Term life insurance is one of the primary financial product you should buy the moment you start earning. However, if you are looking for the perfect solution for your needs, you may feel overwhelmed by the choices.
At present, 24 life insurance companies are providing life insurance products in India. If you merely search for the words ‘term insurance’ you have more than 24 places you can buy the policy from and more than 50 options to choose from.
The fact is that not everyone has the time or interest in becoming a term life insurance expert to secure their family financially. IRDA aims to simplify this quest for everyone with Saral Jeevan Term Insurance plan.
What is Saral Jeevan Plan from IRDA?
Saral Jeevan is a term life insurance plan which has been standardized for the market. That means you will be able to buy this term insurance plan from any life insurer in the country without variations in price, features and benefits.
Starting 1st January 2021 every life insurance provider in the country will need to offer this product compulsorily. So, if you want to buy a term insurance cover to protect your family from the financial effects of your untimely demise, you can simply opt for Saral Jeevan.
Features & Benefits of Saral Jeevan Term Plan
Saral Jeevan term plan is, as easy as its name suggests, to understand. The features are straightforward:
- Sum Assured is payable on the death of the life assured
- You will need to pay premiums to secure the cover
- You can choose to pay the premiums in:
Regular mode – i.e., every year throughout the policy period or the claim incident
Limited pay mode – pay annually for only a few years, which is less than the policy period
Single pay – Pay the premium for the entire tenure in a single instalment
- The policy has the option where you can choose accidental death and disability riders. You should note that the disability rider is only limited to total permanent disability.
- The policy also covers accidental death within the waiting period of 45 days, even when you have not opted for the accidental death rider
The primary benefit of Saral Jeevan plan is that you can buy this term cover from any life insurer without worrying about the exclusions. A suicide clause is the only exclusion in this plan, which also expires after 12 months, as with every other term insurance plan.
Therefore, while buying this term cover you can be absolutely certain about the benefits and features you are getting into. Since this term cover is standard across the industry, there is no need to spend time on the comparison, as there will be no differences.
Limitations of Saral Jeevan Plan
With simplicity comes limitations as well. Few features may also mean lack of many features. However, in the sense of pure term plan, Saral Jeevan does not lack much. Here are the few important limitations you may want to consider before you buy:
- Maximum sum assured of Rs. 25 lakhs
- A waiting period of 45 days
The base plan offers a maximum term cover of Rs. 25 lakhs only. However, insurers are free to offer a higher sum assured, which means if you want a higher sum assured you may need to research a little.
Within the 45 days waiting period the sum assured is not payable, except in the case of accidental death. In case of a death claim (other than accidental death) within the waiting period, all the premiums paid for the plan are refunded except the tax deductions.
When Should You Buy Saral Jeevan Term Plan?
Saral Jeevan is a pure term insurance plan, with no difference in features wherever you decide to buy it from. So, if you are a first-time term insurance buyer and do not have time to spend exploring the term insurance world this plan is perfect for you.
Also, you should understand that you need a term insurance cover as soon as you have achieved any of the following milestones:
- Started earning
- Have acquired a family or dependents
Saral Jeevan term plan has minimal underwriting needs due to its straightforward features. Thus, you can ensure a financial safety cover for your family quickly with Saral Jeevan plan.