To,
The CEOs of all Life Insurance Companies,
Sub: Minimum Sum Assured under Unit Linked Life Insurance Products
Please refer to IRDA circular No. 032/IRDA/Actl/Dec-2005 dated December 21, 2005, wherein the minimum sum assured to be provided for under ULIP products is specified in para 1.1 and 1.2 of the said circular.
With a view to improving the long term character of the unit linked products, it has been decided to allow the minimum sum assured / death benefit as follows:
Type of products |
Minimum sum assured / death benefit |
Single premium |
125% of the single premium where the policy term is less than 10 years, and the 110% of the single premium where the premium is 10 years or more
|
Non single premium
|
Five times of the annualized premium |
This comes into effect from April 1, 2008 .
(R. Kannan)
Member Actuary