SBI Life Shubh Nivesh is a triple benefit plan where we get whole life insurance Cover, savings and income under a single plan. The plan is a non-linked, participating and individual life insurance product. This Endowment plan was launched in the year 2014 with the objective of helping customers to manage their risks.
Furthermore, this traditional investment plan acts as a good tool to meet your financial goals by providing the option of regular payouts and to build a huge corpus as a lump sum amount at the time of maturity. At the same time, You can claim a deduction of Rs 1.5 lakh of your total income under section 80C of the Income Tax Act, 1961.
Criteria | Minimum | Maximum |
Age | 18 years | Endowment Option:
Endowment with Whole Life Option: 50 years (For both Single/Regular Premium) |
Maturity Age | 65 years | |
Annual Premium | Single-Premium: Rs. 43,000 Yearly: Rs. 6,000 Half-Yearly: Rs. 3,000 Quarterly: Rs. 1,500 Monthly: Rs. 500 | No Limit |
Premium Frequency | Single Premium, Monthly, Quarterly, Half-Yearly, Yearly | |
Premium Paying Term | Single-Premium/Regular Premium (same as policy term) | |
Sum Insured | Rs. 75,000 | No Limit |
Policy Term | Endowment Option: 10 (RP)/5 (SP) years For Endowment with Whole Life Option: 15 years (For both SP/RP) | 30 years (Endowment Term) |
Corpus Building: The plan provides the option of an annuity plan that assists in building a huge corpus with the help of regular income.
Assured Returns: SBI Shubh Nivesh guarantees of returns after maturity which is based on the sum insured amount and other additional factors like interest and bonus etc.
Loan Facility: A loan equivalent to 90% of the Sum Insured can be taken after the locking period.
Free Look Period: A free look period of 15 days is provided where you can cancel the policy within this timeframe. You will get a refund equivalent to the paid premium amount.
Endowment Option
Endowment WIth Whole Life Option
Endowment Option
If the life insured dies before the endowment term ends:
Endowment WIth Whole Life Option
Preferred Term Rider: This rider offers a death benefit under the base policy in addition to the rider sum assured in the case of the unfortunate demise of the policyholder.
Accidental Death Benefit Rider: As the name suggests, the rider is subject to pay the rider sum assured amount together with the death benefit of the policy wherein the life insured dies due to an accident.
Accidental Permanent Disability Rider: In case of total and permanent disability that is caused due to an accident, the rider is liable to pay the rider sum assured. However, the base cover and other benefits of the policy will continue. On paying premiums, the policy will continue until the end of the policy tenure for this rider option.
The rider sum assured will be similar for all the three above-mentioned riders:
Minimum Sum Assured: Rs. 25,000
Maximum Sum Assured: Rs. 50 lakhs
Riders can be brought while buying the policy or at the time of renewal. Alternatively, after checking with distributors, it might be available in the interim period as well by paying the extra premium amount.
1. An indicative model for the regular and single premium modes of Endowment option with Rs. 1 lakh sum assured is illustrated below:
Age at Last Birthday | Policy Tenure | |||||
10 years | 30 years | 30 years | ||||
RP | SP | RP | SP | RP | SP | |
20 years | 11,174 | 79,571 | 5,412 | 58,660 | 3,454 | 43,263 |
30 years | 11,188 | 79,595 | 5,451 | 58,889 | 3,548 | 44,131 |
40 years | 11,281 | 79,751 | 5,624 | 59,837 | - | - |
2. An indicative model for the regular and single premium modes of Endowment with Whole Life option with Rs. 1 lakh sum assured is illustrated below:
Age at Last Birthday | Policy Tenure | |||
20 years | 30 years | |||
RP | SP | RP | SP | |
20 years | 5,872 | 63,921 | 3,784 | 47,785 |
30 years | 6,171 | 67,077 | 4,013 | 50,440 |
40 years | 6,649 | 71,032 |
**Note: The premium amount is mentioned in rupees exclusive of applicable taxes.
Grace Period
The grace period for SBI Life Shubh Nivesh plan is 15 days for monthly premium payment mode and 30 days for other modes. If the policyholder does not pay the premiums within the grace period, then it leads to lapsation of the policy.
Surrender Benefit
On terminating the policy within the policy term, it offers a surrender value. This particular value is known as the Guaranteed Surrender Value (GSV).
Once the policy acquires a surrender value, you will be eligible to take a loan from SBI Life Shubh Nivesh. On the other hand, if it is surrendered within 4 years or later, then the benefit will be GSV of 90% single premium paid.
Participation in Profits
The policy participates in profits that may be declared by the company from time to time. Simple reversionary bonuses will be paid on the basis of the company’s profits that solely depends on expenses, long term view of investment returns, mortality, and other experiences.
A terminal bonus is also declared on the maturation date of the policy, prior to death or surrender. This plan is participating only during the endowment term and not thereafter.
Documents Required
‘RP’ and ‘SP’ stands for Regular and Single Premium policies respectively.
If you stop paying premiums, then the policy gets lapsed and all the benefits will cease from the company.
If the premiums are paid for at least 3 years, the policy will convert into paid-up policy and continue to be active with reduced coverage.
Surrender Benefit is applicable after 3 years for Regular Premium and 1 year for Single Premium policy.
Once the policy acquires a surrender value, you will be eligible to take a loan from SBI Life Shubh Nivesh.
Last updated on 13-11-2020