Saral Jeevan Bima Yojana

This article talks about Saral Jeevan Bima Yojana, a term life insurance policy. The article includes features of this policy and its application process.

· 4 min read
Saral Jeevan Bima Yojana

Opting for term life insurance forms an important decision in a person’s life. It helps your loved ones deal with the unpredictability and uncertainty of life. A person has many options to choose from when it comes to life insurance. One such option is Saral Jeevan Bima Yojana. Saral Jeevan Bima Yojana is a non-linked and non-participating individual pure risk premium life insurance policy. It promises to pay the sum assured in a single lump sum to the nominee if the policyholder passes during the policy period. Saral Jeevan Bima Yojana is distinctive from other policies as it can be taken by any individual regardless of the restrictions on their gender, occupation, education qualifications, or place of residence. As with any other life insurance policy, the amount of premium differs from insurer to insurer based on factors such as age, income, or gender of the insurer. In January’21, The Insurance Regulatory and Development Authority of India (IRDAI) directed all insurers to offer Saral Jeevan Bima through offline and online processes.

Features

  • Age limit: Any person belonging to the age group of 18-65 years can apply for this insurance policy.
  • Policy Term: The policy term varies from 5 years to a maximum of 40 years.
  • Maturity Age: The maximum maturity age for the policy is 70 years. This means that policy automatically matures when policyholders reach 70 years of age.
  • Sum Assured: The minimum sum assured under this policy is Rs. 5 lakhs with the maximum sum assured is Rs. 25 lakhs. Sum assured needs to be multiple of Rs. 50,000. Although the maximum sum assured is Rs. 25 lakhs, but the insurer has an option to offer a sum beyond Rs. 25 lakhs within this policy given all other terms and conditions remain the same.
  • Premium Payments modes: This policy gives various options of premium payment such as single premium, regular premium, or limited premium payment for 5 years or 10 years term. In the case of regular premium, the frequency of premium payment can be yearly or half-yearly, or monthly. Interest is charged on delayed premium payments as per the terms and conditions laid by the insurer.
  • Waiting Period: This policy has a waiting period of 45 days i.e., this life insurance policy activates (commencement of risk) after 45 days of issuance of the policy. If the policyholders die due to an accident during the waiting period, then 100% of the premium paid excluding taxes will be refunded to the nominee and no sum assured to be paid. If life insured commits suicide within 12 months of commencement of risk, the policy shall be nullified.
  • Pure Term Plan: This policy is a pure term plan with death benefits, but it does not give survival or maturity benefits.
  • Death Benefits: For single premium holders, it shall be higher than 125% of the single premium or absolute amount assured. In the case of a Regular premium holder, it shall be the highest of 10 times of annualized premium, 105% of all premiums paid till the date of death, or the absolute amount assured. Saral Jeevan Bima also covers death due to the novel coronavirus.
  • Loan: No loan is permitted to be taken against the policy.
  • Policy Cancellation: Policy cancellation is payable when the policyholder applies for it before the date of maturity in case of a single premium policy and when the policyholder applier before the date of maturity or end of revival period (if the policy has not been revised), in case of limited premium payment policy.
  • Optional Riders: This policy offers an additional option to add an approved accident benefit and permanent disability riders’ benefit. For adding these add-on options policyholders need to pay an extra premium in addition to the basic premium.
  • Tax Benefits: The policyholder is eligible to claim a deduction for the premium paid for this policy as per Section 80C of the Income Tax Act,1961.

Registration Process

Any individual eligible for the policy can register for it either through the offline registration process or online registration process.

Offline Process

  • Visit the life insurance insurers’ local branch office.
  • Obtain the application for Saral Jeevan Bima Yojana and fill it.
  • Complete the application form with required and relevant details and complement it with other necessary documents.
  • Attach all required paperwork as per the requirement of the insurer.
  • Submit the application form at the branch office of the life insurance insurer.

Online Process

  • Visit the official website of the life insurance provider, which offers this policy.
  • Select the Saral Jeevan Bima Yojana option on their website.
  • Click on apply button which takes you to the application page.
  • Fill the application form displayed on the screen with the required information.
  • Upload important documents as required by the insurance provider.
  • Submit the application form.

Document Requirements for Application

  • Duly filled and signed proposal form.
  • Date of Birth proofs like passport, Aadhaar card, Pan card, etc.
  • Identity proof like passport, driving license, Pan card, Aadhaar card, etc.
  • Address proof like passport, driving license, bank statement, etc.
  • Passport size photographs
  • For salaried individuals: Bank statement of last 3 months, salary slip of last 3 months, and Form 16
  • For self-employed individuals: 2 years ITR & Computation of Income (COI)
  • Recent Medical Examinations or Records

Conclusion

For any first-time buyers as well as for other buyers, Saral Jeevan Bima Yojana is a good policy due to its features, benefits, and ease of the procedure. Any person willing to buy this policy can estimate the premium rate of the policy through the Saral Jeevan Bima premium calculator. The policy clearly defines all terms, conditions, and exclusions which leaves negligible scope for any disputes. Therefore, Saral Jeevan Bima Yojana is considered a standard term life insurance plan that eases the process of decision-making and motivates customers to invest in the insurance plan.

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