Life Insurance Corporation of India (LIC) will be withdrawing a few of its insurance policies by the end of this month. The policies that will be withdrawn include some of the highest yielding products from LIC, one of the largest insurance companies in India. Individual insurance schemes like Jeevan Anand, Jeevan Umang, Jeevan Lakshya and Jeevan Labh are among the policies that will be withdrawn.
LIC will be reworking their terms and conditions in accordance with the guidelines issued by the Insurance Regulatory and Development Authority of India (IRDAI). Close to 25 individual insurance products, eight group insurance schemes and around eight riders are among the products being withdrawn soon. According to some reports, these policies will be relaunched soon but with higher premium rates and lower bonus rates than the original schemes.
The new IRDAI guidelines were issued on July 8, 2019, which addressed the issue of unit-linked insurance products and non-linked insurance products. Like LIC, a number of other insurance companies will also be withdrawing and reworking their policies to align with the new guidelines. The new IRDAI rules aim to end mis-selling insurance policies as investment options to make them more customer-centric.
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