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Saral Jeevan Bima: A Quick Guide to the Standard Term Life Insurance Policy

  12/27/21 9:31 AM

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Simplicity is a coveted virtue in an otherwise complex life. A simple term plan is therefore meant to ease some of your concerns and offer a financial solution that meets the requirements of your family in your absence. Despite numerous life insurance companies and the diverse range of services they offer, choosing an affordable term plan that secures your financial future can become challenging and confusing. This prompted a need to introduce a pure and low-cost term insurance plan. Acknowledging this concern, the Insurance Regulatory and Development Authority of India (IRDAI) released the rules on standard individual term life insurance plans known as the ‘Saral Jeevan Bima.”

For many of us, money is a central factor in choosing a term policy, and so we are often on the lookout for affordable life insurance plans. However, there is a misconception associated with buying a cheap term plan that it will not acknowledge all our financial worries. The truth is that even the cheapest term insurance plan can go a long way in offering financial back-up in challenging times. Having said that, a cheap term plan should not be the only criteria for choosing the right term policy.

If you are a first-time buyer of a life insurance term policy and don’t have enough understanding of insurance products, then a simple term plan could be a great option for you. Pertaining to the IRDAI’s guidelines, several insurers launched the Saral Jeevan Bima Bima, which is a simple and affordable term plan.   

What is Saral Jeevan Bima- the popular and affordable term insurance plan?

Before we buy term insurance, it is crucial to understand term insurance meaning and analyze its features. Saral Jeevan Bima plan is launched with standard terms and conditions and simple features to allow customers to make a more informed decision before they buy term insurance.

The Saral Jeevan Bima is a non-linked and non-participating individual pure risk premium term life insurance policy. It will provide the sum assured in a lump sum to the nominee in case the policyholder dies during its tenure. No other riders, benefits, or variants will be offered apart from the ones that have been stated in the annexure. There will be no exclusion within the product apart from suicide. As it is pure term insurance, there will be no surrender value or maturity benefit offered under the plan.   

The Saral Jeevan Bima will be available without restrictions on gender, occupation, place of residence, or educational qualifications. The terms of the Saral Jeevan Bima would be the same for all insurers. However, the premium rates might differ depending on age, the income of the policyholder, gender, etc. If prospective buyers wish to know the premium rate before they buy term insurance, they can use the Saral Jeevan Bima premium calculator.

The IRDAI has made it mandatory for all life insurance providers to offer the plan to their customers starting January 1, 2021.     

Why Was the Saral Jeevan Bima Launched?  

The flourishing life insurance sector has made several products available in the market with their characteristic terms and conditions. To look for the most suited and best term life insurance for you, it is important to dedicate adequate time and energy. Despite this, finding a low-cost term insurance plan that would meet the requirements of an average buyer was challenging to find.

To overcome these hurdles and make term insurance accessible, Saral Jeevan Bima was introduced with standard terms and conditions and simple features. It aims to reduce the mis-selling of policies and restore and encourage the trust between the insurer and the insured. While Saral Jeevan Bima is among the most affordable life insurance plans, you might be able to transform it into the cheapest term insurance plan if you buy it when you are young. This is because the premiums are cheaper when you buy a life insurance policy at a young age, and they remain the same during the tenure of the policy. 

Salient Features of Saral Jeevan Bima

Some of the key features of the Saral Jeevan Bima include:

  • The policy offers a large sum assured rebate 
  •  It allows options of premium payment such as single premium, regular premium, and limited premium payment for a 5- or 10-year term

» In case of death, for limited premium payment or regular premium payment, the benefit paid to the beneficiary will be highest of either 10 times the annualized premium or 105% of the premium paid till death

» For a single premium payment, the death benefit will be higher than 125% of the single premium or absolute sum assured amount.   

  • The waiting period of the plan is 45 days from the date of commencement of risk. The waiting period will not be applicable in case of policy revival.
  • As per the extant regulations, exclusions only include the suicide clause
  • If the policyholders wish to enhance the base term insurance, they have the option to include an approved accident benefit and the permanent disability rider 

Edelweiss Tokio Life Insurance offers Saral Jeevan Bima – the affordable life insurance plan for all

Edelweiss Tokio term plan – Saral Jeevan Bima secures your family’s financial future and also covers death due to any pandemic such as COVID-19. The Saral Jeevan Bima by Edelweiss insurance offers a policy tenure ranging from a minimum of 5 to a maximum of 40-years and offers coverage for up to the age of 70. The plan also offers flexibility to choose from different payment options and can be purchased online through a simple and hassle-free process.

All you have to do is visit the Edelweiss Tokio website, search for the Saral Jeevan Bima policy from the search bar, and you can apply for it from the comfort of your home by filling out the form with your details such as date of birth, gender, etc. once this is done you simply have to click on the submit button to apply. 

You can even visit your nearest Edelweiss insurance office and complete the process face-to-face. The documents required for the Saral Jeevan Bima are address proof, identity proof, and a passport size photograph.

Final Words

With the backdrop of the COVID-19 pandemic, there is an increased awareness to purchase life insurance. The Saral Jeevan Bima policy will hopefully increase the penetration of term plans with its affordable offerings and seamless buying process.

 

Siddhant Dubey - Writer & Photographer

Siddhant works as a freelance content writer who is interested in a wide range of spheres from photography and personal finance to cooking. He is also an aspiring photographer striving to showcase life around him through his vision. 

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