Why is SBI Saral Jeevan Bima Pricier?

prajna_bhat

The Saral Jeevan Bima is an insurance policy offered by the government of India to provide financial security to individuals in case of death or disability. However, the premiums for this policy are quite expensive. What are some of the reasons why this policy is so expensive?This is an important question to consider as it can help individuals make an informed decision when it comes to purchasing life insurance. It could be due to the fact that the policy offers a wide range of coverage, or it could be because of the high risk associated with the policy. It would be helpful to discuss the factors that influence the cost of the policy and to consider ways to reduce the cost.

Ved593

Saral Jeevan Bima is a life insurance plan from LIC India, and it is known for its high cost. The premiums are more expensive than other similar policies. There are several reasons why Saral Jeevan Bima is expensive:

Saral Jeevan Bima provides coverage against death due to natural causes and many other additional benefits such as accident death benefit and accidental total and permanent disability. This plan has many features that make it a comprehensive protection against possible losses and therefore its premiums are higher than the policies that provide only death coverage.
The premiums of Saral Jeevan Bima are calculated based on your age and the sum assured. The older you are, the higher will be the premium as you will be seen as a greater risk.
Saral Jeevan Bima also includes an opportunity to build a corpus through unit-linked options. The premiums are used to invest in the market and the returns are linked to the market, which may vary based on the performance of the market. This feature is optional and will depends on the customer’s investment preferences.
Saral Jeevan Bima has several additional coverage features that are not covered in other policies. These features include benefits for your children and funeral expenses. Such additions tend to increase the premium amount.
Saral Jeevan Bima also charges a service tax on the premiums paid, which reduces the actual coverage amount and increases the premium amount.

To summarise, Saral Jeevan Bima is expensive as it provides multiple features and additional coverage over death, such as accident death benefit, accidental total and permanent disability, funeral expenses and benefits for your children, in addition to the opportunity to build a corpus through unit-linked options. The premiums are also calculated based on your age, which can increase the amount even further.

Tinyswan

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.

Shishti584

Saral Jeevan Bima is a term insurance plan from LIC (Life Insurance Corporation of India). It provides financial protection to the family/nominees in case of the policyholder's premature death.

Saral Jeevan Bima is an expensive plan because it offers a large sum assured at a reasonably lower premium. The coverage of Saral Jeevan Bima is much higher than other insurance plans, making the premiums proportionately high. Plus, the coverage offered information protection from inflation by indexation. Moreover, the policyholder is provided with full tax exemption which raises the cost of the policy.

The higher premiums are worth it, as Saral Jeevan Bima offers a wide range of benefits. For instance, it ensures financial security for the policyholder's family in case of the policyholder's death. It also provides Accidental Death Benefit (ADB) and Waiver of Premium (WoP) facilities. Thus, Saral Jeevan Bima covers all aspects of financial protection and can be useful in times of emergencies.

Overall, Saral Jeevan Bima is an expensive term plan but its benefits are worth the cost. It offers the policyholder the peace of mind that, in the event of their death, their family will be provided for financially.