Life Insurance
2024-05-14 5 Min read
0
Life insurance holds a significant place in the insurance industry. But the significance is not limited to the industry, it contributes to the economy as a whole too. Said to be the bedrock of the economy, insurance helps individuals as well as businesses to deal with the financial hardships that unforeseen incidents can bring. Life insurance is extremely significant for organisations that engage in high-risk activities. Through financial protection, insurance helps in managing uncertainty and losses.
Standardisation in Life Insurance
Life insurance can be very helpful in complementing, if not replacing, benefits that are provided by the government. Standardised life insurance plans allow the government to play a key role in reducing the protection gap and in crafting a strategic risk-sharing system. Such plans, which are backed by the government, bolster the financial resilience and stability among the common people.
Simply put, insurance plays two important roles in society. Firstly it offers protection against risks and secondly, it encourages behaviour and preparedness that can help reduce the risks. Over the past few years, the government’s role in the insurance industry has grown. The government and the IRDAI, the Insurance Regulatory and Development Authority of India, have facilitated partnerships between governments and private insurers to leverage each other’s strengths in addressing insurance coverage gaps.
Along with this, numerous plans and products backed by the government are introduced in the market from time to time. These plans, better known as standardised plans, offer coverage to cater to the basic needs of policyholders. Such plans are to be mandatorily provided by all life insurance companies in the country.
Simply put, insurance plays two important roles in society. Firstly it offers protection against risks and secondly, it encourages behaviour and preparedness that can help reduce the risks. Over the past few years, the government’s role in the insurance industry has grown. The government and the IRDAI, the Insurance Regulatory and Development Authority of India, have facilitated partnerships between governments and private insurers to leverage each other’s strengths in addressing insurance coverage gaps.
Along with this, numerous plans and products backed by the government are introduced in the market from time to time. These plans, better known as standardised plans, offer coverage to cater to the basic needs of policyholders. Such plans are to be mandatorily provided by all life insurance companies in the country.
Demystifying Term Insurance
When it comes to life insurance, term insurance is considered to be the simplest and the purest form. The way a term plan works is straightforward. You pay the insurance company a fixed premium for a specific period, generally 10 to 40 years. In case you pass away during this time period, called the term of the plan, a lump sum benefit is paid out to your appointed nominee. In case you outlive the tenure, the policy comes to an end, and nothing is payable.
The Power of Standardisation for Every Family
Despite being easy to understand, a lot of people find it difficult to choose the right kind of term insurance plan. Most insurance seekers find it challenging to devote time and effort in order to make a well-informed deduction about selecting the right term insurance plan. The IRDAI thus believes that they need to introduce standardised individual life insurance products with straightforward features and uniform terms and conditions.
Saral Jeevan Bima
The apex insurance regulator mandated all insurance companies to provide this standard and individual term life insurance policy ‘Saral Jeevan Bima’ from 1st January 2021. This non-linked non-participating policy is offered by SUD Life. The simple features make this policy very easy to understand. Let us take a look at some of the highlighting features of this policy:
1.A plan that suits people with varied backgrounds
Saral Jeevan Bima is a policy for anyone above the age of 18 years. Irrespective of gender, qualifications, and occupation, anyone can invest in this policy easily. So, this is a plan for anyone and everyone.
2.You can cover your family for a long time
The tenure of the Saral Jeevan Bima policy ranges from 5 years to 40 years. So, as per your preference and needs, you may purchase a policy of term. The longer you stay invested, the longer your family is secured. So, for someone who is looking for an affordable long-term life insurance plan, Saral Jeevan Bima can cater to your needs.
3.Flexibility in premium payment makes the policy very convenient
For most policyholders, the premium amount and the premium payment frequency are primary concerns. With Saral Jeevan Bima, you can choose a premium payment term that best suits your financial comfort. You can make a one-time lump sum payment in the form of a single premium policy or choose a limited premium payment for a few years. Apart from these, you may also choose to pay regular premiums.
4.Tax savings are an additional advantage
Tax benefits are another added advantage of Saral Jeevan Bima. Like many other term insurance plans, Saral Jeevan Bima also offers tax savings. Under Section 80C of the Income Tax Act of 1961, the policyholder may avail tax deductions of up to ₹1.5 lakhs. Also, under Section 10(10D) of the Income Tax Act of 1961, the death benefit of Saral Jeevan Bima remains tax-free.
5.Range of sum assured options
To suit different family needs, you have a range of sum-assured options under Saral Jeevan Bima Yojana. While the minimum basic sum assured plan is ₹5 lakhs, you may also choose a sum assured option of as high as ₹25 lakhs. The premium differs depending on the chosen sum assured.
6.Assured security for your loved ones
Financial security for the family is what most people want. Especially in families where there is only one earning member, a life insurance cover becomes quite important. Saral Jeevan Bima is a simple and easy-to-purchase term insurance cover. It suits people from all walks of life and offers different sum assured options so one can plan best for their family.
1.A plan that suits people with varied backgrounds
Saral Jeevan Bima is a policy for anyone above the age of 18 years. Irrespective of gender, qualifications, and occupation, anyone can invest in this policy easily. So, this is a plan for anyone and everyone.
2.You can cover your family for a long time
The tenure of the Saral Jeevan Bima policy ranges from 5 years to 40 years. So, as per your preference and needs, you may purchase a policy of term. The longer you stay invested, the longer your family is secured. So, for someone who is looking for an affordable long-term life insurance plan, Saral Jeevan Bima can cater to your needs.
3.Flexibility in premium payment makes the policy very convenient
For most policyholders, the premium amount and the premium payment frequency are primary concerns. With Saral Jeevan Bima, you can choose a premium payment term that best suits your financial comfort. You can make a one-time lump sum payment in the form of a single premium policy or choose a limited premium payment for a few years. Apart from these, you may also choose to pay regular premiums.
4.Tax savings are an additional advantage
Tax benefits are another added advantage of Saral Jeevan Bima. Like many other term insurance plans, Saral Jeevan Bima also offers tax savings. Under Section 80C of the Income Tax Act of 1961, the policyholder may avail tax deductions of up to ₹1.5 lakhs. Also, under Section 10(10D) of the Income Tax Act of 1961, the death benefit of Saral Jeevan Bima remains tax-free.
5.Range of sum assured options
To suit different family needs, you have a range of sum-assured options under Saral Jeevan Bima Yojana. While the minimum basic sum assured plan is ₹5 lakhs, you may also choose a sum assured option of as high as ₹25 lakhs. The premium differs depending on the chosen sum assured.
6.Assured security for your loved ones
Financial security for the family is what most people want. Especially in families where there is only one earning member, a life insurance cover becomes quite important. Saral Jeevan Bima is a simple and easy-to-purchase term insurance cover. It suits people from all walks of life and offers different sum assured options so one can plan best for their family.
Conclusion
The introduction of standardised life insurance plans like Saral Jeevan Bima helps with insurance penetration in the country. A standardised term insurance plan not only makes it easier for people to make a decision but also boosts their confidence. Policyholders get peace of mind knowing that even if something happens to them tomorrow, their loved ones will be financially safe and secure.
Disclaimer
Star Union Dai-ichi Life Insurance Company Limited is the name of the Insurance Company and “SUD Life Protect Shield Plus” is the name of the plan. Neither the name of the Insurance Company nor the name of the plan in anyway indicates the quality of the plan, its future prospects or returns.
SUD Life Saral Jeevan Bima | UIN: 142N088V01 | A Non-Linked Non-Participating Pure Risk Premium Individual Life Insurance Plan Star Union Dai-ichi Life Insurance Company Limited |IRDAI Regn. No: 142 | CIN: U66010MH2007PLC174472
Registered Office: 11th Floor, Vishwaroop I.T. Park, Plot No. 34, 35 & 38, Sector 30A of IIP, Vashi, Navi Mumbai – 400 703 | Contact No: +91 22 7196 6200 | 1800 266 8833 (Toll Free) | Timing: 9:00 am – 7:00 pm (Mon – Sat)| Email ID: customercare@sudlife.in | Visit: www.sudlife.in | For more details on risk factors, terms and conditions, please refer to the sales brochure carefully, before concluding the sale. |Trade-logo displayed belongs to M/s Bank of India, M/s Union Bank of India and M/s Dai-ichi Life International Holdings LLC and are being used by Star Union Dai-ichi Life Insurance Co. Ltd. under license.
SUD Life Saral Jeevan Bima | UIN: 142N088V01 | A Non-Linked Non-Participating Pure Risk Premium Individual Life Insurance Plan Star Union Dai-ichi Life Insurance Company Limited |IRDAI Regn. No: 142 | CIN: U66010MH2007PLC174472
Registered Office: 11th Floor, Vishwaroop I.T. Park, Plot No. 34, 35 & 38, Sector 30A of IIP, Vashi, Navi Mumbai – 400 703 | Contact No: +91 22 7196 6200 | 1800 266 8833 (Toll Free) | Timing: 9:00 am – 7:00 pm (Mon – Sat)| Email ID: customercare@sudlife.in | Visit: www.sudlife.in | For more details on risk factors, terms and conditions, please refer to the sales brochure carefully, before concluding the sale. |Trade-logo displayed belongs to M/s Bank of India, M/s Union Bank of India and M/s Dai-ichi Life International Holdings LLC and are being used by Star Union Dai-ichi Life Insurance Co. Ltd. under license.
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