IRDA to cap reduction in yield on ULIPs from sixth year onwards
Policy holders of Unit Linked Insurance Plans (ULIPs), who wish to pre-maturely withdraw can now be happy as their investment will soon have some protection.
The Insurance Regulatory and Development Authority (IRDA) is planning to cap reduction in yield from the sixth year (of the policy) onwards, according to reliable sources.
Earlier, the cap was applicable only at the time of maturity. If anybody pre-surrenders their policy, the return on the investment is dependent on the discretion of the insurer.
The new norm, which will be announced shortly will in a way remove the earlier anomaly and make ULIPs more customer-friendly.
More :- IRDA to cap reduction in yield on ULIPs from sixth year onwards
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