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All about Saral Jeevan Bima Term Insurance Plan

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All about Saral Jeevan Bima Term Insurance Plan
February 01, 2021

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Saral Jeevan Bima simplifies the concept of term insurance and brings it within easy reach of everyone

The Saral Jeevan Bima insurance is a standard term insurance policy that is being rolled out by insurance companies from 1 January, 2021. This follows a directive from the Insurance Regulatory and Development Authority of India (IRDAI) to all life insurers to launch a standard term plan which will have uniform terms and conditions across insurers, with sum assured ranging between Rs 5 lakh and Rs 25 lakh.

The idea was that a standard individual life insurance product with simple features and standard terms and conditions will enable policy buyers to make easier informed choices. The Saral Jeevan Bima plan will have the same benefits, inclusions, exclusions and features, whichever insurer you choose. However, claim settlement rates, prices and service level can change from insurer to insurer. Read on to know everything you wanted to know about the HDFC Life Saral Jeevan Bima Term Insurance plan.

What are term plans?

Term insurance is a type of life insurance that provides coverage for a certain period of time. The nominee of the insured person receives the death benefit if the insured dies when the policy is active. However, people with inadequate academic qualifications and irregular incomes and other restrictions have often found it difficult to buy regular term insurance plans so far.

What is the HDFC Life Saral Jeevan Bima Term Insurance plan?

The Saral Jeevan Bima Yojana is a non-linked non-participating individual pure risk term life insurance plan, which pays out to the policy holder's dependents the entire sum assured, in case of the demise of the insured person within the policy term. It attempts to offer the benefits of life insurance to people who have not had access to term insurance due to restrictions of education, location or income proof, or for people who are first time buyers of term insurance. The primary objective of the plan is to ensure that the dependents of the policy holder are adequately covered in case of the death of the policy holder. There is no surrender value or maturity value benefit offered by this plan. There will be only one exclusion under the policy - exclusion for suicide.

How does it work?

Anyone can buy the Saral Jeevan Bima plan which will be priced as per the extent of risk it covers. You can buy it online and avail a discount of up to 20 per cent on the premiums. The minimum sum assured that you can opt for under the Saral Jeevan Bima policy will be Rs 5 lakh, while the maximum will be Rs 25 lakh.

You will also have the option of buying the plan in easy monthly instalments without having to pay the entire premium as a lump sum.

Saral Jeevan Bima policy will provide three premium payment options -

  • regular premium
  • limited premium payment term for 5 years and 10 years
  • single premium

Along with the Saral Jeevan Bima plan, you also opt to buy IRDAI approved Accident Benefit and Permanent Disability Benefit riders, which are add-on benefits that you can purchase separately in addition to basic benefits as specified under this policy document. The rider premium are additional to the premium paid under the base policy towards the additional cover/benefit opted. The sum of the rider benefit will only be paid out if a specified event for which the add-on is bought occurs during the term of the policy.

Death benefit

For regular and limited premium payment policies, the death benefit will be, highest of 10 times of annualised premium or 1-5% of all premiums paid as on the date of death, or an absolute amount assured to be paid on death.

For single premium policies, the death benefit will be higher of 125% of single premium, or absolute amount assured to be paid on death.

The Saral Jeevan Bima policy has a stipulated waiting period of 45 days from the commencement of the policy. During these 45 days, the policy will only cover death due to an accident. The waiting period will not be applicable in case of policy revival.

Who can buy Saral Jeevan Bima plans?

The plan can be bought by any individual, and there are no restrictions on gender, place of residence, academic qualification and occupation. Even those without a regular income and incomplete income proof can buy this term insurance plan.

The minimum and maximum entry ages for the Saral Jeevan Bima plan are 18 years and 65 years respectively, and the policy term ranges between 5 - 40 years. The maximum maturity age up to which the policy can be bought is 70 years.

What should you look out for?

While features, terms and conditions of the Saral Jeevan Bima are standardised across insurers, it is important to compare the pricing of the plan offered by different insurers along with the claim settlement ratio. You should remember that insurers will not be liable for a payout if the policyholder dies within 45 days of taking the policy, except for death in case of an accident.

To conclude

The Saral Jeevan Bima plan is a simple term insurance plan that aims to bring life insurance to those who have stayed away from it so far, for multiple reasons. It offers financial security to your family in case of your untimely death, and affords peace of mind in these uncertain times.

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ARN: ED/01/21/21925

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Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

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Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

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