Benefits Offered by Saral Jeevan Bima Yojana (SJBY)

The popularity of term insurance is growing expeditiously over the past few years as people want to secure the financial future of their families. But some often hesitate in purchasing a term plan as they can’t grasp the terms and conditions of various policies. To minimize this gap, the IRDA has instructed insurers in launching Saral Jeevan Bima policies with easy features and standard terms and conditions so that customers don’t find difficulties while buying insurance plans. From January 1, 2021 insurance companies are selling Saral Jeevan Bima policies with unembellished features and typical terms and conditions.

What is the Saral Jeevan Bima Policy?

This is a non-inked and non-participating term insurance plan where the beneficiary receives a fixed amount from the insurance company in case of the sudden demise of the policyholder during the tenure period

Eligibility criteria for Saral Jeevan Bima policy

  • Entry age (Minimum): 18 years
  • Entry age (Maximum): 65 years
  • Policy term: 5-40 years
  • Maximum maturity age: 70 years
  • Sum assured (Minimum): Rs. 5 lakh
  • Sum assured (Maximum): Rs. 25 lakh
  • Mode of premiums: monthly/yearly/half-yearly
  • The waiting period: 45 days

How does this Saral Jeevan Bima policy work?

Ranadeep (35 years old) works in a small private organization in Bhubaneswar and lives with his family (wife and two kids). Being the sole bread earner of his family, Ranadeep wants to enhance the financial security of his loved ones so that they don’t meet any financial crisis in case of his sudden demise. So, Ranadeep purchased a Saral Jeevan Bima policy for 20 years with a regular payment option. To get the coverage of Rs. 25 lakh, Ranadeep needs to pay Rs. 447 premium amount. 

In case of his unfortunate demise during the policy tenure period, his family will receive Rs. 25 lakh as a death benefit from the insurance company. 

Till now, 6 insurance companies are welcoming their customers with this new insurance product.

Benefits of Saral Jeevan Bima

Let’s take a look at some of the promising benefits of Saral Jeevan Bima policies. 

Offers Covid-19 coverage

To cope with the COVID-19 situation, the IRDA has designed this simple life insurance plan. Saral Jeevan Bima protection policy offers death coverage due to COVID-19.

The waiting period

The waiting period for this bima policy is 45 days. The waiting period won’t be applicable if you want to revive the policy. This bima plan offers death coverage due to an accident even in the waiting period.

Provides coverage for everyone

This bima plan is for everyone. Any Indian citizen can purchase this plan irrespective of their education, gender, and race. 

Enjoy discounts on the higher sum assured

This bima policy offers discounts on the premium amount above Rs. 5 lakh. The insurers also offer discounts (up to 20%) if a customer purchases this policy online.

Death benefit

If a policyholder dies during the tenure period of the policy (after the completion of the waiting period), the beneficiary receives a death benefit from the insurance company.

  • For a single premium policy: the beneficiary will receive the highest 125 percent of the single premium or an absolute sum assured amount from the insurance provider
  • For a limited premium policy/regular payment option: the nominee will receive either 10 times the annual premium or 105% of the total premium or the absolute amount of sum assured as a death benefit in case of the sudden demise of the policyholder
  • The death benefit apart from accidents: During the waiting period, the beneficiary will receive the death benefit (100% of all the paid premiums) from the insurer

Tax benefits

You will be eligible for tax deductions (Under Section 80C of the Income Tax Act, 1961) against all the paid premiums for your Saral Jeevan Bima policy. 

Riders

By paying additional premium amounts, you can opt for riders based on your requirements.

Who can purchase a Saral Bima Jeevan policy?

This bima policy plan is ideal for everyone without any restrictions in terms of education, qualification, race, age, and gender. People who don’t have any stable income or can’t produce income proof can also secure their families’ future by purchasing a Saral Jeevan Bima policy. 

Things to remember while purchasing a Saral Jeevan Bima policy

  • Death due to an accident will be covered during the waiting period (45 days) of the policy
  • The policy doesn’t offer any maturity benefit
  • You can’t take a loan against this policy
  • By purchasing an accident benefit/personal disability rider, a policy purchaser can extend the coverage of the policy plan

Saral Jeevan Bima is a simple term insurance plan; hence anyone (especially novice buyers) can purchase it easily from an insurance company. PayBima is a popular online platform where you can find different Saral Jeevan Bima policies as per your needs. Compare various available plans and choose the best one for you.