Saral Jeevan Bima

Saral Jeevan Bima

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.

What is Saral Jeevan Bima Yojana?

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.

Eligibility Criteria

● 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.

Why was the scheme introduced?

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.

How did it start?

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.

What is the scheme all about?

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.

Working of the Scheme

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.

Narrowing the Gap between rich and poor

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.