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Buying life cover will soon be easier as the insurance regulator has mandated all life insurers to offer a standard individual term life insurance product.
The standard plan, ‘Saral Jeevan Bima’, will have to be offered by all insurers from January 1, 2021, the Insurance Regulatory and Development Authority of India (IRDAI) said in a circular issued today.
“There are many term products in the market with varying terms and conditions. Customers who cannot devote adequate time and energy to make informed choices find it difficult to select the right product and products may not be available for the intended sum assured,’’ the regulator said.
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The standard life product is being brought in to make available a product by all life insurers that will broadly meet the needs of an average customer, it said.
Features
Saral Jeevan Bima will be a non-linked, non-participating individual pure risk premium life insurance plan that provides for payment of sum assured in lump sum to the nominee in the case of the life assured’s death during the policy term.
Available for those in the age group of 18-65 years, the policy will be for a term of 5 to 40 years with a maximum maturity age of 70 years.
The minimum sum assured will be between ₹5 lakh and ₹25,00,000 and the insurers will have the option of offering a sum assured beyond the ₹25,00,000 with all other terms and conditions remaining the same.
Premium payment options include regular premium, limited premium payment terms for 5 years and 10 years and single premium. The waiting period is 45 days from the date of commencement of risk. In case of revival policy, there will be no waiting period.
There will be no maturity benefit under the policy and suicide will be excluded. There will be no surrender value nor any loan facility under the policy.
The pricing will be as per the file and use procedures put in place by the regulator as of now.
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