Awareness in our country is already very low in insurance, it is even more difficult to understand and fulfill the policy terms of insurance companies from above.
IRDAI has now announced simple life insurance. With this, those people will also be able to take term plans, who were not able to get insurance due to the terms and conditions.
Insurance regulator IRDAI has announced a standard term life policy. However, we had already told this news that IRDAI is going to bring a standard term policy.
Different companies have different term life insurance products. Whose terms and rules are different. The reason for this is that customers often find it difficult to understand the policy.
According to the order of IRDAI, insurance companies will be able to launch these products in the market from 1 January 2021.
Now anyone can take a term plan
Standard term policy is a product whose terms and conditions will be exactly the same for all insurance companies.
By buying from any insurance company, you will get the same benefit of term insurance.
This policy can be taken by anyone from 18 years to 65 years. The policy term will be from 5 years to 40 years.
The maximum maturity age in this will be 70 years. There will be a sum assured of Rs 5 lakh to Rs 25 lakh.
Earlier these were problems
Right now the biggest problem with the term plan was that the insurance companies used to ask for income tax returns from customers, due to which small and big businessmen could not take a term plan. Because they do not have tax returns.
It was necessary to have an annual income of at least 2 lakh to 5 lakh in the tax return, that is, 98 percent population of the country was likewise excluded from the term plan.
But the insurance regulator IRDAI has now removed this condition from the policy. Its advantage will be that now its scope will be very large. More and more people will be able to get a term plan.
Let us now understand what is the specialty of simple life insurance and what changes have been made.
Features of simple life insurance
1.By purchasing a simple life insurance policy from any insurance company, the conditions and benefits will be exactly the same, no company will be able to change it.
2 – It will be easy to understand, its features will be very simple so that there will be no problem in understanding the policy, even the low earning people will be able to take it.
3- The terms and benefits are the same, misselling this policy will not be possible. Claim settlement will be easy.
4- It is a completely pure risk cover, non-linked product, no separate rider in it
There will be no exclusion in the policy except suicide.
6- Income, occupation, education, the residence will not be the eligibility conditions, any person working in India can buy it.
7- It will also have the option to pay a monthly premium in addition to yearly, one can pay premium through ECS / NACH
8- However all companies will have the right to fix premium and underwriting policy
9 – No surrender will be made on surrendering the policy, loan facility will not be available, there will not be maturity benefit, because it only involves death benefit.
10- The waiting period will be 45 days, ie policy conditions will start only after 45 days of taking the policy, payment can be made even before 45 days in case of accidental death.