IRDAI Introduces Higher Surrender Value For Life Insurance Policies

Previously, exiting a life insurance policy within the first year yielded minimal refunds. The IRDAI now mandates a higher Special Surrender Value (SSV) for traditional endowment policies, ensuring the SSV is at least equal to the present value of the paid-up sum assured and future benefits. \r

This means policyholders get part of their premiums back even if they exit early. Insurers will use the 10-year G-sec yield for discounting and must provide a Customer Information Sheet. Additionally, more policy options, including index-linked plans, are now allowed.