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Do your research well before buying a life insurance plan for the long run

Customers must also avoid the temptation to cash out of their policies mid-tenure, once they have gathered considerable fund value.

Topics
life insurance policy | life insurance industry | Life Insurance Corporation

Sanjay Kumar Singh  |  New Delhi 

Insurance Regulatory and Development Authority of India (Irdai) chairman Subhash Chandra Khuntia recently urged insurers to improve their persistency ratios. This ratio refers to the percentage of policies sold that gets renewed.

He asked insurance companies to aim for a 13-month persistency ratio of at least 90 per cent and a 61-month persistency ratio not below 65 per cent. Why is persistency ratio low? One big reason for policies lapsing is that people realise a year or two after buying the policy that it is not suited for their needs. This could happen because the seller did ...

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First Published: Fri, September 25 2020. 18:01 IST
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