In the last few years, the customers have preferred the term life insurance products. With the growing demand, life insurance companies have been introducing several innovative insurance products with different benefits, features, options, riders and so forth.
With varying terms and conditions, there are a plethora of term products available in the market. To make an informed decision, it becomes important to invest time in selecting the right product. However, possibly not all the products might be available for the sum assured intended. Therefore, to address this situation, IRDAI felt the need to introduce a standard term plan that fulfils the needs of even an average customer.
This standard term plan is known as the ‘Saral Jeevan Bima’ plan, which has simple features and the terms and conditions remain standard throughout all the life insurance companies in India. The introduction of the Saral Jeevan Bima plan is going to be a game-changer in the Indian insurance industry as such a standard product will enhance the trust between the insured and insurers. This product will likewise also help to reduce the misspelling and any potential disputes during the time of claim settlement.
The IRDAI has mandated all the life insurers to offer the Saral Jeevan Bima plan.
The standard individual term insurance product is referred to as the Saral Jeevan Bima Yojana. The name of the insurer will be prefixed to the Saral Jeevan Bima name.
The Saral Jeevan Bima is essentially the non-linked and non-participating pure risk premium life insurance plan that provides for the payment of the sum assured in a lump sum to the beneficiary or nominee wherein the life assured dies during the term of the policy.
The Saral Jeevan Bima plan is available to every individual regardless of residence place, gender, occupation or educational qualifications. The Saral Jeevan Bima policy will not offer any other benefits, riders, variant and option other than stated in the annexure. The only exclusion offered within the Saral Jeevan Bima Yojana is suicide.
Take a look at the table below to understand the eligibility criteria of the Saral Jeevan Bima:
|Age of Entry||18 years||65 years|
|Age of Maturity||--||70 years|
|Policy Term||05 years||40 years|
|Sum Assured||Rs 5 lakh||Rs 25 lakh|
Note: The sum assured will be permitted in the multiples of Rs 50,000. The insurance companies do have the alternative to offer the sum assured that is beyond Rs 25 lakh within the Saral Jeevan Bima Yojana; however, the other terms and conditions will remain the same.
The following are the features of Saral Jeevan Bima policy:
An individual has the following premium payment options available:
The policy cancellation value will become payable:
The amount will be payable as follows:
In the case of a regular premium policy, no policy cancellation value will become payable.
The following approved riders can be attached:
Note: The surrender value is not applicable within the Saral Jeevan Bima plan.
Here is a rundown of the key benefits offered within the Saral Jeevan Bima plan:
For the single premium policies it will be higher of:
For the limited and regular premium policies it will be higher of:
Forty-five days from the risk commencement date. In case the Saral Jeevan Bima policy is revived the waiting period is not going to be applicable. The words ‘This Policy will cover death due to accident only during the waiting period of 45 days from the date of commencement of risk’ will be prominently in ‘Bold’ displayed on the letter of welcome of the Saral Jeevan Bima policy documents and the initial page of the sales literature.
In case the life assured dies other than because of an accident during the waiting period then a sum that is equal to 100 per cent of the complete received premiums and not including the taxes in case of any then will be payable and not the sum assured.
Note: The Saral Jeevan Bima Yojana does not offer maturity benefit or the loan facility.
The following are the important documents required to buy the Saral Jeevan Bima Yojana:
An individual can buy the Saral Jeevan Bima Yojana both online as well as offline. Use the term insurance premium calculator to approximate the premium rate of the plan. Here one by one discussed is both the ways to purchase the Saral Jeevan Bima policy.
Anyone who wishes to buy the Saral Jeevan Bima online should follow the steps below:
Anyone who wishes to buy the Saral Jeevan Bima offline should follow the steps below:
It is hopefully expected that the Saral Jeevan Bima will help with the penetration of term insurance plans across all income groups. The Saral Jeevan Bima Yojana will ease the process of both decision making and boost the customers when it comes to investing in the insurance plan.