Team Blitz India
NEW DELHI: The Insurance Regulatory and Development Authority of India (IRDAI) has announced the final set of rules on surrender value. From April 1, 2024, the surrender value is expected to remain the same or even lower if policies are surrendered up to a period of within three years.
A surrender value in insurance is the sum disbursed by the insurer to the policyholder when terminating the policy prematurely. If surrendered during the policy term, the policyholder receives the earnings and savings component. This provision offers a way to access funds in case of need before the policy matures.
The IRDAI has said that if policies are surrendered between the fourth and seventh years, the surrender value may see a marginal increase. For non-single premium life insurance policies, a guaranteed surrender value will be provided upon payment of premiums for at least two consecutive years
