IRDAI has issued Guidelines on Standard Individual Term Life Insurance Product, “Saral Jeevan Bima” vide which all life insurers are’ directed to offer a Standard Individual Term Life Insurance Product mandatorily. The plan features and parameters under this product have been prescribed by the Authority.
In view of the above, it has been decided to introduce Lie’s SARAL JEEVAN BIMA (Plan No.859) with effect from 16/04/2021.
The Unique Identification Number (UIN) for LlC’s SARAL JEEVAN BIMA plan is 512N341V01.This number has to be quoted in all relevant documents furnished to the Policyholders and other users’ (public, distribution channels).
LlC’s SARAL JEEVAN BIMA plan is a Non-Linked, Non-participating, Individual Pure Risk Premium Life Insurance Plan.
This plan can be purchased Offline as well as Online.
The benefits and other details of the plan are given below:
a)Minimum Age at entry : 18 Years completed.
b) Maximum Age at entry: 65 years (Last Birthday)
c) Maximum age at Maturity : 70 Years
d) Minimum Basic Sum Assured : Rs 500,000.
e) Maximum Basic Sum Assured:25 lac
The Basic Sum Assured shall be in multiples of Rs 50,000/-.
f) Policy Term : 5 to 40 years
g) Premium Paying Term:
BENEFITS UNDER THE BASE PLAN:
The benefits payable under an inforce policy are as under:
A) Death Benefit:
(i) During waiting period of 45 days from the
Date of Commencement of Risk:
a) On Death (due to any reason other than accident) during waiting period, an amount equal to 100% of all premiums received excluding taxes, if any, shall be paid.
b) On Death due to accident provided all due premiums have been paid, “Sum Assured on
Death” shall be payable to the nominee.
For Regular Premium and Limited Premium Payment policies: “Sum Assured on Death”
is defined as the is defined as the highest of:
• 10 times of annualized premium; or
• 105% of a
• 105% of all the premiums paid as on date of death; or
For Single Premium policies: “Sum Assured on Death” is defined as the higher of:
• 125% of Single Premium.
• Absolute amount assured to be paid on death i.e. 100% of Basic Sum Assured.
Premiums referred above shall not include any taxes and extra amount chargeable under the policy due to underwriting decision, if any.
(ii)After waiting period of 45 days from the Date of Commencement of Risk:
On Death after waiting period during the policy term including death due to accident provided all due premiums have been paid,
“Sum Assured on Death” shall be payable to the nominee,
B) Maturity Benefit:
On survival of the life assured to the end of the policy term, no maturity benefit is payable.
RIDERS: No riders
No : PAID-UP VALUE UNDER REGULAR AND LIMITED PREMIUM.
SURRENDER VALUE :No surrender value shall be available under this Plan.
However, on surrender of policy, policy cancellation value shall be payable’ in the following cases as given below:
a) Regular Premium policies: No policy cancellation value shall be payable. b) Single Premium Policies:
The policy shall acquire policy cancellation value immediately after receipt of Single Premium and the same is payable upon the policyholder applying for the same before the stipulated date of maturity.
The amount of policy cancellation shall be calculated using the following formula:
70% * Single Premium Paid* (Unexpired Policy Term / Original Policy Term) -5-
~.
Premium Paying Term 1st Year Subsequent Years
5 to 9 years 5.0.0.% 5.0.0.%
10..0.0.% 5.0.0.%
15 years and above 12.50.% 5.0.0.%
Credit (as a % of the first year
Premium Paying Term premium net of taxes)
5 to 9 years 15%
10. to 14 years
30.%
15 years and above 50.%
c) Limited Premium Payment:
Policy cancellation value shall only be payable if premiums have been paid for at least two (2) consecutive full years and the same is payable upon the Policyholder applying for the same before the stipulated date of maturity or at the end of the revival period if the policy is not revived.
The amount of policy cancellation value shall be calculated by using the following formula: 70% * Total Premium Paid* (Unexpired Policy Term / Original Policy Term)
The premium mentioned above is exclusive of taxes but inclusive of extra premiums charged due to underwriting decisions, if any.
13. REVIVALS (Applicable for Regular and Limited Premium payment option only):
In case of regular premium policies, if the premium is not paid within the grace period, the Policy lapses. If the policy has lapsed, it may be revived during the lifetime of the Life Assured, but within a period of 5 consecutive years from the date of First Unpaid Premium or as is allowed under applicable Product Regulations, and before the date of Maturity, as the case maybe, on payment of all the arrears of premium together with interest (compounding half-yearly) at such rate as may be fixed by the Corporation from time to time. In addition to the arrears of premium with interest, proof of Continued Insurability (this includes Form of declaration of Good Health, Medical Reports, Special Reports and any such document as may be called for by the Corporation, in accordance with the Underwriting Policy of the Corporation) may be required for revival of the discontinued policy.
Instructions regarding the applicable interest rate shall be issued by Actuarial Department, Central Office. However, for the current financial year 2020-21 the applicable interest rate shall be 9.5% p.a. compounding half-yearly.
The Corporation reserves the right to accept at original terms, accept with modified terms or decline the revival of a discontinued policy. The revival of a discontinued policy shall take effect only after the same is approved by the Corporation and is specifically communicated in writing to the Life Assured.
Revival of lapsed policies can be considered with the following requirements:
The cost of the medical reports, including special reports, if any, required for the purposes of revival of the policy, shall be borne by the Life Assured.
If a lapsed policy is not revived within the revival period, the policy will automatically terminate. In case of Regular Premium policies, nothing shall be payable.
However, in case of Limited Premium payment policies, the amount equal to policy cancellation value shall be payable and the policy will terminate.
- Regular Premium term
- Limited Premium term
- Single Premium