Understanding Saral Jeevan Bima And Its Benefits
Updated On Sep 06, 2021
Table of Contents
Term insurance is a type of life insurance that provides coverage for a certain period of time. The nominee of the insured person receives the death benefit if the insured dies when the policy is active. However, people with inadequate academic qualifications and irregular incomes and other restrictions have often found it difficult to buy regular term insurance plans so far.
The idea was that a standard individual life insurance product with simple features and standard terms and conditions will enable policy buyers to make easier informed choices. The Saral Jeevan Bima plan will have the same benefits, inclusions, exclusions and features, whichever insurer you choose. However, claim settlement rates, prices and service level can change from insurer to insurer. Read on to know everything you wanted to know about the HDFC Life Saral Jeevan Bima Term Insurance plan.
What is Saral Jeevan Bima Yojana?
The Saral Jeevan Bima Yojana is a non-linked non-participating individual pure risk term life insurance plan, which pays out to the policy holder's dependents the entire sum assured, in case of the demise of the insured person within the policy term. It attempts to offer the benefits of life insurance to people who have not had access to term insurance due to restrictions of education, location or income proof, or for people who are first time buyers of term insurance.
The primary objective of the plan is to ensure that the dependents of the policy holder are adequately covered in case of the death of the policy holder. There is no surrender value or maturity value benefit offered by this plan. There will be only one exclusion under the policy - exclusion for suicide.
Benefits of Saral Jeevan Bima Yojana
For regular and limited premium payment policies, the death benefit will be, highest of 10 times of annualised premium or 1-5% of all premiums paid as on the date of death, or an absolute amount assured to be paid on death.
For single premium policies, the death benefit will be higher of 125% of single premium, or absolute amount assured to be paid on death.
The Saral Jeevan Bima policy has a stipulated waiting period of 45 days from the commencement of the policy. During these 45 days, the policy will only cover death due to an accident. The waiting period will not be applicable in case of policy revival.
Who Should Buy Saral Jeevan Bima Yojana?
The plan can be bought by any individual, and there are no restrictions on gender, place of residence, academic qualification and occupation. Even those without a regular income and incomplete income proof can buy this term insurance plan.
The minimum and maximum entry ages for the Saral Jeevan Bima plan are 18 years and 65 years respectively, and the policy term ranges between 5 – 40 years. The maximum maturity age up to which the policy can be bought is 70 years.
The Saral Jeevan Bima plan is a simple term insurance plan that aims to bring life insurance to those who have stayed away from it so far, for multiple reasons. It offers financial security to your family in case of your untimely death, and affords peace of mind in these uncertain times.
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.