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The IRDA order has come, now companies will not be able to sell insurance by attracting customers to invest.

Sagar Patel

By Sagar Patel

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insurance policyImage credit source: Unsplash

Great news has come out related to the insurance sector. The Insurance Regulatory and Development Authority of India (IRDAI) in its new order has banned the promotion of unit-linked insurance plans (ULIPs) as investment products. Actually, Unit Linked Insurance Plan is a product that combines insurance and investment, in which you also get coverage, and when your maturity is completed, you get money as per fixed return.

What is the new order?

IRDAI has said indexed or indexed insurance products will not be advertised as investments. Insurance companies should make it clear that market-linked insurance plans are different from traditional endowment policies and also carry risks. Invest in it wisely. Similarly, participatory endowment policies (with bonuses) should establish in advance that planned bonuses are not guaranteed profits. Therefore, make the decision to invest at your own risk. IRDAI said the risk factors will be disclosed in all insurance product advertisements related to variable annuity payout option.

Earlier, IRDAI had taken this big decision.

To expand the health insurance sector and promote safety of people, IRDAI has removed the age limit of 65 years for taking out a policy. This means that now if people want to buy a new health insurance policy even after the age of 65, they can do so. This will also benefit those children whose parents are over 65 years of age.

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Now, if you want, you can also take out a new separate health policy for your parents. While the IRDAI has removed the age limit of 65 years, it has not set any new age limit in its place. With this, it will now be easy to take out health insurance at any age. This will help save more and more people in the country from unexpected hospital expenses.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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