New Saral Jeevan Bima Standard Term Insurance Plan: Should You Buy?

IRDA has directed life insurance companies to introduce a standard ‘Saral Jeevan Bima’ policy by 1 January 2021.

new Delhi. The Insurance Regulatory and Development Authority has ordered life insurance companies to launch a standard ‘Saral Jeevan Bima’ policy by January 1, 2021. This policy will help in making better decisions for customers. According to IRDA, the ‘simple life insurance’ policy is purely a term life insurance plan, which can be taken by anyone between 18 and 65 years of age and its duration will be from 4 to 40 years. Let us know how beneficial this policy is for you.

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According to the guidelines of IRDA, under this insurance scheme, individuals can get insurance from 5 lakh to 25 lakh rupees. This policy will be in multiples of 50 thousand rupees.

– This policy is an individual pure risk premium life insurance policy, which will pay a lump sum to the nominee in case of death during the policy term.

– Simple life insurance policy will not include accidental event like suicide.

– The duration of this policy will be 5 to 40 years and it can be taken by people 18 and older.

– The maximum maturity age in standard term life insurance will be 70 years.

– The policy will have three premium payment options including regular premium, limited premium payment period for 5 and 10 years and single premium.

– Between 5 and 25 lakh rupees will be compulsorily insured in the policy.

– On behalf of IRDA, companies will be allowed to offer maximum insurance amount without any change in the situation.

Is it right to take standard term life insurance?

Santosh Aggarwal, Chief Business Officer, Life Insurance, PolicyBazaar.com believes that this scheme will prove to be a boon for first-time buyers of life insurance. Although prices may vary, it will have all the features of benefits, inclusions and exclusions for the insurers. Since IRDA has waived its premium for insurers as per the board approved policy, now your age, income and health history will be taken into consideration.

This policy has a waiting period of 45 days. Due to the livelihood security policies, death benefit is more beneficial. This policy will cover death due to accident only during 45 days. Explain that in a single premium policy, the death benefit will be more than 125 percent. This is because it is a pure life insurance plan. Probably because there is no maturity benefit in it.

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