Source: Mail Today

Old unit- linked insurance plans (Ulips) came under heavy criticism for having a front- loaded fee structure where 30- 40 percent first- year premium used to be deducted as commission. However, this commission structure was overhauled in September 2010 with the Insurance Regulatory and Development Authority (Irda) capping commission at seven percent of the first- year premium. The regulator also ordered that other upfront fees, which totalled to as much as 70 percent of the first-year premium in some cases, be uniformly distributed over the five- year lock- in period. Now, a few insurance firms have gone a step further by removing the commission on sales altogether. So, if you are net- savvy, the no commission Ulips, which are sold online are a good option for you.
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