The Coronavirus pandemic has made us believe in the uncertainty of life. The pandemic has cost us millions of lives. After seeing this kind of devastation caused by the Coronavirus, people have started opting for life insurance policies. There are many insurance providers out in the market selling different life insurance policies with different sets of features and benefits. However, the long list of terms and conditions, benefits, features, add-ons made it very difficult for the buyers to purchase the right life insurance plan.
To make it simple for the buyers to understand the life insurance policy as well as affordable, IRDAI comes up with a standard life insurance policy as known as Saral Jeevan Bima that can serve an individual with standard features and benefits.
Saral Jeevan Bima is the one-stop solution for the life insurance buyers. This product is designed as per the needs and affordability of the buyers. It is beneficial because the plan is just the same throughout all the insurers. The premium rates might vary according to the insurer.
The primary objective of a life insurance policy is to provide financial protection to the dependents of the policyholder. However, people with limited knowledge of the product are unable to utilize the benefits of the product very often. This usually leads to claim rejection which does not solve the primary purpose of financial protection. By making it simpler to understand the terms and conditions of term life insurance policy, IRDAI has solved one of the biggest problems being faced by the policyholders.
For example, let suppose Rohan purchased a term life insurance policy and due to a long list of terms and conditions, he did not go through the waiting period clause in which it states that if the policyholder dies due to an accident during the 45 days of waiting period then only the amount equal to 100% of the premium paid will be paid to the dependent. After the unfortunate demise of Rohan in an accident during that 45 days, his dependent did not raise the claim within 45 days and lost the opportunity of receiving an amount equal to 100% of paid premium.
So, the standardization of the term insurance policy will make it affordable as well as easier to understand the coverage that will help in increasing the number of policy buyers. It will also strengthen the faith between the buyer and insurer. Having said that, let’s move on to the kind of coverage it will provide.
In case of the demise of the policyholder, Saral Jeevan Bima provides the entire sum assured to the policyholder dependent. While purchasing the policy, the buyer should read the terms and conditions properly in which it states that the insurer will not have to pay out any amount, if the policyholder dies within 45 days of purchasing the policy except the sudden demise in an accident.
The policyholder will not get any maturity benefit as well as surrender value under Saral Jeevan Bima policy. This plan is available for any individual without any restrictions on gender, place of residence, academic qualification and occupation.
Death benefit of 125% of the single premium and absolute amount assured that will be paid upon the demise for the single premium policyholder. However, a highest of 10 times of the AP is paid upon the demise in limited and regular premium payment policy.
The policy buyer can purchase Saral Jeevan Bima with a minimum sum assured of Rs. 5 lakh and the maximum sum assured of Rs. 25 lakh. The maximum sum assured pay-out comes with a condition that it would be permitted in the multiples of Rs. 50,000. If the plan sticks to the given terms and conditions, the insurance company may offer the plan under a higher sum assured.
The minimum entry age set for the buyer of Saral Jeevan Bima is 18 years and the maximum is 65 years as per the policy term that ranges between 5 to 40 years. The maximum maturity age up to which the policy can be bought is 70 years.
The policy buyer can purchase Accident Benefit and Permanent disability benefit add-ons along with the Saral Jeevan Bima plan that is approved by IRDAI. A rider is also known as Add-on that can be purchased by the policyholder as per his/her needs. Add-ons enhance the coverage of the existing plan. Riders have to be purchased separately from Saral Jeevan Bima.
Saral Jeevan Bima plan is the best for first-time buyers of the life insurance policy. The buyer can make a tension-free purchase and their decision-making will be easier because their features and benefits will be same throughout the life insurers. The simple set of terms and conditions will leave no scope for any kind of disagreement while raising a claim.
Saral Jeevan Bima policy comes with basic features and benefits. It is designed to fulfill the basic requirements of the policyholder who cannot afford an expensive life insurance policy. Saral Jeevan Bima is being offered by several insurance companies and you can purchase the policy online. Purchasing an insurance policy online will be even easier for you because you will be able to learn about the benefits, features as well as terms and conditions thoroughly.