advance.

    Reply
    • Karthikeyan-Your agent misguiding you. Stay away from such agents forever. There is no such rule. Term Insurance in your name is enough. Hence, don’t buy any INSURANCE for your kid’s purpose.

      Reply
  63. Hi,
    I Paid Single premium of Rs 4Lac But it was regular premium policy of AVIVA It is ULIP
    after 5 Year I went to branch for the same ,they said we wont give single rupee (It was wrong saling from agent,regular policy sale as single premium policy)
    Please help for the same.

    Reply
    • Vinay-Raise the complaint first at insurance company level. If they not heed, then go to IRDA.

      Reply
  64. dear sir,

    I have taken a policy of exide life insurance the give fakes benefits but now i want closed it can i closed it i have taken in aug 2015 and how many will be return me.

    please guide me

    Nakul singh

    Reply
    • Nakul-Without knowing the product name, it is hard for me to guide.

      Reply
  65. Sir,
    I purchased Ing (now exide life) New fulfilling life plan in feb. 2014 and paid 2 premiums till now. premium paying term is 16 yrs and policy term is 52 yrs and policy maturity date is 7/2/2066.
    i want to discontinue policy now.
    plz tell me whether will i get something return or not or what else should i do to get my paid money back?

    Reply
    • Ashish-You have to pay minimum 3 years of premium to be eligible for surrender or paid up. In your case the policy not completed 3 years. Hence, you will not receive any amount if you close the plan at this point of time.

      Reply
  66. SIR, my father passed away recently, and he had a max life insurance. It is a pension policy with sum assured 10 lakhs. he just gave the 1st premium and died. mow ,my question is will i get the death benefit or only the premium amout?

    Reply
    • Kalyani-If the risk commencement date (mentioned in policy document date) is before the death of your father, then you are eligible to receive the death compensation from this policy.

      Reply
  67. Hi Sir,

    I am about to be a new investor in LIC 25 years Money Back Policy. I understand that after every 5yrs I will receive 15% of my SA. I want to know what role will this amount (i.e. 15% of SA) pay in my Income Tax. Will it be 100% tax free or some tax will need to be paid ?

    Reply
  68. hello sir,
    one of my close relative passed away 5 months back he had a life insurance policy with sum assured 8 lakh. he didn’t mentioned about his diabetes during underwriting and he has paid total premium of 3 lakh (1 lakh each year). my question is during the claim due to death will the nominee get at least his premium paid returned if the diabetes information was found to be true ?

    Reply
    • Aki-It is purely an insurance company decision. Wait for their decision.

      Reply
  69. Dear sir,

    My mother is a govt employee. For getting tax benefit she has login a traditional policy on 18 August 2015 , but till date no policy number issued. I want to know how much maximum days taken to issue a policy as per IRDA Rule.
    Regards,

    Appu

    Reply
    • Appu-It depends on particular case. Check the same with the insruance company for delay.

      Reply
  70. Dear Sir,

    I want to know that 2009 Nov I bought on policy from Birla Sun Life Insurance and 10 premium paid (Monthly) and after that I never paid any premium now can I claim this amount or any refund received or not ???

    Reply
    • Abhishek-Yes, you can surrender the policy and get back the benefit immediately. Contact the Birla Sun Life Insurance.

      Reply
  71. Hi,
    Can you please tell that in a ULIP Plan, on the death of Proposer (different from Life Assured), is it required to file a Legal Heir certificate/Succession certificate for change in proposer. The new proposer is the wife of the deceased proposer. Is there any such IRDA guideline/circular ?

    Please help.

    Thanks

    Reply
    • Nikhil-Yes, once the proposer dies then his legal heir must be proposer.

      Reply
  72. Is it Possible that one person is paid rs 74000/- and sum assured is 50000/- and in return he is getting only 68000/- at maturity

    Reply
    • Aarti-Yes it is possible. Because such products are meant for AGENTS and INSURNANCE COMPANIES.

      Reply
  73. Hello,
    Do we need to inform the change in job (non hazardous) and change in annual income to the insurer?
    I have a term plan purchased last year by submitting 2 years ITR as income proof and last year my salary was Rs. 25,000 per month. But in April 2015, I left working to study for competitive exams.

    Reply
    • Hi,

      I am 52 years old and want to take Term insurance. What maximum sum insured I can opt (how many times of annual income?

      Reply
      • Rajesh-Usually insurance companies provide around 20-25 times of yearly income. But in your case, considering age factor and health issues, they may decide it.

        Reply
  74. Hi,
    I have more than one life insurance policies in LIC, Tata AIA and HDFC.s
    I have also a pension plan and term plan.
    If I will die , will my nominee get all the benefits from all the life insurance sum assured as well as the term plan or only from any one of the above?
    R’s
    Sandip
    [email protected]

    Reply
    • Sandip-Yes, your nominee eligible to receive all sum assured with the death benefits mentioned in individual policies (irrespective of number of policies you hold). But whether after the first insurance, all your insurers know about your existing policies? If no, then you may be in trouble.

      Reply
  75. Hi All,

    I have one doubt, i bought one term plan(No maturity benefit) from SBI(Last year paid only one premium) but i think that does not suit my expectation(Covers 30 years) and now i want to switch to other company(HDFC Covers 40 Years)….now my question is do i really have to surrender my SBI policy(Which is now in lapse state) or i can just stop paying the premium and move on to other policy?
    Will this cause any issue while in case of claim settlement or will there be any legal issues may come in future from SBI?

    Reply
    • Amit-Soon if one more insurance company offers you the term up to 45 years then will you close HDFC and then run behind that company? First understand your requirement then proceed. No need to surrender. It is already lapsed. Hence, leave it as it is and buy from HDFC. But think twice before doing such knee jerk reactions.

      Reply
  76. HI sir,

    I have purchased ing fullfill life money back police

    sum assured 250000
    16 years
    after every 4 years they pay 20 % of money, i want to know what is the locking period of this policy
    i forcefully bought this policy ,

    Reply
  77. I have 3 jeevan tarang policies 2 in my wife’s name and 1 in mine. Started in Oct -2010. Combined Annual premium 348615.00 . Combined sum insured : 1000000

    I wish to surrender these policies after OCt 2015 (Completing 5 yrs). Wanted to know how much I will get. ?

    Reply
    • Francis-I can’t say that value, better you contact nearest LIC branch.

      Reply
  78. Please send me your contact number, need help on Bajaj ULIP

    Reply
  79. I joined unit linked SBI Life insurance in 2007 and paid premium @ rs.50000/- pa till 2010.Totally paid Rs.200000/- and now i applied for refund at my age of 64 years. TDS will be detected for the accumulated amount of Rs.320000/-
    As my earning sare less than the minimum Tax limit I am not filing my returns. How to reclaim this TDS .?
    Please help me out.

    Reply
  80. Dear Sir,
    I am residing ouside india and have taken Jeevan Rekha (Money back) plan during 2005 ( 10 years term) and my plan premium ends during 2015 march, after paying full premiums my agent told me that I will only get the money when I am 80 years.( Agent explained me endowment scheme and gave this whole life plan, I was misguided it was also my fault should have verified the policy details )
    As I am not married ( Age 42yrs) and my nominee is my mother (67 years) I need experts advise on How to get the sum assured amount now rather than waiting for life long.
    I have already received bonus of 6000USD( LIC gives me 10% SA as bonus for every 5 yrs) , my agent is telling me that to receive the money now I have to surrender my policy & will only receive approximatly 1500 USD.

    Please guide me

    Reply
    • Peeta-But it is better to surrender and compensate the same by investing intelligently. I know you may receive lesser and think this as if a penalty for your ignorance.

      Reply
  81. i have taken jeevan asha 2 policy.

    i have paid premium of 11705 rs yearly

    i have paid for 10 years

    vested bonus is say 195000 rs

    premium payment period is 25 years

    suppose now i stopped premium for paying 15 years.
    and even if i not suurender the policy.

    how much amount i will receive at maturity ?

    Reply
    • Vishal-Contact your nearest LIC branch and ask them the paid up value.

      Reply
  82. Dear Mr. Tonagatti,

    Greetings from New Delhi..!!

    I would like to know that I have a policy which i have taken on July 2012 called SBI Flexi Smart and for 3 month (quaterly) my premium is Rs. 4500 and I have paid 12 premiums @ Total Rs. 54000/- till April’2015.

    As per terms in 2012 the lock in period was 3 years and now I want to know that can i go to surrender my policy as we have complete my 3 years lock in period OR still I have to wait for 5 year ??? Please advise aeap by email.

    Awiat your early reply as matter is urgent bcoz I dont want to continue my this policy so thats why I want to surrender now as 3 years is completed.

    waiting for your response on [email protected]

    sincerely yours – Prince Kapur

    Reply
  83. sir i am 35 year old my annual income 2.18 lac iam under graduate can i elligible kotak new term plan rtecently launch covered up to 40 years.

    Reply
    • Navin-All earning individuals are eligible for insurance. But how much sum assured the company offers you depends on many other things too.

      Reply
  84. DEAR SIR,
    I WANT TO KNOW ABT MEDICAL TESTS REPORTS…
    I HV PURCHASED A LIC E TERM PLAN OF 50 LACKS..
    MY MEDICAL HAS DONE…& PROPOSAL IS ACEPTED BY LIC
    NOW MY QUE. IS CAN LIC GIVE ME A MEDICAL TESTS REPORTS COPY? I ALSO PAY FEES FOR MY MEDICAL REPORTS…
    PLZ REPLY WHATS THE RULE OF IRDA..HELP ME

    Reply
    • Pankaj-I don’t think there is any specific rule from IRDA. But LIC never shares medical reports with insured.

      Reply
  85. Dear Sir

    I want to buy a Term Plan of 50Lakh for myself
    I am 30 year old and i quit smoking since last 2 years and if i hide this think from the insurer and before 2 year or after 3 year (for above both situation) my family ll go for the claim and if they found any thing i hide at the time buying policy then can they reject my claim or not? (if i consider 1st Oct 2014 amendment law and is this law for the life insurance only or for mediclaim/health insurance also?)

    And what type of term plan would be good for future prospectus return premium or without return premium.

    And what other factor should i consider during buying any term plan.
    For medical testing i have to pay or company will pay for my medical test before buying?

    Thanks & Regards

    Reply
    • Sunny-If you are no more smoker then why you are worrying? To me without return of premium term plans are good. You have to check how long the company existence, their service part, plan features and premium. If policy accepted then it will be borne by company. Otherwise they deduct the cost of test and return you the premium.

      Reply
  86. Please describe about single premiumpolcies. How it benefits than regular premium payment? Is Reinsurance working in Life insurance is different from Reinsurance on General Insurance. Please clarify.

    Reply
    • Rama-Re-Insurance is not meant for public. It is the concept meant for Insurance companies to sell their portfolio to another company. So I don’t think this term is related to your doubt on single premium over regular.

      Reply
  87. I am an agent with a life insurance company. One of the policy sold by me had been freelook-ed by the client after the commission was generated.
    Now, i want to know that (a) what are the ways in which the commission can be reverted back to the company. (b) can the company take the money in cash or via demand draft.
    I ask so because my boss took cash and said that he would send the money via demand draft.
    Please reply urgently. Have i been cheated?

    Reply
    • Priyanka-If your insurance company already paid the commission then it will re-adjust it to in your future commission. I don’t think life insurance company will ask you to revert the commission. Instead let them adjust it in future commission.

      Reply
  88. me sanjay kumar sir mene ek term plan liya hai aegon religare ka uska life cover 90 lakh hai aur accident deth benefit 40 lakh ager meri miss ki accident se death hoti hai to kya life cover aur accident death benefit dono milege unhi ke name se lic ki jeevan anand bhi hai jiska sum assured 3 lakh hai mene kisi se pata kara tha ki irda ka rull hai ki salary ka 22 time mil sakta hai

    from sanjay kumar

    Reply
    • Sanjay-Better you translate into English. Because I am weak in reading of Hinglish.

      Reply
    • Mera pass life insurance ka teen policy hai, hat ek ka life cover Alag alag hai, Muje Kishinev bathaya hai ki en teenome sab se Jadhav life risk cover hai, usika me insurance claim mildga baki dhoka life risk cover nahi milega sirf dhoka primimum deposited amount milega. Me janana chahata hu ki teen ka life risk cover mile keen ki meme teen ka life risk cover liyahu. Krupaya muje sahi salaha bathaya Jo IRDA ke Nigam ke Ansar hai.

      Reply
      • Pavan-Please write in simple language. It is hard for me to read your Hinglish.

        Reply
  89. Sir,
    Below are the details of my LIC policies.

    Name of Policy : Jeevan Mitra Double Cover Endowment +Profit+Acc.Benefit,
    Date of Invest.: 28-01-2000
    Total Risk Cov.: 300000
    Mode of Paym : Yearly
    Premium : 15254
    Maturity date : 28-01-2020

    Jeevan Mitra Double Cover Endowment +Profit
    01-07-1996, 100000, Half Yearly, 2536, 01-07-2016

    Jeevan Nidhi Policy (Guaranteed Additions for 5 yrs with Profits)
    15-02-2005, 250000, Yearly, 10094, 15-02-2030

    Jeevan Saral (with profit)
    02-02-2010, Monthly, 2042, 02-02-2030

    Endoument Plus, 23-08-2011, 150000 (one time)

    Bajaj Allianz Wealth Gain (Single Premium)
    07-09-2010, 50000 (one time), 07-09-2086

    TATA AIG Life Mahalife Gold, 44625 Yearly

    I need your valuable advice on following points:
    1. Which all Policy is beneficial for us to continue and why?
    2. Which all policy to redeem and why? If we redeem suggest the option which gives us more returns than continuing these LIC policies ?
    3. How much valuation will be if we redeem these policies now? Also if there is any hidden charges for immature redemption of the policy.

    Reply
    • Pramod-NONE…because none of the policy have a power to generate you around even 8% return. If you are satisfied the kind of insurance coverage and return of 5% to 6% then go ahead. Otherwise try to come out from these craps one by one. Regarding valuation please contact your nearest LIC branch.

      Reply
      • All these LIC policies are taken to save Income Tax. I come under 5 – 10 lac P.A. salary slab.
        Now, I have taken a home of Rs. 10 Lacs for 15 yrs and I have to pay Rs 10,900/- P.M.
        Investment in PPF every year is Rs. 1,50,000/-
        For saving Income Tax do I still have to continue all these LIC policies or else straight away I should withdraw it.
        If we redeem all these policies then I am interested in investing Equity M.F. (HDFC equity, HDFC top 200, IDFC, Axis, Tata Ethical)
        Please suggest which is the best option among all these for maximum returns but this is our second priority. First priority is to save Income Tax.
        Does in PPF and home loan my Income Tax get covered?
        Presently, we have no term plan and my life insurance is (all policies total). I am interested in term plan kindly suggest.
        But presently our priority is mediclaim.
        I have a Company group insurance policy with the cover of 2 lacs.
        I want an additional cover of 3 lacs of Mediclaim and some I have shortlisted (L&T, Tata AIG, Apollo). Myself 40, Wife 35. Kindly suggest which is the best mediclaim policy based on claim settlement ratio and customer friendly

        Reply
        • Pramod-Do you feel your only worry is to SAVE TAX? Please consult any tax expert of your area and share your salary details. In my view your EPF, Home Loan will easily fill up the tax saving option. First understand how much insurance coverage you need, What are your financial goals? How you planned for retirement? How you planned for emergencies? Then choose plans and invest. Otherwise you end up in big mess up.

          Reply
  90. Basavaraj- Noted your points. My stand is very clear, I am not going to invest single Rupee in that fraud company which is nourishing cheater agents. Would like to know whether with the intervention of IRDA can I get my 1st installment amount back ( I invested Rs 1 Lakhs and expecting back whatever it comes back) immediately and after 3 years or in any time duration but at the earliest. As I already quoted ING /Exide employees are not going to co opearte hence we need to find alternate leagl option. I hope you can understand my point, pl guide me.

    Thanks /Hosur

    Reply
    • Hosur-If you proved they actually treated you then IRDA will penalize the company and order insurance company to pay the amount you paid. But do remember that fight may take some time.

      Reply
  91. Dear Basavaraj Tonagatti

    Nice to see the much needed information gathered and shared amoung the public, thanks.
    I had been forced to purchase a ING New fulfilling life policy in 2012 by misguidng agents. Later once I understood the false commitments I contacted ING but in vain as they want to see all the wordings of agents in a paper, which was just an act fooling the customer. Then I checked for withdrawal but they said, it is possible after 3 years of payment and maximum return would be 30% of total paid up. Hence I had dropped the idea of next instalments ie 2013 & 2014 intalments are unpaid. I would like to know is there any option for getiing back my 1st installment amount (Rs 1 Lakhs). If Yes, how and what are the proceedures. As per my knowledge ING (Exide) perpole wont co operate but I dont have any other choice. Even if I get 50-70% back also I am happy.

    Pl revert back.

    Thanks/ Hosur

    Reply
    • Hosur-Sorry to hear such horrible experience of you. But to get back that invested amount you need to pay more and that too will not guarantee you that you get good return after few years. So no option but either to close as you did now or continue to pay.

      Reply
  92. I have bought a Jeevan Tarang (Table No.178) for a 15 years term from LIC on 28-09-2013 and paid the first premium of Rs.68.722/= The 2nd. premium is already due but I am yet to pay. Now, that the premium is so high, I have enough doubt , whether I can afford to pay the amount every year.
    I request you to guide me with best possible actions that I should not incur much loss of my investment. Whether, I can avail the benefit of non-loosing my investment, as I do not need any immediate refund of money. Whether I can change the term of the Policy? Whether, if I pay for another 2 years, I can get rid of the loss?
    I want your kind guidance as to what should I do to protect my hard earned money at this stage.
    IRDA has brought some friendly changes in regulations and for me whether this clause:
    “Policies sold during the transition period (from 20th Feb 2013 to 1st Oct 2013) will have the option either to have continued their policies with existing features or move to new features” can come to my benefit?
    Solicit your kind reply,
    Best regards,
    Sibsankar Datta

    Reply
    • Sibsankar-If it is not affordable for you then why you entered into it? You have three options-One is to forget of what you already paid immediately (loss of already paid premium), second is to pay up to three years then surrender (I am not sure that you get of what you paid), convert it to paid up after three years (you will not get amount after three years but loss mitigation for few) and finally fourth is to continue with this policy. Regarding how much you get, better to contact LIC branch.

      Reply
  93. Dear sir,

    I want buy term insurance policy(lic Amulya jeevan table 823) .if after a year i got a job in abroad , i want to know that will my policy be in force if i am paying my premium. will i be eligible for all benefit.

    Regards!
    Ashok

    Reply
    • Ashok Kumar-Yes you are eligible as they have not stated any such conditions. But why offline term plan?

      Reply
  94. I have taken a Term Insurance from Birla Sunlife almost a year back (in Nov 2013). At that time agent told me that, due to new regiulations of IRDA I can not have riders like Accident or disability riders. is it true? I have my 2nd year premium coming soon to pay and wanted to decided. Also, let me have your view on Birla Sunlife Term insurance.

    Rohith

    Reply
    • Rohith-Offering term insurance is depends on a plan you choose. So if a particular plan is not offering you rider then why can’t you opt for standalone accident plan? But what your agent told was totally false.

      Reply
  95. Dear sir,

    I took term insurance policy three year back in India, after a year i got a job in abroad , i want to know that will my policy be in force if i am paying my premium. will i be eligible for all benefit.

    Regards!

    Roofi

    Reply
    • Roofi-Please check the same with your insurance company. Because without knowing the product name how can I widely suggest you?

      Reply
  96. Dear Sir

    I wanted to take a term insurance of Rs 50 lakhs from Maxlife. I gave my medical test for that . I asked the insurance agent to give me the medical report copy before the insurance policy is made.

    the agent told me that the insurance company cannot provide the medical report copy in advance as per the IRDA guidelines and I can see my medical report only when the policy documents are issued to me. However they were ready to tell me over phone and not ready to give it in writing.

    Please advice on the above about IRDA guidelines.

    Many thanks

    Sarbajit

    Reply
  97. Very informative article, thanks for sharing it.

    Like several I was also a victim of this ULIP selling. I bought one from ICICI PruLife in Aug-2009, annual premium was 1,47,000. I paid that for three years and then stopped. The funds performed very poorly and only after 5 years now they are barely paying off for their obscene allocation charges etc. Anyway, the point is that I want to opt out of this and surrender my policy, I just want to know what are the tax implications on the surrender value. I claimed benefit of these premiums under 80C in 2010 and 2011. However the rebate may stay intact as I also had LIC premium payments of about 1,00,000 each in those years.

    Can you please advise on any tax liability that this surrender value may attract.

    Reply
  98. sir,
    do you no how many life insurance purchased by one person , ny anual income is 3,00,000/-
    how many life insurance i have taken

    Reply
    • Pratik-What is your intention to buy Life Insurance? To cover your life risk, which may provide lump sum to your financial dependents in case of your death. Or to add number of policies? Ideal insurance coverage should be around 15-20 times of your yearly income. Please understand the basics of Insurance then go on adding spree 🙂

      Reply
  99. Sir,

    My father taken a ULIP policy in Tata Aia life insurance in 2010. the agent told that we have to pay 1lakh per annum and in 4th year we can get 4.5lacks. but he doest disclosed about charges.

    the company collected 100% of the first premium as charges and from the send year onwards they started investing and we are eligible for Surrender value of NAV only.

    Actually my question is “Does IRDA permits companies to collect 100% premium as charges?”
    can we make a petiton on that ground that they are taken that without our knowledge or opposed to IRDA policies?

    please give a suggession to recover at least what i invested.
    send me mail with solution if possible.

    Reply
    • Lavakumar-This plan was before IRDA regulation on ULIPs. So they were very much eligible to do so. I feel it is not mis-selling but mis-buying.

      Reply
  100. Dear sir,
    I have purchased a policy from future generali life. At the time of taking policy , I have provided my salary slip as income proof. But they have forged my document & issue my policy as a business man. Now when I am approaching for cancelation but they are saying as the free look period is over, so they will not refund my money.
    Please suggest.

    Reply
    • Prasun-They did it wrong. So first you raise the issue with insurance company itself. If they not heed then try to complain IRDA.

      Reply
  101. sir, I want to buy an online Term plan, But I was told by HDFC life to produce income proof for 10lakhs SA which premium 2900 /p.a, I told them Iam not salarried, i do private tution and annual earning aprrox 1.8 lakh/p.a, .Now U tell me How can I but the said online term plan?

    Reply
    • Ratan-It is mandatory now to provide proof. What they told to your problem?

      Reply
  102. hi,
    I AM 44YRS ( DOB-26.01.70)
    MY TAXABLE INCOME IS 12-14 LACS
    DO I HAVE A CAPPING ON MAXIMUM SUM ASSURED IN TERM LIFE INSURANCE AS I HAVE ALREADY TAKEN TWO TERM PLANS FROM
    BSLI & KOTAK LIFE OF 2 CR EACH AND PLANNING FOR ANOTHER 2 CR
    I AM NON SMOKER,NON DIABETIC,NON HYPERTENSIVE
    SOMEBODY FROM POLICY BAZAR TOLD ME THAT MY MAXIMUM LIMIT IS 2.0 CR ( INCLUSIVE OF ALL POLICIES )
    THANKS
    ANURAG GARG

    Reply
    • Anurag-Maximum cap ideally will be around 20=25 times of your earning. So it again depends company to company. Hence while buying new policies share the existing insurance policies. This will help insurance companies to arrive at your human life value.

      Reply
  103. Sir, I will doing LIC Agency business from 1996 still Date. Now i am wants to join Sales Manager at Star Health Insurance. It is possible? and also it is correct or not.

    Reply
    • Saravanan-The decision is entirely depends on your business requirement. How can I say on this matter?

      Reply
  104. is it mandatory for the insurance company to investigate for hypertension and diabetes for life insyrance policy holders above 50 years?

    Reply
    • Sushrut-It depends on company underwriting rules, age, term, sum assured you opted and health conditions you declare in proposal form. So I can’t say whether they can or not.

      Reply
  105. Dear Basavraj
    I had purchased apolicy from ICICI in 2008 with sum assured-250000. Annual premium of 50000. I have paid for 4 years and fund value was very low. Then I surrendered the policy in 2012. I received only 150000. they told 1st year amount cannot be returned.
    Now some insurance company are calling stating that, there is a bonus from ICICI and I need to purchase a policy by them for short term to get bonus amount from the company.
    I would like to know, is there any provision of such activity.
    Pl. suggest

    Reply
    • Jaya-If you buy then you will be once again in a same trap. So please separate your insurance need with investment and buy product accordingly. Stay away is the suggestion.

      Reply
  106. Sir u r doing a good job. Keep it up. Plaza suggest me one or two best life term plans from a co. with track record. Being 39 n wife 34 .planning both. Or suggestions. Thnx

    Reply
  107. SBI life introduces a new plan Flexi smart steps plus investment plan. Can you please guide me whethe this is a good plan for 5 year investment.

    Reply
    • Pradipta-It is typical traditional plan where they are claiming to give you GUARANTEED RETURN OF 2.5% and above that will depend on their interest declaration. So choice is your’s 🙂

      Reply
    • Dear Basavaraj,
      Can you please provide your contact number and e-mail ID to contact you on insurance related matters. Regards

      Reply
  108. I have taken ULIP plan(smart steps plus child plan) from MAX Life in 2008 july with annualy 25000 premium. for a sum assurarred 450000 for 18 year. But now, my fund value is around 132000/-. But till now I paid 144000/-. I feel it is not performing well. Do I need to continue investing in this or do i need to surrender this ULIP ppolicy? As I know ULIP pays only after 5 year of investment.. like 10/15 year in long term…..

    Please comments….

    Reply
    • Pradipta-Plan you purchased was before ULIP cost regulations of 2010. Hence they are costly and will not serve any purpose to continue. Hence you already completed 3 years lock (at 2008 it was 3 years lock-in), so come out of this plan.

      Reply
      • Hi BASU,

        I have surrendered my MAXLife UILP plan as per your advice. Now I want to take a online Term plan of 50 lakh.

        My Choice are
        1. Aviva
        2.BharatiAxe

        Here, all have almost same premium between 8-9 thound per year till 70 years of age.
        But, only Bharathi AXE is giving till 75 years of age, which i feel is an advantage.
        But Aviva has more claim settlement ratio than Bharathi axe and no of claims per year also more in case of Aviva.

        Can you please suggest me, which should I take?
        Also any other company you advice..

        Thanks,
        Pradipta

        Reply
    • Hi Basu,

      For the above ULIP plan(Max life smart steps plus) which was taken in 2008, as per your advice, I approached Max office for surrender. They told me to stop paying further premium, and continue the policy. That will benificial for me.

      In that case will it be benefited? How all the charges will be deducted.

      Please suggest….

      Thanks,
      pradipta

      Reply
      • Pradipta-Why they said so? Is there any charges if you surrender now? What benefits they said to you?

        Reply
        • As per them, around 6 thound will be deducted. But if I continue, they will swith that from Growth super fund to Balanced fund. And will inform me when market will be down and that time i have to bye the units and when market is up, i will sell the units. But I dont know in that way how the MAX peoples will help me.

          But when I talked to another agent from MAX, he told, in this case all the fund charges will be deducted from current unit value and balance amount again will be reduced. I may get benifited but chance is less.

          Thanks,
          pradipta

          Reply
          • Pradipta-What that agent told is right. Even if you not pay then there will be some charges which they will deduct on regular base irrespective of fund performance. Hence better to come out.

            Reply
            • Hi BASU,

              I have surrendered my MAXLife UILP plan as per your advice. Now I want to take a online Term plan of 50 lakh.

              My Choice are
              1. Aviva
              2.BharatiAxe

              Here, all have almost same premium between 8-9 thound per year till 70 years of age.
              But, only Bharathi AXE is giving till 75 years of age, which i feel is an advantage.
              But Aviva has more claim settlement ratio than Bharathi axe and no of claims per year also more in case of Aviva.

              Can you please suggest me, which should I take?
              Also any other company you advice..

              Thanks,
              Pradipta

              Reply
              • Pradipta-Have you checked recently launched LIC’s online term plan also?

                Reply
                • Hi BASU,

                  I already have 30 lakh term insurance from LIC that is 4 year old.Now online term plan of LIC still more costlier than private companies.If I surrender existing LIC policy and take new online LIC plan for 50 lakh for 30 year, it costs 18 thousand for me.Where I can get same policy within 10 thousand from MAxlife, Aviva, Bharathi etc.

                  Is it safe to take from private insurer?Can we believe them for 30 long years? Taking 1 crore from LIC for 30 year will cost me(39 year) around 35000/– yearly.So I am planning to divide 50 lakh from LIC and 50 Lakh from private company.That will cost me 18000+9000=27000/- yearly. Also I will surrender my earlier LIC term plan which is costlier.

                  Please advice….

                  Thanks,
                  Pradipta

                  Reply
                  • Pradipta-First let me clarify that there is no surrender in term plans. If you stop paying premium then policy will lapse. No need to surrender as there will be no return from this policy. Second thing, you can go ahead with private insurer. They are as safe as LIC. If you still have doubt then you can diversify your risk.

                    Reply
                    • Hi BASU,

                      I have another query regarding Term insurance.. If somebody developes some kind of deseases or illeness after taking term insurance(after few years), in that case do we need to inform insurance company. Will insurance company increase the premium. in future?

                      Thanks,
                      Pradipta

                    • Pradipta-No need to inform and there is no hike in premium.

                    • Hi BASU,

                      I have decided to take HDFC term plan.But for critical illeness insurance, do I have to buy separately
                      or i can take as a rider in term plan? As I know critical illenes insurance need to be renewed yearly basis.
                      Is that correct.? What is the best way to buy this critical illenes policy and which company you advice…

                      Thanks
                      Pradipta

                    • Pradipta-Better to buy separately as you will find and choose sum assured of your choice with add on features.

                    • Hi BASU,

                      I want to share some facts on online term plan….

                      I thougt to choose HDFC Click 2 protect. But Finally I taken SBI eshield plan which is 700 rupee costlier than HDFC for me.
                      The reason is, when I asked HDFC for health check, they told there is no health check till 75 lakh, which is not good.Only I have to
                      answer some questions on my health, thats all.Then I asked, them(HDFC) how can I answer whether I have BP/ any other deseases, as that
                      I can confirm after going through health check. So You want me to go for healthe check on my own cost? At the time of
                      Claim they may raise question, you had this/ that deseases which you declare wrongly.So Claim is rejected.These issues i searched in google.

                      So better to choose company which is strict about health like SBI Life/ MAxlife. They will also share all the health reports.

                      Also I have a MAXlife term plan where they have attached all the health report in the policy documents.Which is good.

                      Another information…

                      Today I received a call from from an agent for Term plan. When I told him I want online, He told he will do all the things for me online.
                      Then I told, I am an IT professional, I can do on my own and already taken another policy online. Then he told, better take through agents
                      , you will get good service and help at the time of settlement.Then I said, as per company online/offline both are same as per service.
                      And at the time of
                      claim settelement( say after 20 year), will you(agents) be there? So my point is even in online plan also, these agents are misguiding people.

                      Thanks,
                      Pradipta

                    • Pradipta-Wonderful sharing. Even I too of the opinion that, considering the current trend of agents giving away their agency then how can you believe that they stay in the same profession. But do you feel online term plans not include any middlemen commission? No it is not like that…check few online term insurance comparison sites and provide your personal data. Then see how they run behind you to buy ONLINE TERM PLANS of particular plan 🙂

  109. Sir,
    My age is 64 years.I have two policies in force at present.
    (1)HDFCLife Unit linked pension -Starting date is Jan-2008.
    Policy is in force uptill now.Policy Maturity is on Jan-2018
    PremiumPayable is Rs.2000/pm

    (2) Bajaj Allianz life insurance company limited policy
    UNIT GAIN PLUS GOLD SIZE TWO-Starting date of policy-Feb-2008
    policy is in force uptill now.Policy matures on Feb-2021.
    Premium payable is Rs.30000/per anum.
    I am in need of money, what benefits are available on this policies ?
    Whether I can surrender above policies/
    What will I get ?
    Or other options available?

    Reply
    • Vijay-Both the policies already completed more than 5 years. So you can go ahead for surrender. How much you get will depend on the fund performance. Hence better to contact respective insurer.

      Reply
  110. Hi Basavaraj,

    I was looking to buy Aviva term plan, and one of the advisors from Policy Bazaar receommended me to buy the plan before Jan 31st.
    He mentioned that the insurance companies are going to increase the premium upto 20% owing to higher mortality rates.

    Kindly help me out, if you have an idea regarding this.

    Reply
    • Hemanth-It is one more sales pitch what they are claiming. Because I don’t whether it is due to IRDA rule or something from Aviva which is increasing premium rate. Also currently you have plenty of choices. So no need to worry. If it is costlier to you then choose the another insurer. But at the same time, I am not suggesting you to postpone your buying. You must buy it on high priority.

      Reply
      • Basavaraj, He also mentioned that it’s not just common to Aviva, it applies to all other insurance companies who are rolling out term insurances.
        I have gone for Aviva since i found that the premium’s are lowest and since it’s a pure death benefit, would rather go fo the one having the least premium. What are your suggestions.

        Once again thanks for the previous reply.

        Reply
        • Hemanth-But wait for few more days as all insurers are revamping their term plans (including LIC) which are more customer friendly. So wait and decide. Also when buying term insurance not go with company based on cheap pricing alone. Consider other aspects like claim settlement ratio or service of the company.

          Reply
          • Any update on LIC policy changes because I am planning to take one policy before this month.

            Reply
            • Venkat-They already started new plans. Details of all will be available in my previous month and this month posts already. Please have a look at them. They even started revamped term insurance plans also.

              Reply
  111. Dear Basavaraj,

    i. Have the premiums on term plans been already revised or will they come down further.?
    ii. An agent is pushing me to take a term policy ASAP saying the premiums will increase from24th Jan (tomorrow) – is there any truth in this?

    Thanks,
    Kris

    Reply
    • Krish-Are you talking about LIC term plans? If so, then LIC withdrawn term plans too from 31st December 2013. So currently no term plans will be available from LIC. So I don’t think about which term plan your agent is talking about. You can visit LIC site here and clarify my claim.
      http://www.licindia.in/Withdrawn_Plans.html

      Reply
  112. What is the responsibility of the Insurer if it withdraws a product? Does it have to inform the Insured about this withdrawal and offer an alternate product? Please reply to my mail id also. Thanks.

    Reply
    • Hemant-Once your proposal is considered and issued the policy bond then they can’t run away from their responsibility. They can close the plan for new offering, but they have to continue the plan to their existing customers.

      Reply
  113. I took komal Jeevan and paid 5 installments till now, quarterly 9410 , sum assured 5 lakhs. After reading these post, I got a feeling whether I need to surrender the policy or not. For 18 years I pay around 6 lakhs, but i get more than 14 lakhs.
    1lakh,1lakh,1.5lakh,1.5alkh, 9 lakh so total 14 lakhs, apart from this if bonus is eligible something will add again.
    I agree it cannot afford the future cost, but investing 6 lakhs you get this much amount, will I get this in PPF ? every year they are decreasing the interest amount, please provide your inputs.

    Reply
    • Krishnan-PPF have more weightage than this plan. Let us for the time being forget about the return from this plan. Are you fully insured your life? What will happen to your kid and wife if your death occurs today (sorry to say such harsh situation but just discussing the reality)? You are under insured right? So think twice whether this plan will actually fulfill your insurance+financial goal needs? If yes then continue, else think twice.

      Reply
  114. HI,

    I am lookin for investment plan having tax benefit and good returns.I don want any of my amount going to some kind of insurance coverage.The whole
    amount of premium should go to investment.I can invest aroun 1500-3000 Rs per month.Kindly suggest me gew good plans suiting me.Products where I can invest
    Is SIp a good Option?If Yes which One.

    Regards,
    Biju

    Reply
    • Biju-I replied to your another same comment. Please have a look at it. SIP is not the investment product but it is the way of investment. So don’t confuse yourself.

      Reply
  115. i am planing to surrender my HDFC unit linked endowment plus (growth fund).Commencement date 05/12/2007, last premium paid date 14/12/2010, half yearly, premium amount 5000.00. Paid 07 premium (07 x 5000 = 35000.00)holding 419.456 units (87.00/unit) all in growth fund, maturity date 05/12/17.your opnion hold OR surrender

    Reply
    • Jose-Without knowing the plan name, I am unable to answer you. Please provide the plan name.

      Reply
  116. Hi , I am planning to buy HDFC click2protect plan with 30% premium pay back if I purchase it on or before 31 Dec 13 .
    Shall I go for it or wait for Jan 14 to see new low valued premium policies ??

    I am also told that service tax on insurance policies other than LIC will also be increased in these new IRDA norms and premium will be costlier , please suggest.

    Thanks for all info by this blog !!!!

    Reply
    • Anand-Sorry for delayed reply. May I know who offered you this? Let me know if you have any mail. Please forward the same to [email protected]. Service tax is not increased but started to add and private insurers are already collecting it. So no need to worry.

      Reply
  117. sie one ICICI PRU elployee is insisting to buy ICICI Prudential Systematic Retirement Solution begore 31.12.13 with annual premium RS 50000/-. he is saying that it would be costlier. But i think that from , insurance would be cheaper and some new plans would also be there. so please clarify.

    Reply
    • Agarwal-I suggest you to wait till the launch of new pans and all new features are customer friendly.

      Reply
  118. I received a call from ING life insurance saying that under their policy “New fulfilling life” due to year end camp they are offering additional benefits like 90 days “free look” period and “loan facility” after 90 days after policy issue date. Is it possible?
    Onsite free look is max 30 days if purchased from marketing channels and loan is after complete premium term. I am at the verge of deciding about it, need suggestion. Thanks

    Reply
    • Sat-It is completely a case of mis-selling. You can complain with IRDA. According to IRDA rule free look in period is only 15 days and no policy will be eligible for loan after 90 days. They are desperate to sell the policies as much as possible within 31st Dec. Don’t be in their trap. You can view this IRDA link wherein it is clearly mentioned what I said above.

      Reply
  119. hi Basavaraj
    this is Charan
    My Mother DOB age is 47 years old. she earned 17k from pension by Govt but she intersted in term plan insurance online

    she is eligible/not for term policy without Medical tests
    which plan is better for my mother
    how to apply whether it is offline/online
    plz tell me yaar

    Reply
    • Charan-She is eligible for term plan to buy. But with medical or without medical is the decision of the insurance company. So I am unable to judge. Choose among HDFC, ICIC, SBI or LIC. If you want to buy from LIC then currently only offline mode. But from others you can buy it online.

      Reply
  120. Hello Mr Basu,

    there are four members in my family, my mother, my wife, my 3 yr old son & me. I have done an online term plan from Kotak of Rs 50L. And apart from that I have got my Investment in SIPs only. I prefer to pay Tax instead of opting for any Tax Saving tool. Please suggest/Scrutinize……..

    Reply
    • Samrat-Nice to know that you opted for term insurance than clubbing with investment. Tax saving is not like tax evading. So don’t feel in another way. In fact with term insurance+EPF contribution (if employed) and with some other options you can easily save tax. Hence I strongly suggest you to look into a tax saving aspect also. But don’t invest only with intention of tax saving. Instead your investment should also match with your financial goals.

      Reply
  121. Hi,
    i am planning to invest in Komal Jeevan for my 8 month old son. at the same time i would like to invest in jeevan saral and jeevan tarang for myself. please suggest am i making a right investment.

    Reply
    • Sudha-A pure wrong decision to invest for your kid’s long term goal wherein the return from such plans (Komal Jeevan, Jeevan Saral or Jeevan Tarang) are so low that even they are not able to beat the normal inflation rate then forget about the education cost of your kid. By coming to know the series of LIC plans from your above comments, I presume that agent may be luring you to invest as these plans will not be available after 31st Dec. Instead my suggestion will be to have a term insurance to cover your family. Then if you may start investing in equity mutual funds (for long term goals like your kid’s education or marriage) or in PPF (if you are totally risk averse), will actually give more return than these plans.

      Reply
      • Dear Basavaraj, Its very depressing to see you CFPs, behaving like a lynch mob attitude, towards any thing Insurance! I would like to inform you that, you are doing dis service to community by going against ethics, by misguiding, the public, with your hidden agenda. Equity, according to Warren buffet, is fog in front screen and clear on back screen, how can you suggest a guaranteed savings to your clients, in equity ? and PPF rates are fluctuating, and it depends on the govt policy, how can you guarantee that also ? Dont try to fool people, in the name of some 3 letter attached to your name.

        Reply
        • Krishnaraju-Thanks for your comment 🙂 I don’t know about other CFPs. But I am not against insurance. It is a must and I first recommend insurance to my client before implementing other financial investments. But dead against “Insurance+Investment”, especially if someone’s 100% portfolio filled with such low yielding products. Who is suggesting a GUARANTEED return from EQUITY?? Yes you are right, PPF rate changes every year. But do you think endowment plans or ULIPs returns are guaranteed? Request you to reply to this comment so that visitor of this post must know who is fooling whom 🙂

          Reply
    • Hi sudha,
      if saving is a goal first look to exhaust your 1 lakh limit on ppf. once you have done that.

      I will not recommend Komal Jevan as a parent you should take a policy on your name. Jeevan saral is a good policy and will have better return than komal jeevan or tarang.

      and if you are not risk taking stay away from stocks.

      Reply
      • Divya-Do you feel Komal Jeevan or Jeevan Saral will at least beat inflation rate? (Forget about education and marriage inflation).

        Reply
        • I do not recommencement Komal Jeevan as it is on child’s name. I always ask the earning parent to take policy on their name. Unless some one understands that after taking a policy on child’s name they need to safe guard future premiums through a term deposit.
          I do recommend jeevan saral if age is less than 35 years as MSA is good in that case. As I mentioned in one of my earlier comments investing 100% in jeevan saral will be a bad idea but investing 0% in jeevan saral is still a bad idea. Diversification is necessary.

          Reply
          • Divya-Considering the current LA rate do you still feel Jeevan Saral better choice than any other available debt instruments like PPF or retail bonds?

            Reply
            • PPF is really good bonds are also good I never say they are bad. I just said diversification is necessary and when you diversify you should consider LIC as one of the instruments. Current LA rate of Jeevan Saral is only available for 10,12 and 13 years . If I take a clue from final additional bonus rates this should jump quite high for terms longer than 20 years or so.

              Reply
              • Divya-So what LA you expect for 20 year term policy with premium of Rs.50,000? Do you think Jeevan Saral will give you more than 8% after the kind of expense ratio it has (agents commission at 35% in first year, 7.5% in second and third and 5% for rest, apart from this maintenance charges, DOs commission)? As currently LIC declared LA rates for 10, 11 and 12 years, let us discuss for 10 year plan. Is it worth to go for Jeevan Saral for 10 years? Do you feel FAB will add return which can change the return percentage more than 1%?

                Reply
  122. Awesome work! Can u pls suggest some Policy for my 1-year old? Also, we are planning to Invest in Insurance (we have very little cover so far). What are the Policies that u suggest?

    Reply
    • MB-Pleasure 🙂 I am not suggesting you any insurance plans for your kid’s future education or marriage expenses. Instead first have proper term insurance on your life and based on the assumption of future expenses start investing in Equity+Debt. Buy insurance only to cover your life risk but not for investment purpose.

      Reply
      • I disagree with you Mr basu. you need to diversify your portfolio and investing a part into a endowment scheme does make sense for some amount.
        endowment plans gives you some life cover as well as returns. besides all maturity is tax free

        Reply
        • Divya-Thanks for your disagreement 🙂 I fully agree with your view of diversification. But at the same time how much % towards the endowment plans? Can any agent work out that? I doubt this type blood in any LIC agents. If the inevitable surplus of a client is say about Rs.1,00,000 then does an agent have guts to say that the endowment are low yielding products, hence invest only around 10% to 20% of overall portfolio? No agent will do. Also diversification is a must but at the same time when the kind of products term insurance+PPF can generate more than these endowment plans then why I being investor will go and buy only endowment plans. Even one can test their hand with types of retail brands available in the current market which are more guaranteed than endowment returns. Am I right?

          Reply
          • PPF has a limit of 1 Lakh I wish it was unlimited I would have deposited all my money there 🙂

            So we both agree that 0% towards endowment plan is a bad idea and 100% towards it is still a bad idea. I don’t know about your experience with other agents but I do sell that diversification is necessary, and here is the proof(I say one part of) copied from home page of my website http://www.divyaAdvisor.com

            “You should definitely consider LIC policies as one part of your investment portfolio. All premiums paid are income tax exempt under section 80 C and all returns are exempt from income tax under section 10-10D.”

            Sir, thank you for writing these articles you have done a good job educating us.

            Reply
            • Divy-Great to know about your style of business from others. But I still don’t understand why one must have LIC plans? Do you feel with the kind of salary one currently getting (normally around Rs.30K PM), is it hard them to fulfill the Sec 80C? Term Plan+EPF+PPF will suffice (if they don’t have home loan). One must understand the tax liability also but it does not mean the sole purpose of our investment. Which LIC and LIC agents spread especially during financial year end by launching single premium plans. I don’t understand how they market 🙂

              Reply
          • Looks like that you are totally disagree with the Agents.

            But try to understand that every business has some commission which some time high and some time less. If you you see the cold drinks business model then the actual cost is almost less than 1/- Rupees but the selling price is more then 15 Rupees. Should we stop drinking the cold drink because there is lot of commission involved.

            Every direct selling business has lot of commission involved because Agent do all ( Advertisement, Going to customer Place, Convincing him and Finally giving sale to company based on customer mutual agreement.and taking headache to complete the policy and finally giving bond to Customer). Do you feel that this easy job?

            So why he is not liable to take commission from LIC. This is direct sale business which lot of companies are doing in India.

            Reply
            • Saxena-I am not against any agent. But at the same time, from an investor (I am saying INVESTOR because no agent will sell LIC as life risk covering tool) point of view if a major portion of my investment is going towards expenses then it automatically a worrying factor. You have given an example of cold drinks, but in that case customer is enjoying the taste which he expected. Instead in LIC case customer’s financial life will be in trouble even not to exceed the inflation rate. So if I look at investor point of view then my concern will be how each penny I invested will be utilized and earn me.

              Reply
  123. Hi i am planning. To buy 2 policy basically a retirement plan or endowment. Plan so what do u suggest should i buy the plans or should i wait till Jan and thereafter i should buy it thanks and regards urvashi

    Reply
    • Urvashi-Let us wait till Jan. But in my view I strongly recommend you to separate your financial goals with insurance need.

      Reply
  124. Great article..!
    I have Jeevan Anand from Nov 2010, and I was planning to surrender it now or at least make it a paid-up policy. As I am near to the next premium date, should I pay this and surrender it later to avail the new regulations?

    Reply
    • Animesh-Once you pay the Nov 2013 due then you are eligible either for surrender or paid up. Hence go ahead after paying the November due.

      Reply
      • Hi… What will be the surrender amount calculation if I surrender Jeevan Anand policy in 4th year and if it will be different if I decide to wait and surrender after 5 years.

        Reply
        • Mithlesh-Calculation will be same. But only add-on for 5th year surrender will be additional one year bonus accrued on your policy. So you may receive a bit higher value than 4th year. But not that much significant difference.

          Reply
  125. Hi All,

    Can you tell me about the LIC -Retirement & Enjoy plan, One of the LIC Agent gave me a clear quotation stating to invest 60076 per year from 24 years to 50 years, aftre 51 years LIC will provide 3.1lakhs with 5% annual growth every year with respect to inflation till 75 years….this has Personal & Accidental coverage of 26lakhs and grows to 75 lakhs till your tenure, more over the amount you receive every year from 51 years till 75 years is coming to approximately 1.2 Crore, after 75 years to 100 years your Life coverage applicable of 25 laksh and no pension….

    please let me know your thought on this and have u heard of this plan
    ??

    Reply
    • Bhavesh-I am very much interested to write the post on this combo plan few agents used to sell. Request you to send me the presentation provided by your agent to my mail [email protected].

      Reply
  126. Superb Compilation . Thanks a lot for sharing this !!

    Reply
  127. Will there be any deduction in premium for the already existing policy e.g. I have 2 Jeevan Saral running & as the premium is high, I was thinking of surrendering one of them. So want to know whether any of this premium will be reduced now?

    Reply
    • Rahaman-If LIC adapts to the new mortality table then only mortality charges will come down. Which in turn may reduce some % of premium. But not that much. Why you are feeling the gravity of high premium now which you need to think while buying it?

      Reply
      • Oh actually some of these polices were bought by my father & I was not so much active in my finance planning 🙁 then. But now that I took a stock of the situation, I realized I should surrender some of my LIC, I also got my term plan recently. But with the new rule in place, I think I need to recalculate my surrender value & decide which one to surrender & which one not. So, I was asking the same to you..

        Reply
  128. Thanks for sharing very good info, but Whether the existing non-linked policies e.g pension policies, etc. will be governed / covered by New IRDA guidelines?

    Reply
    • Pinak-They will but with some changes in features. Let us see what changes all insurers will do.

      Reply

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