A life insurance policy is a necessary investment that every earning member of a household should consider. If you have limited knowledge about life plans, a term policy might be what you need. It is an affordable cover that allows your loved ones to maintain their standard of living in your absence. You can use a term insurance premium calculator to find the most suitable policy.
To make things even simpler, the Insurance Regulatory and Development Authority of India (IRDAI) has developed Saral Jeevan Bima. Each insurance company in India is offering this policy, and it is designed to meet every individual’s needs. Experts are calling the Saral Jeevan Bima a revolutionary step, as it has the potential to protect a vast number of people, irrespective of their income status.
Read on to learn more about the policy.
What is the coverage?
While purchasing any online term plan, you must find out about all its aspects, including the coverage. Like any other term policy, Saral Jeevan Bima is a pure life insurance policy. This means it offers a life cover but no investment option. If an unfortunate event leads to the policyholder’s death during the plan’s tenure, the insurance provider offers the sum assured to the nominees.
You must also know that the plan does not include any surrender value or maturity benefit. Also, it does not pay the sum assured if the nominees make a claim within the first 45 days of policy initiation. However, this has an exception; the insurer will pay the cover if the policyholder’s demise happens due to an accident.
The best thing about the Saral Jeevan Bima plan is that anyone can buy it, irrespective of gender, occupation, educational qualification, or residential location. Only the restrictions related to the term insurance age limit apply to the policy. You have to be aged between 18 to 65 to purchase this plan, and you will get life insurance protection until the maximum age of 70. The policy tenure can be anything from five to 40 years.
The policy offers a minimum cover of INR 5 lakh. You can get a higher cover, but it has a maximum limit of INR 25 lakh.
Why it is perfect for new buyers
One of the biggest challenges of buying an online term plan is to find a suitable one, as policies come with a variety of covers and features. It can lead to a lot of stress, and you can end up choosing the wrong plan. However, Saral Jeevan Bima makes the process simple, as the IRDAI has mandated that the terms and conditions, offers, and features of the policy remain the same across India’s insurance providers. It also makes the claiming process trouble-free, ensuring that your nominees get the sum assured quickly in the time of need.
The plan’s cost can vary among insurers, allowing you to find one that meets your budget. Before deciding which Saral Jeevan Bima policy to purchase, compare the claim settlement ratio of different insurance companies and finalize on the most reliable provider.
What are the available rider options?
Riders are additional covers, which you can buy for an extra premium to enhance your term life insurance policy. The IRDAI has approved permanent disability and accident benefit riders that you can purchase along with your existing Saral Jeevan Bima plan. You can use a term insurance premium calculator to determine the additional cost and plan your finance accordingly.
Insurance companies have made the policy available from January 1, 2021. Hence, if you consider purchasing a term life insurance policy, it is the right time to invest in the Saral Jeevan Bima plan.