Par for the course: Lock in returns for long term with non-par plans

Avoid these plans if you require liquidity in the short run

Sanjay Kumar SinghBindisha Sarang
The insurance regulator is currently looking into the proposal, an official said

Debt mutual funds lost to the indexation benefit on long-term capital gains from the start of this financial year (2023-24). Many investors are gravitating towards non-participating (non-par) plans of insurance companies in the wake of this change in tax rules.
How do these plans work?
Traditional (non-unit linked) plans are of two types: participating (par) and non-par. Returns of par plans are not guaranteed as they depend on insurer performance.

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First Published: Apr 26 2023 | 7:41 PM IST

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