According to the regulations of Insurance Regulatory and Development Authority of India (IRDAI), insurers are necessitated to provide standard term life insurance from January 1. The term of the standard individual term life insurance scheme is 'Saral Jeevan Bima' and the title of the insurer has to be prefixed to the policy title. The service will be provided to persons, regardless of gender, current residence, travel, profession or educational qualifications. In the event of the tragic death of the life assured during the term of the policy, the Saral Jeevan Bima policy renders the payment of the amount assured in a lump sum to the nominee. The two optional riders for this non-linked non-participating individual pure risk premium life insurance policy are Approved Accident Benefit and Permanent Disability Benefit riders. The ten lesser known facts of standard individual term life insurance policy are:
1. The minimum age maximum age limit required is 18 and 65 years
2. For a duration ranging from 5 to 40 years one can avail this policy
3. The upper limit of maturity age is 70 years
4. The minimum and maximum sum assured amount is Rs 5,00,000 and Rs 25,00,000 respectively under Saral Jeevan Bima, with insurers having the option of providing assured sum above Rs 25,00,000 with all other terms of service keeping unchanged.
5. There are three payment alternatives i.e. Regular premium, Single premium and Limited premium for a term of 5 years and 10 years.
6. There are three premium payment modes i.e. Yearly and half-yearly, Monthly only under National Automated Clearing House (NACH) and Electronic Clearing Service (ECS), and Single payment of premium in lump sum.
7. Death benefit will be provided to the nominee
8. The waiting duration is 45 days from the date of risk initiation.
9. No loan against the policy will be granted.
10. Under the scheme, no maturity benefit is provided.