What are the Benefits of Saral Jeevan Bima?
The demand for pure term insurance policy has been on the rise, mostly because of the uncertainty that life has been throwing at all of us in the form of the pandemic. And thus, the Insurance Regulatory and Development Authority of India (IRDAI) mandated all the insurance providers to offer a standard term life insurance policy known as Saral Jeevan Bima having standardised rules and regulations.
This policy will give all the people equal benefits irrespective of their class, gender, place of residence, mode of occupation, etc. There are also other Benefits of Saral Jeevan Bima that include rider benefits like approved accident benefit and permanent disability benefit. Saral Jeevan Bima like any other term plan will provide sum assured to the nominee in case of the policyholder’s unfortunate death within the policy term. The insurers can prefix their name to Saral Jeevan Bima.
Benefits of Saral Jeevan Bima:
- It is simple in terms of its guidelines, terms and conditions. Hence, it is easy for the insurance buyer to understand and make an informed choice.
- It can also be seen as a trust-building measure between the insurance holder and provider because this policy has to be provided on a compulsive basis to everyone. There are fewer chances of doubts on the misselling of the policy.
- It is a pure protection plan that will give the sum assured amount to the nominee in case of accidental death of the insured during the policy’s tenure. It is a non-participating, non-linked term life insurance policy.
- As a pure-term policy, there will no maturity benefit that will be given, nor will any surrender value be offered.
- Another key benefit of Saral Jeevan Bima is that this is a free access policy not depending on any qualifying criteria on the basis of gender, occupation, class etc.
- Many term insurance policies are available for the policyholders to choose from, so this selection process can be complicated for the buyers. But Saral Jeevan Bima is easy to choose as it has basic and easy to understand guidelines.
- This policy will be very similar to ‘Arogya Sanjeevani’ and will not change according to the different insurance companies. A standard outlook of the policy will be maintained throughout such as the same features, exclusions, inclusions and benefits. Only the claim settlement rates, prices, and service levels can be different from insurers to insurers.
- The minimum entry age for this policy is 18 years, and the maximum is 65 years. The minimum policy term period minimum is for five years, and the maximum is 40 years. There is no minimum maturity age, but the maximum specified age is 70 years. The minimum sum that will be given is Rs 5 lakh, and the maximum is Rs 25 lakh depending on the requirements and the situation. The premium payment option will vary from regular pay limited pay between 5 to 10 years.
- In case the policyholder dies during the policy period, the death benefit will be paid to the nominee highest of either ten times of the annualised premium, or 105 per cent of the total premium paid as on the date of death or the absolute amount promised at the time of the unexpected death.
- The waiting period for this will be 45 days from the date of commencement of risk. During policy revival, the waiting period will not be applicable. If there is death within the waiting period, then an amount equal to 100% of the premium paid excluding taxes will be paid to the nominee and no lump sum assured will be provided.
- The policy does not hold any value if the insurance holder commits suicide within 12 months from the policy’s date of commencement.
- Saral Jeevan Bima has additional benefits in the name of rider benefits to widen the policy coverage. The benefits of Saral Jeevan Bima include this feature in their current policy by paying an extra premium on the already existing basic premium plan.
- One thing that is to be kept in mind while executing this policy is that no loan will be allowed against this policy, along with no maturity benefit.
- The mode of payment is yearly, and half-yearly, a monthly option is also available for ECS/NACH, and a single premium is available in a lump sum.
- This policy does not have elaborate plans in its execution as the plan is available without any medical examination. It is a plan that a person is liable to have as a right because the person’s health is prioritised over and above all other factors.
- There are also tax benefits that can be enjoyed like any other term insurance plan. These tax benefits fall under the Income Tax Act, 1961. However, this act is subject to changes as per changes in law from time to time.
If you are also interested in knowing about the benefits of Saral Jeevan Bima, head over to BimaKaro.in and talk to our insurance advisers, who would guide you in making an informed decision for sure.