IRDAI says facility of policy loan is mandatory for life insurance savings products

The Insurance Regulatory and Development Authority of India (IRDAI) mandated policy loan facility for all life insurance savings products, also extending the free look period to 30 days from 15 days. The master circular aims to simplify life insurance, enhancing transparency for informed decisions by policyholders.\r

It enables partial withdrawals under pension products for various financial needs and health riders for emergencies. The circular stresses on fair pricing, strengthening governance, and providing wider product choices, including nomination flexibility and benefit illustrations. \r

Insurers must ensure product availability across demographics and offer customization options, with clear benefit illustrations at the point of sale, signed by both the policyholder and relevant personnel, forming part of the policy document.