Saral Jeevan Bima Yojna
Life insurance plans cover the risk of dying too early. If the breadwinner of a family dies prematurely, the family suffers both an emotional loss and a financial one. While it is impossible to compensate for the emotional loss, the financial loss can be recovered. This is where life insurance plans come into the picture. These policies cover the risk of premature death and compensate the financial loss suffered if the insured dies.
While there are different types of life insurance plans, a term life insurance policy is the most basic coverage that covers the risk of dying too early. A term plan is the most important coverage and so, the Insurance Regulatory and Development Authority of India (IRDAI) introduced the concept of a standardized term insurance plan called the Saral Jeevan Bima policy.
The need for a standardized policy
A standardized insurance policy is one that has uniform coverage features. All insurance companies are required to offer the standardized policy with the same coverage features. Only the premium rate can vary and is fixed by the insurers as per their pricing policy.
Here are some reasons why a standardized insurance policy is helpful -
- To drive insurance penetration
- Affordable plans
- Ease of comparison
The need for a standardized insurance policy stems from the fact that many individuals in India are uninsured. Either due to a lack of awareness or to avoid high premium payments, they do not invest in life insurance plans. A standardized policy, thus, can provide the basic coverage benefits to individuals and give them the much-needed insurance coverage.
Another reason for a standardized insurance plan is to allow consumers buy an insurance policy at affordable rates.
You can calculate the premium easily using our Premium Calculator. Check it out.
Standardized insurance plans can also be compared easily. Since the coverage benefits are the same, consumers can compare insurers on the basis of the premium charged and choose a plan which has the lowest premium rate.
What is Saral Jeevan Bima policy?
In January 2021, the Insurance Regulatory and Development Authority of India mandated all the insurance companies to offer a standard individual term life insurance policy. This marked the birth of Saral Jeevan Bima Yojana. Saral Jeevan Bima is a standardized, pure term insurance policy, which provides financial security to your loved ones. It is a term plan with simple and uniform features which allows life insurance protection in the case of premature death.
Key Features and benefits of Saral Jeevan Bima
Let’s look into the detailed benefits of Saral Bima Yojana –
- Coverage after a short waiting period
- Lump sum death benefit
- Flexible premium payment options
- Attractive premium discounts
- The choice of optional riders
The Saral Jeevan Bima policy has an initial waiting period of only 45 days. If the insured dies within this waiting period due to an illness or any other form of natural death, 100% of the premium paid till death is refunded back. However, for accidental deaths, there is no waiting period. If the insured dies due to an accident during the waiting period, the full death benefit is paid.
After the waiting period is over, the plan covers you fully. You get the full death benefit whether the death is due to an accident or otherwise.
If the insured dies within the policy tenure, the death benefit is paid in a lump sum to the family members. This lump sum benefit provides a financial assistance to the bereaved family on the loss of the insured member.
Saral Bima Yojana offers you the flexibility to pay the premium at your convenience. The plan offers single premium payment, limited premium payment, and regular premium payment modes. You can, thus, pay the premium once, for a limited period or throughout the policy tenure as per your affordability. Moreover, you can also choose the premium payment frequency from the monthly, quarterly, half-yearly or annual mode.
Many insurers offer attractive premium discounts on the premium for Saral Jeevan Bima. Discounts are allowed for choosing a high sum assured, for paying the premium annually, for buying online, etc. Moreover, non-smokers and females can also enjoy lower premium rates. Calculate the premium using our calculator.
Many insurance companies allow you the choice of increasing the scope of coverage of the policy through riders. Riders are optional coverage benefits and the riders offered depend on the insurer. You can, thus, compare and choose an insurer that offers suitable riders to make the policy more comprehensive.
Eligibility of Saral Jeevan Bima
The eligibility Saral Jeevan Bima Yojana guidelines are stated as follows:
|Age at entry|| |
Minimum- 18 years
Maximum- 65 years
|Age at maturity|| |
Minimum- 23 years
Maximum- 70 years
|Policy term|| |
Minimum- 23 years
Maximum- 70 years
|Premium payment term|| |
Regular premium- As same as term of the policy
Limited premium- 5 years onwards depending on the insurer
|Sum assured|| |
Minimum- 5 lakh (in multiples of INR 50,000)
Maximum- 25,00,000 onwards depending on the insurer
|Premium payment mode|| |
Monthly, quarterly, half-yearly and yearly
How does Saral Jeevan Bima work?
Under a Saral Jeevan Bima plan, you will have to choose the following details when you buy the policy:
- The sum assured in the plan
- The tenure of the policy
- Premium paying frequency i.e half-yearly, yearly, monthly or quarterly
- Premium paying tenure
The premium will be calculated based on the policy details, your medical history and your age. The premiums for the plan are to be paid for the selected premium paying tenure.
Now, if the insured dies during the term of the policy, once the waiting period has lapsed, the sum assured would be paid as the death benefit. Here’s a quick example to understand how the plan works -
Mr. Agarwal buys a Saral Jeevan Bima Yojana policy with a sum assured of Rs.15 lakhs. The policy term is 15 years the premium is also paid for 15 years, annually. Suppose the premium amounts to Rs.7500. There is a waiting period of 45 days in the plan from the date of commencement of risk.
Case 1- Mr Agarwal dies within 45 days from the date of risk commencement due to an accident
Accidents are covered from the first day of the plan. As such, in this case, the basic sum assured would be paid. The death benefit would be the highest of the following –
- The sum assured of INR 15 lakh
- 10 times the annualised premium, i.e. Rs.7.5 lakhs
- 105% of the premiums paid till the date of death, i.e. 105% of Rs.7500 * 105% = Rs.7875
Since the sum assured is higher, Mr. Agarwal’s family would receive Rs.15 lakh on Mr. Agarwal’s demise.
Case 2- Mr Agarwal dies within 45 days from the date of risk commencement due to an illness
The policy covers death only due to accident during the waiting period of 45 days from the date of the commencement of the risk. Hence, in this case the basic sum assured in the plan cannot be paid. Instead, the premium would be refunded and Mr. Agarwal’s family would receive Rs.5000 as the death benefit.
Case 3- Mr Agarwal dies in the 10th policy year
In this case the nominee will receive the sum assured on death which is higher of the following –
- 10 times of annualised premium, i.e. Rs.7.5 lakhs
- Basic sum assured of Rs.15 lakhs
- 105% of the premiums paid till death, i.e. 7.5 lakhs * 10 * 105% = Rs.787,500
Hence, Mr. Agarwal’s family would receive Rs.15 lakhs as the death benefit.
Case 4- Mr Agarwal survives the policy term of 15 years
Saral Jeevan Bima is a pure term insurance plan. No maturity benefit would be payable if the life assured survive the stipulated date of maturity. Hence, nothing would be payable to Mr. Agarwal after the expiry of the policy term.
What is covered under Saral Jeevan Bima?
Saral Jeevan Bima covers death that can occur due to accidents, illnesses or injuries. In the case of death, highest of the following amounts would be paid –
- 10 times the annual premium
- 105% of the aggregate premiums that you have paid till death
- The absolute assured benefit which is equal to the sum assured chosen
However, in the case of death during the waiting period for any reason other than accidents, 100% of the premium
What is not covered under Saral Jeevan Bima?
Saral Jeevan Bima policy provides coverage against all types of deaths but does not cover the following instances-
- Suicides within a year
The policy will be considered void if the life insured commits suicide within 12 months from the commencement of the policy. Death due to committing suicide within a year of buying the policy will not be covered. However, 80% of the premiums paid for the plan till the date of death will be refunded. In the case of single premiums, however, the refund would be 90% of the premium.
Similarly, if the life insured commits suicide within a period one year of revival of a lapsed policy, no death benefit would be paid and in such cases 80% of the premiums paid for the plan till the date of death would be returned. For single premium plans, 90% of the premium would be refunded.
- Hazardous acts
- Substance abuse
- Criminal acts
- Breach of good faith
- Fraud claims
If life insured suffers death due to participation in hazardous activities or in any other adventurous sport, such instances of death would not be covered by the insurance company.
Death of life insured due to intoxication, alcohol, drugs or abuse of banned substance would also be excluded from coverage.
Death at the time of committing a criminal act would also not be covered
In case you provide any misinformation to the insurance company or hide important information which eventually affects your death risk, then the insurance company reserves the right to reject the death claim if it finds out about such misrepresentation or non-disclosure of significant information
No claims will be entertained by the insurance company if the death occurs during the period when the policy has lapsed and is pending revival
No fraudulent claims would be entertained by the insurance company under the plan
Who should buy Saral Jeevan Bima?
The Saral Jeevan Bima policy is suitable for every individual looking to secure his/her family financially. It is an affordable plan with a decent sum assured option which can also be enhanced if the insurer offers riders. So, if you have not invested in any term insurance policy, you can opt for this plan to have the basic coverage.
Even those who have bought a term insurance policy can add Saral Jeevan Bima to their portfolio to enhance their overall coverage at affordable premiums.
The Saral Jeevan Bima policy, therefore, is suitable for everyone.
Tax benefits of Saral Jeevan Bima
Being a life insurance policy, Saral Jeevan Bima offers tax benefits to policyholders. The tax benefits are as follows –
|On the premium amount||The premium that you pay for the Saral Jeevan Bima policy is allowed as a deduction from your taxable income. You can claim a deduction on the total premium up to a limit of Rs.1.5 lakhs. However, the premium should not be more than 10% of the sum assured. If the premium exceeds 10% of the sum assured, deduction would be allowed only on the amount that is equal to 10% of the sum assured.|
|On the claim amount||The death benefit paid by Saral Jeevan Bima is always tax-free in the hands of your beneficiary.|
|On the rider premium||If the insurer offers optional riders and the rider offers health insurance coverage, you can claim a deduction on the premium amount up to a limit of Rs.25,000. This deduction is available under Section 80D of the Income Tax Act, 1961 and it increases to Rs.50,000 if you are a senior citizen|
How to buy Saral Jeevan Bima?
You can buy Saral Jeevan Bima online as well as offline. Let us know how:
To buy the Saral Jeevan Bima policy online, you have two options stated as follows:
- Through insurance agent: You can buy Saral Jeevan Bima policy with the help of a insurance broker or intermediary.
- Contact an insurance agent, intermediary or a broker and collect information about Saral Jeevan Bima policy.
- Fill a physical proposal form stating your requirements and details and pay the premium for the plan in advance.
- Your proposal form would then be submitted to the insurance company along with advance premium
- If the company accepts your proposal form, the policy will be issued and coverage will be granted
- Select the insurance company from which you want to buy the Saral Jeevan Bima policy
- Visit the branch office nearest to your place of residence and fill out the proposal form
- You will have to pay the premium for the plan in advance at one of the counters of the branch office of the company along with the proposal form
- The insurance company will underwrite the policy and grant the coverage
Buying a life insurance policy online is quite faster and easier than buying it offline. There are two options through which you can purchase Saral Jeevan Bima policy online. They include the following:
- Through website of the insurance company:
To buy Saral Jeevan Bima Yojana online, apply the following steps:
- Visit the official website of the insurance company from which you want to buy the Saral Jeevan Bima policy
- Fill in the proposal form and submit it to the insurance company along with relevant documents
- Pay the premium in advance
- The insurance company will validate your proposal form and submitted documents
- Insurance company will then underwrite your proposal and grant you with the coverage
PayBima provides an option to buy Saral life insurance policy online after comparing the features and benefits of the plans offered by different insurance providers. Here are the steps to buy the plan through PayBima:
- Visit www.paybima.com
- Provide your contact details and PayBima’s executive will get in touch with you in order to understand your coverage requirement
- The PayBima executive will recommend you a suitable insurance provider based on your coverage requirements for buying Saral Jeevan Bima policy
- If you choose to accept the recommendations of the executive, then you can fill the proposal form online and pay the premium in advance through any of the offered online payment mode
The insurance company would grant you the coverage if your insurance proposal is underwritten
Documents needed for buying Saral Jeevan Bima
List of documents that you need to keep handy at the time of buying Saral Jeevan Bima insurance policy are as follows:
- Filled and signed proposal form
- Identity proof like voters ID card, pan card, Aadhar card, birth certificate, passport, etc
- Address proof like utility bills, driving licence, passport, Aadhaar card, PAN card, voter ID card, etc
- Income proof only if the premium of the plan exceeds INR 1 lakh. Salary slip, IT Returns, Form 16, etc can be submitted as Income Proof
- Passport size latest photographs
You can also buy a 1 crore term plan for higher coverage.
Why buy Saral Jeevan Bima from PayBima?
Here are some reasons for buying the Saral Jeevan Bima policy through PayBima online –
- Quick service
- Commission-free premiums
- The comparison benefit
- 24*7 customer support
- Instant policy proof
- Convenience at your fingertips
Buying through PayBima allows you quick service as you can connect with PayBima’s executives instantly over a call and get complete guidance in buying the policy.
When you buy through PayBima, you don’t have to pay additional commissions on the premium. We offer commission-free policies so that your premium outgo is affordable.
PayBima is tied-up with leading life insurance providers of India. You can, thus, compare the policies offered by different insurers, their coverage benefits and the respective premiums. You can compare and choose the best policy which offers the maximum coverage at the lowest premiums.
PayBima offers 24*7 support for any queries or help that you need. You can connect with us anytime for renewing the policy or making a claim and we would help you with your needs.
Once you buy the policy through PayBima, you get an instant soft copy of the policy in your registered email ID. This becomes a proof of coverage till the insurer sends you the physical policy bond in some days.
Lastly, buying through PayBima is quick, simple and hassle-free. You can buy the policy from the convenience of your home or office. All you need is a computer or Smartphone and an internet connection.
How is the premium calculated for Saral Jeevan Bima?
As mentioned earlier, the premium for Saral Jeevan Bima is insurer-specific, i.e. it depends on the pricing strategy of the insurer. You can use the Saral Jeevan Bima Yojana premium calculator offered by insurers to check your premium. However, some specific factors that affect premium calculation across all insurers are as follows –
|Factors||How they affect premium calculation?|
|Age||Your age determines your mortality risk which increases with age. As such, the older you are the higher would be the premium and vice-versa|
|Sum assured||The higher the sum assured that you choose the higher would be the premium and vice-versa|
|Policy term||Premiums are lower for longer policy tenures. So, depending on the coverage tenure selected, the premium would be calculated|
|Premium payment term and frequency||Premium payment term also affects the premium amount. Single premium is the highest followed by limited premiums. Under regular premium policies, the premium is the lowest. Moreover, if you pay premiums half-yearly, quarterly, or monthly, insurers might charge a bit higher amount of premium for the additional cost of servicing such frequencies|
|Optional riders selected||If the plan offers optional riders and you choose one or more riders, an additional premium would have to be paid. This is because each rider comes with an added premium and if you add the riders to your policy, the premium increases|
|Applicable discounts||If the insurer is offering premium discounts and you are eligible for the same, the premium would reduce|
|Medical history||If you have an existing or previous medical complication, the death risk increases. As such, the premiums are also increased|
|Family history||If you have hereditary illnesses or if there is a family history of medical complications, the premium would be higher|
|Gender||Females are considered to have a lower mortality risk than males. As such, they are charged lower premiums|
|Occupation||If you are employed in a risky job, your premiums would be increased. That is why pilots, air hostesses, miners, police personnel, etc. with risky jobs have to pay higher premiums|
|Smoking history||If you smoke, your premiums would be higher since smoking increases the mortality risk|
Calculate the premium with PayBima’s premium calculator.
Claim process for Saral Jeevan Bima
Under Saral Jeevan Bima, a claim occurs on death of the life assured during the tenure of the policy. If any life insurance company offers riders along with Saral Jeevan Bima plan, then there might be rider claims too if you have opted for the available rider. Let us see the process to get death claim settlement -
- Death claims
- Rider claims
In the case of the death of life assured, the nominee has the right to make a claim under Saral Jeevan Bima plan by informing the insurance company and filling the death claim form. Then, the nominee has to submit duly filled and signed claim settlement form along with claim related documents to the insurance company. The company will verify the documents and then pay the death claim.
For rider claims, the policy holder or the nominee will have to fill up rider claim form and submit it to the insurance company along with the policy document. A proof of the rider claim is also required to be submitted to the company along with the claim form. For instance, for critical illness, a medical prescription or a medical practitioner’s report of diagnosis of the illness and other associated medical documents would be required to be submitted in order to prove the authenticity of the claim.
Claim documentsThe documents needed for making a claim under the Saral Jeevan Bima Yojana 2021 are as follows:
- Duly filled and signed death claim form
- Original policy document
- Death certificate of the life insured
- ID proof of the nominee of the plan
- Bank mandate of the nominee for direct transfer of death claim In case of accidental death additional documents such as Police FIR, post-mortem report, medico-legal certificate, panchnama, coroner’s report, etc.
- Any other document as may be required
Frequently Asked Questions
- What is the maturity benefit under Saral Jeevan Bima?
- If I smoke would it affect my premiums?
- Do I need to undergo any medical check-up to buy the plan?
- What would happen if I stop paying the premiums?
- How is the cancellation value calculated?
Saral Jeevan Bima does not offer any maturity benefit. If the insured survives till the policy tenure and the policy matures, no benefit would be payable.
Yes, smoking increases your health risks and so, the premium also increases to account for the increased risk. Smokers are, therefore, charged higher premiums than non-smokers.
Usually, a medical check-up is not required to buy the policy. However, if you mention any adverse medical condition, the insurer might require you to undergo a medical check-up before issuing the policy.
If you stop paying the premiums, the policy would lapse. If you do not revive the plan, you lose the plan benefits. However, single and limited premium plans accumulate a cancellation value that is calculated based on the premium payment mode if a minimum number of premiums have been paid.
The cancellation value is calculated as follows –
- For limited premiums, the cancellation value is calculated only if at least 2 years’ premiums have been paid. The value is calculated as follows –
70% of the premiums paid * (remaining policy tenure / total policy tenure)
- For single premiums, the cancellation value is available immediately after you pay the premium. It is calculated as follows –
70% of the single premium paid * (remaining policy tenure / total policy tenure)
No, loans are not offered under the plan.
Yes, there is a free-look cancellation period of 15 or 30 days within which you can cancel the policy. Upon such cancellation, you get the refund of your premiums after deducting the cost of issuing the policy and the risk premium for the period for which the policy was in-force.
If you pay the premium on monthly mode, you get a grace period of 15 days. For all other premium payment modes, the period is 30/31 days.
No, the policy is available only for adults aged 18 years and above. So, you cannot cover your minor son.
No, Saral Jeevan Bima term insurance does not offer whole life protection.