Saral Jeevan Bima Standard Term Policy effective January 1, 2021 as per IRDA guidelines

saral jeevan bima

As the current pandemic approach makes people more aware of the need for insurance and the importance of term insurance during the COVID-19 which rise demand in health insurance and term insurance. 

This positive wave is a opportunity for insurers and service providers to provide more simplified and standard products to customers with the intention of simplifying the process and bringing more people under the coverage of insurance.

What is Salral Jeevan Bima

The product gives the standard lexical transparency for even assurance with identical features and terms and conditions and will not cause any ambiguity.

In this regard Insurance Regulatory and Development Authority of India (Irdai) has obliged all life insurance companies to provide a standard individual life insurance policy with effect from January 1, 2020. 


According to IRDAI, the standard individual life insurance product will be called Saral Jeevan Bima. The name of the insurer is prefixed with the name of the product.

It is a standard health insurance policy for those individuals with a maximum insurance amount of Rs 25 lakh.

Why is there a need for a standard term insurance policy?


There are many term insurance products available in the market till now, with variations in terms and conditions that cause confusion for customers to identify the right product according to their need after dedicating sufficient time and energy as choosing the right product Its difficult.

To address this issue, IRDA intends to introduce a unique product that will broadly meet the needs of an average customer. In this approach a standard, individualized term life insurance product with simple features and standard terms and conditions is introduced.

Such a standard product would make it easier for customers to make an informed choice, increase trust between insurers and insureds and reduce mis-sales as well as potential disputes at the time of claim settlement.

Standardized products will be actively available on the digital platform. Customers can get up to 20 percent discount on premium when purchasing an online plan. 

Unlike other term plans which treat your annual income as the fixed amount as the principal amount, however your income level will not be an obstacle in purchasing this policy.

Some highlights of simple life insurance are a standard term policy. 


  • The minimum age at entry is 18 and maximum 65 years, although the maximum maturity age is up to 70 years. 
  • The term of the policy applies from 5 to 40 years. 
  • Sum Assured Minimum Rs.5,00,000 & Maximum Rs.25,00,000 * (SA only will be allowed over 250,000). 
  • Premium payment option Regular and limited premium payment period 5 years and 10 years and premium single. 
  • Premium payment of premium, yearly, half yearly, Monthly (under ECS / NAK only) with regular and limited premium payment options. 
  • Insured death benefit for regular and limited premium payments, more than 10 times the annual premium, 105% of all premiums paid on the date of death and the entire amount paid on death. 
  • For single premium policies, more than 125% of the single premium is assured for the entire amount that is paid on death. 
  • There will be no maturity benefit under the policy, although the option accident benefit and permanent disability benefit riders may be attached. 
  • No loan will be given against the policy. 
  • A waiting period of 45 days from the date of commencement of risk, however in case of revival of the policy, the waiting period will not be applicable. 
  • Surrender value is not applicable under this policy.




The increase in demand for term cover during the epidemic has shifted the focus of consumers towards financial security and this is when the regulator has felt the need for a standard term insurance cover that can benefit everyone.

Saral Jeevan Bima will play a major role in expanding the term insurance market in India and increasing the insurance penetration rate in a relatively new and large customer segment.

The introduction of Saral Jeevan Bima, which is a standard term insurance, will be a revolutionary step in the life insurance sector as the plan will help simplify the procurement process and develop strong trust and confidence in customers towards the life insurance ecosystem.


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