As the attention of people in life insurance has risen, particularly pure protection term policies, the insurance authority has released guidelines for Saral Jeevan Bima’s basic individual term life insurance policy. The standard product will benefit those who are unable to spend ample time and resources to make intelligent decisions and make it challenging to choose the correct product. The regulator has emphasised that at the time of claim settlement, a standard product will make it easy for customers to make an informed decision, improve cooperation between insurers and the insured, and minimise mis-selling as well as future conflicts. Both life insurance providers will be obliged to deliver this policy from 1 January next year onwards.
Saral Jeevan Bima is going to be a non-linked individual pure risk premium life insurance scheme that will reimburse the lump sum assured to the nominee in the event of the death of the life assured during the term of the policy. Non-participating means the policy, depending on the experience of the organisation, is not liable for a share of profit. Under this scheme, there will be no maturity benefit and no value for surrender. The scheme will be provided to persons with no gender, place of residence, travel, profession or educational qualifications constraints. The minimum and maximum age of acceptance will be 18 and 65 years, respectively.
There will be a policy term of 5-40 years and a full maturity period of 70 years. Rs 5 lakh will be the minimum amount pledged and Rs 25 lakh will be the limit. Standard premium, limited premium payment terms for 5 and 10 years and the single premium will be the premium payment options. While the prices can vary, the product will have the same features, privileges, additions and exceptions for all life insurers. The scheme will be a blessing for the first-time consumers of life insurance since the policy is the same, irrespective of the insurance provider that offers it.
Death benefits and waiting period (Terms and Conditions applied)
The waiting period will be 45 days from the date of the initiation of the possibility, and the waiting period will not be valid in the event of policy renewal. The plan will only include accident-related deaths within a waiting period of 45 days from the date of risk initiation. In the event of an assured death rather than due to an injury during the waiting period, an amount equal to 100% of all tax-excluded premiums received will be reimbursed and the amount insured will not be compensated. This proposal will be invalid if the life-assured individual commits suicide at some point within 12 months of the risk-taking date. In the case of regular and restricted premium payment policies, either 10 times the annualised premium or 105% of all premiums incurred as of the date of death or the absolute amount promised to be accrued on death will be the highest death compensation. 125% of the single premium or absolute amount promised to be compensated on death will be higher with single premium plans. The Free Look duration will be 15 days from the date of issuance of the policy document by the policyholder (30 days if the policy is a digital policy or is purchased by distance selling). In order to decide to renew the policy, the insurer can pursue documentation of preserved insurability from the policyholder. This requires a sort of good health declaration, medical records, special reports and any other document that might be required by it.
Insurers can provide approved coverage for casualties and riders with lifelong disability coverage. In addition to the standard benefits as defined under this policy manual, Rider is an add-on benefit that the proposer will have to buy separately. In addition to the premium paid under the basic policy, the rider premium will be added to the additional cover / benefit specified under the rider. The assured rider amount will be the guaranteed sum due on the occasion of a specified event covered by the rider and selected by the claimant.