The product will be offered to individuals irrespective of gender, place of residence, travel, occupation or educational qualifications
Following the Insurance Regulatory and Development Authority of India's (Irdai) guidelines, insurers are required to offer standard term life insurance starting 1 January.
The standard individual term life insurance policy is called 'Saral Jeevan Bima' and the insurer’s name has to be prefixed to the product name. The product will be offered to individuals irrespective of gender, place of residence, travel, occupation or educational qualifications.
The Saral Jeevan Bima policy is a non-linked non-participating individual pure risk premium life insurance plan, which will provide payment of sum assured in a lump sum to the nominee in case of the life assured’s unfortunate death during the policy term. The policy also comes with two optional riders (a) Approved Accident Benefit and (b) Permanent Disability Benefit riders.
Take a look at 10 important features of the standard individual term life insurance policy below:
1. Minimum & maximum entry age: Minimum age at entry is 18 years and maximum age at entry is 65 years
2. Policy term: You can buy this policy for a term ranging from 5 to 40 years
4. Sum assured: Minimum is ₹5,00,000; maximum is ₹25,00,000 wherein insurers have the option of offering sum assured beyond ₹25,00,000 under Saral Jeevan Bima with all other terms and conditions remaining the same. (SA would be allowed only in the multiple of ₹50,000)
5. Premium payment options
a) Regular premium;
b) Limited premium payment term for 5 years and 10 years;
c) Single premium
6. Mode of premium payment
Regular and Limited Premium Payment Options:
a) Yearly; Half Yearly;
b) Monthly (only under ECS /NACH)
Single premium: In lump sum
7. Death benefit
For regular and limited premium payment policies: Highest of:
- 10 times of annualized premium;
- 105% of all the premiums paid as on the date of death;
- Absolute amount assured to be paid on death.
For single premium policies: Higher of:
- 125% of single premium;
- absolute amount assured to be paid on death.
8. Waiting period: The policy will have a waiting period of 45 days from the date of commencement of risk. In the case of revival of the policy, the waiting period will not be applicable. Also, this policy will cover death due to accident only during the waiting period of 45 days from the date of commencement of risk. In case of death of the life assured, other than due to accident during the waiting period, an amount equal to 100% of all premiums received excluding taxes, if any, will be paid. However, the sum assured will not be paid in such a scenario.
9. Loan: No loan will be allowed against the policy.
10. Maturity benefit: No maturity benefit is available under the policy.