SBI Life – Grameen Bima

SBI Life Insurance Company, established in the year 2001 is a well-known and a key player in an Indian insurance market. It was first started as a bancassurance channel which now has its multi-distribution channel. Headquartered in Mumbai, SBI Life Insurance Company is a joint venture company by State Bank of India and BNP Paribas Cardif. SBI Life insurance company offers a wide range of insurance products starting from pure protection plan to traditional savings and market-linked plans for long-term investors. With its customisable products and quality services, SBI Life Insurance has emerged as one of the best insurance company in India. It has received many awards such as ‘’consumer voted brand of the year’’, ‘’Bancassurance leader life insurance’’ and ‘’Life insurance company of the year’’ etc. for its consistent performance and contribution to the insurance industry.

What is Micro Insurance?

Microinsurance is basically the insurance products like protection plans to secure the family that are offered at an affordable rate to a low-income group of people. In simple terms, microinsurance products are the aid offered to poor families by way of tailored insurance plans. Microinsurance covers various types of risks that not only includes life risk but also includes risks related to health, disability, livestock/cattle, fire and natural disasters etc. Life micro insurance plans are effective tools that help low-income groups avail financial security and save for retirement living at an affordable cost.

SBI Life’s Grameen Bima

SBI Life’s Grameen Bima is a pure term, plan that offers financial security at an affordable cost. It is a non-participating plan that provides protection against the uncertainties of life. It is a single premium plan that avails you enjoy the benefits of the plan throughout the policy term just by making a one-time payment. Basically, SBI Life’s Grameen Bima plan is specifically crafted for the low-income group people and rural India which is not exposed to proper insurance products. As the plan offers financial protection at a low rate, the Insurance needs of people in every corner of India can be met.

Features of SBI Life’s Grameen Bima

  • A pure protection plan with a one-time payment facility
  • No medical check-ups
  • Flexibility to choose the premium amount

Benefits of SBI Life’s Grameen Bima

  • Simple and hassle-free : Enrolment process for SBI Life’s Grameen Bima is very simple, based on a simplified questionnaire. There is no medical examination requirement also. Health declarations and health-related information need to be provided in the proposal form. If health declarations are satisfactory, the chances of acceptance are more.
  • Convenience : SBI Life’s Grameen Bima offers convenience to its buyer as the premium needs to be paid only once at the time of enrolling for the policy. The benefits of the policy can be enjoyed for the entire policy term just by making payment only once at the beginning.
  • Affordability : As SBI Life’s Grameen Bima targets the low-income groups of the society and rural India, the coverage under the plan is offered at nominal premiums to make it affordable for the people. Buyer can also choose the premium amount that is comfortable for him/her to pay. Correspondingly, life insurance cover or sum assured will be decided by the SBI Life Insurance Company.
  • Death benefit : In case of the untimely demise of the life assured/policyholder, Sum assured will be payable to nominee/beneficiary as a death benefit.

    For example, Mr Sunil aged 30 years has purchased SBI Life’s Grameen Bima for 5 years at a premium of Rs. 700 to get Insurance cover of 48,000 for the family in the event of an unfortunate event. Let’s say, Sunil dies after paying four years of premium, then his nominee will receive Rs. 42,000 (sum assured) in the event of death.

  • Tax benefit : For the premium paid on SBI Life’s Grameen Bima plan, tax deductions can be claimed under Section 80 C of the Income Tax Act, 1961. Also, the lump sum benefit payable on death is also exempted from income tax in the hands of the receiver under Section 10 (10D) of the Income Tax Act.
  • Maturity benefit : There is no maturity benefit offered under SBI life’s Grameen Bima plan as it is a pure term insurance plan.
  • Surrender benefit : Policy also offers surrender benefits. The policy can be surrendered from the second policy year onwards. The surrender value payable to the policyholder will be:

Surrender value = Single premium (exclusive of applicable taxes) * 50% *unexpired policy term / total policy term

Please note : Term is measured in complete months. The unexpired term means the total policy term in months less the completed number of months as on date of surrender. However, no surrender benefit would be payable in the last year of the policy.

For example, you have paid a single premium of Rs. 800 to get the coverage of Rs. 48,000 for the 5-year term. Let’s say after two years two months you decide to surrender your SBI Life’s Grameen Bima plan, then the surrender value would be = Rs. 800* 50%*(60 months-26 months)/60 months = Rs. 226.67

Eligibility Criteria for SBI Life’s Grameen Bima

Eligibility conditions Minimum Maximum
Entry age 18 years 50 years
Policy term 5 years
Premium range (in multiples of Rs. 100) Rs. 300 Rs.2,000
Premium payment frequency Single
Sum assured range Rs. 10,000 Rs. 50,0000

Sum assured based on age band

Age band Sum assured
18 – 39 years 60 * total premiums paid
40 – 44 years 40 * total premiums paid
45 – 50 years 25 * total premiums paid

Please note : premium amounts here are inclusive of applicable taxes/statutory levy/surcharge/duty on your premium.

Who can buy SBI Life’s Grameen Bima Policy?

Basically, SBI Life’s Grameen Bima Policy targets economically vulnerable and socially deprived segment of the rural Indian population. They can secure their family financially to a certain extent.

Documents required to buy SBI Life’s Grameen Bima policy

  • Age proof : School certificate/Driving license/PAN card/Passport/ birth certificate
  • Proof of identity : Voter ID card /Passport/Driving license/ PAN card etc.
  • Address proof : Utility bill/Aadhaar card/ Voter ID card/ bank account statement etc.
  • Medical questionnaire along with proposal form

Loan facility in SBI Life’s Grameen Bima policy

There is no loan facility available under SBI Life’s Grameen Bima policy.

Exclusions in SBI Life’s Grameen Bima policy

There is no exclusions applicable under SBI Life’s Grameen Bima policy

Conclusion

SBI Life’s Grameen Bima policy is a pure term, micro insurance plan that allows venerable section of our rural India to avail much needed financial protection for the family at nominal cost in one payment. SBI Life’s Grameen Bima policy is definitely one of the best plan that ensures financial and insurance needs of rural masses are met at lower cost.


FAQs

Yes. SBI Life’s Grameen Bima plan can be cancelled after buying. The plan comes with free look-period of 15 days (from the date of receipt of the policy) for policies sourced through channels other than distance marketing. And the free look period for policies sourced through distance marketing is 30 days. Within these stipulated time period, you can cancel your already bought policy with stating the reason for rejection or objections on terms and conditions of the policy.