On June 19, 2024, the IRDAI made an important announcement. They told life insurance companies that they can’t advertise unit-linked plans (ULIPs) as investment products. But what exactly are ULIPs? Well, they’re not just investments; they’re a mix of insurance and investment. Let’s break it down:
ULIPs are special insurance plans where part of your money goes towards life insurance coverage, and the rest is invested in the stock market or other investment options. Unlike traditional insurance policies, ULIPs have risks because they’re linked to the market.
Risk Factors: Insurance companies must now clearly state that market-linked insurance plans (like ULIPs) are different from regular endowment policies. These plans come with risks because they depend on how well the stock market performs.
Bonuses: If you’ve seen benefit illustrations for participating endowment policies, you might notice bonuses. But here’s the catch: those bonuses aren’t guaranteed. They depend on various factors.
The IRDAI also set some rules for insurance companies. They said insurers can’t:
What’s Unclaimed Money? Sometimes, people don’t claim the money from their insurance policies (like when someone passes away). The IRDAI wants you to know that there’s a Bima Bharosa portal where you can find info about unclaimed amounts.
What’s Linked Insurance? Linked insurance products and annuities with variable payouts are different from regular insurance. They’re connected to the stock market, so they have risks.
When you see names like “Life Insurance Company” or “Linked Insurance Contract,” don’t assume they’re amazing. They’re just names – not guarantees.
The IRDAI wants insurance companies to use technology to handle complaints super fast. Their aim? Zero grievances!
Remember, insurance is about protecting you and your loved ones. Now you’re all set to decode those insurance ads!
Also Read: From Steel to Strength: Jindal Stainless’ ‘ज़ंग (Corrosion) Warrior’ Campaign
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