Saral Jeevan Bima - New Time period Insurance coverage Guideline by IRDAI

Saral Jeevan Bima Term Insurance Plan


Saral Jeevan Bima – Time period Insurance coverage – Time period Plan is a broadly accepted product. Nevertheless, phrases and circumstances of the time period plan supplied by totally different insurance coverage corporations are totally different. Each firm was introducing modern merchandise with totally different options, choices, and riders.

Totally different time period plans with totally different options are creating confusion amongst prospects. This can be very troublesome for the client to check coverage options and take a shopping for choice.

To assist prospects IRDAI has issued a brand new guideline for the time period insurance coverage coverage. This guideline is for standardizing phrases and circumstances of the time period plan. It will likely be referred to as Saral Jeevan Bima. Saral Jeevan Bima will likely be a normal time period plan with easy options and normal phrases and circumstances.

It’s a welcome step by IRDAI. This step will make the lifetime of the client simpler. It can improve belief between the insurance coverage firm and its prospects. This step may even assist in stopping the mis-selling of insurance coverage insurance policies. Earlier than this IRDAI has launched a suggestion for standardizing phrases and circumstances for medical insurance insurance policies – Arogya Sanjivani.

Right here is element guideline introduced by IRDAI for traditional time period insurance coverage – Saral Jeevan Bima.

Saral Jeevan Bima – New Time period Insurance coverage Guideline by IRDAI

The usual time period insurance coverage plan shall be referred to as “Saral Jeevan Bima”. All insurance coverage insurance policies will prefix Saral Jeevan Bima earlier than the product identify.

It will likely be a non-linked and non-participating pure time period plan which is able to cowl the chance of particular person life. No extra saving or funding part will likely be hooked up to this plan. This time period plan ensures cost of sum assured to the nominee, incase coverage holder’s die throughout the coverage time period.

Solely particular riders may be supplied. No extra advantages, choices, variants shall be supplied to the policyholder. No exclusion is allowed below this coverage besides suicide exclusion. This coverage shall be supplied to people with none restrictions on gender, place of residence, journey, occupation or instructional {qualifications}.

The phrases and circumstances doc of Saral Jeevan Bima can be normal. Key Options and different parameters of this plan as per IRDAI tips are given under.

Sr. No.DescriptionOptions
1Entry Age18 years to 65 years
2Coverage Time period5 years to 40 years
3Most Maturity Age70 years
4Sum Assured



 Minimal 5 Lakh to Most 25 Lakh*

(SA can be allowed solely within the a number of of Rs.50000)

*Insurers have the choice of providing Sum Assured past 25 Lakh below Saral Jeevan Bima with all different phrases and circumstances remaining the identical.

5Premium Cost ChoicesSingle Premium – Lump sum

Common Premium – Month-to-month, Half Yearly & Yearly

Restricted Premium Time period for five years and 10 years

6Loss of life ProfitFor Common & Restricted Premium Cost insurance policies: Highest of:

–       10 occasions of annualized premium;

–       105% of all of the premiums paid as on the date of loss of life;

–       Absolute quantity assured to be paid on loss of life.

For Single premium insurance policies: Greater of:

–       125% of single premium;

–       absolute quantity assured to be paid on loss of life.

7Maturity ProfitNone
8ExclusionsSolely suicide clause
9Ready interval45 days from the date of graduation of danger. In case of revival of Coverage, the Ready Interval shall not be relevant.

The next phrases shall be prominently displayed in BOLD, on the welcome letter of Coverage Doc in addition to on the primary web page of Gross sales Literature.

“This Coverage will cowl loss of life because of accident solely throughout the ready interval of 45 days from the date of graduation of danger.

In case of loss of life of the life assured apart from because of accident throughout the ready interval, an quantity equal to 100% of all premiums acquired excluding taxes, if any, shall be paid and the Sum Assured shall not be paid.”

10Give up WorthGive up Worth will not be relevant below this Coverage.
11Coverage Cancellation WorthCoverage Cancellation Worth shall be payable:

–      Upon the Policyholder making use of for a similar earlier than the stipulated date of maturity in case of Single Premium Coverage;

–      Upon the Policyholder making use of for a similar earlier than the stipulated date of maturity or on the finish of revival interval if the coverage will not be revived, in case of Restricted Premium Cost Insurance policies.

The quantity payable shall be calculated otherwise in single premium and restricted premium coverage. For normal premium coverage no cancellation worth shall be payable.

12MortgageNo mortgage will likely be supplied towards the coverage
13Elective RidersAccident Profit and Everlasting Incapacity Profit Riders

The coverage guideline instructed above for the time period plan Saral Jeevan Bima shall be relevant from 1st January, 2021.

Take Away

It’s a superb step by IRDAI. This step is probably going to provide the next advantages.

  • Because the phrases and circumstances of a time period plan are normal, it’s more likely to enhance time period insurance coverage adoption throughout India.
  • The coverage premium of this plan will likely be low as sum assured below this coverage is restricted to 25 Lakh.
  • As it’s an inexpensive coverage lower-income group may even buy Saral Jeevan Bima.
  • Steered Options and Advantages of this coverage is de facto Saral (Easy) and simple to grasp.
  • As it’s a normal product and ruled by the rule of thumb of IRDAI, the possibility of mis-selling and disputes on the time of declare settlement will likely be low.

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