Not only will you get rider and death benefits, but you can also indulge in an added advantage with SBI Life Term Insurance with Return of Premium.SBI Life Term plans offer two variants with the return of premium features, namely SBI Life - Smart Swadhan Plus and SBI Life - Saral Swadhan Plus.
Salient Features of SBI Life Term Insurance with Return of Premium
Some of the features of SBI life term plans are:
- These policies are committed to financially securing the insured's family in case of untimely death during the coverage period
- The policies have an added maturity benefit along with the death benefit. The premium amount is returned to the insured in case they outlive the policy period.
- SBI Life Term Insurance with the Return of Premiumplans offers flexibility by allowing the insured to choose between various policy terms as well as multiple premium payment options
- An individual can easily enrol in any SBI term plans, as the purchase option is available through online and offline modes.
SBI Life - Saral Swadhan Plus
SBI Life - Saral Swadhan Plus is a non-linked and non-participating life insurance term plan that provides fixed life cover throughout the policy period and guaranteed returns at maturity for paid-up and in-force policies.
Features of SBI Life Saral Swadhan Plus
Features of this plan listed below:
- Flexibility - Based on the policy terms and age of entry, an individual can choose an individual has the flexibility to choose their premium and life cover.
- Higher Coverage - An individual can choose their term period for 10 to 15 years. Hence, offering a higher life coverage at a reasonable cost.
- Affordable Premiums - An individual can also choose the premium amount they wish to pay. This makes the plan even more attractive as it is light in their pockets.
- Guaranteed Return of Premium - SBI offers a maturity benefit of 100% or 115% of the total premium paid for a term period of 10 or 15 years, respectively.
- Convenient Purchasing Option - Enrollments are done by filling in a simplified proposal form, and easy purchasing options are available in both offline and online mode.
- Tax Benefits - Tax deductions can be availed for this policy under Section 80C and 10(10D) of the Income Tax Act of India.
“Tax benefit is subject to changes in tax laws.”
Eligibility Criteriaof SBI Life TROP Plans
The following criteria have to be met to be eligible to purchase the SBI Life Term Insurance with the return of premiumplan:
- The minimum age at entry cannot be below 18 years old.
- The maximum age at entry cannot be above 65 years old.
- The age at maturity is fixed at 70 years old.
Elements of the Plan
The following elements of the plan should be taken into consideration:
- Policy Term: The regular premium term is ten years, and the limited premium term is 15 years.
- Premium Payment Term (PPT): The premium payment term for both regular and limited terms is fixed at ten years.
- Premium Frequency: The frequency of premium payment is yearly
- Basic Sum Assured: The Sum Assured ranges from Rs 30,000 to Rs 4.75 lakhs
* You can calculate the premiums payable for desired life cover using a term insurance premium calculator.
What does the Plan Offer?
The term insurance policy in India offers death and maturity benefits within the same plan
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Maturity Benefit
In the event of the insured outliving their term period, the plan offers a guaranteed return of premium, depending on the policy's term period. If the term period is of 10 years, then the maturity benefit received will be 100% of the total premium paid. If the term period is of 15 years, then the maturity benefit received will be 115% of the total premium paid. The term "total premium paid" can be defined as the Sum of the entire premium received, subtracting the applicable taxes and extra premium paid if any. To avail of this benefit, the insured has to fully pay the premium amount for a minimum of two consecutive policy years.
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Death Benefit
In the event of the insured's sudden demise, the beneficiary shall be paid the Sum assured, provided the policy term period is still ongoing.
SBI Life - Smart Swadhan Plus
Before we take a look at what is SBI Smart Swadhan Plus you need to understand what is term insurance. SBI Life - Smart Swadhan Plus aims at securing your happiness and providing protection at a reasonable cost. It is a life insurance plan, which is an individual, non-participating, and non-linked saving product with an additional benefit of the return of premiums at maturity. This plan's major attraction is that it provides the much-needed coverage at an affordable cost and maturity. The insured is liable to receive back the premium paid. It is a traditional term insurance plan in which bonuses are not declared.
Features of SBI Life Smart Swadhan Plus Plan
Features of this plan listed below:
- Security - An individual can secure their family’s financial needs in case of any unforeseen eventuality. The plan offers live coverage to the individual’s family.
- Higher Coverage Period- An individual can choose their term period for 10 to 30 years. Hence, offering higher life coverage at an affordable cost.
- Reliability - SBI Life Term Insurance with the Return of Premiumplan assures a return of 100% of the total premium paid at maturity.
- Flexibility - An individual has the freedom to decide between the various premium payment options offered, namely Regular premium option (same as the policy duration), Limited period, or Single premium option (amount can be paid at once together).
- Death Benefit - In the event of the sudden demise of the policyholder, the Sum assured shall be paid out to the beneficiary.
- Convenient Purchasing Option - Enrollments are done by filling in a simplified proposal form, and easy purchasing options are available in both offline and online mode.
- Tax benefits - Tax deductions can be availed for this policy under Section 80C and 10(10D) of the Income Tax Act of India.
Eligibility Criteria of the Plan
The following criteria have to be met to be eligible to purchase the SBI Life Term Insurance with the Return of Premiumplan:-
- The minimum age at entry cannot be below 18 years old.
- The maximum age at entry cannot be above 65 years old.
- The age at maturity is fixed at 75 years old.
Elements of the Plan
The following elements of the plan should be taken into consideration:
- Policy Term: The policy term period ranges from 10 to 30 years.
- Premium Payment Option: There are five types of plans offered to an individual, namely Single Premium (SP), Limited Premium Payment Term (LPPT) - 5 years, LPPT - 10 years, LPPT - 15 years, and Regular Premium (RP)
- Premium Payment Term (PPT): The premium payment term is a single payment (amount can be paid at once together), 5 years payment, 10 years payment, 15 years payment, and same as policy duration.
- Premium Frequency: The frequency of premium payment is single, yearly, half-yearly, quarterly, and monthly.
- Availability of Policy Term for PPT: For single, regular, and LPPT - 5 years, the policy term available ranges from 10 to 30 years. For LPPT - 10 years, the policy term is 15 to 30 years, and for LPPT - 15 years, the policy term is 20 to 30 years.
- Basic Sum Assured: The minimum Sum assured received by the beneficiary will be Rs 5,00,000. There is no limit to the maximum amount of Sum assured.
- Premium Frequency Loading: For the half-yearly option, it is 52% of the annual premium. It is 26.50% of the annual premium for the quarterly option, and for the monthly option, it is 8.90% of the annual premium.
- The minimum amount to be paidbased on their frequency are Single - Rs. 21,000, yearly - Rs. 2,300, half-yearly - Rs. 1,200, quarterly - Rs. 650 and monthly - Rs. 250.
You can choose to buy a 1 Crore term insurance at an affordable premium for your family's financial protection.
What does the Plan Offer?
Following is the list of term insurance benefits offered by this plan:
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Maturity Benefit
If the policyholder survives up to the maturity of the plan, he/she is liable to receive 100% of the total premium in a lump sum.
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Death Benefit
In the case of the policyholder's death, the Sum assured on death will be paid to the beneficiary. Two basic terms to understand to calculate Sum Assured on Death.
- Basic Sum Assured (BSA): the absolute amount of Sum chosen by the policyholder at the commencement of the policy
- Annualized Premium (AP): the amount that is calculated when applicable taxes along with extra underwriting premiums and modal amount, if any, is deducted from the yearly premium amount payable by the policyholder
For SP policies, higher of (BSA or 1.25 times of SP) and for LPPT or RP policies, higher of (BSA or 10 times of AP or 105% of the premiums received till death)
Key Exclusions
Suicide: In the event of death of the insured due to suicide, from the first date of the policy or from the revival date of the policy, whichever is applicable, the beneficiary will be paid 80% of the total premium amount paid.
FAQ's
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A1. An individual can surrender the policy for a sum called the Surrender Value. To surrender, the insured has to fully pay the premium amount for a minimum of two consecutive policy years. Special Surrender Value is evaluated by SBI from a time to time basis and can be changed with prior approval by IRDAI.
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A2. If the individual fails to pay the premium on time, a grace period shall be given. In case the premium is not paid even during the grace period, the policy shall be withheld. The lapsed policy can be renewed only if the premium is fully paid for a minimum of two consecutive policy years. The lapsed policy reduces the death benefit for the insured. The reduction of Sum assured will be equal to the ratio of the total number of times the premium has been paid to the total number of times the premium was actually payable. The final reduced amount will be called paid-up Sum assured. For example, if the policy term period is 10 years, but the paid-up value amounts for only 6 years, the death benefit = (6/10) * Sum Assured on Death.
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A3. In the event of failure of payment of the premium amount by the policyholder, a grace period of 30 days from the due date is given. The policy remains active during this grace period. The policy shall lapse if any premium is still unpaid by the end of the grace period. In this case, the policy benefit shall have no value except that which is mentioned under Surrender and Paid-up value options.
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A4. A policy that is lapsed can be revived within a term of 5 consecutive years from the date of the first overdue premium's payment. The insured can opt for a revival offer by submitting evidence of health issues, which is satisfactory according to SBI. The insured also has to agree on payment of arrears along with interest. The interest rate is decided by SBI periodically. SBI has the right to accept or decline the revival offer. In case SBI accepts the offer, a written confirmation of the same will be provided to the policyholder
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A5. Premiums paid up to Rs 1.5 Lakh are eligible for tax deductions each year under Section 80C. Under Section 10(10D), tax exemption can be availed on the premium received at maturity/surrender.
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A6. In case the policyholder is not satisfied with the terms and conditions of the policy, a refund option is available. IRDA has created a provision for such cases known as the free look period. Under this provision, if an individual has bought a term insurance policy and they are not happy with the terms and conditions attached to the same, they can unquestionably return the plan to the respective insurer within a specified duration mentioning their reason to do so along with the original term insurance policy documents and then are subject to a refund. Within 15 days from the date mentioned in the receipt of the policy documents, a person can opt for a refund. In the case of distance marketing, the specified duration increases by an additional 15 days, making the free look period a total of 30 days from the date mentioned in the receipt of the policy documents.
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A7. In circumstances when the policyholder is not in a situation to continue making premium payments toward this plan,the policy does not terminate. Under the paid-up policy provisions, it is reduced until the end of the policy term, on the condition that the policyholder has paid the premiums for a specific number of years, as per the policy document.
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