LIC policy new rules: Life insurance policy will witness changes in rules from today as new guidelines for unit-linked insurance plans (Ulips) and traditional life insurance policies will come into effect. The Insurance Regulatory and Development Authority of India, (IRDAI), has instructed the insurers to make changes in Ulips and traditional life insurance policies.
To benefit life insurance policyholders, the Insurance Regulatory Development Authority of India (Irdai) has relaxed regulations for pension plans, Ulips and traditional life insurance plans. In unit-linked insurance plans (Ulips), the revival period for the LIC policy has been increased to three years.
From today, the withdrawal limit in pension plans is all set to increase. The maximum withdrawal allowed at maturity will be 60% instead of the existing one-third of the corpus.
Customers will be allowed to make a partial withdrawal of up to 25% once the lock-in period of five years ends.
LIC to close 23 plans
The state-owned Life Insurance Corporation of India (LIC) is set to close as much as 23 plans on January 31 and launch afresh on February 1. In November last year the Insurance Regulatory and Development Authority of India (IRDAI) had laid guidelines to close those insurance plans which does not follow the project guidelines.
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