IRDAI has introduced Saral Life Insurance Policy which is a best term insurance plan for low income people. Know which company plan is fit for you.
Life insurers have launched a term insurance plan called Saral Jeevan Bima. The Insurance Regulatory and Development Authority of India (IRDAI) has come up with a standard term insurance plan which will have to be compulsorily offered by all life insurers. They have to start selling these policies, which are called simple life insurance.
What is Simple Life Insurance?
Nawal Goyal, founder and CEO of PolicyX.com, says that the Saral Jeevan Bima Yojana is a standardized insurance scheme introduced to people in low-income segment groups compared to other term plans available. This policy can be taken by anyone from 18 to 65 years and its duration will be from 4 years to 40 years. Under this insurance plan, any person can get insurance ranging from Rs 5 lakh to Rs 25 lakh. It will be in multiples of 50 thousand rupees. The minimum sum assured is Rs 5 lakh, which can be increased to Rs 25 lakh. As the terms and conditions of simple life insurance are similar across insurers, the principal differential pricing the premium. However, according to experts, going by only premium is one of the biggest mistakes that one can make while choosing this plan.
Santosh Aggarwal, CBO-Life Insurance, PolicyBazaar.com, says Saral Life Insurance is meant to serve the ‘The Real Barat’ segment, which has often been marginalized. This scheme is better than other term plans to the lower income group. While the features of a simple life insurance plan are similar for insurers and customers. Goyal said that when purchasing a simple life insurance plan, one more aspect has to be considered. The most important is the price of an insurance policy which is a range from company to company. Anyone can get coverage and returns for a low price.
Comparison between companies offering simple life insurance: –
| Insurer | Monthly premium | Annual premium |
| PNB Met Life | 903 rupees | 10,195 rupees |
| Edelweiss tokyo | Rs 1,198 | 13,605 rupees |
| Aegon Life | Rs 1,352 | 15,538 rupees |
| SBI Life | Rs 1,559 | 18,704 rupees |
| Exide Life Insurance | Rs 1,761 | 20,243 rupees |
Some experts say that the cost of simple life insurance is much higher than that of regular term plans as insurance companies are not allowed to apply filters to these products.
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