What is the Saral Jeevan Bima Yojana?

Saral Jeevan Bima Yojana is a standardized term life insurance plan introduced by the Insurance Regulatory and Development Authority of India (IRDAI) to simplify term insurance for the masses. Launched on January 1, 2021, this plan is now mandatory for all life insurers in India to offer. While insurers can set their own premium rates, the product structure, coverage, eligibility, terms, and benefits are identical across all companies. This ensures transparency, easy comparison, and inclusivity, especially for individuals who may find it challenging to buy traditional term plans due to their income source, occupation, or lack of formal documents.

If you’re looking for a simple and affordable life insurance plan that doesn’t ask too many questions, Saral Jeevan Bima Yojana might just be what you need.

As per IRDAI’s official guidelines, Saral Jeevan Bima Yojana was introduced with the vision of creating a “one-size-fits-all” term insurance option that can bridge the protection gap in India. 

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In this blog, we’ll cover

• What the plan is and its purpose
• Who is eligible to apply
• Key features and benefits of the plan
• The documents required to make the purchase 
• What the policy covers and excludes
• How to buy the policy easily, both online and offline

Let’s dive in.

What Are the Eligibility Criteria for Saral Jeevan Bima Yojana?

Saral Jeevan Bima is a pure term insurance product that offers a lump-sum payout to the nominee in the unfortunate event of the policyholder’s death during the policy term. If the policyholder survives the term, there is no maturity or survival benefit. 

The great news is that the Saral Jeevan Bima plan is designed to be inclusive and easy to qualify for, even if you don’t have a steady income or a fancy degree. If you're wondering whether you're eligible, chances are, you are!

Here’s a breakdown of the eligibility criteria:

Criteria	Details
Minimum Entry Age	18 years
Maximum Entry Age	65 years
Policy Term	5 to 40 years
Maximum Maturity Age	70 years
Minimum Sum Assured	₹5 lakh
Maximum Sum Assured	₹25 lakh (some insurers may allow more)

What Makes This Plan Special?

• No traditional income proofs required: 

Unlike many insurance plans that demand salary slips or income tax returns (ITRs), Saral Jeevan Bima is designed to be more accessible. It's ideal for freelancers, small business owners, or anyone with an irregular income.

• Alternative financial documents: 

Some insurers may ask for documents like bank statements or investment records to verify your ability to pay premiums, especially if you opt for a higher sum assured.

Why Does This Matter?

Many traditional term insurance plans have strict eligibility checks that can make it difficult for people without formal jobs or stable salaries to get covered. Saral Jeevan Bima removes those barriers.

In short, if you're between 18 and 65 and want a basic life cover of ₹5-25 lakh, you're eligible.

With eligibility clear, let’s take a closer look at the features that make this plan attractive.

What Are the Features of Saral Jeevan Bima?

Let’s break down the key features of Saral Jeevan Bima Yojana:

1) Standardised Across All Insurers

IRDAI has made it mandatory that the core features of the plan be exactly the same, irrespective of which life insurance company you choose. 

Note: Only the premium, claim experience, and service quality may differ between insurers.

2) Affordable Premiums

The policy is designed to be cost-effective, making it accessible to individuals from various income groups. 

But truth be told, you might find better cost-effective alternatives. 

Let’s take an example:

For this premium comparison, we’re considering a profile of a 30-year-old non-smoking male, covered till age 65 with regular pay & without discounts.

Name of Product	ICICI Pru Saral Jeevan Bima	ICICI Pru Saral Jeevan Bima	ICICI Pru IProtect Smart Plus	ICICI Pru IProtect Smart Plus
Sum Assured on Death	₹25,00,000	₹49,50,000 (Max possible)	₹50,00,000 (Min possible)	₹1,00,00,000
Premiums	₹9,359	₹14,777	₹8,059	₹12,154

Ditto’s Note: Premiums for Saral Jeevan Bima (SJB) are typically higher on a per-₹-of-cover basis than those for regular term insurance products such as iProtect Smart Plus, even when offered by the same insurer and for similar or lower coverage amounts. 

This is because SJB is a standardized, regulator-mandated product with simplified eligibility criteria and minimal medical underwriting, making it accessible to a broader segment of customers, including those who may pose higher underwriting risks. To account for this wider risk pool and the lack of detailed medical screening, insurers adopt a more conservative pricing approach, resulting in higher premiums.

3) Flexible Premium Payment Options

You can choose how you want to pay your premiums: monthly, half-yearly, or yearly. Also, depending on your budget, you can opt for: single pay (one-time payment), limited pay (typically over 5-10 years), or regular pay (pay throughout the policy term). 

4) Optional Riders Available

While the base plan is fixed, some insurers, such as Aditya Birla Life Insurance or Tata AIA Life Insurance, may offer add-ons (called riders) for extra protection, such as Accidental Death Benefit or Total and Permanent Disability Benefit. 

Ditto’s Note: While the base policy is standardized, the availability of additional riders may vary slightly between insurers. It's advisable to check with the specific insurer for the exact rider options available.

5) 45-Day Waiting Period

This is one of the most noteworthy features of the plan. In the initial 45 days of policy commencement, only accidental deaths are covered. Basically, if death occurs due to natural causes within this period, the claim will not be paid. 

Ditto’s Note: This type of waiting period is not seen in comprehensive term plans offered by insurers. All kinds of deaths except suicides till 12 months are covered from Day 1. 

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Still have questions about how Saral Jeevan Bima works? Our experts are here to help! Book a free call for personalized guidance on choosing the right policy.

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After understanding the features of the Saral Jeevan Bima policy, you might be wondering what paperwork is involved.

What Are the Documents Required to Buy Saral Jeevan Bima?

Buying Saral Jeevan Bima requires standard KYC documents. We’ve explained this in detail in our article on documents required for term insurance, but here’s a quick summary:

• ID Proof: Aadhaar, PAN, Voter ID, etc.
• Address Proof: Aadhaar, Utility Bill, etc.
• Age Proof: Birth certificate, school certificate, etc.
• Photo: Passport-size photograph
• Income Proof: May be required by some insurers

Before finalizing your decision, it’s crucial to know exactly what is covered under the policy and what is not.

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What Are the Inclusions and Exclusions of Saral Jeevan Bima?

Understanding what your policy covers, and what it doesn’t, is important. Here’s a quick snapshot of the inclusions and exclusions under Saral Jeevan Bima.

1) What’s Covered (Inclusions)

• Death Benefit: If the policyholder passes away during the policy term, the nominee receives a lump sum payout.
• Optional Riders: You can add extra protection with riders like Accidental Death Benefit or Permanent Disability Benefit if your insurer offers them.

2) What’s Not Covered (Exclusions)

• First 45 Days Waiting Period: Only accidental deaths are covered during the first 45 days after the policy starts. Death due to illness or natural causes during this period won’t be covered.
• Suicide Clause: Death due to suicide is not covered in the first 12 months of the policy. This is a standard clause in all life insurance policies.
• Non-Disclosure: If you fail to disclose existing health conditions or essential information that has a material impact on the insurer’s underwriting when purchasing the policy, any future claims may be rejected.

If you want to dive deeper into common term exclusions or the terms and conditions of term insurance, you can check our detailed guides on them. 

How to Buy Saral Jeevan Bima?

Buying Saral Jeevan Bima is simple and can be done both online and offline:

1) Online: 

Visit the insurer’s official website, use the premium calculator, fill out the application form, upload necessary documents, and pay the premium digitally.

2) Offline: 

Visit the nearest branch or meet an insurance agent, complete the proposal form, submit required documents, and pay the premium in person.

Ditto’s Note: It’s always wise to compare premium rates, insurer performance metrics like claim settlement ratios, and customer reviews before choosing the insurer, even though the plan itself is standardized.

Who Should Consider Comprehensive Term Plans Instead?

While Saral Jeevan Bima is an excellent fit for those seeking simple and accessible life cover, it’s not ideal for everyone.

You should consider comprehensive term insurance plans instead if you’re looking for:

1) Higher Coverage (₹50 lakh and above)

• Terminal illness cover
• Premium break
• Zero cost exit
• Increasing cover over time
• Instant payout on claim intimation
• Health management services
• Life stage benefits (e.g., auto-increasing cover when you marry or have kids)

2) Customizable Riders 

•  Waiver of premium on disability or illness
• Critical illness benefit
• Income benefit payouts instead of a lump sum

These features are typically not available in Saral Jeevan Bima due to its standardized and simplified structure. If you need more flexibility or higher protection, a comprehensive term plan would suit you better.

Why Choose Ditto for Term Insurance

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Conclusion

To wrap things up, Saral Jeevan Bima Yojana is a step in the right direction toward making life insurance accessible, inclusive, and straightforward. By offering a standardized product across insurers, IRDAI ensures you don’t get bogged down by complex fine print or varying terms.

It’s best suited for:

• Individuals seeking basic life cover (₹5-25L)
• Those who’ve faced eligibility issues in buying regular term plans due to income, occupation, education, and location
• Anyone who prefers a no-frills safety net

Frequently Asked Questions (FAQs)