Frequently Asked Questions About Saral Jeevan Bima
Updated On Feb 14, 2022
Table of Contents
- Frequently Asked Questions About Saral Jeevan Bima
- Q1. Why was the Saral Jeevan Bima Plan Introduced?
- Q2. What are the Common Features of a Saral Jeevan Bima Plan?
- Q3. What are Different Types of Premium Payment Modes?
- Q4. Can Saral Jeevan Bima Plan Be Bought Online?
- Q5. What is the Required Waiting Period for the Plan?
- Q6. Does Saral Jeevan Bima Offer Protection Against Covid-19?
- Q7. Does Saral Jeevan Bima Plan Provide Tax Benefits?
- Q8. What are the Rider Benefits That Are Provided Under Saral Jeevan Bima?
The name of the uniform individual term life insurance policy is Saral Jeevan Bima, and the insurer's name can be prefixed to the product name. No matter where an individual lives, their occupation, where they travel, or where they are located, they can benefit from these plans. In the event of the life assured's untimely death within the policy term, the Saral Jeevan Bima policy pays the sum insured in a lump sum to the nominee. It is an individual pure risk premium life insurance plan that is non-linked and non-participating. The policy's two optional riders are the Approved Accident Benefit and Permanent Disability Benefit riders.
Frequently Asked Questions About Saral Jeevan Bima
Here are the answers to some of the frequently asked questions about Saral Jeevan Bima.
Q1. Why was the Saral Jeevan Bima Plan Introduced?
There are a variety of term products in the market, each with its unique set of terms and conditions. Individuals who do not have the time or energy to make well-informed selections, on the other hand, may find it difficult to select the ideal product. Furthermore, policies may not be available for the required price. The Insurance Regulatory and Development Authority of India (IRDAI) introduced the Saral Jeevan Bima plans as a solution to all of these concerns and as a plan that will broadly satisfy the demands of the typical customer from all life insurers.
Q2. What are the Common Features of a Saral Jeevan Bima Plan?
It is accessible to policyholders between the ages of 16 and 65 years, with the plan automatically terminating when the buyer reaches the age of 70. The policy has a 5-year minimum term and a maximum duration of 40 years. The minimum amount promised is Rs. 5 Lakh, while the maximum amount assured is Rs 25 Lakh.
Q3. What are Different Types of Premium Payment Modes?
Premiums can be paid in one lump sum or in regular or limited payments of monthly, half-yearly, or yearly instalments.In the event of death, the benefit paid to the beneficiary will be more than 10 times the yearly premium or 105 per cent of the premium paid until death, depending on whether the premium was paid on a limited or regular basis. The death benefit for single premium payments will be more than 125 per cent of the single premium, or the absolute sum assured amount.
Q4. Can Saral Jeevan Bima Plan Be Bought Online?
A digital platform will allow applicants to view the plan, making it more accessible. An online purchase of the plan will result in 20% off the premiums. Further, consumers will have the convenience of comparing policies, prices, and benefits from the comfort of their own homes.
Q5. What is the Required Waiting Period for the Plan?
From the day of risk commencement, Saral Jeevan Bima has a 45-day waiting period. The waiting period does not apply if the policy is reinstated. Saral Jeevan Bima also covers accidental death within the 45-day waiting period. Moreover, it must be highlighted that policy would be cancelled if the life assured dies by suicide during the 12 months of policy beginning.
Q6. Does Saral Jeevan Bima Offer Protection Against Covid-19?
From January 1, 2021, the IRDAI has mandated that all life insurance carriers issue the Saral Jeevan Bima. Therefore, the policy was built with the Covid-19 pandemic in mind, and it offers the virus with pure protection coverage.
Q7. Does Saral Jeevan Bima Plan Provide Tax Benefits?
When you buy Saral Jeevan Bima, you get both life insurance and tax benefits. Saral Jeevan Bima premiums paid under Section 80C of the Income Tax Act of 1961 are eligible for tax deductions. Moreover, the death benefits offered to the beneficiary are tax-free under Section 10(10D) of the Act.
Q8. What are the Rider Benefits That Are Provided Under Saral Jeevan Bima?
Additional rider benefits like accidental death rider benefits and permanent disability rider benefits help in the development of a strong financial portfolio. These riders can be added to the base policy for an additional premium fee. Therefore, if the situation described in the rider occurs, the insurance company will pay the rider sum assured.
In order to avoid claim rejections when the time comes, you should choose a dependable and trustworthy insurer with a high claim settlement ratio and solvency ratio.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.