SARAL JEEVAN BIMA

Subject: Govt Schemes

Context: IRDAI has come out with guidelines for Saral Jeevan Bima and has laid that all life insurers must offer this product from January 1 ,2021.

Concept:

Key features

• It will be a non-linked, non-participating individual pure risk premium life insurance plan providing for payment of the sum assured in lump sum to the nominee in case of the insured’s death during the policy term.
• The plan will be for those in the 18-65 years age group.
• Policy term will be 5-40 years.
• It allows for a maximum maturity age of 70 years.
• Sum assured will be a minimum of ₹5 lakh and a maximum of ₹25 lakh. Insurers, however, have the option of offering sum assured beyond ₹25 lakh with all other terms and conditions remaining the same.
• The product shall be offered to individuals without restrictions on gender, place of residence, travel, occupation or educational qualifications.
• There will be only one exclusion under the policy – exclusion for suicide.
• There will be no maturity benefit. Neither will there be any surrender value nor can any loan be taken against the product.
• The policy will also offer optional Accident Benefit and Permanent Disability Rider.

Significance

• There are many term products in the market with varying terms and conditions. But, Customers who cannot devote adequate time and energy to make informed choices find it difficult to select the right product. Therefore, It was felt necessary to introduce a standard, individual life insurance product with simple features and standard terms and conditions.
• Mandatory pure life insurance will also help in inclusion and insurance penetration in the country.