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SBI Group term plan is a pure risk life insurance product with the sole aim to financially support the employee’s family in the event of death during the policy term. The large sum assured helps the family absorb the trauma of losing the breadwinner and come to terms to resume life afresh. Unlike the individual term plan, the SBI Group Term Insurance is a feature-rich, cost-effective solution helping the companies to fulfil their obligations toward their employees and their families.
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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.
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:
|
Parameter |
Conditions |
|
Minimum Entry Age |
EE Group: 18 years NEE Group: 16 years. |
|
Maximum Entry Age |
EE Group: 79 years NEE Group: 79 years. |
|
Maximum Maturity Age |
EE Group: 80 years NEE Group: 80 years. |
|
Policy Term |
Renewable every year |
|
Premium |
Depends on the sum assured |
|
Minimum Sum Assured |
EE Group: Rs.1000 per member NEE Group: Rs.1000 per member |
|
Maximum Sum Assured |
EE Group: Rs.50 Crore per group member NEE Group: Rs.50 Crore per group member |
|
Minimum Group Size |
EE Group: 10 members NEE group: 10 members |
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:
A group term life insurance plan covers the group member to support dependants in an unfortunate eventuality financially.
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.
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:
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:
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.
The SBI Group Term Insurance does not provide any maturity benefit.
The policy offers a wide range of riders to ensure that the members and their dependents are well protected.
Below are the optional benefits offered under the SBI Group Term Plans:
The insured member can opt to convert the group plan into an individual plan of SBI Life.
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.
The master policyholder can opt for this benefit for a minimum group size of 250, either made compulsory or voluntary.
By this option, the death benefit is paid in installments, spread over 5 years.
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.
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.
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.
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:
Let us have a look at the terms and conditions for group term insurance policies by SBI:
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.
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.
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.
The key exclusions of SBI Group Term Insurance Plans are as follows:
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.
The benefit excludes those affected with HIV or AIDs.
*For a detailed list of exclusions, please refer to the policy document or the product brochure.
A1. The policyholder can choose the premium payment frequencies according to the convenience of yearly, half-yearly, quarterly, and monthly installments.
A2. The two formulas applied in Critical Illness Rider Claim are Additional and Accelerated. In the former, the Rider sum assured is paid upon expiry of the survival period from the diagnosis date, and the base policy coverage is not affected. On the other hand, in the accelerated formula, the rider sum assured is paid on diagnosis, and the base policy sum assured is reduced by a like amount.
A3. The policy renewal on the due anniversary date extends the policy term by another year. If there is premium default even after the grace period expiry, the policy lapses, and the risk cover ceases.
A4. As already seen, the policyholder is spoilt for choice with the wide range of riders on offer. However, the choice is restricted to one from the Group Rider category and one from the Critical Illness category.
A5. The policy lapses if the policyholder defaults in premium payment for renewal. The lapsed policy is revived within five years from the first default date, subject to compliance with SBI Life rules.
A6. The option is available only at the master policyholder level for the group strength of a minimum of 250 members. The option is either compulsory or voluntary. Accordingly, the EE group compulsory coverage is capped at Rs.15 Lakh, and the EE voluntary, affinity, and other groups at Rs.10 Lakh.
A7. The member can invoke the convertibility option within 30 days of leaving the company. The other restrictions applied to the converted policy are the maximum age at 50 years and amount cap at Rs.10 Lakh. Plan rider options are not eligible for conversion.
A8. For the life cover in place of EDLI, the minimum entry age, maximum entry age and maturity age are as per the EDLI 1976 rules. It overrides the SBI Group Term Insurance parameters.
A9. Where the member pays the premium, tax exemption under Section 80 C of the IT Act, 1961 is applicable. The additional premium for Critical Illness Rider is entitled to exemption under Section 80d of the IT Act, 1961.
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C apply.
**Tax benefit is subject to changes in tax laws
†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
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