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Life Insurance Policies might get cheaper: Reduced mortality charges

Life Insurance Policies might get cheaper: Reduced mortality charges

The impact of this reduced charges might be seen most in pure term policies

. However, many private insurance companies had started following their own mortality tables and had reduced the premiums for pure term policies aggressively. In the light of the new change brought about by IRDA where life insurance policies have a minimum sum assured of 10 or 7 times the annual premium, this impact will also be felt on the ULIPs which are extremely popular in the market. For traditional policies, the impact could be in the form of a higher declared bonus rates.

Life Insurance Policies might get cheaper: Reduced mortality charges

By: PolicyTiger
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