{"id":18179,"date":"2023-12-15T06:48:19","date_gmt":"2023-12-15T01:18:19","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=18179"},"modified":"2025-04-05T09:11:41","modified_gmt":"2025-04-05T03:41:41","slug":"irdai-rules","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/irdai-rules\/","title":{"rendered":"What is Surrender Value in Insurance?"},"content":{"rendered":"<h2>About Surrender Value in Insurance<\/h2>\n<ul>\n<li>The surrender value of an insurance policy is the\u00a0amount that the insurance company will pay the policyholder back when he or she decides to terminate the policy before maturity.<\/li>\n<li>It applies only to those term insurance policies with a surrender benefit.<\/li>\n<li>The surrender value is\u00a0usually a percentage of the total premiums paid minus any applicable\u00a0charges or fees.<\/li>\n<li>How is the surrender value calculated? The\u00a0surrender value calculation in term insurance policies varies from one insurance company to another. Generally, the surrender value is\u00a0calculated\u00a0based on the following factors:\n<ul>\n<li>Policy term: The\u00a0longer the policy term, the higher the surrender value.<\/li>\n<li>Premium paid: The\u00a0higher the premium paid, the higher the surrender value.<\/li>\n<li>Policyholder\u2019s age:\u00a0The younger the policyholder at the time of surrendering the policy, the\u00a0higher the surrender value.<\/li>\n<\/ul>\n<\/li>\n<li>IRDIA rules for surrender value:\n<ul>\n<li>The IRDAI rules say that anyone with a term plan can give up their insurance policy.<\/li>\n<li>However,\u00a0only after the policy\u00a0has\u00a0been in effect for three years will the policyholder get the\u00a0payout of the surrender value.<\/li>\n<li>The\u00a0IRDA decides what the policy&#8217;s\u00a0surrender value is\u00a0for the first seven years.<\/li>\n<li>From the third year on, the surrender value\u00a0is up to 30% of the paid premium. It\u00a0excludes the\u00a0premium paid for the first year.<\/li>\n<li>Between the fourth and seventh years, the surrender value could\u00a0fall to up to 50% of the paid premium.<\/li>\n<li>After seven years, the\u00a0insurance company decides how much the premium should be.<\/li>\n<li>The\u00a0general rule is that the\u00a0closer you are to your date of maturity when you surrender, the\u00a0more money and benefits you get.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<hr \/>\n<h3>Q1) What is the Insurance and Regulatory Development Authority of India (IRDAI)?<\/h3>\n<p>It is an autonomous and statutory body established under the IRDA Act 1999. It is the apex body that supervises and regulates the insurance sector in India. It aims to protect the interests of policyholders, to regulate, promote and ensure orderly growth of the insurance industry in India.<\/p>\n<p><strong>Source:<\/strong> <a href=\"https:\/\/www.cnbctv18.com\/personal-finance\/irdais-new-proposal-higher-surrender-value-lower-charges-for-life-insurance-18572601.htm\" target=\"_blank\" rel=\"nofollow noopener\"><u>IRDAI&#8217;s new proposal: Higher surrender value, lower charges for life insurance<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The surrender value of an insurance policy is the amount that the insurance company will pay the policyholder back when he or she decides to terminate the policy before maturity.<\/p>\n","protected":false},"author":5,"featured_media":18180,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-18179","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/18179","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=18179"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/18179\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/18180"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=18179"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=18179"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=18179"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}