IRDA to raise lock-in period for ULIPs to five years

ULIPs are investment cum insurance products which invest in the equity and debt market .
“We are going to increase the lock-in period for ULIP products from three years to five years,” IRDA Member Actuary R Kannan told PTI. The circular in this regard is likely to be issued in the next 10 days, he said. The new norm would be applicable to all the ULIPs filed on or after October 1 2009, he said.

Currently, the minimum tenure for ULIPs is five years, however, partial withdrawal is allowed after three years.

The regulator had directed all life insurance companies not to levy surrender charge for policies surrendered from the fifth policy year.