Insurance premium may rise as revised surrender value kicks in from Tue

Insurance premiums are likely to rise following the implementation of revised surrender value rules by the Insurance Regulatory and Development Authority of India (IRDAI). The new rules increase the guaranteed surrender value of life insurance policies, which is the amount a policyholder receives if they terminate the policy prematurely. This change aims to provide better returns for policyholders who choose to exit policies early, but will result in higher premium costs for new policies to compensate for the increased payout obligations of insurance companies. Industry experts believe that while the rule change benefits policyholders, it will lead to a recalibration of product pricing and policy terms to balance the financial load on insurers.