IRDAI directed all life insurers to come out with a standard plan ‘Saral Jeevan Bima’ from January 1, 2021.
The product will have the same features, benefits, inclusions and exclusions across all life insurers though the prices may differ. The policy, which will be available for those in the age group of 18-65 years, will be for a term of 5 to 40 years with a maximum maturity age of 70 years. The minimum sum assured will be between Rs 5 lakh and Rs 25 lakh.
“There are many term products in the market with varying terms and conditions. Customers who cannot devote adequate time and energy to make informed choices find it difficult to select the right product and products may not be available for the intended sum assured,” the regulator said.
“An important reason for introducing a standard life insurance plan is that the current life insurance products available in the market are different and quite complex, and it is difficult for the common man to understand the various inclusions and exclusions of the plans,” said Santosh Agarwal, Chief Business Officer, Life Insurance, Policybazaar.com.
Just like the standard health insurance product ‘Arogya Sanjeevani’, the individual term life insurance product will also be the same across all insurers. “For the first-time buyers of life insurance, the plan will be a boon since the product is the same, regardless of the insurance company offering it,” he said.
“We welcome the move of a standard product that will surely help increase the awareness of protection plans, especially during these uncertain times. A product of this construct will also help in insurance penetration within the country,” said Bharat Kalsi, CFO, Bajaj Allianz Life.
