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Saral jeevan bima yojana

Saral Jeevan Bima Yojana

Saral Jeevan Bima Yojana

The New Saral Jeevan yojana policy of Life Insurance Corporation of India is a non-linked and non-participating individual pure risk premium life insurance plan that pays the sum insured to a nominee in a lump sum if the life assured dies within the policy period. In this article, we will look at the Saral Jeevan Bima Yojana in detail.

Know more about the Insurance Scheme for Entrepreneurs

Advantages of Saral Jeevan Bima

The plan will be a boon to any first-time buyer because it will have the same advantages, features, limitations, and inclusions across all life insurers, albeit prices may vary. Customers can also use the Saral Jeevan Bima premium calculator to estimate the policy’s premium rate.

The policy wordings and exclusions are all consistent, so there will be little room for disagreements in the future. The main goal of establishing the standard life insurance policy is to address the fact that the current life insurance products on the market are diverse and complex, making it difficult for the average person to understand the various inclusions and exclusions.

People are more concerned about their health and family security as a result of the current COVID-19 situation. The Saral Jeevan Bima will undoubtedly aid in the penetration of term plans and will target people from all walks of life. The standard term plan will presumably simplify the decision-making process and increase consumer confidence when purchasing insurance.

Premium paid for Saral Jeevan Bima is eligible for tax deductions under Section 80C of the Income Tax Act, 1961

Eligibility for Saral Jeevan Bima

  • Individuals will be eligible for the Saral Jeevan Bima regardless of travel restrictions, gender, occupation, residency, or educational qualifications.
  • All life insurers will provide the Saral Jeevan Bima term plan with the same terms and conditions.
Eligibility criteria Minimum Maximum
Entry age 18 years 65 years
Policy term 5 years 40 years
Maturity age 70 years
Sum Assured Rs 5 lakhs 25 Lacs* (Sum assured would be allowed in multiples of 50,000) * Within Saral Jeevan Bima, insurers have the option of increasing the sum assured beyond Rs. 25 lakh while keeping the other terms and conditions the same.

Payment of Premiums

Regular Premium, Limited Premium, and Single Premium payment options are allowed under this plan. In the case of the Regular Premium and Limited Premium payment option, the premium can be paid regularly during the premium paying term with modes of premium payment Yearly, Half-yearly, or Monthly (through ECS/NACH only). The premium payable will depend on the age at entry of the life to be assured, policy term, premium paying term, and sum assured chosen.

The waiting period will be 45 days from the beginning of the risk. If the policy is reinstated, the waiting period will no longer apply.

Determination of Premium Rate for Saral Jeevan Bima

It has basic features, benefits, terms, and conditions that are universal across all insurers. However, premium rates may vary from one insurer to the next. The Saral Jeevan Bima premium rate will be determined by several parameters, including the policyholder’s age, income, gender, and so on.

The policyholder can use the Saral Jeevan Bima premium calculator to calculate the policy’s premium rate.

Benefits of Saral Jeevan Bima

Some of the prime benefits of the Saral Jeevan Bima Policy is as follows:

As mentioned above, LIC has designed the Saral Jeevan Bima while keeping the COVID-19 situation in mind. Saral Jeevan Bima is a protection plan that covers death due to COVID-19.

Premium paid for Saral Jeevan Bima is eligible for tax deductions under Section 80C of the Income Tax Act, 1961.

Death Benefit

For the single-premium policy: the greater of 125 percent of the single-premium and the absolute amount guaranteed that will be paid upon death.

For Limited and Regular Premium Payment policies, the highest often the Annualized Premium (AP), the absolute amount assured that will be paid upon death, or 105 percent of the paid premiums as of the date of death will be paid.

Maturity Benefit

No maturity benefit will be offered under this policy Saral Jeevan Bima

Crucial Features and Functionality of Saral Jeevan Bima

As previously stated, the Saral Jeevan Bima plan is a standardized pure protection plan provided to all sections of Indian society at affordable premium rates, regardless of gender, age, occupation, education, or region. Furthermore, the benefits of this plan are the same across all insurance providers that offer it. Let us look at the features and dimensions of the Saral Jeevan Bima in the table below.

Particulars Norms
Large Sum Assured Rebate In case of anything, it will be indicated with ‘File and Use’
Exclusions As per the extant regulations, only the suicide clause
Surrender Value No surrender value within this policy
Loan No loan will be permitted against the policy
Policy Cancellation Value

The following will be paid as the policy cancellation value:

In the case of single-premium insurance, when the policyholder asks for the equivalent before the policy’s maturity date.

When a policyholder applies for an equivalent before the policy’s maturity date or before the conclusion of the revival period if the policy has not been revived in the event of a limited premium payment policy.

Pricing As per the ‘File and Use’
Optional Riders

The permanent disability riders and an approved accident benefit could be connected.

The riders are optional coverage supplied by the policy to supplement the policy’s coverage. The policyholder can add rider options to the base plan by paying an additional premium in addition to the policy’s basic premium. The insured amount payable if any specific event covered by the rider occurs and is chosen by the policyholder is the rider sum assured.

Interest Upon Delayed Premiums As per the policy of the insurer for a similar product
Medical Requirements and Underwriting According to an insurer’s Board Approved Underwriting Policy, as well as the conditions listed above and additional regulatory requirements
COVID-19 Cover The COVID-19 death due is covered by Saral Jeevan Bima.
Tax Benefits Get the tax benefits on paid premiums u/s 80C of Income Tax Act, 1961.

Documents Required

The following are the important documents required for the Saral Jeevan Bima Term Plan.

Application Procedure for Jeevan Bima Policy

The registration process for the new standard policy is relatively simple, as it is available to all life insurance firms from January 1st. All qualified applicants who want to apply for this scheme can do so by following a few simple procedures. Let’s look at how to apply for the new Saral Jeevan Bima Policy both online and offline.

Online Application Process

  • Step 1- Go to the life insurance company’s official website to learn more about the Saral Jeevan bima plan.
  • Step 2- From the homepage, select the Saral Jeevan Bima insurance plan option.
  • Step 3- Go to the application website by clicking on the ‘apply online’ link.
  • Step 4- A screen with the application form will appear.
  • Step 5- Fill in the required information, such as date of birth, gender, husband/name, father, and other relevant information, and upload the necessary papers.
  • Step 6- To complete the application form, click the ‘submit’ button.

Offline Application Process

  • Step 1: Go to the life insurance company’s local branch office and purchase the Saral Jeevan Policy Yojana application form.
  • Step 2- Find out more about the Saral Jeevan policy plan and fill out the application.
  • Step 3: Complete the application form with all of the essential information, such as your date of birth, gender, and the name of your husband or father.
  • Step 4: Attach all of the necessary documents
  • Step 5: Submit the application form to the office of the life insurance company.