Saral Jeevan Bima, an insurance scheme introduced by the industry regulator in 2020, provides basic protection to self-employed individuals or people in low-income groups. As its name says, the scheme is a simple method to provide life insurance to people who cannot pay hefty premiums.The Insurance regulatory and development authority has mandated all life insurers to offer the standard product.
The key features of Saral Jeevan Bima are as follows:
The sum assured is paid in a lump to a nominee upon their death during the policy term.
The plan is available for individuals aged between 18 to 65 years.
The policy offers a flexible term to pay a premium, ranging from five to 40 years.
The plan allows for a maximum maturity age of 70 years.
The sum assured ranges from a minimum of Rs 5,00,000 to a maximum of Rs 25,00,000. Insurers have the choice to offer a sum assured exceeding Rs 25,00,000 while keeping all other terms and conditions unchanged.
There are no restrictions based on gender, place of residence, travel, occupation, or educational qualifications for individuals to avail of Saral Jeevan Bima.
There are no maturity benefits, surrender values, or provisions for loans against the policy.
The policy offers optional accident benefit and permanent disability riders (riders are extra benefits supplied by the insurer to increase the policy’s coverage).
Saral Jeevan Bima premium rates are based on several parameters, including the policyholder’s age, income, gender.
Advantages of Saral Jeevan Bima
It offers the same advantages, features, limitations, and inclusions across all life insurers, ensuring consistency and simplifying the buying process for first-time customers. While prices may vary, the core benefits remain constant.
The policy wordings and exclusions are uniform, reducing potential disagreements in the future. This standardisation addresses the complexity of existing life insurance products, making it easier for individuals to understand the coverage provided.
Tax benefits: Premiums paid for Saral Jeevan Bima are eligible for tax deductions under Section 80C of the income tax act, 1961, offering additional financial incentives for policyholders.
Waiting period for Saral Jeevan Bima
The waiting period for the plan will be 45 days from the beginning of the risk period. If the policy is reinstated, this waiting period doesn’t apply. During the initial 45-day waiting period, the policy only covers death resulting from accidents. If the policyholder dies of causes other than accidents during waiting period, a sum equal to all premiums received excluding taxes will be paid out. The sum assured won’t be given.
First Published: Mar 29 2024 | 4:37 PM IST
