I have two questions. But first read the background:
The IRDA has tightened the norms on all unit linked insurance plans (ULIPs) to offer life cover on these products and that they should offer a minimum sum assured payable on death.
Moreover, all unit-linked insurance policies must now come with a minimum policy period of five years.
Question 1: Was it possible to buy ULIP without insurance cover? Yes, obviously is the answer, after reading IRDA’s announcement.
Question 2: Does it make sense to buy insurance for less than 5 years? Nonsense, I would say. But it was indeed possible!
The point I am trying to make is that the ULIPs available in the market were being sold as an investment product and not an insurance cover.
The bigger question is that whether we can charge IRDA of mis-selling instead of charging the Agents who carry out the “hit and run” orders of their masters!
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Hi,
This is the best possible interpretation of the new IRDA rule. Thankyou.
It seems SEBI was not totally incorrect when they demanded more controls over ULIPs.
BTW what about those who already got 1-3 year ULIPs, will they receive some compensation?
I still hear these agents using the term investments when they talk about ULIPs. Can’t that be treated as a ploy or case of cheating the innocent customer?
@Sunny The Agents will continue to take advantage of the customer’s behaviour of not caring enough/not taking responsibility for their finances. A lot of people are agitated but not furious enough to take the Agents to task. I guess this is the hard reality.
dear all
a very happy new year.
GOD may bring all good luck to all of us.
thanks