Economy
New life insurance discounts must last at least ten years
New rules reported by the Capital Market Authority will require new life insurance discount rates to remain in place for at least ten years from February 2027. Premiums are not frozen and may still rise. Existing policies will not change automatically, and group insurance is excluded. Introductory discounts for new customers could become smaller.
· Source: Bizportal / N12. Illustrative photograph: 123rf.
According to Bizportal, from February 2027 insurers will be required to maintain a new life insurance discount rate for at least ten years. The monthly premium itself may still change.
The reported Capital Market Authority rules take effect on February 1, 2027 and apply to new discounts on term life insurance and related coverage. Group policies are excluded, and existing discount arrangements will not change automatically.
The requirement protects the discount percentage, not the premium: a base rate that rises with age may increase payments even when the discount remains unchanged. According to the report, insurers must give one month's notice before reducing or ending a discount. New customers could receive smaller initial discounts.
Source: Bizportal / N12
