Standard Individual Term Life Insurance is also known as ‘Simple Life Insurance’. The name of the insurance company is put before the disaster.
From January 1, 2021, all life insurance companies will get an opportunity to start a new business and offer ‘Saral Jeevan Bima’. Insurance companies can file their products from 1st December 2020. Insurance companies can file their product first and if approved, can offer it to the consumers from January 1, 2021.
Saral Jeevan Bima
Standard Term Insurance Plan
What is it?
It is the simple insurance policy that will pay the nominee a fixed amount after the death of the policyholder
Why should you buy?
Simple and easy to understand
Choosing becomes easy as all life insurance companies offer the same product
For Policy Holders Aged
18 – 65 Years
Policy Coverage For
5 – 40 Years
Minimum Sum Assured
Maximum Sum Assured
Single, Regular Or Limited Pay
45 Days From Policy Issuance
Why buy term insurance early?
Your premium is determined at the age at which you buy your policy, which remains the same for the rest of your life.
Your premium can increase by 4 to 8% after each of your birthdays.
If you catch any illness, your policy may get canceled or your premium may increase by 50 to 100%.
What is the need of standard policy?
There are many term insurance products in the market today with different terms and conditions. When we have to take a good decision we have to invest our time and our energy. Partner with many products only because of their insurance money are not of use to us.
To deal with such a situation and to make the products of life insurance companies suitable for all, there was a need for a standard individual term life insurance product with simple and standard terms and conditions.
Such a product will help the consumers to take a sound and sound decision and it will also increase the trust between the insurer and the insured. Along with this, the ruckus in claim settlement will also get rid of.
Under Section 34 Clause (1) (a) of the Insurance Act, all life insurance companies have been ordered to compulsorily offer tern life insurance products.
What is Simple Life Insurance?
Saral Jeevan Bima is a non-participating non-linked individual pure risk premium life insurance plan that will pay a lump sum amount to the nominee on the death of the policy holder during the policy term.
No benefits, riders, options will be given other than those specified in the election. There shall be no exclusion other than the exclusion of suicide.
Saral life insurance will be available to all persons, irrespective of their movement, whatever gender, whatever work they do, wherever they live and whatever their educational qualification is.
As per all the above parameters, insurance companies will have to file the product whose regulatory provision will be ‘File and Use’. The policy document terms and conditions will also be as per the prescribed format.
Eligibility to get Saral Life Insurance
The table below gives the details of eligibility to avail Saral Jeevan Bima:
age of maturity
25 lakhs* (insurance money will be available only in times of 50000) * Under simple life insurance, insurance companies have the freedom to give insurance money of more than 25 lakhs but they cannot change other terms and conditions.
Some Features of Saral Life Insurance
In the table given below, let us understand the characteristics and parameters of simple living:
more insurance money rebate
If anything, it will be taken under File and Use
Premium payment options
Single Premium. Regular Premium, Limited Premium Payment for 5 or 10 years
Mode of premium payment
Single Premium: Lump sum
Limited and Regular Premium Payment: Annually Half Yearly or Monthly (Only in NACH and ECS)
For Single Premium Policy: Maximum of 125% of Single Premium to be paid Limited & Regular Premium Paying Policy: 10 times of AP or 105% of premium paid will be payable on death
There is no maturity benefit under this policy
Accidental death benefit will be available only within the waiting period of 45 days. If the policy holder dies in an accident during the waiting period, 100% of the premiums paid in addition to tax will be paid to the nominee. The plan will terminate if the insured commits suicide within 12 months of the policy.
There is no exclusion other than suicide.
There is no surrender value under this policy
You cannot take any loan against this policy
policy cancellation value
Policy cancellation value will be available only if the policy holder applies for cancellation of the policy before maturity or when the policy holder applies for cancellation of the policy before the policy maturity and after the revival tom
according to file and use
Accident Benefit and Permanent Disability Rider can be added.
This rider is meant to extend the coverage of the policy in the form of addon. The policy holder can pay an additional premium to add the rider. Rider’s Sum Assured Money Policy
Rider benefit will be available only after Ruck takes it.
interest on delayed premium
As per other product offered by the insurance company
Medical Requirements and Underwriting
Other requirements as per the Board approved underwriting policy of the insurance company
Why buy policy from Bazaar?
Lowest Fee Guaranteed
You can get 10% off on buying a policy online. You will not find a better fee than this.
Policy Bazaar works as per the guidelines of IRDAI and always works in the interest of the policy holder.
100% recording on calls
All call records are on these lines so that you get information without any discrimination and there is no error. We believe in honesty and transparency.
Easy Refund on One Click
If you are not happy with your purchase, you can cancel your policy with a single click by visiting My Account.
In the end
This plan is a great plan for a first time insurance buyer as it will have the benefit features and exclusions common to all life insurance companies even though their rates vary.
Integration in policy terminology and now version will avoid the confusion at the time of claim. The intention behind starting this policy was that all the life insurance products that are in the market right now are very difficult which the common man cannot understand easily.
People’s awareness about their health has increased in the Konark Aal. Saral Jeevan Bima will allow term plans to reach people across all income groups. This standard term plan will help in decision making and increase the number of insurance plan buyers.