Politics aside, I admire the pace at which Indian Government have been implementing financial inclusion and social security schemes. In my earlier Blogs and Vlogs I have mentioned key features of the PMJJBY, PMSBY etc. Many of these products were for aimed to include the citizens who were completely excluded from the formal financial system, however others were allowed to take the benefit. We should learn about the schemes and benefit from them.
Term Life Insurance PMJJBY पीएम जीवन ज्योति बीमा योजना – security for all
In its latest move to include lower middle class, middle class, workers and entrepreneurs of informal sectors, people with extreme sports hobby, fire officials etc. IRDA issued guidelines for a standardized life-insurance/ term-insurance products , every life insurance company were mandated to take it live or atleast apply for approval from IRDA by Jan 1, 2021. However, the deadline could not be met and life insurance companies are likely to launch the Saral Jeevan Bima policy in the month of February 2021.
What is proposed in Saral Jeevan Bima?
Life Insurance Sum Insured – Rs. 5 Lakhs to 25 Lakhs
Minimum – Maximum age for entry – 18 years – 65 years
Tenure – 5 years to 40 years
Premium payment frequency – Single / limited pay/ Regular pay
Policy Lapse – For monthly/ quarterly/ semi-annual premium grace period is 15 days, for yearly payment, grace period is 30 days
Maturity Benefit – None
Death benefit – Sum insured to be paid to nominee
Waiting period – 45 days
Riders – Accidental death and permanent disability rider available
Saral Jeevan Bima is a standard life term insurance plan where the nominee gets the sum insured incase of demise of the policy holder during the policy term. The premium may vary company to company but the contract will be same – i.e. standardised, Hence, the policy premium per lakh may be expensive than the present term products of the company. If you are one of them who is still have apprehension about Term insurance, or your salary don’t allow you to get 50 lakh term plan, this plan would be a perfect product to protect your family or loved ones from sudden misery on untimely demise.
Term Life Insurance PMJJBY पीएम जीवन ज्योति बीमा योजना – security for all
It has no maturity benefit. This likely to be much cheaper than ULIP , guaranteed insurance plan etc as the premium is only on life risk, not investment.
In existing Term plans have host of common exclusions like – pre-exiting illness, sportsmen, firemen etc, and death circumstances, Saral Jeevan Bima likely to be more inclusive. Saral Jeevan Bima will be available with all life insurance companies including LIC, HDFC Life, SBI Life, ICICI Prudential Life Insurance, Aegon, Edelweiss Tokio and so on.
As companies yet launch the policies, the exact terms and conditions etc are yet to be known. Hopefully by February will know more, and will update you soon.
Must read for Financial Education –
Let’s Talk Money – Monika Halan
I will teach you to be rich – Ramit Sethi
Rich Dad Poor Dad – Robert Kiyosaki
Easy Money Triology – Vivek Kaul
