IRDAI has brought a standardized term insurance policy “Saral Jeevan Bima Yojana”. This standardized policy has a standardized terminology for sum-insured with similar features, which will ease the hassle of those purchasing insurance policies for the first time. This standardized term plan is available to buyers between 18 and 65 years of age. The maximum age of maturity is 70 years, which means that the policy will automatically end when the person reaches that age. The term of the policy can be between five and 40 years. This will be the minimum and maximum sum assured amount of Rs 5 lakh and 25 lakh respectively.
Other term plans consider your annual income as the basic basis for fixing the sum insured; on the contrary, this term insurance plan allows you to buy the sum assured as you wish, irrespective of your annual income.
You are not required to present proof of your income to purchase a simple life insurance plan as the insurer will issue you the policy without taking into consideration your financial condition. This product will be beneficial for people with irregular income or those who do not have sufficient proof of income.
One can buy a plan for which it will be easy to pay the insurance amount and feel that one can easily pay the premium. Thus this new offering is of great benefit to people from low-income groups, rural backgrounds who have not been previously covered in any policy.
This plan primarily targets people from the economically weaker section of the society who need to be insured under term cover to protect their dependents from the financial crisis. It has often been observed that only one person earns in low-income families and that he/she meets all the financial needs of the family. Such a situation is very important for that earning person to cover under the term plan because if something unfortunate happens to him, there will be sufficient financial support to take care of the needs of the dependents.
This standardized product will be available on digital platforms to encourage contactless and secure transactions. The availability of this scheme on digital platforms will bring more transparency and will not create any ambiguity. The most important thing is that customers can avail of up to 20% discount on premium when purchasing an online plan. Now, comparing premiums for insurers and buying the cheapest policy for yourself will be just a few clicks away. From the comfort of sitting at home, you can gather all the important information, compare premiums and buy this product. An agent will also get rid of the hassle of searching for all the information.
