Saral Jeevan Bima Plan

What is Saral Jeevan Bima?

Saral Jeevan Bima provides life coverage at low premium rates. This plan can be bought easily online from any insurer. The Saral Jeevan Bima plan offers life cover and benefits for up to 40 years.

Saral Jeevan Bima is a pure-term insurance plan. This product is to be offered to all individuals without restrictions on residential place, education, and occupation. Even people with a low-income profile or less educational background can also buy this term plan. This plan offers a fixed amount (sum assured) as a lump sum payment to the appointed nominee after the death of the life assured during the plan tenure. It is a basic life insurance plan that provides financial security to your family. The T&Cs and coverages of Saral Jeevan bima are the same for all the life insurance companies.

How Does Saral Jeevan Bima Yojana Work?

Let’s understand this with the help of an example:

Rajan, a 34-year-old, factory worker in a rural area has a wife, 2 children, and parents. Being the breadwinner of his family, he recognizes the necessity to protect the family’s financial future and ensures their requirements are met in the unforeseen incident of his death. However, his monthly income is not fixed and it varies every month. So, which plan will be best for him?

Rajan buys Saral Jeevan Bima plan for a 20 years policy term with the option of regular pay. He avails a life cover of Rs. 25 Lakhs for which he is required to pay Rs. 447/- premium (exclusive of all the taxes).

If Rajan passes away during the plan tenure, his loved ones would get Rs. 25 lacs death benefit instantly on death.

Why Do You Need the Saral Jeevan Bima Plan?

Term insurance is a much-needed life insurance plan for everyone. The Saral Jeevan Bima plan is specifically created to make sure that it is easily available for all insurance buyers. Saral Jeevan Bima (SJB) Yojana provides sufficient flexibility in terms of paying premiums to meet the diverse financial requirements.

For example, the option of limited pay with SJB allows life assured to complete their payments of premium within the 1st starting years of their policy term, thus enjoying the life cover for the remaining term without any premium payment concerns.

Policyholders can also choose the policy tenure of Saral Jeevan Bima, (also called Saral Jeevan Yojana) between 5 years to 40 years, based on their financial requirements. So, if you are looking out for a basic term insurance plan providing adequate financial protection, Saral Jeevan Bima can be a smart choice.

Saral Jeevan Bima Plan: Eligibility Criteria

The below table shows the eligibility criteria for the Saral Jeevan Bima Plan:

Key Features and Benefits of Saral Jeevan Bima Plan

As discussed above, the Saral Jeevan Bima plan is a standardized pure protection plan available at low premium rates. This plan is available for all the sections of Indian society, irrespective of gender, age, occupation, education, and location. Additionally, the features of this plan are the same for all insurance companies offering it. In the below table, let us understand the benefits of the Saral Jeevan Bima Plan:

1. Financial Safety for Your Loved Ones

   The Saral Jeevan Bima Term Insurance Plan offers life cover to protect the family members in case of an unforeseen event of your death.

2. Long-time Coverage

   Term coverage up to 70 years of age

3. Multiple Premium Paying Terms

   Offers Single, Limited (5/10 years), and Regular premium payment terms that help you avail of an option in line with your specific requirements

4. COVID-19 Cover

   Saral Jeevan Bima covers death due to the COVID-19

5. Premium Payment Frequency

   As a policyholder, you can pay a single premium or limited/regular premiums on a yearly, half-yearly, or monthly basis

6. Provides Coverage For All Individuals

   There is no restriction on occupation, education, gender, or place of living

7. Premium Payment Mode

   • For Single-premium payment: In a lump sum

   • Limited and Regular Premium Payment: Annually or ½ -yearly and monthly (only via NACH/ECS)

8. Rebates on High Sum Assured

   The Saral Jeevan Bima Plan provides a rebate in a premium amount for every additional increase of Rs. 1 Lakh in SA above Rs. 5 Lakhs

   

9. Death Benefit

   A policyholder's death during the policy term after the completion of the waiting period or because of an accident during the waiting period is covered. In such cases, the beneficiary/nominee will get the sum assured (SA) on demise, in a lump sum which is:

   For the Single–Premium policy: The highest of 125 percent of the single-premium or absolute amount assured will be paid upon the demise of the nominee

   For Limited and Regular Premium Payment: The SA amount higher than 10 times the annualized premium, 105 percent of all the premiums amount paid till death date or pre-decided assured amount to be payable on demise is paid to the beneficiary/nominee.

   Policyholder’s Death Other Than An Accident, During The Waiting Time: The beneficiary/nominee will get the death benefit, which is equivalent to 100 percent of all the paid premiums (exclusive of all taxes).

10. Riders

    You can add rider options to the base plan by paying an extra premium. The rider sum assured will be the assured amount payable in case of any specific event covered under the rider happens and opted by the policyholder.

11. Tax Benefits

    Get the tax benefits on premium amount u/s 80C of the Income Tax Act, 1961.