The state-owned Life Insurance Corporation of India will be closing a lot of its insurance plans soon, it includes many popular plans like LIC New Jeevan Anand, Jeevan Umang, Jeevan Lakshya among others. According to reports, following the guidelines of the Insurance Regulatory and Development Authority of India (IRDAI), these plans will be launched afresh from 1 February.
Due to the closure of some of its plans, it is expected that not only the returns on new schemes will be reduced, but their premiums will also be increasing. For this reason, LIC agents are advising customers to invest in these schemes before 31 January.
Which schemes are going to be closed?
The regulatory body wants to make insurance products be more suitable for the customers. At the same time, it wanted to put curbs in the ways of selling the policy by luring customers wrongly. Some schemes that LIC would discontinue include non-linked indebtedness insurance plans, unit-linked indebtedness insurance plans, one rider plan, and three non-linked group insurance plans.
Some non-linked indebtedness insurance plans of LIC which are being discontinued include, ‘Single Premium Endowment Plan, New Endowment Plan, New Money Back-20 Years, New Jeevan Anand, Anmol Jeevan 2, Limited Premium Endowment Plan, New Children Money Back Plan, Jeevan Lakshya, Jeevan Tarun, Jeevan Labh, New Jeevan Mangal, Bhagya Lakshmi Plan, Aadhar Pillar, Aadhar Shila, Jeevan Umang, Jeevan Shiromani, Bima Shree and L.I.C Micro Savings’.
LIC had further decided to discontinue its unit-linked plan New Endowment Plus. At the same time, LIC Premium Weaver Benefit Rider will also be scrapped.
The decision to close the plans comes after the Insurance Regulatory and Development Authority of India (IRDAI) asked insurers to withdraw products by January 31.
Earlier, the IRDAI had set November 30 as the deadline to close the plans.
IRDAI earlier said that they had received a request from Life Insurance Councils and various other life insurers, for an extension of the November 30 deadline. Insurers had sought an extension citing reasons like the need to ensure system preparedness and necessary training of personnel.
The regulator had also said that the extension does not apply for products already approved under ‘File & Use’ under the new regulations. IRDAI has advised all life insurers to file these products as early as possible without waiting for the last date available