Saral Jeevan Bima To provide financial inclusion for all

Saral Jeevan Bima, a Standard Individual Term Life Insurance Policy, is going to be launched by insurers with an aim to make term life insurance buying simpler for the customers, The Insurance and Regulatory Authority of India (IRDAI) had told insurers to offer this standard product which is a non-linked non-participating individual pure risk premium life insurance plan. The product provides payment of the sum assured in a lump sum to the nominee in case of the life assured’s unfortunate death during the policy term. The plan was initially set to hit the market by Jan 1, 2021. However, you will have to wait for a few more days.

Life insurance penetration in India is merely 2.74%, according to a report by the Insurance Regulatory and Development Authority of India (IRDAI). This is because lower-income groups usually don’t fulfill the underwriting criteria for life insurance. This plan will be a revolutionary product for increasing life insurance penetration in the country because the policy shall not be offered to individuals without restrictions on gender, place of residence, travel, occupation, or educational qualifications.

Moreover, standard income documents are not needed for getting this policy. So, Saral Jeevan Bima is an attempt to make term insurance accessible for all including self-employed and women who are unemployed. In addition, premiums for this policy can be paid monthly. So, it will be very beneficial for customers who could not earlier afford a term life insurance policy. EMI option helps plan finances better as you don’t have to shell the entire premium amount from your pocket in one go. There will also be a 20% discount on the policy when bought online. Moreover, since the sum assured under the policy is restricted to Rs 25 lacs, it is a good option for those who don’t have life insurance as of now.

Compare plans on the basis of claim settlement ratio
The introduction of Saral Jeevan Bima will also be a boon for first-time buyers since the plan will have the same features, benefits, inclusions, and exclusions across insurers. So, the customer doesn’t have the hassle of going through each and every term and condition separately for each insurer. The product is the same across all the insurers but prices, service level, and claim settlement ratio may differ. To compare on the basis of these parameters, the best way is log in to www.policybazaar.com. The claim settlement ratio is an important factor when choosing term life insurance because it is the percentage of claims settled by an insurer compared to the total number of claims received. Higher the claim settlement ratio, the better the insurer in settling claims.

Policybazaar is trying to make the insurance buying process easier and simpler for the customers wherein they can compare various products online. Moreover, the reach of offline term life insurance is lesser in rural areas. So, it makes sense to buy insurance through a digital platform like Policybazaar which is available at the click of a button.

What is covered under Saral Jeevan Bima?
The minimum entry age for the plan is 18 years and the maximum entry age is 65 years. Policyholders must know that insurers will not be liable for a payout if the policyholder dies within 45 days of taking the policy except for death in case of an accident. Surrender value is not applicable under this policy. Rider options under the policy include accident benefits and permanent disability benefits. There shall be no maturity benefit under the policy. Sum assured being offered under the plan is in between Rs 5 lacs- 25 lacs. No death benefit will be paid in case of a suicide.
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