Insurers have introduced the standard term life insurance plan Saral Jeevan Bima and the standard health insurance plan Arogya Sanjeevani, as recommended by the Insurance Regulatory and Development Authority of India (IRDAI). With the introduction of conventional insurance products to the market, a new type of consumer has emerged, one who needs protection. The lower-income group, which has arisen as a new category, is providing the biggest boost.
What the Trends Speak
Saral Jeevan Bima, on the other hand, has made it easier and easier for those with lower educational backgrounds and those who fall into the low-income category to obtain coverage under a pure protection plan. In comparison to ordinary term life insurance plans, this standard term life insurance plan has a considerably higher issuance rate for lower-income segment groups or those with poor educational qualifications.
Saral Jeevan Bima is most popular among those who do not have regular income proofs and those who are self-employed, according to current trends.
Persons who choose Saral Jeevan Bima have an average salary of Rs 3–3.5 lakh, and over 70% of the plans are purchased by people between the ages of 31 and 50. This is primarily because people in their early 30s and late 40s typically have several important expenses to consider, such as paying for their children’s education and marriage, as well as repaying loans such as home and car loans while also planning for a safe and secure retirement. In addition, as compared to normal term insurance policies, the percentage of female customers for Saral Jeevan Bina is substantially higher.
Customers must evaluate premiums and consider the insurers‘ claim settlement ratios while purchasing a plan. The claim settlement ratio is defined as the proportion of insurance claims resolved by an insurer out of the total number of claims received in the insurance business.
Eligibility is another crucial element to consider. In terms of papers necessary, education, and income slab, each insurer is different. To avoid rejection after going through the full procedure, it’s critical to compare and understand which plan the client will be qualified for.
Saral Jeevan Bima is being hailed as a watershed moment in the life insurance market since it will put the greatest number of individuals within the insurance umbrella, mostly those in the lowest income bracket. The Saral Jeevan Bima plan has an entrance age of 18 years and a maximum age of 65 years, with a policy term extending from 5 to 40 years. A person can be insured until they reach the age of 70. Customers may choose a minimum cover value of Rs 5 lakh under the Saral Jeevan Bima insurance, whereas the greatest cover amount presently offered from most insurers is Rs 25 lakh.