(3). Even Distribution of Charges:Charges on ULIPs are mandated to be evenly distributed during the lock in period, to ensure that high front ending of expenses is eliminated.
(4). Minimum Premium Paying Term Of Five Years: All limited premium unit linked insurance products, other than single premium products shall have premium paying term of at least five years.
(i) The minimum mortality cover should be as follows:
Minimum Sum assured for age at entry of below 45 years
Minimum Sum assured for age at entry of 45 years and above
Single Premium (SP) contracts: 125 percent of single premium.
Regular Premium (RP) including limited premium paying (LPP) contracts: 10 times the annualized premiums or (0.5 X T X annualized premium) whichever is higher. At no time the death benefit shall be less than 105 percent of the total premiums (including top-ups) paid.
Single Premium (SP) contracts: 110 percent of single premium
Regular Premium (RP) including limited premium paying (LPP) contracts: 7 times the annualized premiums or (0.25 X T X annualized premium) whichever is higher. At no time the death benefit shall be less than 105 percent of the total premiums (including top-ups) paid.
(In case of whole life contracts, term (T) shall be taken as 70 minus age at entry)
(ii)The minimum health cover per annum should be as follows:
Minimum annual health cover for age at entry of below 45 years
Minimum annual health cover for age at entry of 45 years and above
Regular Premium (RP) contracts: 5 times the annualized premiums or Rs. 100,000 per annum whichever is higher,
(6). MINIMUM GUARANTEED RETURN FOR PENSION PRODUCTS:
III. DISCONTINUANCE OF CHARGES:
1 Comment
If it is missold policy and premium is not paid after 1 year. what will happen. Will the insurance company have to refund the full money or will IRDA force the insurance company to do so.