SBI Life-Saral Jeevan Bima

SBI Life Saral Jeevan Bima- An Overview

SBI Life Saral Jeevan Bima is a standard, IRDAI-mandated pure-term insurance plan designed to offer basic financial protection at an affordable cost. It features a simple application process without complex terms, making it ideal for first-time buyers seeking immediate life coverage.

Saral Jeevan Bima Yojana is a standard term insurance plan exclusively designed for first-time buyers.

Under any unfortunate situation such as the demise of the life assured during the policy period, the nominee will receive the sum assured on death in a lump sum.

Key Features of SBI Life- Saral Jeevan Bima

The following are the key features offered under SBI Life- Saral Jeevan Bima:

• Affordable Life Cover: SBI Life Insurance offers Saral Jeevan Bima that provides pure term insurance protection at an affordable premium, helping you secure your family's financial future in your absence.

• Simple and Transparent Plan: As a standard term insurance plan, it offers clear policy terms and conditions, making it easier to understand the coverage, benefits, and exclusions before purchasing.

• Flexible Premium Payment Options: You can choose to pay premiums as a single payment, regular payment, or limited payment option for 5 or 10 years, depending on your financial needs and income pattern.

• Financial Protection for Your Family: In case of the policyholder’s unfortunate demise during the policy term, the nominee receives the death benefit, helping the family manage their financial responsibilities.

• Tax Benefits: Premiums paid towards SBI Life Saral Jeevan Bima may be eligible for tax benefits under the applicable provisions of the Income Tax Act, 1961, subject to prevailing tax laws.

Eligibility Criteria of SBI Life- Saral Jeevan Bima

The table below shows the eligibility criteria of SBI Life- Saral Jeevan Bima yojana:

Benefits of SBI Life- Saral Jeevan Bima

Below mentioned are the benefits of SBI Life- Saral Jeevan Bima Yojana:

• Death Benefit
  Upon the death of the life assured during the policy term after the expiry of the waiting period, or due to an accident during the waiting period, the nominee/beneficiary will receive the Sum Assured on Death in a lump sum, which will be:

For Regular and Limited Premium Payment Policies, the highest of:

• 10 times the Annualised Premium

• 105% of all premiums paid as on the date of death

• Absolute amount assured to be paid on death

For Single Premium Policies, the higher of:

• 125% of the Single Premium

• Absolute amount assured to be paid on death

In case of death of the life assured due to a reason other than an accident during the waiting period, the nominee/beneficiary will receive a Death Benefit equal to 100% of all premiums paid, excluding taxes, if any.

• Policy Cancellation Value

  • For the Single Premium Policies
    The policy cancellation value is acquired right after the receipt of the single premium and is calculated in the following way:
    70 per cent of the paid single premium (Original policy tenure / unexpired policy tenure)
    It will be payable on the policyholder applying for the equivalent before the maturity date stipulated.

  • For the Regular Premium Policies
    There will be absolutely no policy cancellation value payable

  • For the Limited Premium Payment Policies
    The policy will acquire the policy cancellation value in case the premiums have been paid for two consecutive years and are then calculated as:
    70 per cent of the paid single premium (Original policy tenure / unexpired policy tenure)
    It will be payable on the policyholder applying for the equivalent before the maturity date stipulated or revival period end in the case when the policy is not revived.
    The total premiums paid or the single premium paid whichever is used in the calculation will be inclusive of the extra premiums in case of any.

• Tax Benefits
  Avail of the tax benefits as per existing income tax and laws, which are subject to change from time to time.
  Note- SBI Life- Saral Jeevan Bima yojana does not offer survival benefit, maturity benefit, rider benefit and surrender benefit. Besides, no loan facility is available against this plan.

How to Buy SBI Life- Saral Jeevan Bima Online?

Listed below are steps to buying the SBI Life- Saral Jeevan Bima policy online:

• Step 1: Visit the SBI Life website, go to 'Products' > 'Term Plans', select Saral Jeevan Bima, and click 'Buy Now'.

• Step 2: Choose your Life Cover (min ₹5 lakh), Premium Frequency, Payment Term, and Policy Term.

• Step 3: Fill in your personal, nominee, and health details in the proposal form.

• Step 4: Upload documents like PAN, Aadhaar, address proof, and income/medical proof.

• Step 5: Complete your e-signature.

• Step 6: Pay the premium via Credit Card, Debit Card, or Net Banking.

• Step 7: Get your policy document once payment and underwriting are complete.

Policy Details of SBI Life Saral Jeevan Bima

• Large Sum Assured Discount: SBI Life Saral Jeevan Bima offers a sum assured discount on term insurance plans for coverage of ₹15 lakh and above, with the discount amount depending on the premium payment frequency selected.

• Grace Period for Premium Payment: The policy provides a grace period of 30 days for yearly, half-yearly, and quarterly premium payments, and 15 days for monthly premiums, ensuring your life insurance cover stays active even if payment is slightly delayed.

• Policy Revival Facility: If your Saral Jeevan Bima policy lapses due to non-payment of premium, SBI Life allows revival within 5 years from the date of the first unpaid premium, subject to company terms and conditions.

• Revival Interest Rate: To reinstate a lapsed policy, policyholders must pay interest on outstanding premiums at a rate determined by SBI Life from time to time, compounded on a half-yearly basis.

• Policy Alteration Option: Policyholders can request modifications to their term plan, subject to approval and terms laid down by SBI Life Insurance.

• Nomination Facility: As per the Insurance Act, 1938, policyholders can nominate a beneficiary to receive the sum assured in the event of the life assured's death.

• Policy Assignment: SBI Life Saral Jeevan Bima allows assignment of policy rights to another individual or entity under Section 38 of the Insurance Act, 1938.

• Free Look Period: Policyholders get a 15-day free look period to review policy terms, extended to 30 days for policies bought through online or distance marketing channels — a key consumer-friendly feature of this term insurance plan.

• No Loan Facility: Unlike some other insurance plans, SBI Life Saral Jeevan Bima does not offer a loan facility against the policy during its term.

SBI Life- Saral Jeevan Bima Exclusions

• Waiting Period: 45 days waiting period from the date of commencement of risk. This waiting period, however, is not applicable in case of revival of a policy.

• Suicide Exclusion Clause (Regular and Limited Premium Policy):In the event of suicide within 12 months from the date of commencement of risk (or within 12 months from the date of revival, in case of revival of the policy), the policy shall become null and void. In such cases the company will pay only 80% of the premiums paid till date of death excluding any extra premium charged due to underwriting decisions and taxes, if any. This clause does not apply to a lapsed policy. A lapsed policy pays no benefit anyway.

• Suicide Exclusion Clause (Single Premium Policy): If the life assured commits suicide within 12 months from the date of commencement of risk, the policy becomes null and void. The company will pay 90% of the single premium paid less any extra charged due to underwriting decisions.

• Settlement of the Claim: On payment of the applicable death benefit as per the suicide clause the policy shall terminate and no further benefits shall be payable.

Note: Check all the best term insurance plan in India.

Note: You should also check the benefits of term life insurance if you are planning to purchase the term insurance plan.

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