After Corona Kavach, Corona Rakshak, and Arogya Sanjeevani, the Insurance Regulatory and Development Authority of India (IRDAI) has come out with a standardised term insurance policy known as 'Saral Jeevan Bima'.
This new policy will be rolled out by life insurance companies from January 1, 2021.
Just like the standard health insurance product ‘Arogya Sanjeevani’, the ‘Saral Jeevan Bima’ will have the same features, benefits, inclusions, and exclusions across the insurers. Though the prices, service level, claim settlement rate may differ.
Here’s all one needs to know about ‘Saral Jeevan Bima’ scheme:
Definition
This will be a non-linked, non-participating individual pure risk premium life insurance plan, which will provide for payment of sum assured in a lump sum to the nominee in case of the life assured’s unfortunate death during the policy term.
Eligibility
The product will be offered to individuals without restrictions on gender, place of residence, travel, occupation, or educational qualifications.
The minimum age of entry will be 18 years and the maximum entry age will be capped at 65 and the maximum maturity age will be 70 years. The policy term will extend from 5 to 40 years, according to IRDAI.
Sum assured limits
The minimum sum assured under the product will be Rs 5 lakh, and the maximum can go up to Rs 25 lakh. The policyholders will also have the option of providing a sum assured beyond Rs 25 lakh.
Premium payment options
The product will offer three premium payment options; regular premium, limited premium payment term for 5 years and 10 years, and single premium.
Individuals will be allowed to choose from regular premium payment throughout the policy term, single premium payment in lumpsum, or limited premium payment (5, 10 years) options.
According to Santosh Agarwal, CBO-Life Insurance, Policybazaar, the plan will be a boon for the first-time buyers of life insurance since the product will be the same, regardless of the insurance company offering it.
"An important reason for introducing a standard life insurance plan is that the current life insurance products available in the market are different and quite complex, and it is difficult for the common man to understand the various inclusions and exclusions of the plans. With this plan, the regulator aims at increasing the life insurance penetration level mostly amongst the people with low income," he said.
(Edited by : Jomy)