Saral Jeevan Bima Yojana Explained

Buying life insurance in India can involve complex features, confusing policy documents, and income proof requirements that often discourage people. To solve this and make term insurance more accessible, IRDAI launched Saral Jeevan Bima Yojana on 1st January, 2021. 

In this guide, we break down everything you need to know about the plan, including IRDAI guidelines, benefits, eligibility, documents required, and whether you should choose it over regular term insurance.

What Is Saral Jeevan Bima Yojana? IRDAI Guidelines Explained

Saral Jeevan Bima Yojana is a non-linked, non-participating, pure term insurance plan with a standard structure across all life insurers in India.

As per official IRDAI guidelines:

• All life insurers must offer the same base product.
• Policy wording is standardized.
• Core features cannot be modified.
• Death benefit structure remains uniform.

Since Saral Jeevan Bima is a pure term plan, it has no maturity benefit or surrender value. If the policyholder survives the policy term, no amount is payable at the end of the term.

Key Benefits of Saral Jeevan Bima Yojana

01

Standardized Across All Insurers

IRDAI has mandated that all insurers offer Saral Jeevan Bima Yojana with identical core features, ensuring uniform policy wording and structure.

02

Broad Eligibility

There are minimal barriers, such as education or occupation-based restrictions. While underwriting still applies, the structure is inclusive.

03

Tax Benefits

Premiums paid qualify for tax deductions under Section 80C (old regime), and the death benefit is tax-free under Section 10(10D) of the Income Tax Act, as per prevailing tax laws.

If you’re wondering about Saral Jeevan Bima Yojana eligibility, the entry barriers are intentionally kept low. The product is offered to individuals without restrictions on gender, place of residence, travel, occupation, or educational qualifications. Moreover, even individuals without proof of structured income may qualify (subject to insurer underwriting). 

The only exclusion of the Saral Jeevan Bima is the suicide clause, where if a policyholder commits suicide within the first 12 months of buying the policy, they’re not eligible to receive the death benefit, and 80% of the premiums paid is refunded. 

How to Buy Saral Jeevan Bima Yojana: Required Documents and Process

Step-by-Step Process

1) Choose an Insurer
Select a life insurance company offering Saral Jeevan Bima Yojana after comparing premiums and key operational metrics. This is important because the claim experience and service quality can still vary, even with a standardized product.

2) Fill Out the Proposal Form
Provide personal details, nominee information, medical history, and coverage preferences.

3) Submit Documents
Upload or submit the required KYC, income (if asked), and other supporting documents, and pay the premiums.

4) Medical Examination (If Applicable)
Complete medical tests if required by the insurer.

5) Policy Issuance
Once underwriting is complete, the policy is issued and shared digitally or physically.

Note: Saral Jeevan Bima has a 45-day waiting period. In these 45 days, only deaths caused by an accident are covered. This means that if you die due to natural causes, the sum assured will not be paid. Instead, 100% of the premiums received (excluding taxes) will be refunded. 

This is unlike regular term plans, where all kinds of deaths (except suicides) are covered from day 1. For more details and comprehensive plan offerings, you can check out our detailed guide on the best term insurance plans in India. 

Rider Comparison: Saral Jeevan Bima vs. Regular Term Insurance

When it comes to riders, IRDAI has no mandated rider requirements. However, some insurers, such as Aditya Birla Sun Life Insurance or Tata AIA Life Insurance, may offer add-ons for extra protection. These include the accidental death benefit rider and the permanent disability rider. 

The availability of riders varies by insurer, so it’s advisable to check with the insurer at the time of policy purchase. Moreover, regular term plans give you the option to choose from a wider variety of more comprehensive riders, including critical illness and waiver-of-premium riders. 

To understand which add-ons are essential, you can check out our detailed guide on term insurance riders.

For this example, we’ve considered healthy profiles of non-smoking individuals living in a tier-1 city like Delhi, covered until age 65. 

The premiums shown above are indicative and may vary based on your age, medical conditions, lifestyle choices, and underwriting decisions. 

Choose Saral Jeevan Bima If:

• You need basic term insurance with a lower sum assured 
• You work in the informal sector
• You were declined or are ineligible for traditional term plans

Choose a Regular Term Insurance Plan If:

• You need coverage above ₹25 lakh
• You want a comprehensive plan and riders (critical illness, accidental death)
• You qualify medically and financially for a better plan and pricing

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