Investment Plans 144 views July 22, 2021

Exide Life Saral Bachat Plan

Exide Life Saral Bachat Plan helps individuals get life insurance cover throughout the policy term. It is an insurance-cum savings plan that secures your family’s financial future even if you are not around to ensure the same. It also provides a guaranteed maturity benefit, either as a lump sum or a regular income as per your choice, at the end of the policy term.

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To get a brief overview of the plan, you can check its key features mentioned below.

  1. Multiple Policy and Premium Payment Term Options
  2. Coverage Against Death
  3. Flexible Maturity Benefit
  4. A Grace Period of 15 or 30 days
  5. Loan Against Policy Benefit
  6. No Need to Undergo Medical Tests
  7. A 15 or 30-day Free Look Period
  8. Discounts on Premiums on Paying Higher Amount
  9. Tax Benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961

Now, we will discuss them in detail so that you can make a better decision. Let’s start without any further delay.

Let’s Discuss the Features and Benefits of Exide Life Saral Bachat Plan in Detail

Exide Life Saral Bachat Plan is a non-participating individual life-cum-savings insurance plan. We’ve discussed the features and benefits of this plan for you to take note of.

What is the Policy and Premium Payment Term?

For the Exide Life Saral Bachat Plan, the policy term depends on the premium payment term and plan variants. Policyholders can select from three premium payment term options – 6, 8 or 10 years. To understand more, check the below table.

Premium Payment Term (In Years)Policy Term (In Years)
Lump Sum VariantIncome Variant
6126
812/168
1015/2010

What is the Minimum and Maximum Premium Amount?

The minimum premium amount depends on the premium payment term and the premium payment frequency option. To know more, check the below table.

Premium Payment Term (In Years)Minimum Premium Amount (In INR)
AnnualHalf-yearlyMonthly
620,00012,0002,000
815,0009,0001,000
1010,0006,0001,000

The maximum premium amount under the policy can be INR 95,000.

Death Benefit

If a policyholder dies during the policy period, Exide Life Saral Bachat Plan offers a sum assured on death to his/her family. The sum assured will be higher of the following amounts.

  1. ‘X’ times the Annualized Premium
  2. 105% of the total premiums paid until the date of death

Here, the multiple of ‘X’ times is defined as follows.

X = 10 if the policyholder’s age at entry is less than 45 years

X = 7, if the policyholder’s age at entry is 45 years or more

Maturity Benefit

Exide Life Saral Bachat Plan offers two variant options while receiving guaranteed maturity benefits – Lump sum and Income Option. You can choose any of them at the start of the policy, and once chosen, the option cannot be modified later. We are talking about both of them below. Please check.

Variant 1: Lump Sum Variant

Under this variant, you will get a lump sum amount as a guaranteed sum assured on maturity at the end of the policy term.

Variant 2: Income Variant

Under this variant option, the plan will provide maturity benefit as a guaranteed income during the income payout term (every year or month) to boost your overall income. To know more about it, check the table below.

Policy Term (In Years)Premium Payment Term (In Years)Annual Income Payout Monthly Income Payout 
Income Payout Term (Duration from the Policy Start Date)Income Payout percentage(As a Set Percentage of Guaranteed Sum Assured on Maturity)Income Payout Term (Duration from the Policy Start Date)Income Payout percentage (As a Set Percentage of Guaranteed Sum Assured on Maturity)
667th to 12th year20738rd to 144th month1.6
889th to 16th year1697th to 192nd month1.25
101011th to 20th year14121st to 240th month1

Loan Against Policy

Once your policy acquires a surrender value and you have paid at least two full years’ premium towards the plan, you can opt for a loan against your policy. The maximum loan amount can be 80% of the available surrender value (At that point) with a minimum of INR 1,000. The insurer will review the interest rate on the loan annually.

Multiple Premium Payment Modes

The policyholder can prefer to pay the premiums annually, half-yearly or monthly according to their convenience. To know more, check the below table.

Premium Payment ModeMultiplicative Factor
Monthly1
Half-yearly6
Annual12

Exide Life Saral Bachat Plan Eligibility Criteria

Please check the important conditions associated with the policy in the below table.

ConditionsDetails
Minimum Age at Entry8 years for a Premium Payment Term of 10 years
10 years for a Premium Payment Term of 8 years
12 years for a Premium Payment Term of 6 years
Maximum Age at Entry50 years
Maximum Age at Maturity65 years

Grace Period

Exide Life allows policyholders specific days to pay the premium (without any penalty or interest) from its due date. This duration is known as the grace period during which the policy remains in force. It stands at 15 and 30 days for monthly and all other premium payment modes, respectively. This grace period, as evident from the explanation, is for those who fail to pay the premium on the due date.

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