According to a note by Policybazaar, premiums for a ₹25 lakh life cover can start at around ₹550 a month for eligible policyholders, although the actual premium depends on factors such as age, health, policy term and the insurer.
What is Saral Jeevan Bima?
Saral Jeevan Bima is a pure term insurance plan, which means it provides a financial payout to the nominee if the insured person dies during the policy term. Unlike savings-oriented insurance products, it does not offer any maturity benefit if the policyholder survives until the end of the term.
The product was introduced by the insurance regulator with standardised features and policy wording, making it easier for customers to compare plans offered by different insurers.
Who can buy it?
Individuals aged 18 to 65 years are eligible to buy the policy, subject to the insurer’s underwriting norms.
The life cover ranges from ₹5 lakh to ₹50 lakh, while policyholders can choose a policy term between 5 years and 40 years. Insurers also offer different premium payment options within the standard product framework.
How much does it cost?
Policybazaar shared an illustration of a 30-year-old purchasing a ₹25 lakh cover for 30 years. In this example, the premium works out to around ₹590 per month, though actual premiums vary across insurers and individual risk profiles.
The policy also has a 45-day waiting period from the date of commencement for non-accidental deaths. This waiting period does not apply if the insured dies in an accident.
Who is it aimed at?
According to Policybazaar, Saral Jeevan Bima may be particularly relevant for first-time insurance buyers, young professionals, self-employed individuals, freelancers, gig workers and customers in Tier II and Tier III cities who are looking for basic financial protection.
The company added that some insurers may also consider applicants without conventional income proof, subject to their underwriting guidelines and alternative methods of assessing income.
Why does it matter?
Saral Jeevan Bima was introduced to make term insurance easier to understand and compare by standardising policy features across insurers. Since the product structure remains the same irrespective of the insurer, customers can compare premiums and service quality more easily.
Policybazaar said standardised products such as Saral Jeevan Bima can play a role in addressing India’s life insurance protection gap by making entry-level life cover more accessible to first-time buyers.
“Affordable premiums are no longer the biggest barrier to term insurance adoption. Low awareness, misconceptions around eligibility and the perception that term insurance is complicated continue to prevent many families from securing adequate financial protection,” said Varun Agarwal, Business Head, Term Insurance, Policybazaar.
