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Why ULIP mis-selling has become rampant ?

Why is there so much mis-selling of ULIP? How to avoid this mis-selling? Who should take ULIP?

Soumalya Santikari
Last Updated : April 20, 2024, 10:37 IST

Life is full of uncertainties. You can avoid diseases with extreme caution and care, but mishaps can happen anytime and at any place. The Insurance Regulatory and Development Authority of India has introduced a standard personal accident insurance product called Saral Suraksha Bima. From April 1 this year, all insurers are offering this policy with a common coverage. The cover is offered with a tenure of one year. Here are a few key features of Saral Suraksha Bima policy that customers need to know.

Entry age

The minimum entry age is 18 years and the maximum age at entry is 70 years for all insured members. Dependent children are covered from age 3 months to 25 years.

Sum assured

The minimum sum insured under the cover is Rs 2.5 lakh and maximum limit is Rs 1 crore. However, if this is purchased as a family plan, the sum insured is applicable separately to each family member.

Premium payment

You can pay a premium on a yearly, half-yearly, quarterly or monthly basis.

Nomination

Nomination facility is allowed under the Saral Suraksha Bima policy.

Benefits

The policy has three mandatory base covers.

i) Death: Upon the demise of the insured, 100% of the sum assured shall be paid as a benefit if the death results from an injury sustained in an accident, and provided the death occurs within 12 months from the date of the accident.

ii) Permanent total disablement: If the policyholder suffers from permanent total disablement due to an accident during the policy period, they will be paid 100% of the sum assured as a benefit.

iii) Partial disablement: For policyholders suffering from partial disablement due to an accident, depending upon the severity, a benefit of up to 50% of the total sum insured to be paid.

Optional cover

Three optional covers will be included with the policy: temporary complete disablement benefit, education allowance, and hospitalisation expenses.

Bonus

Cumulative bonus is applicable only in respect of base cover.

Published: August 4, 2021, 14:30 IST