Just like standard health policies like Arogya Sanjeevani, IRDAI has asked life insurance companies to come up with a standard term insurance policy called Saral Jeevan Bima from January 1, 2021.
IRDAI said that many policyholders find difficulty in understanding term insurance policies. “Customers who cannot devote adequate time and energy to make informed choices find it difficult to select the right product. Also, products may not be available for the intended sum assured. To take care of this situation and to make available a product by all life insurers that will broadly meet the needs of an average customer, it is felt necessary to introduce a standard, individual term life insurance product, with simple features and standard terms and condition,” said IRDAI.
The insurance regulator feels that introduction of Saral Jeevan Bima will reduce mis-selling and potential disputes at the time of claim settlement.
Here are the key features of Saral Jeevan Bima:
- Saral Jeevan Bima will be a pure risk life insurance policy that will pay sum assured in lumpsum to the nominee in case of death of the life assured during the policy term
- The policy will not offer any returns as there will be no maturity
- Individuals in the age group of 18-65 can buy this policy
- Premium paying term can range between 5 years and 40 years
- Maximum age to avail death benefit would be 70 years
- Sum assured ranges between Rs.5 lakh and Rs.25 lakh
- Insurers can offer sum assured of over Rs.25 lakh voluntarily
- There will be waiting period of 45 days from the date of commencement of risk. However, there will be no waiting period if death is due to accident
- Insurers have an option to offer riders on accidental benefit and permanent disability