SBI Group Term Insurance

The USP of the SBI Group Term Insurance is an affordable group term life insurance product designed to cater to different group categories, broadly classified as formal and informal. The formal group reinforces the Employer-Employee (EE) bond. In contrast, the informal group covers several classes like credit groups, affinity groups, bank depositors, professional groups, social groups, rural groups, etc., broadly clubbed as the Non-Employer-Employee (NEE) group. 

Eligibility Criteria for SBI Group Term Plans

It is already understood that there are broadly two group categories – The EE and the NEE. In the former, the primary requirement is that the employee must be on the company’s permanent payroll seeking to purchase the SBI Group Term Insurance. The NEE, on the other hand, has a common thread binding them. Based on these two principal themes, the eligibility criteria defined in the SBI Group Term Insurance are:

Salient Features of SBI Group Term Insurance Plans

The SBI Group Term Insurance is a comprehensive security package providing a fully flexible customizable tuned to the policyholder’s needs. The primary advantages of the policy are:

Security

A group term life insurance plan covers the group member to support dependants in an unfortunate eventuality financially.

Flexibility

The group’s preferences are factored in to define plan benefits. It includes defining the sum assured as per the master policyholder’s needs. It is either a Fixed Sum Assured across the board to all group members, or a Graded Sum Assured based on employee rank and salary scale. Additionally, the policyholder has a wide choice both in terms of riders and options to enhance coverage. 

Simplicity

The enrolment and on-boarding are seamless and straightforward.  The master policyholder accomplishes the membership enrolment through a simple application form.

The SBI Group Term Insurance has a wide range of features catering to every individual preference to provide optimum customization. Let us summarize all the key features for easy comprehension:

• The SBI Group Term Insurance is a single master policy covering all the members of the group. 
• The plan is backed by the SBI, India’s largest commercial bank with a 24/7 service and global acceptability.  
• The master policy is fully customizable by using the following options to accommodate individual preferences.
• Coverage Type: The policyholder can decide between a Flat, or Graded coverage, meaning that the sum assured is uniform across the board for all group members in the former, and sum assured is determined by multiple factors of age, rank, salary scale making it variable. 
• Coverage Amount: There are two ways to determine the member’s coverage, either as salary multiple or cost-to-company. 
• Life Cover: The life cover is a substitute for EDLI.
• Risk Component: It provides for the group tern insurance to select the component under any defined benefit or defined contribution scheme. 
• The master policyholder is the administrator empowered with specific privileges to maintain the policy, renew, and update the master roll with additions and deletions as and when required. 
• The   SBI Group Term Insurance provides a wide range of riders and options to tailor the policy according to the group member’s needs. 

Core Benefits of SBI Group Term Insurance Plans

Apart from the salient features mentioned above, the SBI Group Term Insurance has a wide range of benefits catering to every individual preference to provide optimum customization. Here is a rundown of the key benefits offered under the SBI Group Term Insurance Plans:

Death Benefit

The sum assured benefit is payable to the member’s nominee in the event of demise due to natural causes, accidents, or on the diagnosis of critical and terminal illness if opted for. 

Maturity Benefit

The SBI Group Term Insurance does not provide any maturity benefit. 

Rider Benefit

The policy offers a wide range of riders to ensure that the members and their dependents are well protected. 

• Group Rider – ASTPD
• Group Rider – AD
• Group Rider – ATPD
• Group Rider – APPD
• Critical Illness Riders: four-rider variants are offered under this head with two formulae – Additional and Accelerated. 

Optional Benefits

Below are the optional benefits offered under the SBI Group Term Plans:

Convertibility

The insured member can opt to convert the group plan into an individual plan of SBI Life. 

Terminal Illness Benefit

It is applied only in the EE group where the master policyholder can opt for this benefit, meaning diagnosing a disease that is likely to be fatal within 180 days. 

Spouse Cover Benefit

The master policyholder can opt for this benefit for a minimum group size of 250, either made compulsory or voluntary. 

Death Benefit Settlement

By this option, the death benefit is paid in installments, spread over 5 years.

Tax Benefit

The GOI governs every life insurance product promulgated extant Income Tax Laws and subject to amendment from time to time. The master policyholder’s premium is entitled to tax exemption under Section 37 (1) as a legitimate business expense. 

The Process to Purchase SBI Group Term Insurance

SBI Life has a strong pan India presence, and the SBI Group Term Insurance can be purchased in many ways. The digital model is convenient, with simple basic questions answered to receive the insurer’s assistance. The essential information sought is the company’s name, industry type, group size, plan name, city, contact person’s name, and phone number, and the authority to be called. Other than the digital route, the master policyholder can engage a suitable broker or visit the nearest brick and mortar office to accomplish the job. 

Documents Required while Buying SBI Group Term Insurance Policies

Membership enrolment in the SBI Group Term Insurance is seamless, with most companies advocating a simple application form. It is with claims that understanding documentation becomes essential for a smooth settlement. Accordingly, the documents required for some typical situations are described below. It is to be noted that it is only indicative, and the insurer may call for additional documents if needed. 

Natural Death Claim

• Claim Form
• Death Certificate from the appropriate authority
• Nominee’s KYC documents
• Nominee’s bank account details, including IFSC information

Accidental Death Claim

• Claim Form
• Death Certificate
• Medical reports if hospitalized
• All investigation reports and Police related documents

Critical Illness Claim

• Claim Form
• Diagnosis and Investigation reports
• Hospital medical records
• Treating Doctor’s Certificate

Other Features of Group Term Plans by SBI

Apart from the aforementioned key features offered under the group term insurance policies by SBI, here are some other features that come packed with the plans:

For the Employer

• A comprehensive employee benefits package with options to customize
• A critical tool to retain and attract employee assets
• Simple to maintain and administer 

For the Employee

• Global acceptance with 24/7 SBI support
• Boosts employee morale and peace of mind
• No medical examination is required on enrolment up to Free Cover Limit
• Coverage grows with rank and promotions

Terms and Conditions under SBI Group Term Plans

Let us have a look at the terms and conditions for group term insurance policies by SBI:

Free Look

The policyholder is entitled to a free look period of 15 days to review the policy features. If not satisfied with the provisions, the policy may be returned stating reasons. 

Profit-sharing

The SBI Group Term Insurance provides for profit-sharing as per the accepted formula. The financial benefit is reflected in the following year’s premium reduction. Losses are carried over for adjustments with future profits. 

Grace Period

The SBI Group Term Insurance policy is up for renewal every policy anniversary, and the term is one year. The policyholder gets a breathing time called the grace period of 15 days for the monthly premium and 30 days for other frequencies to renew the policy. 

Exclusions of SBI Group Term Policies

The key exclusions of SBI Group Term Insurance Plans are as follows:

Suicide Claim

When the suicide claim is excluded for the event occurring within the first twelve months, the policyholder is entitled to receive 80% of all the paid premiums, minus the incidental charges and taxes. 

Critical Illness

• A claim is not paid within 90 days from the policy inception date or the member’s entry date.
• The survival period of additional benefit is 30 days. 

Terminal Illness

The benefit excludes those affected with HIV or AIDs.  

General Exclusions

• Self-inflicted injury or attempt at suicide
• Medical conditions originating from alcoholism, solvent abuse, or drug addictions
• Accidents and medical conditions arising from participation in extreme sports, hazardous activities, and potentially dangerous hobbies
• Medical conditions arising from perils of war, invasion, war-games, or civil actions like strikes, riots, etc. 
• Radioactive contamination from nuclear leaks and explosions
• Treatment-related to congenital disabilities 

*For a detailed list of exclusions, please refer to the policy document or the product brochure.

Note: Check all the best term insurance plan in India.

Note: You should also check the benefits of term life insurance if you are planning to purchase the term insurance plan.

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