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Loan facility will be mandatory on life insurance policy, know details here
Policyholders will be helped in meeting their cash-related needs. Apart from this, the facility of partial withdrawal under pension products for higher education and marriage of children is also available. Issuing the master circular integrating all the regulations regarding life insurance policy on Wednesday, IRDA said that the free-look period is now 30 days. Earlier this period was 15 days.
The Insurance Regulatory and Development Authority of India (IRDAI) has made loan facilities mandatory for all life insurance products. This will help policyholders meet their cash-related needs. On Wednesday, the IRDA issued the master circular, which incorporated all of the regulations governing life insurance policies, and stated that the 'free-look' period has been extended to 30 days. Previously, this period was 15 days.
In the 'free-look' period, time is given to review the terms and conditions of the policy. The new master circular follows a similar exercise undertaken by the regulator for general insurance policies. "This is a significant step in the series of reforms undertaken by the insurance regulator keeping in mind the interests of policyholders," IRDA said.
According to the master circular, a partial withdrawal facility has been permitted under pension products. This will help policyholders to meet their specific financial requirements for important life events such as higher education or marriage of children, purchase/construction of residential houses/flats, medical expenses, and treatment of critical illness.
