As the name suggests, Saral Jeevan Bima is the most simple way of procuring life insurance. This insurance policy has simplified term insurance to a great extent by making it within the reach of one and all. IRDAI introduced this standard term insurance policy on January 1, 2021 and directed every insurer to present identical terms under this plan. The sum assured of this plan ranges between INR 5 lakh to 25 lakh.
Saral Jeevan Bima was conceptualized with the aim to introduce a product of life insurance with the simplest of features and regular terms so that policyholders can make easy choices. So, under this plan the insured gets the same features and benefits as well as inclusions and exclusions irrespective of whom you buy the plan from. The difference that you might face from one insurer to another would be in terms of CSR or Claim Settlement Rate, service offered by the insurer and the price.
Let us understand the other aspects of the Saral Jeevan Bima in detail.
Saral Jeevan Bima is a term plan, which is a type of life insurance policy that offers coverage for a particular time period. This is a non-linked individual term insurance with a pure risk policy. In this case, the nominee of the insured receive a pre-determined death benefit if the policyholder dies within the period of policy duration.
Features of Saral Jeevan Bima Policy
Here are some of the features Saral Jeevan Bima Policy
- Under this policy, the insured receive the benefits and add-ons that are mentioned in the pre-requisites of the plan. Besides that the policyholder does not have the option of buying any extra riders, cover variants etc.
- Further, the policy doesn’t cover suicide. That is if the policyholder dies by committing suicide, the nominee of the insured will not receive any benefit. In addition to that there are no exclusions under the plan.
- This policy can be availed by everyone irrespective of gender, location, occupation etc.
Though features, benefits and conditions etc. of the policy are common across insurers, you must compare the premium price offered by different insurers together with the CSR or claim settlement ratio of the policy.
The insured must also remember that the insurance company will not pay any benefit if the insured dies within 45 days of procuring the policy, except in case of accidental death.
Criteria of Saral Jeevan Bima Policy
- The minimum entry age to buy the policy is 18 years, whereas the maximum age of entry is 65 years.
- The policy term can be between 5 to 40 years of age, whereas the maximum maturity age is 70 years.
- The minimum sum assured is INR 5,00,000, whereas the maximum sum assured is INR 25,00,000.
The premium payment options of Saral Jeevan Bima are:
- Single premium
- Regular premium
- Limited premium (for 5 or 10-year term)
There is a waiting period of 45 days under the Saral Jeevan Bima to avail the benefits of the plan from the date of initiation. This waiting period is not applicable in case of plan renewal.
- There is no surrender policy applicable under Saral Jeevan Bima.
- The insured is levied with interest on delayed premiums payment
- The rate of interest under this plan is similar to other insurance plans available
The Saral Jeevan Bima policy is an uncomplicated term plan that is created with the intention to cover those people who are away from insurance due to financial reasons. This policy provides monetary security to the nominee in the event of untimely death of the head of the family.
You can buy the Accident Benefit add-on and Permanent Disability Benefit add-on along with your Saral Jeevan Bima policy by paying an additional amount of premium. The nominee of the policyholder receives the sum of the add-on benefit in case any specified event takes place with the insured during the policy tenure.
There are numerous insurance companies in the market offering term life insurance policies. However, for a novice in insurance, the Saral Jeevan Bima policy is the best term policy suiting the purpose of life insurance. The Saral Jeevan Bima offers a considerable life coverage at a small premium price. It also offers peace of mind during hard times.