Insurers are required to offer standard term life insurance starting January 1, according to the Insurance Regulatory and Development Authority of India's (IRDAI) guidelines.
'Saral Jeevan Bima' is the name of the standard individual term life insurance policy and the insurer’s name has to be prefixed to the product name. Irrespective of gender, place of residence, travel, occupation or educational qualifications the product will be offered to individuals.
The Saral Jeevan Bima policy provides the payment of sum assured in a lump sum to the nominee in case of the life assured’s unfortunate death during the policy term. It is a non-linked non-participating individual pure risk premium life insurance plan.
Approved Accident Benefit and Permanent Disability Benefit riders are the two optional riders of this policy.
Standard individual term life insurance policy - 10 important features:
-Minimum age at entry is 18 years and maximum age at entry is 65 years
-You can buy this policy for a term ranging from 5 to 40 years
-Maximum maturity age is of 70 years
-Under Saral Jeevan Bima, minimum sum assured is Rs 5,00,000 and maximum is 25,00,000 wherein insurers have the option of offering sum assured beyond Rs 25,00,000 with all other terms and conditions remaining the same.
-There are premium payment options: Regular premium, Limited premium payment term for 5 years and 10 years, Single premium.
-Mode of premium payment: Yearly and half yearly, Monthly (only under ECS /NACH), Single premium in lump sum.
-Waiting period is 45 days from the date of commencement of risk.
-No loan will be allowed against the policy
-No maturity benefit is available under the policy.