Jagannath Das
. Customer may also suffer buying Life Insurance post 30 Sept #1 -- As Guaranteed Surrender Value increases, this would decrease the Bonuses as Interest Income will go down as higher value of Surrender will strain the Fund.(No Insurer will pay higher Surrender Value out of its Pocket ) #2—We can see rise in Surrendering of Life Insurance Policies, Currently as Surrender Values are Low , Insurance acts as compulsory and disciplined savings over long term . Increase in Volume of Surrender would further drain Bonuses and Purpose of buying Life Insurance as Long term Protection and savings would be defeated. #3 – Commission on short term Policy (5 – 10 years) will increase which would encourage Agents to sell these policies , sell of Longer term polices would suffer which would not be beneficial for Growth of Insurance Sector. Regards Jagannath Das MBA (Insurance & Finance) M.com(Banking & Insurance Management) Associate , Insurance Institute of India
vinay mohanty
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