Section 23 in Insurance Regulatory and Development Authority of India (Unit Linked Insurance Products) Regulations, 2019
23. Options to the Nominee or Beneficiary on death of the policyholder.
- If the policyholder dies during the deferment period, the nominee or beneficiary shall exercise one of the following options:(i)Withdraw the entire proceeds of the policy. The insurer may provide a settlement option subject to Regulation 19 under these Regulations above. or(ii)To utilize the entire proceeds of the policy or part thereof for purchasing an immediate annuity or deferred annuity at the then prevailing annuity rate from the same insurer. However, the nominee or beneficiary shall be given an option to purchase annuity from any other insurer at the then prevailing annuity rate to the extent of percentage, stipulated by the Authority, currently 50%, of the entire proceeds of the policy net of commutation.(iii)The purchase of annuity shall be subject to terms and conditions of the product.(iv)In case the proceeds of the policy are not sufficient to purchase minimum annuity as required by the Authority from time to time, the proceeds of the policy may be paid as lump sum.
