Policyholders who leave after the first year will be eligible for a reimbursement under the new special surrender value rule.
Beginning on October 1, 2024, policyholders who cancel their regular life insurance will receive a larger payout. As of October 1, 2024, Irdai has requested that insurance providers provide traditional endowment policies with a greater special surrender value (SSV). Higher reimbursements are required under the new “special surrender value” provision, which also allows for plan switching flexibility. The new special surrender value rule and its effects on life insurance policyholders starting next month are explained by ET Wealth Online.