The right way of choosing a Saral Jeevan Bima Plan in India

The right way of choosing a Saral Jeevan Bima Plan in India

Though term insurance is one of the most-discussed topics over the past few years, still people are reluctant in buying term insurance plans as they can’t capture the terms and conditions of various policies. But to make the buying process easier, the IRDA has instructed insurance companies to launch Saral Jeevan Bima policies so that everyone can understand the benefits and importance of purchasing insurance policies. From January 1, 2021, the IRDA asked all life insurance companies in India to launch Saral Jeevan Bima plans with unadorned features and standard terms and conditions

What is the Saral Jeevan Bima Policy?

The Saral Jeevan Bima plan comprises standard wording with uniform features. Thus, policy buyers (even less educated) can easily purchase and utilize these policy plans. Buyers between 18 and 65 years of age can purchase these policies. The maximum age at maturity is 70 years. This means once the buyer reaches that age, the policy plan will be void automatically. The policy term can be between 5 and 40 years. The minimum sum assured amount could be Rs 5 Lakh, while the maximum amount could be Rs. 25 Lakh.

Till now, six Indian life insurance companies along with the Life Insurance Corporation of India are embracing their customers with this product.

After the COVID-19 pandemic, people prefer to purchase various insurance policies online. Saral Jeevan Bima policies are easily available online for purchasing. Many insurers are also offering a 20% discount when a customer purchases these policies online.

The standardized benefits of Saral Jeevan Bima

You may find many Indian insurance companies that are welcoming customers with multifarious term insurance plans that possess varying inclusions and exclusions. But Saral Jeevan Bima is a uniform product with unique features irrespective of insurance companies. Due to this standardization, anyone can purchase these Bima policies regardless of their education, class, and employment history. Saral Jeevan Bima could be the best option for those who don’t have proper education and knowledge.

For a Saral Jeevan Bima policy, the death claim settlement ratio is considered as the percentage of insurance claims settled by an insurance provider compared to the total number of claims the company has received. If the ratio is 99% for an insurer, then this indicates that the company has paid 99 death insurance claims out of every 100 insurance death claims it has received from policyholders.

Apart from considering the claim settlement ratio, a policy buyer must consider other factors like the onboarding process, customer support and service, and the renewal process before jumping to a plan.

Your income will not interfere with the purchase of this policy

Based on the annual income of buyers, most insurance companies offer the sum assured to them. But with the Saral Jeevan Bima term plan, a purchaser can choose the sum assured amount based on his/her annual income. The product gives relief to people who have restricted incomes or who can’t produce adequate income proof.

Before the introduction of the Saral Jeevan Bima policy, these people were not covered by any insurance policy plan. These people also need a concrete insurance plan that will cover their dependent members from financial difficulties after their demise. Very often, it has been noticed that these lower-income groups have only one breadwinner who used to take care of all the responsibilities of the family. These bread earners also need a term insurance plan so that their family members can lead life peacefully in case of any untoward incidents.

Saral Jeevan Bima Policy price

Many insurance experts believe that the pricing of Saral Jeevan Bima is much higher than the regular term plans.

Edelweiss Tokio Life Insurance Co. Ltd was the first Indian insurance company which launched its Saral Bima plan in January 2021. The annual premium amount is Rs 13, 605 which is twice more than its normal term plan (Rs6,464).

The premium amount of the Saral Jeevan Bima plan by LIC is Rs18,704. But the life insurance company doesn’t offer a plan with a sum assured of below Rs25 lakh under its regular term plan.

The premium amount of Max Life Insurance Co Ltd for its Saral Jeevan Bima plan is Rs. 12,000 for a 25-year-old non-smoker male and a sum assured of Rs. 25 lakh.

What to look for while purchasing this policy?

Since this is a newbie product, hence you should acquire more information about the product before purchasing a policy plan. Not only focus on the premiums of various insurance companies, but you should also check the solvency ratio and claim settlement ratio of the insurer.

The Saral Jeevan Bima policy offers an array of benefits to the lower-income groups. Apart from strengthening their financial security, this policy also uplifts their confidence. PayBima.com is an eminent online platform from where you can purchase Saral Jeevan Bima policies for your requirements. You can also compare Saral Bima policies of various companies and choose the most suitable one for you.

Albert Wilson