SBI Life Saral Jeevan Bima Plan: Good or Bad? An Enlightening Review

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Can the SBI Life Saral Jeevan Bima Plan truly offer your family the financial shield they need in times of uncertainty?

Can the simplicity of the SBI Life Saral Jeevan Bima Plan give you peace of mind, knowing your loved ones are covered?

Can a straightforward term insurance plan like SBI Life Saral Jeevan Bima be the smartest choice for reliable protection?

In this article, we’ll examine the features, benefits, and drawbacks of the SBI Life Saral Jeevan Bima policy.

What is the SBI Life Saral Jeevan Bima?

SBI Life Saral Jeevan Bima Plan is an Individual, Non-Linked, Non-Participating life insurance Pure risk premium product.

SBI Life Saral Jeevan Bima Plan is apt for those looking for pure protection cover and are first-time buyers in search of a simple plan. Your family stays financially protected, even in unforeseen circumstances.

What are the features of the SBI Life Saral Jeevan Bima?

Security for your family with a Standard term plan at an affordable cost.
Flexible premium payment options: single, regular, or limited periods of 5 or 10 years.
Clear and easy-to-understand terms and conditions.
Tax benefits available as per the Income Tax Act, 1961.

Who is eligible for the SBI Life Saral Jeevan Bima?

	Minimum	Maximum
Age at Entry	18 years	60/65 years
Age at maturity	_	70 years
Policy tern	5 years	40 years
Premium paying term	Premium paying term	Policy tern
	Regular premium	5 to 40 years
	Limited premium 5 years	10 to 40 years
	Limited premium 10 years	15 to 40 years
	Single premium	5 to 40 years
Basic Sum assured	5 Lakhs	25 Lakhs
Premium frequency	Yearly, Half-yearly, Monthly & Single Premium
Premium frequency load	Half-Yearly: 51.00% of yearly premium Monthly: 8.50% of yearly premium
Premium amount	Single – 5,480 Yearly – 1,415 Half-Yearly – 721.65 Monthly – ` 120.28	Single – 415,475 Yearly – 101,025 Half-Yearly – 51,522.75 Monthly – ` 8,587.13

What are the benefits of the SBI Life Saral Jeevan Bima?

1. Death Benefit

On death of the life assured during the SBI Life Saral Jeevan Bima Plan policy term after the expiry of the waiting period (45 days) or due to an accident during the waiting period, the nominee/beneficiary will receive the Sum assured on death, in lump sum.

For Regular & Limited Premium payment policies, it is Highest of:

10 times the Annualized Premium
105% of all premiums paid as on the date of death
Absolute amount assured to be paid on death

For Single premium policies, it is Higher of:

125% of Single Premium
Absolute amount assured to be paid on death

On death of the life assured due to other than accident, during the waiting period, the nominee/beneficiary will receive the Death Benefit, which is equal to 100% of all the premiums paid, excluding taxes, if any.

2. Survival Benefit

SBI Life Saral Jeevan Bima Plan provides no survival benefit.

3. Maturity Benefit

SBI Life Saral Jeevan Bima Plan provides no maturity benefit.

Grace period, Discontinuance and Revival of SBI Life Saral Jeevan Bima

Grace period

The SBI Life Saral Jeevan Bima Plan offers a grace period of 30 days from the premium due date where the mode of payment of Premium is yearly or half-yearly and 15 days in case monthly, for the payment of each renewal premium

Discontinuance

On discontinuance of premium payment, the SBI Life Saral Jeevan Bima Plan policy gets cancelled. The following are the Policy Cancellation Values:

For Single Premium Policies: The SBI Life Saral Jeevan Bima Plan Policy Cancellation Value acquires immediately after receipt of Single Premium and is calculated as 70% * Single Premium paid * (Unexpired Policy Term/Original Policy Term)

For Limited Premium Payment Policies: The policy acquires Policy Cancellation Value if at least (2) consecutive full year’s premiums have been paid and is calculated as 70% * Total Premiums paid * (Unexpired Policy Term/Original Policy Term)

For Regular Premium Policies: No Policy Cancellation Value shall be payable

Revival

The SBI Life Saral Jeevan Bima Plan policy can be revived during the lifetime of the Life Assured, but within the Revival Period of 5 consecutive years from the date of the first unpaid premium and before the date of maturity, as the case may be.

Free Look period for SBI Life Saral Jeevan Bima

If you disagree with any of the terms and conditions, you have the option to return the SBI Life Saral Jeevan Bima Plan policy within 15 days (30 days in case of electronic policies and policies obtained through distance mode) from the date of receipt of the policy document.

Surrendering SBI Life Saral Jeevan Bima

There is no surrender option under SBI Life Saral Jeevan Bima plan.

What are the advantages of SBI Life Saral Jeevan Bima?

Straightforward features with no complexities.
Budget-friendly premiums for essential life coverage.
Ideal for individuals seeking pure-term policies with a lower sum assured.

What are the disadvantages of SBI Life Saral Jeevan Bima?

No surrender benefits are offered with SBI Life Saral Jeevan Bima plan.
Loan facility is not available under SBI Life Saral Jeevan Bima plan.
The maximum sum assured is capped at ₹ 25 Lakhs.

Research Methodology of SBI Life Saral Jeevan Bima

Let’s understand SBI Life Saral Jeevan Bima plan through a benefit illustration from the policy brochure. The SBI Life Saral Jeevan Bima provides death benefits exclusively upon the policyholder’s death, with no maturity, survival benefits, or profit bonuses attached.

This makes it a straightforward, pure-term life insurance plan.

Benefit illustration of SBI Life Saral Jeevan Bima

For example, a 35-year-old male chooses SBI Life Saral Jeevan Bima with a sum assured of ₹ 20 Lakhs, a policy term of 30 years, and an annual premium of ₹ 11,480.

If the policyholder passes away during the policy term, a sum assured of ₹ 20,00,000 will be paid to the nominee or beneficiary.

Male	35 years
Sum assured	₹ 20,00,000
Policy term	30 years
Premium paying term	30 years
Annual premium	₹ 11,480

No other benefits or bonuses are provided under SBI Life Saral Jeevan Bima plan, as it is strictly a pure-term policy. While this may seem limited to some, policies with premium returns or profit participation typically require a higher premium for the same coverage.

Choosing a pure-term life insurance policy with sufficient coverage is essential, and SBI Life Saral Jeevan Bima is an excellent option for those seeking a straightforward policy with a moderate sum assured.

Single Premium Vs Limited Pay Vs Regular Pay in SBI Life Saral Jeevan Bima: Which is Better?

When considering term insurance like SBI Life Saral Jeevan Bima plan, why go for a single premium or limited-period payment when regular premium paying term insurance could be the smarter choice?

Single-premium plans require a hefty upfront payment, limiting your financial flexibility. Limited-period plans might seem convenient, but they come with higher premiums, creating more financial pressure.

By choosing regular premium term insurance, you keep your payments manageable over time and free up funds for other uses.

Also, instead of locking away a large amount with a single or limited premium, you can opt for regular payments (which are lower than the other two) and invest the remaining money in options like mutual funds, potentially earning better returns.

Term insurance is about securing protection—not just making one big payment. Why not go for the option that offers steady coverage while leaving room for investments that can grow?

Final Verdict on SBI Life Saral Jeevan Bima

Saral Jeevan Bima is a standard term life insurance plan introduced by the IRDAI (Insurance Regulatory and Development Authority of India) to provide essential life coverage with simplified terms.

SBI Life Saral Jeevan Bima Plan aims to make life insurance accessible to a broader range of individuals, especially those without regular income documentation.

SBI Life Saral Jeevan Bima Plan offers pure life cover with no savings or investment components, making it a straightforward option for affordable, no-frills protection.

Opting for regular premium SBI Life Saral Jeevan Bima Plan over single or limited premiums provides manageable payments, keeps funds flexible, and allows for investment in higher-return options like mutual funds.

The SBI Life Saral Jeevan Bima plan provides a lump sum payout to the nominee if the policyholder passes away, ensuring essential financial security.

A limitation of SBI Life Saral Jeevan Bima is its maximum sum assured, capped at ₹ 25 Lakhs. Those needing higher coverage may explore other pure-term policies available in the market.

It’s best to invest separately for life goals, as traditional policies often fall short for both insurance and investment purposes. Keeping insurance and investment distinct is generally advisable.

When it comes to financial advice, are Quora, Facebook, and Twitter the final word? For guidance in determining an adequate sum assured, consider consulting a Certified Financial Planner. Their expertise can help you establish a solid safety net based on your liabilities and financial goals.

SBI Life Saral Jeevan Bima Plan: Good or Bad? An Enlightening Review

Table of Contents:

What is the SBI Life Saral Jeevan Bima?

What are the features of the SBI Life Saral Jeevan Bima?

Who is eligible for the SBI Life Saral Jeevan Bima?