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Benefits of Saral Jeevan Bima Yojana

For simplifying the process of purchasing a term insurance policy for the customers, the IRDAI (Insurance Regulatory and Development Authority of India) has released some rules for standard term life insurance policies for individuals.

This standard term insurance plan is known as ‘Saral Jeevan Bima’. All the life insurers are directed to provide such a plan mandatorily. The Saral Jeevan Bima plan has standard terms and conditions and it is simple to understand the feature.

All this makes it easily understandable by the buyers. In addition to this, this new addition in the field of term life insurance market will for sure improve the trust between insurer and policyholder.

The IRDAI has instructed all the insurers to sell the Saral Jeevan Bima policy mandatorily from 01st January 2021. Read on to know the benefits and features offered by this plan.

Benefits of Saral Jeevan Bima Yojana

The benefits offered by Saral Jeevan Bima Yojana are:

It is a Pure Risk Plan

The Saral Jeevan Bima Yojana is a pure risk non-linked and non-participating term life insurance policy that provides insurance cover in the form of sum assured that is paid to the beneficiary in case of some unfortunate event during the tenure of the policy.

As a pure term insurance plan, there is no maturity benefit or surrender value offered in this plan. In addition to this, Saral Jeevan Bima Yojana is accessible to everyone without any restrictions on education, place of residence, occupation, or gender.

Since there are many term insurance plans available in the market, so selecting a suitable plan can be a difficult decision. To cater to the requirements of various customers and make a standard term life insurance plan available to all the life insurers, these guidelines are provided by IRDAI. Due to the pandemic and other uncertainties of life, the demand for pure term life insurance plans has increased.

For meeting the requirements of policy buyers, providers of life insurance, life insurers have introduced many advanced insurance products with various options, features, riders, etc. Similar to the standard health insurance plan ‘Arogya Sanjeevani’, Saral Jeevan Bima Yojana is the same across all life insurance providers.

The benefits, features, inclusions, and exclusions of this plan are the same. However, the claim settlement ratio, level of service, and price may vary from one insurance provider to another.

Simple Eligibility Criteria

As mentioned earlier, the eligibility criteria for this policy are simple, which are:

Eligibility Criteria

Minimum

Maximum

Entry Age

18 years

65 years

Maturity Age

---

70 years

Term of Policy

5 years

40 years

Sum assured

Rs. 5,00,000

Rs. 25,00,000

Options for Premium Payment

Regular Pay, Limited Pay – 5 years and 10 years, Single Pay

Waiting Period and Death Benefits

In the event of death of the policyholder during the tenure of the policy – for regular or limited premium payment, the death benefit that is paid to the beneficiary of the policyholder is highest of either 105% of the annualized premium that is paid upon death or 10 times of the annualized premium is paid according to the death date or sim assured’s absolute amount is paid upon the death.

In the case of a single premium payment policy, the death benefit that is paid to the beneficiary of the policyholder is higher than the absolute amount of sum assured, or 125% of the single premium is paid.

The waiting period of this policy is 45 days from the commencement date of the risk. The waiting period is not applicable in case of policy renewal. This policy provides death coverage in case of death due to accident only within the 45 days of the waiting period from the date the risk is commenced.

If the life insurance policyholder dies because of an accident during the waiting period, an amount equivalent to 100% of the premiums that are paid excluding all the taxes is paid to the beneficiary and no amount of sum assured is paid. The policy does not pay anything if the policyholder commits suicide within one year of the policy initiation.

Various Options for Riders

Add-ons or riders are additional coverage that you purchasing by paying an extra premium. Same as all other life insurance plans, there is a provision of add-on covers under this plan, which are an accidental rider and disability benefit rider.

Summing It Up!

All the life insurance providers who are allowed to manage new life insurance products must have to offer Saral Jeevan Bima Yojana from 01st January 2021. The last date to file this product by insurance providers is 01st December 2020.

So, the insurers should provide this product as this plan is not only a standard term insurance plan but it is very easy to understand. The customers get all the aforementioned benefits with this plan and do not have to fall under certain criteria for buying a term plan.

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