The Insurance Regulatory and Development Authority of India (Irdai) recently proposed changes to how surrender value is calculated for non-linked life insurance policies. These policies usually have two parts in their premiums: risk and savings. Currently, Irdai's rules don't separate the savings part from the risk component of the premium. The proposed changes might treat the excess premium over a certain threshold as the savings component. Breaking down the proposed changes through an example Irdai presented a scenario involving a non-linked savings insurance policy. In this case, with an annualized premium of Rs 1 lakh and a 20-year policy term, considering a threshold limit of Rs 25,000, the adjusted GSV after the payment of the third annualized premium is computed as follows: