SBI Life – Shubh Nivesh Plan

SBI Life Insurance Company is a public sector insurance company that started its operations in the year 2001 with a grant of registration from the Insurance Regulatory and Development Authority of India (IRDAI). SBI Life insurance Company is an amalgamation of two highly experienced market players on a global financial services space, State Bank of India and BNP Paribas Cardif. With its market expertise, attractive products and competitive rates, SBI Life Insurance Company has emerged as a key player in the Indian insurance industry. The company offers versatile products, not just to meet the insurance needs but also to meet the savings needs of customers.

What are Endowment Assurance Plans?

Endowment plans are the most common type of traditional insurance cum savings products offered by the life insurance companies. Endowment assurance plans are designed to offer both death benefits and maturity benefits. That means it allows you to protect your family financially in the eventualities and also gives you opportunities to save and build wealth for your future dreams. Endowment plans come in many types. Endowment plans can come with profit or without profit features.

SBI Life’s Shubh Nivesh Plan

SBI Life’s Shubh Nivesh is one of the best endowment plans available in the market that offers triple benefits of savings, income and life cover. Along with securing your family, it allows you to save for life after retirement, vacation, children’s education or house buying or any other long-term financial goals that you need to achieve. SBI life’s Shubh Nivesh comes with two different options, one of the options offers you whole life cover. There are various amazing features offered by the plan that adds greater flexibility to the plan.

Features of SBI Life’s Shubh Nivesh Plan

  • A savings cum insurance plan with an option to avail whole-life coverage to pass on wealth for your next generation.
  • Option to opt for regular payments of income
  • Flexibility to choose from two policy types – single premium and regular premium payment plans
  • Optional additional riders (at an extra cost of the premium)
  • Option to receive the basic sum assured at regular intervals for a specific period of time.

Benefits of SBI Life’s Shubh Nivesh Plan

  • Reliability : As SBI life’s Shubh Nivesh is a participating (with profit) plan, simple reversionary bonuses are added to your policy throughout the policy term.
  • Flexible : There is a flexibility of choosing between two plans –endowment option or endowment with whole life cover option. If you opt for a policy term of 15 years, you can extend your life cover for whole life i.e. for 100 years. The premium can also be paid in one-go (single premium plans) or on a regular basis with different premium payment frequency to choose from.
  • Income benefit : There is an option called ‘deferred maturity payment’ which allows you to get a regular income after the maturity i.e. at the end of endowment term. You can take only part of your maturity benefits at the end of the term and the remaining can be taken at regular intervals (based on the frequency chosen by you) within a stipulated period. In case of death during the payout period, the nominee will continue to receive the pay-out. The nominee can also take out the benefits in a lump sum.
  • Death benefit : Benefits payable on death are as below

    Endowment option: sum assured on death + vested reversionary bonuses + terminal bonus, if any is payable. Where, the sum assured on death is higher of basic sum assured or multiples of annualised/single premium. Details of multiples are mentioned below

    Policy type Entry age < 45 years Entry age ≥ 45 years
    Single premium 1.25 1.1
    Regular premium with 10 years term 5 5
    Regular premium with term more than 10 years 10 7

    Endowment with whole life option: sum assured + vested reversionary bonuses + terminal bonus, if any is paid to the nominee in case death occurs within the endowment term. If death occurs after the maturity, the basic sum assured is paid to the nominee.

  • Maturity benefit : End benefit for each of the plans is as below

    Endowment option : Basic sum assured + vested simple reversionary bonuses + terminal bonus if any

    Endowment with whole life option : Basic sum assured + Vested simple reversionary bonuses + terminal bonus if any at the end of maturity term is paid. Basic sum assured will be paid on 100th birthday.

  • Additional riders benefit (optional) : Three additional riders – preferred term rider, accidental death benefit, accidental death & total disability benefit rider can be availed at an affordable cost.
  • Tax benefit : Tax benefits under Section 80C and Section 10 (10D) can be enjoyed.

Eligibility Criteria for SBI Life’s Shubh Nivesh Plan

Eligibility conditions Minimum Maximum
Entry age
Regular premium plan
Single premium plan
For whole life option

18 years
18 years
-

58 years
60 years
50 years
Maturity age
Endowment option
Endowment with a whole life option

-
-

65 years
100 years
Policy term
Endowment option
Regular premium plan
Single premium plan

Endowment with a whole life option
Regular premium plan
Single premium plan


7 years
5 years


15 years
15 years
30 years (endowment term)
Premium paying term Same as the policy term
Premium payment frequency Single premium/yearly/half-yearly/quarterly/monthly (in monthly mode, 3 months premium is collected in advance and the renewal premium has to be paid only through ECS or SI mode.
Premium frequency loading Half-yearly: 51% of the annual premium
Quarterly: 26% of the annual premium
Monthly: 8.5% of the annual premium
Premium range
Single premium
Yearly
Half-yearly
Quarterly
Monthly
Based on minimum
SA
Rs. 6,000
Rs.3,000
Rs. 1,500
Rs. 500
No limit
Sum assured (SA) range (in multiples of Rs. 1,000) Rs. 75,000 No limit

Premium illustration for SBI Life’s Shubh Nivesh Policy

Here is the sample premium rates for 30-year-old male life seeking INR. 10,00,000 for 30 years term depending on the plan option chosen.

Plan option Sum assured (in INR.) Policy term (in years) Yearly premium (in INR.)
Endowment 10,00,000 30 29,480
Endowment with whole life 10,00,000 30 34,130

Who should buy SBI Life’s Shubh Nivesh policy?

SBI Life’s Shubh Nivesh policy is an ideal option for Investor looking for all in one investment tool. The plan addresses savings, income and whole life insurance need.

When should you buy SBI Life’s Shubh Nivesh policy?

Depending on the insurance and savings need SBI Life’s Shubh Nivesh policy can be purchased any time after attaining the age of 18 years. It’s important to note that buying early can help you save some amount of money on premium cost as well as save more for the future.

Documents required for buying SBI Life’s Shubh Nivesh policy

  • PAN card is mandatory
  • Identity proof: PAN card/Aadhaar card/passport/driving license etc.
  • Proof of residence: Property tax receipt/ bank account statement/utility bill/ passport etc.
  • Proof of income: employer certificate/ Income Tax return
  • Age proof: PAN card/School certificate/ Passport/ birth certificate

Discontinuance of premium in SBI Life’s Shubh Nivesh policy

SBI Life’s Shubh Nivesh policy acquires surrender value/paid-up value only if the premium has been paid for at least two full years (for policy term less than 10 years) and the three full years (for policy term more than 10 years). If the premium payment is discontinued within this period, the policy will get lapsed. You will have an option to revive within two years from the date of first unpaid premium. If the premium payment is discontinued after acquiring paid-up value, policy benefits will continue but at a reduced value of paid-up sum assured. On maturity or on death, whichever is earlier, paid-up sum assured will be paid if the policy is not revived.

Surrender of SBI Life’s Shubh Nivesh policy

On surrender of SBI Life’s Shubh Nivesh policy, higher of the guaranteed surrender value (GSV) or special surrender value (SSV) including vested bonus, if any will be paid. SSV is based on an assessment on the past financial and demographic experience of the product. GSV is calculated by multiplying basic premium paid with GSV factors mentioned in the policy. Details of GSV factors are:

Policy year % of the basic premium paid
Policy term < 10 years Policy term ≥ 10 years
1 0% 0%
2 30% 0%
3 30% 30%
4-7 50% 50%
8-9 55% 55%
10 NA 55%
11-15 NA 60%
16-20 NA 65%
21+ NA 70%

Loan facility in SBI Life’s Shubh Nivesh policy

You can loan avail up to a maximum of 90% of the policy value. The interest rate will be declared by SBI life from time to time.

Exclusions in SBI Life’s Shubh Nivesh policy

If the life assured commits suicide, within one year from the date of commencement of policy or from date of revival, the policy shall be void. However, 80% of the total premium paid as on date of death intimation will be paid to the beneficiary.

Conclusion

SBI Life’s Shubh Nivesh policy is one such investment tool that helps you stay protected for life along with availing the benefit of savings and regular income.


FAQs

Rebates are available as a discount on the basic premium depending on the sum assured range:

Sum Assured (in Rs.) Rebates on premium per thousand the sum assured
Regular premium (applicable for all premium modes) Single premium
0.75 lakhs to < 1.5 lakhs Nil Nil
1.5 lakhs to < 3 lakhs Rs. 2.25 Rs. 4.5
3 lakhs to < 6 lakhs Rs. 4.5 Rs. 9
6 lakhs and above Rs. 6 Rs. 12

In SBI life’s Shubh Nivesh plan, if the premium payments are discontinued after the policy acquires paid-value, policy is converted as paid-up policy. For such policies, sum assured payable on death or on maturity is reduced in the same proportion as the ratio of the number of premiums paid to the total number of premiums actually payable. This reduced sum assured is called paid-up sum assured.