The Saral Jeevan Bima Yojana's Advantages (SJBY)

 

Saral Jeevan Bima Yojana (SJBY) is a new standard term insurance plan that has been introduced by the Insurance Regulatory and Development Authority of India (IRDAI) in January 2021. The plan is designed to provide affordable life insurance coverage to individuals and their families. In this article, we will discuss the advantages of SJBY.

1. Affordable Premiums:

   One of the primary advantages of Saral Jeevan Bima Yojana is its affordable premiums. The premium for the plan is kept low so that it can be easily accessible to a larger segment of the population. The premium for the plan starts at Rs. 162 per annum and can go up to a maximum of Rs. 330 per annum. This makes it an ideal plan for people who want to secure their family's financial future without paying a high premium.

2. Simple Plan:

   SJBY is a simple plan that is easy to understand and purchase. The plan comes with a standard policy wording that is easy to comprehend, and the policy can be purchased online or offline. There are no complicated terms and conditions associated with the plan, making it a hassle-free purchase.

3. Wide Coverage:

   SJBY provides a wide coverage to the policyholder. The plan offers a sum assured of Rs. 5 lakhs to Rs. 25 lakhs, depending on the policyholder's age. The plan covers death due to any cause, including COVID-19, which makes it a relevant plan in the current times. The plan also offers a lump sum payout to the nominee in case of the policyholder's death.

4. No Medical Tests Required:

   Saral Jeevan Bima Yojana does not require any medical tests for policy issuance. This makes it an ideal plan for people who are looking for a simple and hassle-free life insurance plan. The plan can be purchased online by filling up a simple proposal form, and the policy is issued instantly.

5. Tax Benefits:

   The premium paid for SJBY is eligible for tax benefits under Section 80C of the Income Tax Act. The maturity proceeds of the plan are also tax-free under Section 10(10D) of the Income Tax Act. This makes SJBY an attractive investment option for people who want to save tax while securing their family's financial future.

6. Nomination Facility:

   SJBY offers a nomination facility to the policyholder. The policyholder can nominate one or more persons as nominees to receive the sum assured in case of their death. The nomination can be changed at any time during the policy term.

7. Term of the Policy:

   SJBY is a term insurance plan with a fixed policy term of one year. The policy can be renewed every year, and the premium for the plan remains the same throughout the policy term.

conclusion

In conclusion, Saral Jeevan Bima Yojana (SJBY) is a simple and affordable life insurance plan that offers wide coverage and tax benefits. The plan is ideal for people who want to secure their family's financial future without paying a high premium. SJBY is a step towards making life insurance accessible to a larger segment of the population and is a welcome move by the IRDAI.