Life Insurance Corporation of India (LIC) is mulling the possibility of increasing the minimum premium for single-premium unit-linked policies to around Rs 40,000. It is also planning to increase the tenure for such policies to 10 years from five at present. Moreover, the insurer will also look into reducing variable costs through steps like cutting fund management costs. We may have to increase minimum premium from Rs 25,000 to Rs 40,000 and increase the lock-in period from five to 10 years, so that commissions are not affected, said TS Vijayan, chairman of LIC. We saw that two-three products we have ...

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