Insurance regulator provides some relief to Ulip holders

Money in Discontinuance Policy Fund will earn minimum guaranteed return at the rate of 4% a year

Policyholders, who had put in money in unit-linked insurance plans (Ulips) and discontinued later, have a reason to cheer. The Insurance Regulatory and Development Authority of India (Irdai), through a recent circular, has warned insurance companies not to delay the release of fund value in discontinued unit-linked products, even in cases where customers have opted for complete withdrawal within the lock-in period.
 
An earlier circular issued by the insurance regulator on August 26, 2016, had given policyholders the right to renew their discontinued policies within two years of discontinuance, irrespective of the end of the lock-in period.
 
According