Zee Business was the first to inform its readers and viewers that the Insurance Regulatory and Development Authority (IRDAI) is introducing a standard term policy plan and the regulator has announced the Standard Term Plan or ‘Saral Jeevan Bima’. Different companies will have different term life insurance plans.  

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The terms and conditions are usually different for different plans which becomes a problem for an average customer to understand the complexities and differences. Under the new scheme, the terms and conditions of the policy by any service provider will be same. 

One of the conditions with the term plan was that the insurance buyer was required to have an annual income between Rs 2-5 lakhs. This condition has been removed in the Standard Term Plan. 

See features of Standard term plan here:  

  • The terms and conditions and benefits remain same irrespective of the service provider. 
  • With easy to understand features and conditions, this scheme will be applicable for low income buyers. 
  • No misselling and claims will be easily settled. 
  • Pure risk cover, non-linked product if no rider 
  • Barring, suicides, all modes of deaths covered under the plan 
  • No condition on income, job, education and native place 
  • Option of monthly payment via NACH/ECS 
  • All companies to have a right to decide premium, underwrite policy 
  • No compensation, loan and maturity benefits on surrendering the policy 
  • Maximum waiting period of 45 day; on accident, claim can be made before 45 days 

Standard Term Plan details: 

  • Term plan to give cover between 5 lakh and 25 lakh 
  • Anybody between 18 and 65 years can buy the plan 
  • Policy period between 5-40 years.  Maturity allowed up to 70 years. 

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All companies required to sell the product from 1 January 2021. They can sell even prior to this date.