If you survive till the end of the policy term and the policy is in force and paid in full, you will receive Sum Assured on Maturity plus accumulated Sum Assured as Maturity Benefit.
If you are looking for a hassle free term insurance plan in India, you have a lot of options. You will have access to a variety of features, perks, flexible features and maturity options depending on the insurance service provider.
India First Life Saral Bachat Bima Yojana, a savings and protection policy for the entire family, was launched on Monday by India First Life Insurance Company Limited (IndiaFirst Life), a joint venture between Bank of Baroda and Union Bank of India. IndiaFirst Life Saral Bachat Bima Yojana is a non-linked, non-participating, individual life, limited premium, savings policy designed to provide life insurance coverage and guaranteed benefits and long term protection for the household. In this, you have to pay premium for a shorter period than the policy tenure.
According to Rishabh Gandhi, Deputy Chief Executive, India First Life Insurance, this simplified product offers dual benefits of protection and savings. It is primarily designed for the customers of Regional Rural Banks (RRBs) and rural branches. Let us also tell you what are the benefits of this plan.
Maturity
If you survive till the end of the policy term and the policy is in force and paid in full, you will receive Sum Assured on Maturity plus accumulated Sum Assured Additional Sum Assured as Maturity Benefit. The policy will be terminated after payment of maturity benefit, and no further benefits will be paid. According to the website, the Sum Assured on Maturity (SAM) is a guaranteed amount that will be paid on maturity of the policy.
Death Benefit
If the Life Assured dies while the policy is in force or is fully paid out, the death benefit will be paid to the nominee. The policy terminates when the defined death benefit is paid. Where X times the annual premium or the entire amount to be paid on death (Basic Sum Assured) is Sum Assured on Death (SAD). For ages 3 to 45, X is 10 years, while for ages 46 and above, X is 7 years. Further, if the policyholder dies due to an accident during the first year of the policy, an amount equal to Sum Assured on Death (SAD) will be paid.
Funeral Cover
On intimation of the death of the Life Assured, 10% of the Sum Assured on Death or Rs.25,000 (whichever is less) will be accelerated and paid in advance. It is not a supplementary benefit. The amount paid for funeral cover will be deducted from the amount payable as death benefit.
Guaranteed Editions
Saral Bachat Bima plan guarantees X percent of the total premiums paid in addition, where X fluctuates according to the policy term and annual premium. If the policy was in existence at that time, Guaranteed Additions will accrue at the end of each policy year. With this policy, you can add IndiaFirst Life Waiver of Premium Rider. As per the current income tax laws, tax benefits can be availed on premiums paid and benefits received. As per Government Tax Law, these are subject to change at any time.
