On October 15, 2020, Insurance Regulatory and Development Authority of India (IRDAI) released Guidelines for Standard Life Insurance Product ‘Saral Jeevan Bima’.
The insurance scheme should be mandatorily offered by All Life Insurance Companies from January 1, 2021.
A Standard Insurance Product will enable the customers to easily make an informed choice, enhance trust between Insurers and insured and reduce mis-selling.
i.It will be a non-linked non-participating individual pure risk premium life insurance plan.
ii.The assured sum will be paid to the nominee in case of life assured’s death during the policy term.
iii.It has no maturity benefit under the policy as it is a pure term insurance plan. It also offers optional Accident Benefit and Permanent Disability Rider.
iv.The minimum amount under the product will be INR 5 Lakh, and maximum amount will be upto INR 25 Lakhs.
v.The policy term extends from 5 to 40 years and it will offer three premium payment options: regular premium, limited premium payment term for 5 years, 10 years and single premium.
vi.The minimum entry age for this product is 18 years and maximum entry age is 65 years. Maximum Maturity Age is 70 .
vii.There will be no exclusions under the product other than suicide exclusion. It will be available to everyone without any restriction on Gender, Place of Residence.
Recent Related News:
i.On 1st September 2020, IRDAI formed a 6-member working group headed by Dinesh Pant, appointed actuary of LIC to scrutinize various aspects for allowing the life insurance companies to offer index linked products.
ii.On May 22, 2020, IRDAI approved the proposal of the state owned lender Union Bank of India-UBI to continue with its 30% holding in IndiaFirst Life Insurance.
About Insurance Regulatory and Development Authority of India (IRDAI):
Chairman – Subhash Chandra Khuntia
Headquarters – Hyderabad, Telangana