The Saral Jeevan Bima plan is surely going to play a vital role in expanding the market of term insurance in India. The term insurance business in the Indian market is likely to heat up as the insurance companies are almost ready to roll out the standard term plan that is ‘Saral Jeevan Bima’.
In the year 2020, IRDAI directed all the life insurance companies in India to launch a standard term plan that has standard terms and conditions across all the insurers and the sum assured should range between Rs 5 lakh to Rs 25 lakh.
Well, since the beginning of the COVID-19, the insurers have been witnessing the demand for term insurance plans. Besides, in the last few months, the online searches for term insurance plans have been significant. Moreover, the insurers have also experienced almost 40 per cent growth in the term life insurance business.
Undoubtedly, the term insurance plan is important when you have financial dependents, and in the tough times during this pandemic, the demands for term insurance plans have been noticeable. It is mostly possible that some individuals bought the term plan with not sufficient cover that would not have met the financial needs of the dependents in case of any adversity. Addressing this, the Saral Jeevan Bima policy is a reliable solution and that would enhance the existing cover and access coverage for a sum assured adequately.
The rise in the demand of the term cover amidst the pandemic has surely the focus of the individuals towards financial safety and this is exactly when IRDAI felt a need for the standard term life cover, which could benefit one and all.
As discussed above, with an increase of demands for a term plan with every passing day, the Saral Jeevan Bima policy is easy to understand the product and this is a key reason for it to be the need of the hour. The term insurance plans have been in the Indian insurance market for some time now, however, the target audience has always remained the same.
The target audience for a term insurance plan has mostly been the salaried individuals, the graduates/post-graduates, individuals residing in Tier-1 and Tier-2 cities or those who are self-employed with a high net value. This depicts that the term life insurance plans could not reach the lower-income group of society. We cannot turn our faces from the fact that India is home to almost 10 crore such families who belong to such income section and are the primary earning members of the family who takes care of every day and various other financial requirements.
Therefore, it is of utmost importance to cover the life of such primary earners with the term plan of sum assured adequately. Well, in case an individual who belongs to the lower-income section thinks of buying the simple term insurance plan they might have to face certain restrictions like the income proofs, academic qualification, and so forth.
Well, a majority population do not invest in the term insurance plan is because of the lack of income proofs. Yes, you read it right.
Income proofs are one of the foremost eligibility criteria to buy the term life insurance plan. As per the report shared by the Central Board of Direct Taxes, from 1.35 billion of India's population only six crore people file for the income tax returns every year. Well, it means that the six crore people have regular income evidence and qualify to buy the term insurance plan.
To address such a challenge and provide adequate protection to those individuals who have a lack of resources, the Saral Jeevan Bima is here for the rescue.
Wondering, how Saral Jeevan Bima is here for the rescue?
There are as such no restrictions attached to the policy in terms of the geographical location, education, income proof and so forth to buy the standard term plan. The Saral Jeevan Bima plan will be easily accessible to the lower-income group.
The Saral Jeevan Bima is priced as per the extent of risk it will cover so that it can reach the target customers easily. If you buy Saral Jeevan Bima online, you can easily avail a discount of 20% on the premiums. The individuals have the option to buy the plan in monthly instalments and not pay the complete premium in a lump sum. This is done keeping in mind the spending and earning capacity of individuals who fall under the lower-income group.
The IRDAI has emphasised upon the need of offering insurance products that are simple and using a language that is easy to understand so that maximum individuals are under the umbrella of insurance.
The Saral Jeevan Bima policy will involve no hassle and make an informed choice. The Saral Jeevan Bima will enhance the trust between the customer and the insurer that would help to reduce the potential disputes if any during claim settlement and mis-spelling.