With the end of the festive season, life insurance companies have come up with new offers. They are offering limited-term offers to attract the consumer, who have to buy an insurance policy before November 30 to take advantage of it. The Insurance Regulatory and Development Authority of India (IRDAI) new guidelines for life insurance related products are set to come into effect from December 1. Insurance companies will have to remove products that do not exist under the new rules before that. They are trying to sell aspects of the offer like 'higher premium of new plan', 'less guarantee of return'. It is better to understand the changes under the new rules before you believe them.

Karthik Raman, CMO and Head (Products), IDBI Federal Life Insurance, said, "The prices of policies may increase, but they will not be very expensive." Higher premium will mean that customers will get better features.

The pension plan will be able to withdraw 60% of the money at maturity.
For those who intend to buy a pension plan, it would be better to wait for the new rules to come into force. FinSafe India Founder Mrun Aggarwal said, 'Pension plans will become more customer friendly. There will be more concession in withdrawing money before insurance matures or before and better investment options will be given. After the implementation of the new pension plan on December 1, 60% of the money will be allowed to be withdrawn once the insurance plans sold are matured. Now 33% of the money can be withdrawn at one time. The new plan may get less returns, but the additional benefits associated with the plan will make up for it. Philhal will deduct tax on lump sum withdrawal of more than one-third of the return.

ULIP will benefit buyers, policyholder will decide on the guarantee itself
The regulator made it compulsory for insurance companies to give a guarantee on the amount received on maturity, after which the interest of customers in the ULIP segment of pension has declined. Companies had to invest in debt instruments, which reduces the efficiency of returns. Under the new rules, the policy holder must decide whether he needs a guarantee or not. If you are young and believe in long-term investments, you can invest a greater part of your investment in equity. This will help you to raise more money for retirement.

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