[FINANCIAL NEWS] The term life insurance business in India is heating up, with insurers all set to rollout the standard term insurance policy SARAL JEEVAN BIMA from January 1st 2021. In the month of October, the Insurance Regulatory and Development Authority of India (IRDAI) directed all life insurers to launch the standard term plan for policy buyers from Jan 1st 2021 onwards. The plan has uniform terms and conditions across all insurers with sum assured ranging between Rs 5 lakh and Rs 25 lakh.
Since the onset of the COVID-19 pandemic, insurers have been witnessing an exciting trend. The demand for term insurance in the last 9 months has increased significantly. The fear of COVID-19, especially amongst individuals with financial dependents, has resulted in more demand for term plans. However, a few consumers bought term plans with inadequate cover which may not be sufficient to meet the financial needs of their loved ones in case of any unfortunate event. To overcome this issue, Saral Jeevan Bima can be a reliable solution to enhance the existing cover and avail coverage for an adequate sum assured. Saral Jeevan Bima will play a major role in expanding the term insurance market in India and increase insurance penetration rate in a relatively new and larger customer segment. IRDAI has always emphasised on the need for offering simple products and using simple language in the policy documents to bring maximum people under the insurance umbrella.