Saral Jeevan Bima is essentially a standard term life insurance plan that is meant for individuals irrespective of their occupation, income or education. It is an insurance plan that has simplified the concept of term insurance and has made it easy to reach everyone. Saral Jeevan bima is being rolled out since January 1, 2021, following the directive from the Insurance Regulatory and Development Authority of India (IRDAI). All insurance companies are directed to offer a standard term plan that has uniform conditions and benefits across all insurers, with the sum insured ranging from 5 lakh to 25 lakh.
In this article, let us understand what Saral Jeevan Bima is, along with its features and benefits.
What Is Saral Jeevan Bima?
A regular term life insurance plan can keep the loved ones of the insured person financially safe in case of the uncertain demise of the insured. But the insurance companies usually consider various factors before offering a term plan. These factors may include income, gender, occupation, place of residence, or educational qualifications. Due to these initial checkpoints, many people fail to get the term life cover with the intended sum insured.
The idea of the Saral Jeevan bima was that a standard life insurance product with simple features and benefits would enable policy buyers to make easier and informed choices. The benefits, exclusions, inclusions and features of the saral bima yojana remain the same, no matter which insurer you choose. Although claim settlement rates, prices, service levels may vary from company to company.
Features Of Saral Bima Yojana
A term life insurance is a must-have policy for everyone, and Saral Jeevan bima is a policy created to make sure that it is straightforward and accessible to the policy buyers. Here are some of the key features of the Saral Jeevan bima: –
- The policy buyer has the flexibility to choose the premium payment term. You can pay the premiums for 5 to 40 years to get adequate life cover
- Saral bima yojana offers long term coverage. The term insurance coverage may be offered up to the age of 70.
- Saral Jeevan Bima is easy to understand. It is a pure term life insurance plan with death benefits but no maturity or survival benefits.
- It is a term plan coverage for all individuals. There are no restrictions based on education, occupation, place of living, or gender.
Benefits Of Saral Jeevan Bima
Saral Jeevan bima is a standard term life insurance plan that can be purchased easily at any insurance company. The benefits remain the same across insurers. Here are some of the benefits offered under Saral Jeevan Bima: –
- Coverage Of Death Due To COVID-19
Saral Jeevan Bima was specifically designed by the IRDAI, keeping in mind the COVID-19 pandemic situation. Saral Bima Yojana is the protection plan that covers death due to coronavirus.
- Death Benefit
Being a standard term plan, Saral Jeevan Bima offers the sum insured to the nominee in the event of the unfortunate death of the insured person. The death benefit can help the loved ones of the deceased to cope with the financial challenges. They will not have to compromise their basic requirements due to the lack of funds.
- Waiting Period
Saral Bima Yojana offers a waiting period of 45 days from the date of the beginning of the risk. The waiting period may not be applicable in case the policy is renewed. It also provides death cover due to accidents during the 45 day waiting period.
- Tax Benefits
Under section 80C of the Income Tax Act, the premiums paid for Saral Jeevan Bima are eligible for tax deductions. It means that by buying this policy, you gain financial protection and tax benefits.
Things To Remember While buying Saral Jeevan Bima
Here are a few things you should keep in mind while buying Saral Jeevan Bima: –
- The maximum maturity age is 70 years.
- The minimum sum insured is 5 lakhs, and the maximum is 25 lakhs.
- A person in the age range of 18 years to 65 years can easily buy Saral Jeevan Bima.
- Loans are not allowed against this policy.
- No maturity benefit is provided under Saral Bima Yojana.
- The premiums can be paid yearly, half-yearly, or monthly. There is also an option to pay a single premium in lump sum amount.
- The case is considered void if the insured dies by suicide.
Saral Jeevan Bima is the term plan that offers coverage to all individuals without any restrictions. Some common myths of term insurance plan are floating around, and you must avoid them. Even though the features and benefits offered for Saral Jeevan Bima by all insurers are the same, premium amounts may vary. You can consider buying Saral Jeevan Bima from Max Life Insurance. They offer the policy at affordable premiums with extensive benefits to ensure the financial security of your loved ones.