IRDA issues guidelines on ULIPs.

The Insurance Regulatory and Development Authority (IRDA) has issued guidelines on unit-linked insurance products (ULIP).

• The minimum policy term for ULIPs is to be five years.

• All ULIPs are expected to have an insurance cover payable on death.

• The pension/annuity products must have insurance cover.

• No loans are to be granted under ULIPs.

• A partial withdrawal in ULIPs will be allowed only after the fifth year of policy. However, there will be no partial withdrawal for pension/annuity products.

• These guidelines are to apply to all ULIPs from July 1, 2010.

Thanks,
Nimesh.