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.
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 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.
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.
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 bonusif any at the end of maturity term is paid. Basic sum assured will be paid on 100th birthday.
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 |
7 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 |
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 |
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.
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.
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.
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% |
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.
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.
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.
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.