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Saral Jeevan Bima Yojana

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.

What is 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.

Eligibility Criteria of the Saral Jeevan Bima

Take a look at the table below to understand the eligibility criteria of the Saral Jeevan Bima:

Parameter Minimum Maximum
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.

Features of Saral Jeevan Bima

The following are the features of Saral Jeevan Bima policy:

  • Premium Payment Options

    An individual has the following premium payment options available:

    • Single premium
    • Regular premium
    • Limited premium payment for 5-years and 10-years term
  • Mode of Premium Payment

    • Single-Premium- In a lump sum
    • Regular and Limited Options of Premium Payment:
    • Monthly (Under NACH/ECS only)
    • Half-yearly or Yearly
  • Policy Cancelation Value

    The policy cancellation value will become payable:

    • When the policyholder applies for the same before the maturity date stipulated when it is a single premium policy.
    • When the policyholder applies for the same before the maturity date stipulated or at the revival period end when the policy has not been revived when it comes to the limited premium payment policy.

    The amount will be payable as follows:

    • Single-Premium: The policy cancellation value is acquired immediately after the single premium has been received. The single premium will be inclusive of an additional premium, in case of any.
    • Limited Premium Payment Term: 5-years and 10-years policy cancellation value is acquired if the premiums are completely paid for two consecutive years. The complete premiums will be inclusive of additional premiums in case of any.

    In the case of a regular premium policy, no policy cancellation value will become payable.

  • Optional Riders

    The following approved riders can be attached:

    • Permanent Disability Benefit Rider
    • Accident Benefit Rider

    Note: The surrender value is not applicable within the Saral Jeevan Bima plan.

Benefits of Saral Jeevan Bima

Here is a rundown of the key benefits offered within the Saral Jeevan Bima plan:

  • Death Benefit

    For the single premium policies it will be higher of:

    • 125% of the single premium
    • An absolute amount assured to be paid on the demise

    For the limited and regular premium policies it will be higher of:

    • An absolute amount assured to be paid on the demise
    • 10 times of the annualized premium
    • 105% of the complete premiums paid as of the death date
  • Waiting Period

    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.

Documents Required to Buy Saral Jeevan Bima

The following are the important documents required to buy the Saral Jeevan Bima Yojana:

  • Passport size photographs
  • Identity Proof
  • Address Proof

How to Buy the Saral Jeevan Bima Plan?

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.

  • Buy Saral Jeevan Bima Online

    Anyone who wishes to buy the Saral Jeevan Bima online should follow the steps below:

    • Visit the website of the life insurance company offering the Saral Jeevan Bima plan online.
    • Click on the Saaral Jeevan Bima plan link.
    • Fill the application form with details such as gender, birth, etc. Also, upload the passport size photograph and the documents.
    • Submit the duly completed Saral Jeevan Bima application form.
  • Buy Saral Jeevan Bima Offline

    Anyone who wishes to buy the Saral Jeevan Bima offline should follow the steps below:

    • Visit the nearby life insurance company offering the Saral Jeevan Bima plan.
    • Obtain the Saral Jeevan Bima plan application form.
    • Fill the application form with details such as gender, birth, etc. Also, upload the passport size photograph and the documents.
    • Submit the duly completed Saral Jeevan Bima application form.

    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.

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