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Wednesday, December 30, 2020

How to make life Saral with a Standardized Saral Jeevan Bima: Santosh Agarwal Policybazaar.com

 

 During these turbulent times of the Covid-19 pandemic, the importance of term insurance has been realised by people across the spectrum. That is why the search for “term insurance” on Google has jumped manifolds and has been in demand all through the pandemic.And cleaving through these tough times, the insurance sector also witnessed a wave of positive changes ranging from launching new products to simplification of the process. By launching brand new products like Corona Kavach, Corona Rakshak, and Arogya Sanjeevani-IRDAI made sure that buying and understanding the terms of policies should no longer remain a daunting task. This article is attributed to Santosh Agarwal, CBO-Life Insurance, Policybazaar.com.

Treading the same path, with the intent of simplifying the process and bringing more people under the

coverage of insurance, Insurance regulator IRDAI, has come out with a standardised term insurance

policy “Saral Jeevan Bima” which will be rolled out from January 1, 2021. This standardised policy will

have a standard wording for sum assured with uniform features that will reduce the hassle of first-time

buyers. This standard term plan will be available for buyers between 18 and 65 years of age. The

maximum age at maturity is 70 years, which implies that when the person reaches that age, the plan will

automatically terminate. The policy term can be between five and 40 years. This will be having a

minimum and maximum sum assured of Rs 5 Lakh and Rs 25 Lakh, respectively.

But let us delve deeper to know how and why you should go for it.

 

Standardisation Benefits: Unlike other term plans offered by insurers, having different exclusions and

conditions, this standardised product will have uniform features irrespective of the insurers.So

standardisation, uniform wording, and uniform features will make it an easier buy for people cutting

across class and all sections. With relatively complex life insurance products available in the market, a

“Saral” term insurance product – Saral Jeevan Bima – is a blessing for first-time buyers and people who

do not have much knowledge of term insurance but wish to secure their life. Uniformity and

standardisation will reduce the hassle associated with buying any policy and will leave no room for

disputes in the future.

Digitally Available: Giving an impetus to contactless and safe transactions digitally, this standardised

product will be actively available on digital platforms. The availability of this plan on digital platforms

will offer more transparency and will lead to no ambiguity. Most importantly, customers can avail a

discount of up to 20% on the premiums when buying the plan online. Now, comparing premiums across

the insurers, and buying the cheapest policy for you will be just a few clicks away. Just at the comfort of

your home, you can gather all critical information, compare premiums, and buy this product. So no more

hassle to turn to an agent to get all the information.


Will Cover the Uncovered:Unlike other term plans which consider your annual income as a

fundamental premise to decide the amount of the sum assured, this term insurance plan allows you to

buy the sum assured as per your wish without taking into consideration your annual income.

In order to buy the Saral Jeevan Bima plan, presenting your income proof is not requisite as the insurer

will issue you a policy without taking into consideration your financial status. The product is nothing

short of a blessing for people with irregular income or people who do not have sufficient income proofs.


You can buy the plan up to a sum assured for which you think you can easily pay the premium. Thus this

new offering is of great benefit for the people belonging to lower-income groups, people from rural

backgrounds who were earlier not covered under any policy.

The plan majorly targets people from economically weaker section of the society who are in an equal

need of getting insured under a term cover to protect their dependents from financial crises. Often it is

observed that in families from lower-income group, there is just one bread-winner who takes care of all

the financial needs of the family. In such a scenario, it is very important to cover the bread-winner under

a term plan because if anything unfortunate happens to him/her, there would be enough financial aid to

care of the needs of the dependents.

What to look for while buying this policy?

Since the product is going to be launched very soon, policy buyers should know what are the various

things one should look at. As it goes that buying insurance is one thing and getting your claim settlement

is another.So essentially if you are going to buy this product, apart from comparing the premium, the

policy buyer should also look at the solvency ratio and the claim settlement ratio of the company.

The solvency ratio of an insurer shows the health of the company and its ability to meet its obligations.

But this can’t be looked at in isolation. The claims settlement ratio is the percentage of claims paid out of

the total claims received. Generally, a higher claim settlement ratio signifies the convenience of getting

your claim processed. Now, as this plan is just a few days away from being launched, have a look at the

aforementioned parameters and prepare for buying this brand new product. This article is attributed to

Santosh Agarwal, CBO-Life Insurance, Policybazaar.com

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