Insurance regulator IRDAI has come up with a standard individual term life insurance product whose simple features as well as standard terms and conditions are expected to help customers make an informed choice and reduce mis-selling.
About ‘Saral Jeevan Beema’ Yojana –
- The product, Saral Jeevan Bima, will be a non-linked, non-participating individual pure risk premium life insurance plan providing for payment of the sum assured in lump sum to the nominee in case of the insured’s death during the policy term.
- The regulator has mandated all life insurers to offer the standard product by January 1. The plan will be for those in the 18-65 years age group.
- The policy term will be 5-40 years, while the sum assured will be a minimum of ₹5 lakh and a maximum of ₹25 lakh. Insurers, however, have the option of offering sum assured beyond ₹25 lakh with all other terms and conditions remaining the same.
- The product shall be offered to individuals without restrictions on gender, place of residence, travel, occupation or educational qualifications.
- There will be no maturity benefit. Neither will there be any surrender value nor can any loan be taken against the product.