Mr. Singh, a 26-year-old government employee, bought Saral Jeevan Bima policy to ensure the financial protection of his family. So, he selected the regular pay option with Rs 25 lakh sum assured and a policy term of 40 years. Unluckily, he passed away in a road accident within 5 years of buying Saral Jeevan Bima plan. He had paid the premium for 5-years.
Because he died in an accident, his wife who was the policy beneficiary received a sum of Rs 25 lakh from the Insurance Company. Financial protection for the dependent family members due to the untimely demise of the sole-earner is one of the major benefits of this standard term insurance policy.
The Insurance Regulatory Development Authority of India (IRDAI) has advised all the Life Insurance companies in India to provide Saral Jeevan Bima policy. It is a standardized term insurance product with the same policy features and policy wordings. This move was made to make it simple for the policyholders to compare and buy term insurance schemes.
Saral Jeevan Bima Insurance is here to serve ‘The Real India’ that often remains uninsured. As the features and the terms and conditions of the policy are the same across the insurers, the only difference of the cost of the premium. You can check out 10 crucial aspects of this product before buying it:
Scenario 2- In the event of the death of the insured after the completion of a 45 days waiting period from the policy inception date:
The policy sum assured is payable in lump sum to the nominee of the policy
For limited premium or regular premium payment policy, the selected Sum Assured is equal to “Sum Assured on Death” and is the highest of:
- For a single premium plan, the death benefit is higher of the following:
So, the question is who should consider buying this standardized term insurance plan?
The answer is simple, people who could not issue a term plan earlier due to their occupation, educational qualifications, and geographical location not meeting the eligibility parameter of the insurance provider.
Earlier, self-employed people with a yearly income of around Rs 3 lakh to Rs 5 lakh were not able to get term insurance cover because they did not have any income proof.
Saral Jeevan Bima improves the chances of issuing a term insurance policy to this segment of society. Here the applicants also have the option of income surrogate where they can submit their vehicle’s Registration Certificate (RC) as a surrogate to their income proof.
Therefore, despite slightly higher premiums, the standardized term insurance cover is going to benefit a certain segment of the society. The policy issuance rate as per the experts is expected to rise by 70% in comparison to 30%. Traction around Saral Jeevan Bima is already visible around the self-employed people in the country.
If you are someone who is looking for a simple term insurance plan to provide financial security to your family in case of any unforeseen event. If you want them to be financially stable even in your absence you want to get it right for the first-time itself, it makes sense to go with Saral Jeevan Bima. While the features of this term plan are similar across the industry you should also look at the insurer’s claim settlement ratio and the ease of policy purchase along with the renewal and after-sale services.