Life insurance companies to offer standard term

The Insurance Regulatory and Development Authority of India (Irdai) has mandated all life insurance companies to provide a standard individual term life insurance policy from January 1, 2020. According to Irdai, the standard individual term life insurance product will be called Saral Jeevan Bima with the insurer's name prefixed to the product name. This is standard health insurance policy for individuals which will have a sum assured of maximum Rs 25 lakh.

As per the Irdai press releas ..

As per the Irdai press release issued on October 15, 2020, "All life insurers permitted to mandatorily offer the standard product with effect from 1st January, 2021. The product may be filed by the Insurers latest by 1st December, 2020."

Santosh Agarwal, CBO-Life Insurance, Policybazaar.com said, "In another attempt to make insurance affordable and available for all, the IRDAI has issued a circular to all life insurers directing them to come up with a standard individual term life insurance product which will be named ‘Saral Jeevan Bima.’ Just like the standard health insurance product ‘Arogya Sanjeevani’, the individual term life insurance product will also be the same across all insurers. The product across insurers will have  ..

Here are the details of the standard term insurance policy, according to IRDAI's press release.

Features of Saral Jeevan Bima

"Saral Jeevan Bima" is a non-linked non-participating individual pure risk premium life insurance plan, which provides for payment of Sum Assured in lump sum to the nominee in case of the Life Assured's unfortunate death during the policy term.

Apart from the benefits and riders stated in the Annexure, no other riders / benefits ..

*Insurers have the option of offering Sum Assured beyond Rs 25,00,000 under Saral Jeevan Bima with all other terms and conditions remaining the same.

As per the release, "The Insurer may suitably modify the definitions and other clauses of the policy contract prospectively based on the regulations or guidelines that may be issued by the Authority from time to time."

The need for standardisation of term life policy

According to the Irdai press release, "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 di ..