The problem of choosing life insurance will end from January 1, 'Saral life insurance' policy will be launched

The Insurance Regulatory and Development Authority of India (IRDA) has directed all life insurance companies to sell a standard individual term life insurance policy from January 1. The name of this product will be 'Saral Life Insurance'. The name of the company providing it before this name will also be added. The Standard Sum Assured of Standard Individual Term Life Insurance Policy will be Rs 25 lakh. We are telling you about this policy.

A simple life insurance policy can be taken by anyone from the age of 18 to 65 years. The policy period will be from 5 to 40 years. This policy can be run till the age of 70 years. Sum Assured in this policy will be from 5 lakh rupees to 25 lakh rupees. However, the regulator has also allowed insurance companies to give a policy for a higher amount. But the company will not be able to change the terms of the policy for this.

The top official of an insurance company said that the premium for simple life insurance would be higher than the current term insurance. Most companies have sent the policy to IRDA for approval. Premium will be fixed only after approval. However, it is estimated that if a 30-year-old takes a policy of Rs 5 lakh for 10 years, the premium will be around Rs 1,500. Premium can be paid outright, every year, every half year, quarterly or every month.

According to the terms set by the insurance regulator, the waiting period of the policy will be 45 days. In the waiting period, the premium amount will be refunded only on the death of the insurer. But if death occurs due to accident in waiting period, then all sum assured will be given. After the waiting period, if the person who insured dies, then his / her nominee will get the entire sum assured.

The terms of the simple life insurance policy of all insurance companies will be the same, so you do not need to see which company has the best policy. You can buy this policy from a company whose premium is low. If the claim settlement ratio of that company is good then it will be even better. According to the statement of IRDA, due to the variety of products in the market, many customers have difficulty in choosing the right product. Therefore a product was needed that could meet the needs of an average customer. This will make it easier for customers to make choices, increase trust between the company and the customer, reduce miss sales and reduce potential disputes at the time of claim settlement.

There are very few life insurers in India. According to IRDA's 2018-19 annual report, the percentage of life insurance in the country is 2.74. Term insurance is even less. Every year around 60 million people file income tax returns, while only 60 lakh people have term insurance. It is expected that simple life insurance will increase the number of people who have life insurance in the country. This expectation is also because online search for term insurance has increased by 70% during the Covid-19 epidemic.

Source: Tezz Buzz