Who Should Opt for Saral Jeevan Bima Term Insurance Policy?

What is Saral Jeevan Bima?

 

The Saral Jeevan Bima is a basic term life insurance policy introduced following the IRDAI circular released on 15th October 2020, with insurers required to launch the plans starting from 1st January 2021. The policy is a non-linked, non-participating individual pure risk premium life insurance plan . In case of the death of the life assured , the nominee is paid a lump sum called the sum assured. Individuals aged 18 to 65 years can opt for this plan, with policy term ranging from 5 to 40 years. The sum assured is generally between Rs. 5 lakhs and Rs. 25 lakhs, though insurers can provide higher cover amounts subject to all the other terms and conditions remaining the same. Saral Jeevan Bima has been designed to be simple and uniform across all insurers, with the sole exclusion of death due to suicide. Its mission is to provide term life insurance that's easy to understand and available for a wide range of individuals.

 

Saral Jeevan Bima Eligibility – Who Can Apply?

 

The following is the summary of Saral Jeevan Bima eligibility criteria:

 

• Individuals in the age group of 18 to 65 years at the time of policy purchase are eligible.
• The policy term could be a minimum of 5 years to a maximum of 40 years.
• The lowest sum assured (payable to the nominee on the death of the life assured ) under this policy is Rs. 5,00,000, and the highest sum assured is Rs. 25,00,000. Insurers can have the option of issuing higher cover amounts under the same terms and conditions of the policy.
• The main aim of the policy is to offer pure risk cover. If the life assured passes away within the policy duration, the sum assured is paid in a lump sum to the nominee.
• According to IRDAI regulations, the policy only has suicide as an exclusion.
• Policyholders have the option to pay premiums as a lump sum, for a specific number of years, or on a regular basis during the policy period. Frequent payment options can be flexible, with monthly, half-yearly, or yearly frequencies.

Why Consider Saral Jeevan Bima?

 

Opting for a Saral Jeevan Bima term insurance plan can be very useful for those who wish to financially secure their families. The first benefit is the simple life cover, which provides a lump sum amount to your nominee in the event of an untimely death during the policy term. Your family members can use this amount to meet their expenses and remain financially secure.

 

Also, Saral Jeevan Bima generally offers premium payment flexibility. You may be able to opt for single, limited (such as 5 or 10 years), or regular premium payment options, and choose the one that suits your financial planning the best. The policy also offers a long-term coverage period, which may be up to 40 years, providing prolonged protection. With more than one premium payment frequency option, including monthly, half-yearly, or yearly, paying your premium may be easier. Also, a high sum assured benefit may be provided, which can reduce the cost per unit of coverage for high policy amounts. Female policyholders may also get the benefit of possibly lower premiums. Last but not least, premiums paid towards this policy may qualify for tax benefits under the prevailing tax laws. It is best to consult a tax advisor for correct advice.

 

8 Things to Keep in Mind Before Making Your Decision to Buy the Saral Jeevan Bima Policy

 

1. What does the Saral Jeevan Bima Policy do?

   
   Saral Jeevan Bima gives death benefit to the nominee in case of death of the life assured during the policy tenure. provide maturity benefit.

2. Who Can Get This Policy?

   
   Anyone between 18 and 65 years old can get this policy .

3. How Long is the Policy Term of Saral Jeevan Bima Policy ?

   
   You can choose how many years you want the policy for. It can be as short as 5 years or as long as 40 years..

4. How Much Money Does Your Nominee Get?

   
   If you pass away during the policy, your family will get the amount of money you chose as the sum assured. The smallest amount you can choose is Rs. 5 lakhs, and the usual maximum is Rs. 25 lakhs. Some companies may give more than Rs. 25 lakhs with all other terms and conditions remaining the same.

5. How You Can Pay the Premium

   
   You can pay the premium in different ways. You can pay all at once (single premium), pay for 5 or 10 years only, or pay every year for the whole policy period. You can pay yearly, half-yearly, or monthly (monthly payment is only through electronic methods like ECS or NACH).

6. What is the waiting Time Before Full Cover Starts

   
   There is a waiting period of 45 days from the day your insurance starts. During these 45 days, if the insured person passes away because of an accident, the full sum assured will be paid to the nominee. But if the individual passes away for any other reason, the nominee will only get back the total premiums paid (excluding taxes), not the full amount. If you revive the policy after it has lapsed, this waiting period will not apply.

7. No Maturity Benefit and No Loan Against the Policy

   
   In case the life assured survives the policy tenure then there is no option of maturity benefit. There is no option of taking a loan against the policy.

8. Tax Benefits

   
   Saral Jeevan Bima offers tax benefits on premiums paid under Section 80C in the old tax regime, while the new tax regime has lower rates but no such deductions. In both regimes, the insurance payout is tax-free under Section 10(10D). In summary, Saral Jeevan Bima is a term life insurance plan that helps financially protect your family in case of unfortunate demise of the life assured. You can choose how to pay - once, for a few years, or regularly. The plan gives your family a lump sum payment of the death benefit if you pass away during the policy term. This money helps them pay for their needs and stay financially safe. If you want a simple way to make sure your family will be okay money-wise, Saral Jeevan Bima might be a good choice.

 

FAQs

 

What are the minimum and maximum ages of entry for Saral Jeevan Bima?

 

The minimum entry age of the Saral Jeevan Bima term insurance policy is 18 years, and the maximum entry age is 65 years. These limits attempt to cover various people at diverse life stages, who are in need of basic life coverage for safeguarding their family financially

 

What is the minimum and maximum sum assured available for Saral Jeevan Bima?

 

According to the Saral Jeevan Bima policy, the minimum sum assured, is Rs. 5,00,000. The maximum sum assured is usually Rs. 25,00,000. Insurance companies, however, have the freedom to issue more coverage at the same standardized terms and conditions.

 

What is the maturity benefit I will receive with Saral Jeevan Bima?

 

Saral Jeevan Bima is a pure term risk insurance policy and provides no maturity benefit.

 

What are the exclusions of Saral Jeevan Bima?

 

Saral Jeevan Bima policy only has suicide exclusion.

 

What is the minimum and maximum term permitted under Saral Jeevan Bima?

 

The Saral Jeevan Bima term insurance policy provides varying policy tenures to meet varying individual requirements. The minimum available policy tenure is usually 5 years, while the maximum policy tenure can go up to 40 years. Also, the maximum age of maturity for the policy is limited to 70 years.

 

What are the benefits of term life insurance?

 

Term insurance, such as Saral Jeevan Bima, mainly provides financial security to your loved ones in the event of your untimely death. It pays a lump sum amount, the sum assured, to your nominee to help settle financial liabilities, unlike some other term insurance plans that provide periodic payments. . Term policies tend to provide high coverage at comparatively lower premiums .