Point-of-sale (PoS) insurance is a ‘simple’ insurance product whose benefits are predefined and disclosed at the time of sale. Its proposal form is easy to fill, and the policy is issued quickly.

Earlier, insurance regulator IRDAI allowed only motor, travel and personal accident cover to be sold under PoS schemes. Last year, however, it expanded the list, permitting pure-term insurance plans with/without return of premium, non-participating endowment plans that state the fixed benefits upfront, and immediate annuity products, to be sold as PoS products.

For instance, Edelweiss Tokio Life’s PoS Saral Nivesh is a PoS endowment plan. The product is simple to understand, with guaranteed benefits that are stated upfront. Entry is allowed till the age of 50 with a maximum sum assured of ₹10 lakh. The maximum term offered is 20 years, but the maximum maturity age is 65 years.

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