LIFE INSURANCE POLICY SURRENDER
LIC warns policyholders about offers to buy their current insurance policies
The life insurance behemoth has urged all policyholders to proceed with extreme caution before making any decisions about their policy that might compromise their family's risk coverage and financial stability.
Life insurers' margins may take a hit on early surrender directive
Insurance companies in Mumbai are adapting to IRDAI's directives on surrender values, anticipating an impact on new business margins. Insurers are exploring changes in their business models to align with the new regulations and focus on growth over profitability.
No formal proposal to enter health insurance, says LIC
Life Insurance Corporation (LIC) has clarified that there is currently no formal proposal for it to enter the health insurance space. This clarification comes amid expectations that composite licenses may be permitted by amending the Insurance Act, which currently does not allow life insurers to underwrite health insurance policies. A parliamentary panel had earlier suggested the introduction of composite licensing for insurers to undertake life, general, or health insurance under one entity, which could lead to cost savings and offer customers more choice and value.
Higher refund on premature exit from life insurance policy as IRDAI introduces new surrender value rule; check how much you will get
Life Insurance Policy Surrender Value Rule Changes: To curb mis-selling of life insurance plans, IRDAI has introduced a higher special surrender value for traditional endowment policies. Even if a policyholder exits a life insurance policy after the first year, he would get a part of his premium back if he has paid it. Till now, there has been no refund on exiting the policy in the first year. How much money will you get back if you prematurely exit your life insurance policy? Check calculation here.
CAMS Repository Services launches insurance portfolio management platform
CAMS Insurance Repository Services (CAMSRep) introduced 'Bima Central,' an insurance portfolio management platform aimed at simplifying policy management for customers by aggregating benefits and ensuring claim-readiness. The scheme addresses the challenges faced by policy holders. Accessible to those with an electronic Insurance Account (eIA) with CAMSRep, Bima Central emerged from industry collaboration to enhance the value of insurance, with SBI General as the anchor insurer and others in the process of integration.
Buzzing! Insurance stocks in focus after IRDAI increases surrender value
Insurance stocks rose up to 3% after IRDAI increased surrender values for non-linked products, affecting insurers like LIC, HDFC Life, and Max Life. Shares of LIC, HDFC Life, and SBI Life were up on BSE. Nuvama awaits more details from companies next week.
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The Life Insurance Rule: How much money will your family need if your income stops?
Life insurance rule: A common rule of thumb for life insurance coverage is to have a life insurance policy that is at least 10 times your current income. This coverage should take into account any outstanding debts and loans you have. By following this rule, you can estimate the income your family would need to maintain their standard of living if you were to pass away.
IRDAI asks life insurers to offer surrender value in first year
The regulator issued a master circular, which mandates insurers to pay special surrender value (SSVs) after the first policy year, provided one full year's premium has been received.
Life insurers to mandatorily provide loan facility against policies: Irdai
Issuing a master circular which consolidates all regulations with regards to life insurance policies, the Insurance Regulatory and Development Authority of India (Irdai) also said the free look period, which provides time to review the policy terms and conditions, is 30 days as against 15 days earlier.
These largecaps have ‘strong buy’ & ‘buy’ recos and upside potential of more than 20%
As the street grapples with what will be the final come out of elections, the street is witnessing two things, unwinding of the long position which were taken after the exit poll showed a comfortable win for ruling BJP and also fresh short position being created. Whatever may be the final outcome, it would be better to stick to the basic principle of investing, that is looking at fundamentals and developments in the sector and only when things are positive on both the front then only go ahead and take a decision. ET screener powered by Refinitiv’s Stock Report Plus lists down quality stocks with high upside potential over the next 12 months, having an average recommendation rating of “buy” or "strong buy". The screener applies different algorithms for all BSE and NSE stocks.
Insurers worried over surrender value rule
Life insurance companies have expressed concerns over proposed regulatory changes that would offer higher surrender values to policyholders the first year itself. Industry representatives have sent their feedback saying that these reforms could severely impact profitability and policy persistence.
These midcap stocks with ‘strong buy’ & ‘buy’ recos can rally over 25%, according to analysts
After a strong phase upward movement, mid cap stocks are witnessing a sort of selective profit booking move. Profit booking which is mostly happening in line with Q4 numbers. A strong directional move is only likely to appear post election results. During this phase, analysts are bullish on select stocks from different sectors, a number of the stocks on which analysts are bullish are essentially leaders of their sector.ET screener powered by Refinitiv’s Stock Report Plus lists down quality stocks with high upside potential over the next 12 months, having an average recommendation rating of “buy” or "strong buy". This predefined screener is only available to ET Prime users.
These largecaps have ‘strong buy’ & ‘buy’ recos and upside potential of more than 20%
The way markets have panned out in the last few sessions, it appears that bulls are waiting for a confirmation on 4th of June and then they will take over control of the street. But because valuations are high, one has to be cautious, while being bullish. Also as a thumb rule, one should remember that corrections and consolidation are part of every bull market. We will continue to see them at regular levels. ET screener powered by Refinitiv’s Stock Report Plus lists down quality stocks with high upside potential over the next 12 months, having an average recommendation rating of “buy” or "strong buy". The screener applies different algorithms for all BSE and NSE stocks.
This LIC life insurance policy launched in February 2024 was withdrawn on April 1: Check surrender rules
LIC Dhan Vriddhi plan provides financial support for the family in case of unfortunate death of the life assured during the policy term. It also provides a guaranteed lump sum amount on the date of maturity to the life assured.
PSU Banks stocks: Stay bullish, hedge a bit to avoid narrative induced selling; top 7 PSU banks with upside potential of up to 36 %
While every sector has witnessed a re-rating in the last couple of years. The re-rating can be due to two reasons. whether headwinds have gone away because of government policy push and clean up or the sector has recovered due cyclical reasons. In the case of PSU banks,which have seen strong re-rating in the last one year, there is a mix of both reasons. The government cleaned up and strengthened the regulatory system. Also that overall economic growth has seen a sharp recovery which has helped in credit off take. Now comes the question that after this rally, should one sell, should one hold, should one increase the exposure. The answer lies in hedging for the banks you own and just avoid listening to noise which will remain high till election results are announced.
Upstox enters insurance distribution business
HDFC Life is among the first insurers to partner with Mumbai-based Upstox, featuring its term insurance plans on the platform
ETMarkets Smart Talk: Focus on green energy to lead to multi-billion dollar enterprises over next decade: Jyoti Vaswani
Jyoti Vaswani discusses the potential of multi-billion dollar enterprises in the green energy space and its impact on equity markets. She provides insights on the US Fed moves, RBI, inflation, Q4 earnings, management commentary, Nifty performance as well as May trends. Vaswani says that since FY24 has seen a broad-based rally, FY 25 can be expected to be driven by sustained corporate earnings growth and policy continuity.
Non-life insurance companies post 13% rise in premium collection at Rs 2.89 lakh cr in FY24
In the fiscal year 2023-24, 42 general insurance companies collectively earned a premium income of Rs 2,89,738 crore, marking a 13% increase from the previous year's Rs 2,56,894 crore, as reported by the General Insurance Council. Among these, 35 general insurance firms saw a 14% rise in premium income to Rs 2,45,433 crore from Rs 2,14,833 crore in the preceding year. Additionally, five standalone health insurers witnessed a 26% growth in premium income, reaching Rs 33,116 crore compared to Rs 26,244 crore in the previous year.
LIC's April premium hits decade high of Rs 12,384 cr
LIC's April premium collection of Rs 12,384 crore, highest since 2014, marked 113.14% growth from the previous year. Success attributed to marketing strategies, wider reach, policy uptake, reliability, and customer services.
What should be the criteria for selecting the right kind of term plan? Dinesh Dilip Bhoi answers
There are chances of some sickness coming up or some disease coming up in the future which might hamper the person to take a life plan or which might increase, there would be a loading on his premiums with the premiums would get higher and higher and build a hole in his pocket.
ICICI Pru Life pays Rs 1,867 crore towards death claims in FY'24
The company said it has enabled its digital touchpoints such as WhatsApp and the mobile app providing convenience to claimants to lodge and track claims. Also, the company provides home pick-up of claim documents.
IRDAI new regulation on surrender charges decoded; SBI Life, LIC top buy in insurance space now
IRDAI's enhanced surrender charge regulations set surrender value requirements based on policy year. Exposure draft included threshold premiums for non-linked products.
Two insurance rules from April 1, 2024: Demat type e-Insurance Account must to buy new policies, latest surrender charges
Two major insurance rules that are effective from April 1, 2024, are — compulsory e-Insurance policies for new policyholders and the latest the surrender charges of the life insurance plans such as endowment policies. To make it easier for insurance policyholders, we have summarised the main changes here. Read on
Life insurance: IRDAI retracts on low surrender value proposal; know applicable surrender charges from April 1, 2024
The Insurance Regulatory and Development Authority of India (IRDAI) has finalised surrender charges for non-linked or linked life insurance products — traditional endowment policies. The charges will come into effect from April 1, 2024. This decision by IRDAI maintains the status quo on surrender values, meaning minimal change from existing charges. While this benefits life insurance companies, it offers little relief for policyholders seeking more flexibility with their policies.
IRDAI issues series of regulations, tweaks regulation on surrender charges
IRDAI (Insurance Products) Regulations, 2024 merge six regulations into a unified framework aimed at enabling insurers to swiftly respond to evolving market demands, enhancing the ease of conducting business, and boosting insurance penetration. These regulations promote good governance in product design and pricing, including strengthening the principles governing guaranteed surrender value & special surrender value along with disclosures thereof, IRDAI said in a statement.
HDFC Life shares jump 3% after IRDAI's surrender regulations soothe Street's nerves
The Insurance Regulatory and Development Authority of India (IRDAI) has notified new product regulations that include guidelines for revised guaranteed surrender value (GSV) of life insurance policies.
IRDAI retains existing surrender value norms after pushback from industry
The regulator has also allowed the sale of Index Linked Insurance Products tied to publicly available indexes. Initially proposed higher surrender values in draft regulations were reconsidered due to industry feedback, with IRDAI opting to retain the regulations.
After being imposed income tax on Rs 1.48 cr payout from surrendered pension policy, NRI filed appeal in ITAT and wins
Income tax appeal: A non-resident Indian (NRI) has won a appeal in the Mumbai bench of Income Tax Appellate Tribunal (ITAT). What happened was the NRI surrendered a pension policy purchased from ICICI Prudential Life Insurance Company and got Rs 1.48 crore. Income tax assessing officer however imposed tax on this income of Rs 1.48 crore.
Top life insurance cos raise concerns over proposed change in policy surrender values
Insurers have raised concerns about persistency, particularly for long-term products with premium paying terms exceeding 10 years. They fear that distributors may incentivize policyholders to surrender existing policies and switch to newer ones promising higher returns.
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