What is Saral Jeevan Bima Yojana? Benefits, Coverage & Eligibility

By Okbima 05 Dec 2023
Saral Jeevan Bima Yojana

 

The Saral Jeevan Bima Yojana (SJB) is a simple-term insurance plan that aims to provide basic and affordable insurance coverage to people who may not have access to traditional life insurance plans. Saral Jeevan Bima Yojana offers a simple and hassle-free application process, with no requirement for medical underwriting or extensive documentation. The policy provides a death benefit to the nominee in case of the policyholder's unfortunate demise.

 

What is Saral Jeevan Bima Yojana?

Saral Jeevan Bima Yojana is a government-backed life insurance scheme in India that aims to provide affordable life insurance coverage to individuals from low-income groups. Launched by the Insurance Regulatory and Development Authority of India (IRDAI), this plan is designed to offer simple and hassle-free insurance options with minimal documentation and a quick claim settlement process. 

Under this scheme, policyholders can avail of life insurance coverage up to Rs. 5 lakh at very affordable premium rates. It attempts to promote financial inclusion by making life insurance accessible to a wider population, ensuring that even individuals with limited income can secure their family's financial future in case of unfortunate events.

 

How Does Saral Jeevan Bima Yojana Work?

Saral Jeevan Bima Yojana is a simple term insurance plan, that provides financial security to individuals and their families. 

Let's understand how it works using an example:

Meet Rohit, a 34-year-old factory worker residing in a rural area. As the primary sole earner for his wife, two children, and parents, Rohit is aware of the importance of securing his family's financial future in the event of his unforeseen demise. However, Rohit's monthly income fluctuates, posing a challenge in choosing a suitable plan.

To address this, Rohit opts for the Saral Jeevan Bima policy, selecting a 20-year policy term with the regular pay option. He secures a life cover of Rs. 25 Lakhs, and the premium for this coverage amounts to Rs. 735 per month.

 

Best Saral Jeevan Bima Policy In India 2023

Looking for the Best Saral Jeevan Bima Policy In India can be challenging. Below, we have mentioned some of these.

 

Plans

Entry Age (Min-Max)

Maturity Age (Max)

Sum Assured (Min-Max)

                                

LIC Saral Jeevan Bima

18-65

70 years

Rs 5 lakh to 25 lakh

Get a Quote

HDFC Life Saral Jeevan Bima

18-55

70 years

Rs 5 lakh to  50 lakh

Get a Quote

Bajaj Allianz Life Saral Suraksha Bima

18-60

70 years

Rs 5 lakh to  25 lakh

Get a Quote

ICICI Pru Saral Jeevan Bima

18-50

65 years

Rs 5 lakh to 50 lakh

Get a Quote

SBI Life Saral Jeevan Bima

18-60

70 years

Rs 5 lakh to 25 lakh

Get a Quote

Kotak Mahindra Saral Jeevan Bima

18-60

65 years

Rs 5 lakh to 2 crores

Get a Quote

Tata AIA Saral Jeevan Bima

18-55

65 years

Rs 5 lakh to 50 lakh

Get a Quote

Max Life Saral Jeevan Bima

18-65

65 years

Rs 5 lakh to 50 lakh

Get a Quote

Aditya Birla Saral Jeevan Bima

18-55

65 years

Rs 5 lakh to 25 lakh

Get a Quote

Aviva Saral Jeevan Bima Plan

18-55

60 years

Rs 5 lakh to 50 lakh

Get a Quote

 

Top 5 Best Saral Jeevan Bima Policy: An Overview

Below, we have given an overview of the Top 5 Best Saral Jeevan Bima Policies that you can look for before making a buying decision.

 

1. PNB MetLife Saral Jeevan Bima Yojana

The plan offers customizable life cover options, allowing policyholders to choose coverage starting from 10 Lakhs. This ensures that individuals get the coverage amount based on their specific financial needs and obligations.

• Policyholders have the flexibility to choose the policy term according to their needs. The available policy terms range from 5 to 40 years. This flexibility enables individuals to align the coverage period with their financial goals and life stage.

• The plan offers a choice of premium payment options to suit different preferences and financial capacities. Policyholders can opt for a single premium payment, limited premium payment, or regular premium payment based on their convenience and financial planning

• As per prevailing tax laws, the PNB MetLife Saral Jeevan Bima Yojana provides tax-saving benefits. Policyholders can avail of tax benefits on the premiums paid and the maturity amount received, helping in efficient tax planning.

 

2. Edelweiss Tokio Saral Jeevan Bima Plan

• Policyholders have the flexibility to choose a life cover ranging from 5 to 25 Lakhs. This customizable feature allows individuals to get the coverage amount based on their financial needs and responsibilities.

• The plan offers flexibility in premium payment options, allowing policyholders to choose between a single premium, limited premium, or regular premium payment mode. This caters to diverse financial preferences and planning strategies.

• Individuals can choose their required policy term within the range of 5 to 40 years. This flexibility empowers policyholders to align the coverage period with their specific financial goals and life stages.

 

3. ICICI Prudential Saral Jeevan Bima Plan 

• The plan offers coverage for all kinds of death after the completion of the waiting period. This provides comprehensive protection to the policyholder's beneficiaries, ensuring financial support in the unfortunate event of the policyholder's demise.

• Policyholders enjoy flexibility in premium payment options. They can choose to pay premiums in a single lump sum, opt for limited pay, or go for regular premium payments. This flexibility accommodates different financial preferences and planning strategies.

• The plan specifies a minimum sum assured starting from Rs. 5 Lakhs. The sum assured represents the guaranteed amount that the nominee will receive in case of the policyholder's demise. Policyholders can choose a sum assured based on their financial needs and responsibilities.

• Premiums can be paid on a single, monthly, yearly, or half-yearly basis. This flexibility in payment frequency allows policyholders to choose a premium payment schedule that aligns with their financial capabilities and preferences.

 

4. HDFC Life Saral Jeevan Bima Plan 

• The plan pays out a death benefit to the nominee in case of the policyholder's untimely death within the specified policy term. This ensures financial protection for the policyholder's beneficiaries.

• Policyholders have the flexibility to choose from multiple premium payment options. They can opt to pay premiums in a single lump sum, choose a regular premium payment mode, or opt for a limited premium payment option.

• Policyholders have the option to enhance the coverage by adding available riders to the base plan. These riders can provide additional benefits, such as coverage for critical illnesses, accidental death, or disability, depending on the available options.

• Policyholders need to review any waiting periods and exclusions mentioned in the policy documents. Understanding these conditions helps in making informed decisions and ensures compliance with the terms of the policy.

 

5. LIC Saral Jeevan Bima

• The LIC plan offers customizable life cover options, allowing policyholders to choose coverage starting from 10 Lakhs. This ensures that individuals get the coverage amount based on their specific financial needs and obligations.

• Policyholders have the flexibility to choose from multiple premium payment options. They can opt to pay premiums in a single lump sum, choose a regular premium payment mode, or opt for a limited premium payment option. 

• Premiums can be paid on a single, monthly, yearly, or half-yearly basis. This flexibility in payment frequency allows policyholders to choose a premium payment schedule that aligns with their financial capabilities and preferences.

 

Chart of the Saral Jeevan Bima Yojana Premium

Below we have mentioned the table that shows the annual and monthly premium of the Saral Jeevan Bima Yojana along with the policyholder’s age, and the sum assured amount.

 

Policyholder's Age

Sum Assured (Rs.)  

Annual Premium (Rs.)  

Monthly Premium (Rs.)  

30 years

1 lakh

1,237

103

35 years

1 lakh

1,435

120

40 years

1 lakh

1,706

143

45 years

1 lakh

2,077

172

50 years

1 lakh

2,589

216

55 years

1 lakh

3,316

276

60 years

1 lakh

4,365

364

 

Benefits of the Saral Jeevan Bima Policy

The Saral Jeevan Bima Policy is a term insurance policy offered by the Insurance Regulatory and Development Authority of India (IRDAI). It is designed to provide financial protection to individuals and their loved ones against the uncertainties of life. Here are some benefits of the Saral Jeevan Bima Policy:

• Simplicity: One of the key advantages of this policy is its simplicity. The policy does not involve complex calculations or lengthy documentation, allowing individuals to easily avail the coverage and premium payment.

• Wide Coverage: The Saral Jeevan Bima Policy offers comprehensive coverage to policyholders. It provides a death benefit to the nominee in case of the insured's demise during the policy term. 

• Affordable Premiums: This policy aims to make life insurance accessible to all sections of society. The premium rates are affordable, ensuring that individuals from different income backgrounds can afford

• Flexibility: The Saral Jeevan Bima Policy offers flexibility to policyholders. The policy term can also be selected according to the policyholder's needs, ranging from 5 years to 40 years.

• Hassle-free Claim Settlement: The policy ensures a hassle-free claim settlement process. In the event of the insured's demise, the nominee can make a claim by submitting the necessary documents.

• Tax Benefits: The premiums paid towards the Saral Jeevan Bima Policy are eligible for tax benefits under Section 80C of the Income Tax Act, 1961.

• Guaranteed Surrender Value: Another benefit of the Saral Jeevan Bima Policy is the guaranteed surrender value. If the policyholder wishes to surrender the policy before the completion of the policy term, they are entitled to receive a surrender value.

 

Difference Between the Saral Jeevan Bima Yojana and Regular Term Insurance Plans

Saral Jeevan Bima Yojana (SJB) is different from the regular term insurance plans in several key aspects, making it an accessible and practical choice for a diverse range of individuals. Here's a comparison between Saral Jeevan Bima Yojana and regular term insurance plans:

 

Parameters

Saral Jeevan Bima Yojana

Term Insurance Plans

Definition

Saral Jeevan Bima offers inclusive financial security, irrespective of background.

Regular-term plans focus on providing a death benefit to the family.

Sum Assured

Saral Jeevan Bima covers 5 lakh to 49.5 Lakhs.

Regular-term plans offer higher sums, starting at 20 Lakhs.

Eligibility

Those earning 1 to 5 Lakhs, lower educational qualifications, and self-employed.

Required proof of income and favor higher educational qualifications.

Premium Rate

Saral Jeevan Bima has lower premiums due to the lower sum assured.

Regular-term plans generally have higher premiums for higher sums assured.

 

Why Do You Need the Saral Jeevan Bima Yojana?

The Saral Jeevan Bima Yojana is a simplified life insurance scheme introduced by the Government of India. It aims to provide affordable insurance coverage to individuals from economically weaker sections of society. Here are a few reasons why you may need the Saral Jeevan Bima Yojana:

• Financial security for your family: Life is uncertain, and in the unfortunate event of your untimely demise, your family may face a financial burden. The Saral Jeevan Bima Yojana offers a death benefit to the nominee, ensuring that your loved ones are financially protected and can continue their lives without financial distress.

• Low premium cost: The scheme is designed to be affordable, with low premium costs. This makes it accessible for individuals from lower-income groups who may not be able to afford expensive insurance plans. Paying a small premium ensures that your family's financial needs are taken care of in your absence.

• Easy enrollment process: The Saral Jeevan Bima Yojana has a simplified buying process, making it easier for individuals to buy life insurance coverage. The documentation requirements are minimal, reducing the hassle and time required for the application process.

• Flexibility in choosing a suitable cover: The scheme offers a range of coverage options, allowing you to choose the sum assured that suits your needs. This ensures that you can customize the insurance coverage based on your financial responsibilities and obligations.

• Support for financial inclusion: The Saral Jeevan Bima Yojana is a step towards promoting financial inclusion by ensuring that individuals from economically weaker sections have access to life insurance. This scheme allows them to secure their future and protect their families in times of need.

 

Secure Your Family's Future Today – Get a Free Quote!

 

Eligibility Criteria to Buy a Saral Jeevan Bima Plan

Below, we have mentioned the general eligibility criteria that you should look at before buying a Saral Jeevan Bima plan in India.

Inclusive Eligibility: Any individual, without any restrictions based on gender, location, academic qualifications, or occupation, can apply for the Saral Jeevan Bima Yojana.

• Age Criteria: The entry age for the Saral Jeevan Bima plan starts at 18 years, with a maximum age limit of 65 years. The policy term can extend from 5 to 40 years, providing flexibility for individuals to align coverage with their financial goals.

• Coverage Age Limit: Individuals can be covered under the Saral Jeevan Bima plan until they reach the age of 70, offering extended protection during crucial life stages.

• Sum Assured Options: Policy buyers have the flexibility to choose a minimum cover value of Rs. 5 lakhs under the Saral Bima Yojana. Additionally, the plan allows for customization with an upper limit set at Rs. 25 lakhs, providing a range of coverage options.

 

Documents Required For Saral Jeevan Bima Yojana

There are some documents required when buying a Saral Jeevan Bima Yojana. Below, we have mentioned the following documents that are required for the application process.

• Date of Birth Proof: PAN Card, Passport, Aadhaar Card, Certificate received while leaving school, Election ID Card.

• Identity Proofs: Passport, Driving License, Election Commission ID, PAN Card, Aadhaar Card.

• Address Proof: Driver's License, Passport, Bank statement for the last three months, Aadhaar Card, Election Commission Card, Landline Bill, Electricity Bill, Lease Agreement, Ex-servicemen Card.

• For Self-employed Individuals: 2 years COI (Computation of Income) and ITR, Form 26AS.

• For Salaried Persons: Statement of bank accounts for the past 3 months, Salary slips for the last 3 months, and Form 16.

 

Conclusion

In conclusion, the Saral Jeevan Bima Yojana is a significant step towards providing insurance coverage to the economically weaker sections of society. It aims to truly fulfill the vision of financial inclusion by making life insurance affordable and accessible to all. The simplified and hassle-free application process, low premium rates, and guaranteed payout on death make it an attractive option for individuals looking for basic life coverage. 

Moreover, the flexibility of choosing the policy term and sum assured allows individuals to tailor the policy according to their needs. With its focus on simplicity, transparency, and affordability, the Saral Jeevan Bima Yojana is an initiative that brings financial security and peace of mind to countless individuals and families across the country.

 

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