look news india
Many important changes have been made in the rules related to insurance. Now under the new changes, it has been made mandatory for insurance companies to give loans on the policies of all life insurance products. Through this, the liquidity needs of the policyholder can be met. The Insurance Regulatory and Development Authority of India (IRDAI) has issued a big circular in this regard.
What did IRDA say?
In its main circular to life insurance companies, IRDA said that all non-linked savings products offering surrender value will have the facility of policy loan based on the eligible surrender value. Let us tell you that surrender value is the amount that a policyholder can withdraw from his life insurance policy at any time. The policyholder will be eligible for a loan based on the eligible surrender value. However, the regulator said that loans will not be allowed under Unit Linked Insurance Products (ULIPs).
