This type of insurance was introduced in 1954 and has become popular since then. The company
offers a coverage for all ranges of risks which includes the death, old age or any other
important risk which might threaten an individual's life. The covers include cancer, heart
diseases, stroke, loss of hearing or sight, dementia and multiple sclerosis etc. This
insurance scheme has been widespread majorly because it reached out to every citizen of the
nation. This scheme was for people of every economic status. There was no issue of
affordability.
This scheme wanted to ensure that even those who do not earn enough but have a family who
depend on them, have the ability to ensure a smooth life. This pure life insurance product
is certainly a very beneficial plan. But what exactly is Saral Jeevan Bima Yojana? What does
it do? Let's read on to understand more about this scheme.
The 'Saral Jeevan Bima Yojana' was launched on 25th September, 2013 to provide protection
against any untoward financial contingency at the time of death. This scheme has been
introduced by the Government of India through Life Insurance Corporation of India (LIC) with
the help of United Nations Development Program (UNDP). It is a "death cover" plan which
offers an insurance cover up to Rs.15 lakhs irrespective of age or sex. Saral jeevan bima is
a kind of insurance that covers the life risks. It is available for people who are looking
for better protection.
This type of insurance is also known as living or life assurance against all the risks that
come in your life. You can buy this insurance with various sums each year upto 30 years at
one time. The policies offered by saral jeevan bima company are not like other companies
they offer pure protection to the families and dependents even if anyone has died due to
illness or any other reason, their family will get assured amount of money on their demise.
Saral Jeevan Bima Insurance is a type of insurance popularly known as Life Assurance. The
main difference between this policy and other types of insurance is that it provides
financial support to one's family during one's deathbed. This is a scheme, launched by the
Indian government in order to provide life cover of Rs. 2 lakh at a premium of Rs 330 a year
for individuals between 18 and 50 years of age. If a beneficiary meets with an accidental
death or disability under this scheme, then the company would pay the sum insured to their
nominee in their absence.
Not everybody is capable of understanding the terms and complexities involved in an
insurance policy, this is why the Saral Jeevan Policy became a popular scheme. The reason
being the fact that it has a set of standardised terms. This means that the terms are
simple, easy to understand, and equal to everybody who wants to buy this scheme. This scheme
is for everybody no matter how rich or poor one is.
● One needed to find out that they are eligible to receive aid, and then make an application
for it with the state government. This can be done through an agent who will guide one
through this process. Once it has been approved, then all those couples who were unable to
provide for their children would be given financial assistance from the government.
● To get an idea of the benefit, one needs to compare this kind of program with similar ones
in other countries. In fact, countries with similar programs have a variety of financial
assistance given to families. The amount of this cover ranges from 25,000 to 2 lakhs and
will get renewed each year till the age of 65.
● In order to avail this policy, one has to be either a citizen or an NRI living abroad
earning taxable income in India. The policy will be activated as and when the
individual/individual earns up to Rs. 20,000 per month from income from bank accounts or any
other source. Policy holders have to make an online application for accidental death
coverage (ADC) which has to be done within one year of turning 18 years. The policy can be
activated within 3 months of getting a debit card for accidental death coverage (ADC).
● If an individual does not maintain the necessary income criteria mentioned above and
he/she meets with accidental death then the family will receive sum insured plus the sum
assured subject to normal premium payment on his death. However, if such an individual meets
with disability under this policy then he shall be paid only Rs. 2 lakhs of accident cover.
But in case he dies within the same year, then he will be paid Rs. 2 lakhs of double
accidental death cover.
● As per the policy conditions, if a premium is not paid or if the insured is declared dead
without meeting with accidental death or disability and having died within one year from the
date of activating this policy then such person will receive under this scheme only sum
assured plus the premium. In cases where a person receiving sum insured on his death does
not meet with accidental death or disability then sum assured shall automatically become
zero.
This scheme was launched to help the poor and needy people of the country. It aims to help
those who could not be included in other social and financial schemes of the government.
Saral Jeevan Bima Yojana is meant to be an additional social security cover for all
citizens, particularly those belonging to economically weaker sections of society.
The scheme provides a life cover as well as accidental death cover. It is important as it
offers protection against any untoward financial consequences at the time of death. It also
ensures that families are not burdened with heavy hospitalisation/ funeral expenses which
otherwise would have been incurred by them.
The insurance policy is underwritten by a government-owned life insurance company. Each year
a select group of children who are outstanding achievers in school get a chance to apply for
the program. The pilot project was started in Vellore district, Tamil Nadu, in 2004-05 and
has now spread to other parts of the country.
Women’s organisations have been keen supporters of this initiative as they have long claimed
that lack of financial security caused by droughts or illness can lead to maternal deaths
which are a major cause of morbidity and mortality among women across India.
The scheme is available at a cost of Rs. 2 a day. It ensures that the family receives an
insurance cover of Rs. 15 lakhs on death or permanent disability of the breadwinner.oney and
it is given only to the subscriber’s family. It is available in two types – the premium
saral jeevan and the basic saral jeevan. The premium saral jeevan covers expenses such as
hospitalisation, surgeries, etc. while the basic saral jeevan covers expenses for medical
and surgical care for children until age 18 years old.
The premium saral jeevan covers medical expenses by clubbing it with a health insurance
policy of the insurer. For instance, if an individual is given the premium saral jeevan of
Rs. 4 lakhs, the firm will give him the insurance policy with a commencement date of January
1, 2014 by clubbing it to his health insurance policy.
This would mean that he will not pay any premium on this coverage while he makes monthly
payments towards hospitalisation expenses. This mechanism is available in all the 25 states
and seven Union Territories across India that have Saral Health Insurance Scheme contracts
with State Forest and Plantation Corporation of India (SFPCI).
The premium saral jeevan has an element of savings in it. In case of the premium plan, the
subscribers will have a part that is equal to 10% of the sum assured. The subscriber can use
this amount for his medical expenses when he is not insured by SFPCI or any other insurer.
This can be an alternative for a health insurance policy and hence this makes premium saral
jeevan better than health insurance covers available in India.
Group A(which includes touts and middlemen) will pay you Rs. 1 lakh in case of death, with a
deduction of Rs. 10,000 from the amount; this is because of the fact that the government
feels that Group A does not need any more money because it already earns enough to spend for
the medical assistance; this is why a deduction has been made in their case.single amount
but instead, goes up depending on how much the children they have at home need.
This is only applicable to Group B which includes touts, middle men and those earning less
than Rs. 10,000 per month. To top it all, children of Group A or B under the age of 5 have
to be taken care of by the parents themselves instead of getting government assistance; this
is expected to reduce by 50% the number of people who die every year.
India has more than 16 million widows, who get no assistance; in the year 2000, 38.5 million
people were affected by poverty and 1.8 billion people are living below the poverty line.
In order to fight this, the government has set a target of providing free health services to
the poor till death and a subsidy of upto Rs. 1000/month for basic education; this is
expected to help create opportunities for all kinds of people and join them in a big family
which will eventually make India prosperous.
According to a study in 2003, nearly 49% of the total population live below the poverty
line; this is expected to go down with these new policies.
To cover the poor, a target has been created of providing medical services to those who earn
less than Rs. 1000/month at a subsidised rate of 10%; this way the poor do not have to pay
anything for it. Apart from this, the rich will have to pay for themselves and their family;
this is expected to reduce by 50% the number of people who die every year.
Education is another area in which there has been a huge gap between the rich and poor; in
order to improve on this aspect, free education up till grade 5 is being offered by setting
up 7500 schools in rural areas. Also, the free LPG scheme is being continued which will
allow people to save a lot of money.
Apart from this, building more roads that can connect remote areas with bigger towns and
cities is being taken up on priority basis.
With this, job opportunities will increase and once the wealth is created among some of the
population, they can start spending the same on the poor too; this will help India grow
economically.
All the struggles people have had in the past was a lesson that in the present the government
of India decided to bring about a change in their lives. Helping them live a good life can
also contribute to the economy of the nation. This in turn will bring immense development in
various other fields like health care and education which are very important for a country
like India with so many poor people in it.
Saral Jeevan Bima Yojana is the government of India's flagship social security scheme aiming
to cover the lives of 10 crore individuals. It is a voluntary plan for individuals where
death or permanent disability will be the only reasons to claim payment. If you are
interested in this, then you should go through this article that will tell you about the
best providers of saral jeevan bima yojana in the Indian market. Choosing the right company
for your requirement can help you save big time on premium payments.
This is a great initiative of the government and it deserves our support. However, even if
only 1% of the amount allocated for Saral Jeevan Bima Yojana is diverted towards a social
security program for destitute women, we would be able to cover more than double the number
of women who are currently covered by this program within just a few years. But that thought
might sound a little radical and far fetched. Instead, it’s best if we let the government
work on this scheme and slowly help the insured to the progress their predecessors wanted
them to enjoy.