LIC MD Vipin Anand said, many times, policyholders are unable to pay the premium due to various reasons and their policy lapse. There is a good chance for such people to restore their life insurance policy. Buying life insurance is a crucial decision in a person’s life. We respect every policyholder and want them to continue their insurance cover from LIC. In such a situation, it is better to start the old policy than to buy a new plan to retain the insurance cover.
LIC’s Persistence ratio will improve with this step. At the same time, the premium revenue will also increase. Policyholders will be able to start non-linked policies within five years, and unit-linked plans within three years.
LIC may discontinue more than 24 plans like Jeevan Anand, Jeevan Umang and Jeevan Lakshya after November 30 due to regulation
LIC is going to close more than 24 personal insurance, eight insurance plans and 7-8 riders from November 30. These include some of his bestseller plans, such as Jeevan Anand, Jeevan Umang, Jeevan Lakshya and Jeevan Bain. This information was given in a media report quoting sources. All these plans are not according to the Insurance Product Regulations released on 8 July 2019.
According to an IRDA official, a large number of insurance products currently exist, which are as per the rule and will continue to be sold even after December 1. Insurance companies will have to re-launch these products with a new price to reduce their risk management. In some cases, the premium rate may also be lower. Some products may also see lower bonus rates and higher premium rates.