Saturday, May 9, 2015

IRDA's new Guidelines for traditional products

According to the guidelines, the product design of traditional plans would remain almost the same.

New Traditional products wil have a higher death cover

i)For single premium policies it will be 125% of the single premium for those below 45 years and 110% of single premium for those above 45 years.

ii)For regular premium policies, the cover will be 10 times the annualized premium paid for those below 45 and seven times for others.

Premium / Age
<45 years
>45 Years
Single Premium
125% of Premium
110% of Premium
Regular Premium
10 Times of Premium
7 Times of Premium

The minimum death benefit in case of traditional plan is at least the amount of sum assured and the additional benefits (if any)

In addition to the sum assured, the bonus / additional benefits as specified in the policy and accrued till date  of death shall become payable on death if not paid earlier

These plans would continue to come in two variants, participating and non participating plans. 

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