Traditional life insurance products will now come with enhanced benefits for policyholders as the insurance regulator has issued final guidelines for makeover of these products.
The Insurance Regulatory Development Authority of India (IRDA) guidelines, which have been notified by the Government, cap commissions, and provide for minimum sum assured and guaranteed surrender value on traditional products sold by life insurers. This could impact insurance companies’ margins.
The guidelines are expected to improve transparency and curb mis-selling of the traditional products.To ensure that life insurance products are of longer duration, the new guidelines have increased the minimum premium paying term of the policy to five years.

Source - http://www.thehindubusinessline.com