Saral Jeevan Bima Yojana Apply

The Insurance Regulatory and Development Authority of India (Irdai) mandated all life insurers to launch Saral Jeevan Bima plans with easy features and standard terms and conditions from 1 January 2021, ensuring that everyone, regardless of their socio-economic context, has access to financial security.

What is saral jeevan bima policy?

Saral Jeevan Bima is a regular term plan that follows the Insurance Regulatory and Development Authority of India's guidelines (IRDAI). With the same offerings and policy terms and conditions for all insurers, the package seeks to simplify the process of purchasing term life insurance. What matters is the quality of support and customer experience you get when you purchase the plan, as well as the ease with which you can communicate afterwards.

Key features of the saral jeevan bima yojana

  • Life Coverage: Ensure your family's financial security with Life Cover1. If you pass away when protected by this plan, your candidate will receive a lump sum payment2.

  • This policy would cover death as a result of an accident within the 45-day waiting period3 following the start of the risk.

  • If the Life Assured dies during the waiting period for reasons other than an accident, an amount equal to 100% of all premiums collected, minus any taxes, will be charged, and the sum assured will not be paid.

  • Premiums that are affordable4: ICICI Pru Saral Jeevan Bima has premiums that are affordable and can be paid weekly, semi-annually, or annually to suit your budget.

  • Flexibility: Pay premiums once, for a limited time, or over the policy term as you see fit.

  • Tax Benefits5: based on current tax laws.

Benefits of saral jeevan bima policy

The following are the plan's key advantages:

Benefits on Death

Option 1 - In the event of death (other than death as a result of an accident) within the 90-day waiting period, the death benefit payable would be 100% of premiums.

Option 2 - If the policyholder dies during the policy term (other than due to an accident) after the waiting period of 90 days has expired, the amount guaranteed on death will be paid to the candidate. The highest of the following amounts is guaranteed upon death:

  • a premium of 11 times the annualised rate*

  • 105% of all premiums charged up to the date of death

  • The amount assured under the agreement will be paid out in full if the policyholder dies.

  • Under this scheme, the amount guaranteed on maturity is zero.

  • The annualised premium is the amount of premium paid in a single year*.

Option 3 - If the policyholder dies as a result of an accident during the policy term and there is no waiting period, the cumulative death benefit payable will be two times the amount guaranteed on death. 

  • This feature is only available if the death was caused directly by an accident within 120 days of the date of the accident, regardless of any physical or mental condition. 

  • If an accident occurs during the policy period and a person dies as a result of the accident after the policy term has expired (120 days from the date of the accident), the death benefit, which is two times the amount guaranteed on death, will be paid automatically.

Saral jeevan bima yojana plan details

  • Grace Period - All premium payment methods have a 30-day grace period. If the policyholder dies within the grace period, the death benefit will be charged to the nominee, minus the unpaid due premium, and the policy will be discontinued. There isn't a surrender choice with this policy.

  • Revival Policy - You have five years from the due date of the first overdue premium to restore your lapsed policy. It is necessary to pay all remaining premiums and interest on outstanding premiums to be revived. The current rate of interest revival is 7.13 percent per annum.

  • Free-Look Option - The policyholder has 15 days from the date of receipt of the policy document/commencement of risk, and a 30-day period in the case of online policies and policies obtained via distance marketing mode.

Documents required to apply

The following documents are required for this plan:

  • Application Form

  • KYC Details - Proof of ID and Address

  • Proof of Age

  • Bank Statement

  • SIP/SI/Auto Debit/Bank Mandate Form

4 reasons to get saral jeevan bima yojana

Double the Amount Assured in the event of an Accident: The contract provides a lump sum assured on death for the Life Insured and double the sum assured on death in the event of an accident.

Choice of policy term: You have the option of choosing between four policy terms: 10, 15, 20, and 25 years.

No medical examinations: The package is available without the Life Insured having to undergo a medical review.

Tax advantages: You could be eligible for tax advantages on premiums charged and pay-out benefits earned. The Income Tax Act of 1961 governs the tax benefits. They are subject to change as a result of changes in tax laws.

Question and answers

What are the Plan's Main Advantages?

Protect your family from any financial losses that might occur when you are away.

  • Choice of Policy Word - Stay safe for a set period ranging from 5 to 40 years.

  • Premium Payment Options - Pay over a certain period, all at once, or over the policy term.

What are the plan's Maturity Benefits?

There is no benefit if you live to the end of the policy term.

Is there some kind of surrender value included in the plan?

This package does not have a surrender value.

Is there a tax advantage to this plan?

Yes, depending on the tax laws in effect, tax benefits may be available on premiums charged and benefits earned.

When can I begin the programme?

At the age of 18, you may begin the plan. However, the legal age for admission is 65 years old.

Is suicide death covered by this plan?

Yes, suicide death is protected by this policy. If the policyholder commits suicide within a year of the risk beginning, the candidate or beneficiary of the policyholder is entitled to 80% of the premiums paid before the death in the case of standard or limited payment plans, and 90% of the premiums paid in the case of a single pay policy, as long as the policy is in effect. For more details, please see the sales brochure.

Is there any benefit in cancelling a policy in this plan?

The following is the sum that must be paid if the policy is cancelled:

In the case of a single premium policy, the Policyholder must apply for it before the maturity date specified; or

In the case of Limited Premium Payment Policies, upon the Policyholder applying for the same before the stipulated date of maturity or at the end of the revival period if the policy is not revived.

The following is the sum that must be paid:

Single Pay Policies: The Policy Cancellation Value is determined as follows immediately after receipt of a single premium:

  • Original Policy Term / (70 percent * Single Premium Paid * Unexpired Policy Term)

  • If there is an additional premium, it will be included in the single premium.

Premium Payment Term Restrictions: 5 or 10 years: If at least two (2) full years of premiums are charged in a row, the Policy Cancellation Value is determined as follows:

  • = (70 percent * Total Premiums Paid * Policy Term Unexpired)/Original Policy Term

  • Extra premiums, if any, would be included in the total premiums charged.

  • Standard pay plans do not have a policy cancellation value.