From today, insurers wonít be allowed to sell highest NAV products

Oct 01 2013, 13:20 IST
Comments 0
SummaryInsurance repository allows a policyholder to hold policies in demat form.

How can I convert my life insurance policy into e-insurance? How much do I have to pay for converting each policy?

ó Pallab Gupta

Insurance repository allows a policyholder to hold policies in demat form. Policyholders need to fill up a request form with their insurer to convert their policy into demat. Demat policies can be held in an e-insurance account with one of the five repositories approved by Irda. A policyholder can open only one e-insurance account, and policies from different companies can be stored under this account. There is no cost attached to opening an e-insurance account.

I have heard Irda has barred insurers from selling highest NAV products. What happens to the policy I had already taken from a private insurer?

ó Sumit Mahajan

As per new guidelines effective October 1, such products wonít be allowed anymore. However, if you have bought a highest NAV guaranteed product, it will continue to be governed by the terms and conditions as outlined in the policy contract.

What is the current rate of interest offered on annuity by private insurers and LIC?

ó Ashok Singh

Annuity rate varies from company to company, and also depends on the option chosen, such as lifetime income, lifetime income with cashback, lifetime income with term guarantee, etc. Further, rates are dynamic and subject to change depending on the interest rate scenario. You could also view the current rates offered by different insurers on their website.

Can I redeem my units from Ulips online? How many days does a company normally take to credit the amount?

ó P Ramarao

In cases of partial withdrawal or surrender, your insurer may require some documents for validation. Hence, such requests are normally serviced at the branch level. The money usually gets credited between 7 and 15 days from the date of request acceptance.

If I stop paying for a Ulip policy, does it make sense to leave the units unredeemed for few years and will the insurer deduct any money annually?

ó Arvind Kumar

It is always recommended not to stop regular premium payment. In case of Ulips, if you stop paying premiums within the lock-in period of five years, the net of accumulated fund value less discontinuance charge is transferred to the discontinued policy fund. If the policy is not revived within two years from premium payment date or end of lock-in period, whichever is earlier, the policy is terminated and funds paid out to policyholder at the end

Single Page Format
Ads by Google

More from Personal Finance

Reader´s Comments
| Post a Comment
Please Wait while comments are loading...