The Insurance Regulatory and Development Authority of India vide its notification dated 15th October 2020 has directed all life insurance companies to offer a standard term insurance plan “Saral Jeevan Bima” from 1st January 2021.
“Saral Jeevan Bima” is a non-linked non-participating individual pure risk premium life insurance plan, which provides for payment of Sum Assured in lump sum to the nominee in case of the Life Assured’s unfortunate death during the policy term
The Plan shall be purchased by people in the age group of 18 to 65 years and will have a policy term of 4 to 40 years. The standard term life insurance will mandatorily offer a sum assured between Rs 5 lakh and Rs 25 lakh. The Irdai, however, allows the life insurance companies to offer a higher sum assured as well without changing any conditions.
The Saral Jeevan Bima will have no maturity benefit and will have a 45-day waiting period.
All Life Insurers permitted to transact new business shall mandatorily offer the standard product with effect from 1st January 2021. The product may be filed by the Insurer’s latest by 1st December 2020. However, Insurers may file the product earlier and offer the same on approval even before 1st January, 2021.