Several insurance companies have launched 'Saral Jeevan Bima' plans with standard terms and conditions to allow customers to make an informed choice, as mandated by the Insurance Regulatory and Development Authority of India (IRDAI).

Live TV

Loading...

Under this plan, the minimum age of entry is 18 years and the maximum entry age is capped at 65 and the maximum maturity age is 70 years. The policy term extends from 5 to 40 years.

The product is available to individuals without restrictions on gender, place of residence, travel, occupation, or educational qualifications.

The minimum sum assured under the product is Rs 5 lakh, and the maximum can go up to Rs 25 lakh. Individuals are allowed to choose from regular premium payment throughout the policy term, single premium payment in lumpsum, or limited premium payment (5, 10 years) options.

According to Santosh Agarwal, CBO-Life Insurance, Policybazaar, the self-employed people with an annual income of Rs 3-5 lakh earlier were not able to get the term insurance due to the unavailability of income proof. Now when Saral Jeevan Bima (SJB) plans have launched, the chance of issuing a term insurance policy to this segment has improved.

"SJB provides the option of income surrogate where customers can submit the RC of their car or two-wheeler as a surrogate to their income proof. While the progress is going in the right direction, we expect the issuance rate to this segment to go up to 70 percent which was earlier only 30 percent. However, this will be a bit early to show some trends. So far we’ve seen traction around the self-employed people choosing SJB,” Agarwal opines.

Here's a comparison of 'Saral Jeevan Bima' plans of different insurers for a 35-year old male living in a metro city:

(Source: Policybazaar)

Disclaimer: The views and investment tips expressed by experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

(Edited by : Jomy)

First Published:Feb 12, 2021 5:41 PM IST