Saral Jeevan Bima Yojana is a pure term insurance that is simple to understand, easy to access, and provides the basic benefits of a life cover. The Insurance Regulatory and Development Authority of India (IRDAI) asked all insurers to offer this standard insurance plan after the outbreak of the pandemic in 2020 as the demand for life insurance increased. Owing to the way it is designed and the purpose it is meant to serve, this policy has several benefits. Here are some of the most prominent ones:
- This policy has standardised rules and regulations with guidelines that are simple and clear. This helps you make an informed decision and make the most out of term insurance.
- Saral Jeevan Bima Yojana makes life insurance more accessible as it is a free-access policy. This means that insurers are required to provide it to everyone irrespective of eligibility criteria such as income, gender, etc.
- Another benefit of this policy is that it does not require a medical examination, living proof, or income proof, as is usually required by other life insurance policies.
- Being a standardised policy, the features, benefits, inclusions, and exclusions are the same across insurers. The only difference then is the customer service and claim settlement ratio of the insurers.
- This policy being a pure term insurance policy provides a death benefit. This means that in case the policyholder passes away during the policy period, their nominees will receive the sum assured.
- The minimum enrolment age is 18 and the maximum is 65, which makes adults across a wide age range eligible for this policy.
- The minimum policy coverage period is five years while the maximum is 40 years. The maximum maturity age is 70 and there is no minimum maturity age.
- Another feature that makes this policy accessible is that its minimum policy amount is Rs 5 lakh while the maximum is Rs 25 lakh.
- This policy also comes with the benefit of flexibility in terms of premium payments. You can either opt for limited, single, or regular premium paying terms. You can opt for a limited premium term of five or 10 years.
- There is also flexibility when it comes to the premium payment method. You can opt for the annual, half-yearly, or monthly option. If you opt for the single premium option, then you need to pay it in a lump sum.
- You also have the benefit of adding riders to this life cover. You can increase the scope of your term insurance coverage by opting for additional benefits and paying additional premiums for the same.
- Saral Jeevan Bima Yojanaalso provides tax benefits under the Income Tax Act, 1961. You can claim deductions on the premium paid up to Rs 1.5 lakh under section 80C and the sum assured amount is tax-exempt under section 10(10)D.
- This policy has a waiting period of 45-days. If the policyholder passes away during this waiting period, 100% of the premium paid minus taxes will be refunded. During renewal, the waiting period is not applicable.
- Being a pure term plan that offers no maturity or survival benefits, the premium of this policy is relatively more affordable than other life insurance policies.
Having a life insurance policy like the Saral Jeevan Bima Yojana can be a smart move given the uncertain nature of life. It will help secure your family’s financial future and will also help you have peace of mind. The best part about this life cover is that it is easily accessible, affordable, and simple to understand. Usually, it’s easy to feel overwhelmed by the way life insurance policies are structured and the way the guidelines are worded. But since the whole premise of this policy is to provide pure term insurance in a simple and standardised way, you can make the most of life insurance benefits from this policy.
