All about Saral Jeevan Bima Term Insurance Plan
Table of Content
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.
Related Articles
- Advantages of Saral Jeevan Bima Yojana 2021
- Saral Jeevan Bima Yojana - Right Term Insurance Plan for You?
- Who Should Opt for Saral Jeevan Bima Term Insurance Policy?
ARN: ED/01/21/21925
Term Plan Articles
Investment Articles
Savings Articles
Life Insurance Articles
Tax Articles
Retirement Articles
ULIP Articles
Subscribe to get the latest articles directly in your inbox
Health Plans Articles
Child Plans Articles
Popular Calculators
Here's all you should know about life insurance.
We help you to make informed insurance decisions for a lifetime.
HDFC Life
Reviewed by Life Insurance Experts
HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER
We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.
Popular Searches
- Term Insurance Calculator
- Investment Plans
- Investment Calculator
- Investment for Beginners
- Best Short Term Investments
- Best Long Term Investments
- 5 year Investment Plan
- savings plan
- ulip plan
- retirement plans
- health plans
- child insurance plans
- group insurance plans
- income tax calculator
- bmi calculator
- compound interest calculator
- income tax slab
- Income Tax Return
- what is term insurance
- Ulip vs SIP
- tax planning for salaried employees
- HRA Calculator
- Annuity From NPS
- Retirement Calculator
- Pension Calculator
- nps vs ppf
- short term investment plans
- safest investment options
- one time investment plans
- types of investments
- best investment options
- best investment options in India
- Term Insurance for Housewife
- Money Back Policy
- 1 Crore Term Insurance
- life Insurance policy
- NPS Calculator
- Savings Calculator
- life Insurance
- Gratuity Calculator
- Zero Cost Term Insurance
- critical illness insurance
- itc claim
- deductions under 80C
- section 80d
- Whole Life Insurance
- benefits of term insurance
- types of life insurance
- types of term insurance
- Benefits of Life Insurance
- Endowment Policy
- Term Insurance for NRI
- Term Insurance for Women
- Term Insurance for Self Employed
- Benefits of Health Insurance
- Health Insurance for Senior Citizens
- Health Insurance for NRI
- Best Term Insurance Plan for 1 Crore
- personal accident insurance
- Annuity Calculator
- buy term insurance