Saral Jeevan Bima is an insurance policy provided by the Life Insurance Corporation of India (LIC) that offers complete financial security to an applicant's family in case of untimely death or disability. It is expensive because it provides comprehensive coverage and provides death and disability benefits.
The premium for Saral Jeevan Bima is determined based on the insured’s age, sum assured, and the riders opted for. Additionally, the extent of coverage offered and the frequency of payment also affects the premium amount.
Apart from that, the insurer must cover for administrative costs and expenses, underwriting costs, reinsurance costs, and cost of acquisition. Higher these costs, higher is the price of Saral Jeevan Bima.
Lastly, Saral Jeevan Bima offers numerous benefits such as income tax deduction on the premium paid, etc. These benefits are beneficial for the policyholder; however, they can affect the premium amount.
Therefore, the comprehensive coverage and high costs associated with providing such coverage make Saral Jeevan Bima an expensive insurance policy.