Insurance Regulatory and Development Authority of India vide circular dated 01.09.2023 has enabled additional options for withdrawn life insurance products. IRDAI has introduced measures allowing more choices and benefits for policyholders with withdrawn life insurance products. To provide greater flexibility to existing policyholders while safeguarding their interests, following measures are introduced:
- Adding Riders: Companies can offer new riders to the existing policyholders of withdrawn products
- Flexible Payments: Option to change the premium paying mode can also be provided
- Lower Interest Rates: A reduction in interest rates for policy revivals and policy loans, if any is permitted.
- More Payment Options: Policyholders can choose how often they receive certain benefits from their policies with income benefit payments.
