Saral Jeevan Bima Policy: Simplified Life Insurance for All

Saral Jeevan Bima is the standardized life insurance product by IRDAI. A pure protection plan, Saral Jeevan Bima is offered by all life insurance companies. Introduced with the intention of helping customers make an informed choice, Saral Jeevan Bima is a standard term insurance plan that can be purchased at affordable premium rates.

What Is Saral Jeevan Bima Policy

“Saral Jeevan Bima” is a non-linked, non-participating individual pure risk premium life insurance plan, which provides for payment of the Sum Assured in a lump sum to the nominee in case of the Life Assured’s unfortunate death during the policy term. Apart from the benefits and riders stated in the Annexure, no other riders/ benefits/ options/ variants shall be offered. There shall be no exclusions under the product other than the suicide exclusion. The product is an offer to individuals without any restrictions like age, gender, education qualification, or place of living.

Eligibility Criteria for Saral Jeevan Bima

Particulars	Norms
Minimum Age at Entry	18 Years
Maximum age at Entry	65 Years
Policy Term	5 To 40 Years
Maximum Maturity Age	70 Years
Minimum Sum Assured	5 Lakh
Maximum Sum Assured	25 Lakh
Premium Payment Options	i) Regular Premium;ii) Limited Premium Payment Term for 5 years and 10 years;iii) Single Premium
Mode of Premium Payment	Yearly, Half Yearly, Monthly (only under ECS / NACH)
Waiting Period	45 Days

Saral Jeevan Bima Plans

Insurer offering Saral Jeevan bima plans	Entry Age(Min-Max)	Maturity Age(Min-Max)	Sum- Assured(Min-Max)	Policy Term(Min-Max)
ICICI Prudential	18-55 Years	23-70 Years	5 Lac-49.50 Lac	5 years -40 years
HDFC Life	18-40 years	23-50 Years	5 Lac- 35 Lac	5 years -40 years
PNB Metlife	18-44 Years	23-70 years	10 Lac -40 Lac	5 years -40 years
Aegon Life	18-65 years	23-70 years	5 Lac-25 Lac	5 years -40 years
SBI Life	18-65 years	23-58 years	5 Lac-25 Lac	5 years -40 years
Bharti AXA	18-65 years	27-70 years	5 Lac-25 Lac	5 years -40 years
Exide Life	18-65 years	23-70 years	5 Lac-25 Lac	5 years -40 years
Edelweiss Tokio	18-65 years	23-70 years	5 Lac-25 Lac	5 years -40 years

Feature and Benefits of Saral Jeevan Bima

As discussed above, the Saral Jeevan Bima plan is a standardized pure protection plan available at low premium rates. This plan is available for all the sections of the Indian society, irrespective of gender, age, occupation, education, and location. Additionally, the features of this plan are the same for all insurance companies offering it. In the below table, let us understand the benefits of the Saral Jeevan Bima Plan:

Financial Safety:- The Saral Jeevan Bima Term Insurance Plan offers life cover to protect the family members in case of an unforeseen event of your death.

Premium Payment Options: As a policyholder, you can pay a single premium or limited/regular premiums on a yearly, half-yearly, or monthly basis.

Coverage of Death Due to Covid-19: IRDAI has designed its standard term insurance plan Saral Jeeven Bima while keeping the COVID-19 situation in mind. Saral Jeevan Bima is a protection plan that covers death due to COVID-19.

Death Benefits:

Regular & Limited Premium Payment policies: Insurer provides Highest of 10 times of annualized premium or 105% of all the premiums paid as on the date of death or Absolute amount assured to be paid on death.

Single premium policies: insurer provides Higher of 125% of single premium or absolute amount assured to be paid on death.

Waiting Period: 45 days of waiting period from the date of commencement of risk. The waiting period is not applicable if the policy is revived.

Coverage for all: There is no restriction for buying a policy restriction like place of living, occupation, gender, age, education.

Riders: Optional Riders like accident Benefits and Permanent Disability benifits rider could be added.

Tax Benefits: Get the tax benefits on premium amount under section 80C of income tax Act,1961

What Is the Registration Process for Saral Jeevan Bima

If interested, you can easily register for saral jeevan bima policy both online and offine. Here we are discuss both process.

Online Process:

The step to register online for saral jeevan bima policy are as follow:

Visit the official Website of insurance company
Click the “Life Insurance Plans” on home page and click the saral jeevan bima plan. Salar Jeevan bima can be found under the Protection Plans or Term Plans.
After select the plan you have to click on “register online” option
Enter your personal details like education, gender,place of living,date of birth and some other details may be require.
Submit your Details and upload the require documents.
Pay the first premium

Offline Process:

You can also register for the Saral Jeevan bima policy offline. Here is the process.

It would require you to visit the nearest branch of your insurance company to buy a Saral Jeevan bima policy. Next, fill out the application form with the required details. Attach the required document, pay the first premium and submit the form to the person in charge of the insurance company branch office.

Documents Require for Saral Jeevan Bima

Following the Documents list Required for purchasing the Saral Jeevan bima policy.

Duly Filled and Signed Proposal Form

Date of Birth Proofs (Any one of the below)

Aadhar Card
Pan Card
Passport
Election ID Card
School Certificate

Identity Proofs (Any one of the below)

Driving Licence
Aadhar Card
Pan Card
Election ID Card
Passport

Address Proofs (Any one of the below)

Driving License
Aadhar Card
Election ID Card
Passport
Bank Statements for the last Three month
Electricity Bill
Landline Bill
Lease Agreement

For Self-employed (Any one of the below)

2 Year of COI(Computation of income) and ITR
Form 26AS

For Salaried persons (Any one of the below)

Salary Slip for last 3 month
Last 3 month Bank Statements
Form 16

Passport Size Photographs

Recent Medical Examination/Reports

Term and Condition of Saral Jeevan Bima

Grace Period: The plan offers a grace period of 30 days from the premium due date where the premium payment mode is half-yearly or yearly and 15 days for monthly payments for each renewal premium amount. The plan shall lapse if the premium amount is not paid before the grace period.

Free look Period: Free look period is also called the Cooling off period. A free look period time of 15 days from the receipt date of policy documents shall be offered to the policyholder in case the insured person is not satisfied with the plan’s Terms and conditions. The policyholder can return the policy to the insurance company within a free look period.

Revival of Lapse Policy: Revival of the Lapse policy should be done within 5 years from the first unpaid Premium. The policy can be Revived any time during the revival period but not before maturity of the policy. In case the assured fails to revive the plan within the offered revival time the plan shall be instantly terminated.

Policy Loan: Loan Facility Not available under Saral Jeevan Bima because this plan provides only pure protection.

Maturity Benefits: There shall be no maturity benefit under the policy.

Surrender: Surrender value is not applicable under Saral Jeevan Bima policy.

Nomination and assignment: Under Saral Jeevan bima policy, Nomination and assignment are allowed under sections 38 and 39 of the Insurance Act 1938, as revised from time to time.

Waiting Period: 45 days from the date of commencement of risk. In case of revival of Policy, the Waiting Period shall not be applicable. This Policy will cover death due to accident only during the waiting period of 45 days from the date of commencement of risk.

Suicide Exclusion: In case the life assured passes due to committing suicide the policy shall be considered void.

Things to Remember While Buying Saral Jeevan Bima

Make sure you go through the below-mentioned list of the 13 Things to Remember Before Buying Saral Jeevan Bima Policy

People may perceive term plans as a better choice for people with higher salaries. However, the Saral Jeevan Bima plan is a term plan designed in such a way that it does not create a hassle for people who belong to the low-income group. Anyone, irrespective of their gender, job profile, academic qualification and other details, can buy the plan and ensure the financial security of their loved ones.
An individual between 18 to 65 years old can easily buy the Saral Jeevan bima policy.
Anyone looking for a short-term or long-term policy that’s simple and reliable can buy a solar Jeevan bima policy for a period of 5 years up to 40 years of coverage.
The maximum maturity age for the Saral Jeevan bima policy is 70 years.
A minimum sum assured amount is 5 lakh. The maximum sum assured under the Saral Jeevan bima is 25 lakh.
Under this plan, policyholders can choose Premium payment options, including single premium, regular premium, and limited premium payment terms for 5 or 10 years.
Under Saral Jeevan Bima, the policyholder can pay their premium yearly, half-yearly, or monthly (only under ECS /NACH). The option of paying a single premium lump sum is also present.
In the death of the policyholder, the Saral Jeevan Bima policy beneficiary will receive the higher of 10 times the annualized premium, 105% of all premiums paid or the absolute sum assured. If it is a single premium Saral Jeevan Bima policy, the higher of either 125% of all premiums paid or the absolute sum assured is paid to the beneficiary.
The Saral Jeevan Bima plan has a 45-day waiting period starting from the policy’s inception date.
Under the policy, death due to an accident is covered during the waiting period of 45 days
If interested, a policy buyer can choose to extend their Saral Jeevan Bima policy coverage by purchasing accident or permanent disability benefit riders.
The Saral Jeevan Bima policy does not allow a loan against the policy.
The Saral Jeevan Bima policy does not provide any maturity benefit.

Who Should Buy the Saral Jeevan Bima Plan?

The Saral Jeevan Bima plan can be bought by any individual who is looking for a pure protection plan. There is no restriction like age, place of birth, occupation, gender, qualification and place of residence.

This plan is best suited for young individuals who have just started their careers or those who need an affordable insurance plan. All individuals in the age group of 18 years to 65 years are eligible for this plan.

Simply, you should opt for this scheme under the following situations:

Young individuals, If you got married recently
If you have children
If you find term plans difficult to understand
Require more time to find the best term insurance plan as per your requirements

One of the important points to note is that even individuals without a regular income or having insufficient proof of income can also select to protect themselves and their family members with the Saral Jeevan Bima policy.

Why Should You Buy Saral Jeevan Bima?

Term insurance is a much-needed life insurance plan for everyone. The Saral Jeevan Bima plan is specifically created to ensure that it is easily available for all insurance buyers. Saral Jeevan Bima (SJB) Yojana provides sufficient flexibility in Term paying premiums to meet diverse financial requirements.

For example, the option of limited pay with SJB allows life assured to complete their premium payments within the 1st starting years of their policy term, thus enjoying the life cover for the remaining Term without any premium payment concerns.

Policyholders can also choose the policy tenure of Saral Jeevan Bima (also called Saral Bima Yojana). Between 5 years to 40 years, based on their financial requirements. If you are looking out for a basic term insurance plan providing adequate financial protection, Saral Jeevan Bima is a smart choice.

FAQ

What is Saral Jeevan Bima?

Saral Jeevan Bima is a non-linked, non-participating individual pure-term life insurance plan, which provides for payment of the Sum Assured in a lump sum to the nominee in case of the policyholder’s unfortunate death during the policy term.

What are the minimum and maximum ages at entry?

The minimum age at entry is 18 years, and the maximum is 65 years.

What is the minimum and maximum Sum assured available?

Minimum Sum assured is 5 lakhs, and the maximum Sum assured is 25 lakhs.

What are the different premium payment options available?

(a) Single premium Premium
(b) Limited Premium Payment term of 5 years, 10 years, and 15 years
(c) Regular premium payment term equal to the policy term

What are the different premium payment modes available?

(i) Single premium in a lump sum
(ii) Yearly
(iii) Half-yearly
(iv) Monthly (Only under ECS/NACH)

What is the benefit payable on the maturity of the Policy?

No. No maturity benefit is payable as this is a term insurance plan.

What are the exclusions under the plan?

Only the suicide clause (12 months) is applicable as per the extant regulations.

Is the waiting period applicable before the risk cover commences?

Yes. A waiting period of 45 days is applicable from the date of Policy is issued.

What happens if payment of premiums is discontinued?

No surrender value is payable under the plan. However, policy cancellation value is payable for:
a) Single premium and
b) Payment of minimum two years premium under limited premium payment option.
c) No policy cancellation value is payable in respect of regular premium payment policies.

Can one seek a refund of premiums if unsatisfied with the Policy after purchasing it?

There is a waiting period in this plan. From the date that the policyholder signs up for the plan (date of commencement of risk), the plan has a waiting period of 45 days. However, Policy will cover death due to an accident during the waiting period. In case of revival of Policy, the Waiting Period shall not be applicable.

Can the Saral Jeevan Bima be purchased online?

Saral Jeevan Bima provides life coverage at low premium rates. This plan can be bought easily online from any insurer.

Does the plan give policyholders tax benefits?

The tax benefits would be as per the prevailing provisions of the tax laws in India. The plan gives policyholders tax benefits on the premiums paid under Section 80C of the Income Tax Act of 1961. Moreover, the death benefit paid out is exempt under Section 10(10D) of the Income Tax Act.

Can I get a loan against the Saral Jeevan Bima plan?

No, Because it’s a pure protection insurance plan or type of term insurance plan.

Can I get maturity benefits under the Saral Jeevan Bima plan?

No, Because it’s a pure protection insurance plan or type of term insurance plan

What are the exclusions of the Saral Jeevan Bima plan?

Only the suicide clause (period of 12 months from the policy issued) is applicable per the extant regulations.