InvestorQ : What is the Saral Jeevan Bima term life insurance product mandate by IRDA?
Mitali Bhutta made post

What is the Saral Jeevan Bima term life insurance product mandate by IRDA?

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Purvesh answered.
4 weeks ago
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Term Insurance is one of the oldest forms of Insurance where a nominee or joint holder gets the insured amount if the policyholder demise within the policy term period.

The IRDA has requested all the insurance companies to give a standardized version of Term life Insurance -Saral Jeevan bima by January 2021.

The main aim of the IRDA is to give a Simple & complete term insurance product to each customer with the same necessary risks. 
By launching such a product, the insurer doesn't have to compare different term insurance products & can assure of getting the sum assured amount if any sad demise of the policyholder.

As per the IRDA: 

Any Indian citizen can buy the term insurance product as per the below terms & conditions.

The age limit of entry - 18 to 65Yrs.
Maturity age - 70 yrs.
Sum Assured: 5L to 25L & can be increased as per the risk of an individual.
Policy Term - 5 to 40 yrs.

Premium Paying Term - Regular, Limited & Single premium payments.
Mode of payment - Yearly/Half-yearly/Monthly - ECS.
Death Benefit A)For Regular & Limited premium: Highest of 
                   - 10 times the annualized premium.
                   - 105% of all the premiums paid.
                   - Absolute amount.

                   B)For single premium policies:
                   - 125% of the single premium.
                   - Absolute amount.

Maturity - No maturity amount under the policy.

All other insurance policies terms & conditions are also applied - Waiting period, Surrender Value, Cancellation, loan, Riders, Medical requirements, etc.

The product must be available to the common people from 1st January 2021.

Source: IRDA website


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