LIC to scrap two ULIPs

The Life Insurance Corporation of India (LIC) has decided to withdraw two unit-linked insurance plans (ULIPs) - Future Plus and Jeevan Plus.

The insurance behemoth will be launching two new ULIPs in their place, in conformity with the guidelines stipulated by the Insurance Regulatory and Development Authority(Irda).

Speaking to mediapersons, K Ganesh, regional manager (marketing), LIC (south central zone), said, "Irda has stipulated new norms for ULIPs, which come into play from July 1. We will, therefore, be withdrawing the existing products."

The south central zone comprises Andhra Pradesh and Karnataka. The press meet was organised to announce the arrival of LIC's exhibition on rail, Zindagi Express, on June 29, in Secunderabad.

According to the new norms, ULIPs should have a minimum lock-in period of three years so that it remains a long-term savings instrument. This, according to T Chattopadhyay, zonal manager, LIC (south central zone), is likely to benefit the mutual fund industry.

Irda has also made training mandatory for all insurance agents and intermediaries before they are authorised to sell ULIPs.