Term life insurance cover is a necessity you should aim to meet with your first salary cheque. But, in today’s life insurance market, even the online term plans are numerous enough to cause a headache for first movers.
So, the insurance regulator IRDAI decided to launch a term plan which is simple to understand and builds a basic financial protection umbrella for your family. Saral Jeevan Bima from Canara HSBC Oriental Bank of Commerce Life Insurance is that plan.
This article gives you five important aspects of this plan, which makes it simple to understand and purchase:
- Standard Pure Protection Plan
- Online Availability
- Simple Terms & Conditions
- Easy Claim Settlement
- Accidental Death Cover during the waiting period
1. Standard Pure Life Insurance Plan
Saral Jeevan Bima is an individual term life insurance introduced by IRDAI, Insurance Regulatory and Development Authority of India. This term plan is a standard product regardless of whichever life insurer you buy it from.
The name of the insurance provider is prefixed to the name of the product. For example, Canara HSBC Oriental Bank of Commerce Life Insurance Saral Jeevan Bima.
This standard insurance product offers a one-time payment of the sum assured to the beneficiary in case of the policyholder's death during the active period of the policy.
- Entry Age: You can get this term life insurance if you fall between the age of 18 and 65 years
- Maximum Policy Term: The policy term of Saral Jeevan Bima ranges between 5 to 40 years
- Sum Assured: The minimum sum assured under Saral Jeevan Bima is Rs. 5 lacs and the maximum sum assured in the same is Rs. 25 lacs.
This policy is available for individuals irrespective of the place of residence or occupation. However, the premium cost of the Saral Jeevan Bima depends upon the sum assured, age, and gender of the policyholder.
This plan is the best choice if you do not have the time to explore general term insurance plans from life insurers. As the name suggests this is the easiest life cover you can avail.
2. Multiple Premium Payment Options
The policy comes with three premium payment options – single premium, limited premium payment term or regular. Under the regular option, your premium payment term is the same as the policy term. However, if you don’t want to bother about the life cover during tough financial situations, you can select the other two options as well.
Additionally, the policy accepts the premiums in monthly, half-yearly and annual modes. Ideally, you should opt for a payment mode that closely matches your income frequency. For example, the monthly premium payment mode is most suitable for salaried investors.
Plus, you can pay your premium automatically using NACH or ECS facility.
3. Simple Terms and Conditions
Saral Jeevan Bima is a simple life insurance cover that comes with simple terms and conditions. The plan covers you for the risks of death and accident and the only exclusions are the suicide clause.
The suicide clause in life insurance prohibits the payment of death benefit in the case of death by suicide. The exclusion is applicable for suicide death within 12 months of the policy’s commencement date.
Saral Jeevan Bima does not offer any rider option but has different death benefits to avail.
- In case of accidental death, the insurer makes a one-time payment to the beneficiary of the policyholder and the policy terminates with the same.
- In case of death due to any other reason, the insurer pays 100% of the paid premiums to the beneficiary of the policyholder.
- In case the policyholder dies after the maturity of the Saral Jeevan Bima, then also the beneficiary is eligible to receive a sum-lump amount of the sum assured.
4. Easy Claim Settlement
Claim settlement is easy in the case of Saral Jeevan Bima as the plan does not have any exclusions, except the suicide clause. Plus, if the insurer’s process of claim settlement is quick and smooth, so will be for Saral Jeevan Bima. So, you may want to check a little about this before buying the plan from an insurer.
Canara HSBC Oriental Bank of Commerce Life Insurance has a history of above 95% claim settlement ratio. The insurer also provides a fast claim settlement promise for eligible policies. Eligible life insurance policies can receive a settlement within one working day of filing the claim.
5. Accidental Cover during Waiting Period
The waiting period of Saral Jeevan Bima is of 45 days and it commences with the policy. This standard life insurance policy covers the accidental death of the policyholder during the waiting period. In case of accidental death within 45 days of policy commencement, your family will receive the sum assured.
However, in case of death due to any other cause, the family will only receive 100% of the premiums paid within the period without the taxes.
You can pay the premium for Saral Jeevan Bima in one go, as a single premium or can opt for a premium payable in 5 or 10 years. You can also pay the premium value through the policy term.
The policy also offers all the tax benefits available under any other term insurance plan. So, you can claim the annual premiums under section 80C and reduce your taxes.