SARAL JEEVAN BIMA YOJANA

WHAT IS SARAL JEEVAN BIMA YOJANA ?

A STANDARD LIFE INSURANCE POLICY - PURE TERM LIFE INSURANCE

03.01.2020 : IRDAI has observed that during the last few years, there has been an increased customer preference towards pure term life insurance products. In line with this growing demand, the Life Insurers have been introducing innovative protection products, with different features, options, riders, etc.

There are many term products in the market with varying terms and conditions . You may not have adequate knowledge , time and energy to make informed choices to select the right product. Also, products may not be available for the intended sum assured. To take care of this situation and to make available a product by all Life Insurers that will broadly meet the needs of an average customer, IRDAI felt necessary to introduce a standard, individual term life insurance product, with simple features and standard terms and conditions. Such a standard product will make it easier for the customers like you to make an informed choice and reduce mis-selling as well as potential disputes at the time of claim settlement.

In order to mitigate the problem , Insurance Regulatory & Development Authority of India ( IRDAI ) has come out now with proposed common Term Life insurance policy to be mandatorily issued by all insurance companies licensed to issue life policies . The policy is called SARAL JEEVAN BIMA .
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​The prime objective of the policy is to provide basic LIFE COVER for general public with transparent common features which is portable , in case of poor service by the insurer .

It can be noted here that earlier in the year , IRDAI had come with standard Health insurance policy called Arogya Sanjeevani plan which was to be issued by all health insurers . Issuance of standard policies will help the customers to compare the premiums demanded and come to an informed decision .

The policy will be issued by 1st , January , 2021 by all the Life insurers .

SARAL JEEVAN BIMA YOJANA - LIFE INSURANCE POLICY

BASIC FEATURES :

SARAL JEEVAN BIMA is a non-linked non-participating individual pure risk premium life insurance plan, which provides for payment of Sum Assured in lump sum to the nominee in case of the Life Assured’s unfortunate death during the policy term. Apart from the benefits and riders stated in the Annexure, no other riders / benefits / options / variants shall be offered. There shall be no exclusions under the product other than the suicide exclusion.

It will be offered to individuals without restrictions on gender, place of residence, travel, occupation or educational qualifications.

1. Policies issued by all insurance companies will comply with IRDAI Notification .
2. Sum Assured : Minimum ₹5,00,000; Maximum ₹25,00,000 (SA would be allowed only in the multiple of ₹50,000)
( Insurers have the option of offering Sum Assured beyond ₹ 25,00,000 under Saral Jeevan Bima with all other terms and conditions remaining the same. )
3. Maturity Benefit :
A. For Regular & Limited Premium Payment policies: Highest of 10 times of annualized premium or - 105% of all the premiums paid as on the date of death or Absolute amount assured to be paid on death.
B. For Single premium policies: Higher of 125% of single premium OR absolute amount assured to be paid on death.
4. No policy will have additional / optional cover or add-on
5. EXCLUSION : Only suicide clause
6. WAITING PERIOD : 45 days from the date of commencement of risk. In case of revival of Policy, the Waiting Period shall not be applicable.
However the Policy will cover death due to accident only during the waiting period of 45 days from the date of commencement of risk.
( In n case of death of the life assured other than due to accident during the waiting period, an amount equal to 100% of all premiums received excluding taxes, if any, shall be paid and the Sum Assured shall not be paid )
7. Surrender Value : NIL . No loan will be granted against the policy
8. Minimum entry age of 18 years with a maximum of 65 years
9. Policy term 5 years to 40 years
10. Maximum Maturity Age : 70 years
11. OPTIONAL RIDERS : Approved Accident Benefit and Permanent Disability Benefit Riders can be attached.
12 . Premium payment Options Regular Premium or Limited Premium Payment Term for 5 years and 10 years or Single Premium
13. Policy Cancellation Value :

Policy Cancellation Value shall be payable:
1. upon the Policyholder applying for the same before the stipulated date of maturity in case of Single Premium Policy or
2. upon the Policyholder applying for the same before the stipulated date of maturity or at the end of revival period if the policy is not revived, in case of Limited Premium Payment Policies or
3. immediately after receipt of Single Premium
4. No policy cancellation value shall be payable in respect of regular premium policies.

COMPARE PREMIUMS BEFORE BUYING

07 .01.2021 : Insurance companies have come out with the standard term insurance policy Saral Jeevan Yojana policy as mandated by IRDAI .

As the policy is pure term insurance policy , premium quoted by the insurance companies are affordable and can be taken for a cover of Rs 50,000 and above without any limit . As we checked the premiums quoted by various companies , premiums vary widely among the companies .

For example , we found that premium demanded for a 55 years old man for a cover of Rs 1 crore vary from Rs 2,300 per month to Rs 4,500 per month . But if insured is of age of 20 years , same cover is available for Rs 550 per month to Rs 950 per month .


As policy terms are same for the policies issued by all companies , you may check premiums and claim settlement rate before buying .
Otherwise you will end up paying higher premiums every month for years to come .

To go to websites of insurance companies and to check premiums quote there , you click here and you will get links to all life insurance companies .