SBI Shubh Nivesh is a trio plan where we get Insurance cover; savings & Income. It comes with rider benefits as well. This Endowment plan was launched in the year 2014 with the objective of helping customers manage their risks. Furthermore, this tradition plan is a good tool to meet your financial goals as well. It is a good investment to build huge corpus at the time of maturity.
Simultaneously as per section 80 C, we can save taxes upto Rs.1,50,000. Besides that, there are many other features of SBI Shubh Nivesh policy. These benefits help in deciding many things like how much amount of premium we should pay and what is the term of policy that we should choose from.
Based on all these criteria we have certain eligibility aspects as mentioned below. Premium amount is calculated based on the same. While using an online calculator we may require to input the values as tabulated* below. This will help us in getting right amount as per our financial goals.
*Eligibility to take SBI Shubh Nivesh Policy
Criteria
Minimum
Maximum
Age
18 years
60 years
Annual Premium
Rs. 6000
No Limit
Sum Insured
Rs. 75000
No limit
Policy Term
5 years
30 years
How to build “HUGE” Corpus?
Sbi has launched SBI Shubh Nivesh keeping in mind basic need of common man. Life coverage is an additional benefit they can get alongwith fixed amount at the time of maturity as well. As we know Investment starts at just Rs. 6000 but there is no limit to the same. We can Invest as much as we want based on the sum insured that we are looking forward to receive at maturity.
Corpus is the amount that we want to build after the end of the policy. It can be as much as we want. We need to Invest as per our corpus goals in the policy. This can also be explained with the help of case study below. Building Corpus is directly related to our financial goals as a matter of fact.
Even If we have higher corpus the amount we need to pay may be little less. As at the time of premium calculations lots other things get added like interest; bonus etc. So it will not be wrong to say that Corpus amount is based on a couple of factors as follows.
For how many years we want to Invest.
How much amount we need at the time of maturity?
What are our major financial goals?
How much Taxes we want to save?
We can secure our future by making financial planning in advance. For doing the same we should be clear about our financial goals. We should make our Investment plans accordingly.
How Rahul built corpus through SBI Shubh Nivesh?
As we know we can get good maturity benefits through SBI Shubh Nivesh plan. Interest rates may vary between 4% to 8 %. It gets added to the amount of Sum Insured . There are many additional benefits like declared and terminal bonus that we can expect as well during maturity. Rahul has a daughter who is 10 years old. When she turns 20, he may need around 20 lakhs for her higher studies. To build a corpus first he needs to calculate the future value of 20 lakhs which depends upon couple of factors major is Inflation rate. So 20 lakhs today with inflation rate of approximately 5% will become Rs. 30 lakhs. To build a corpus of this amount he must invest at least Rs. 3,00,000 for 10 years to get Sum Insured of require amount.
However, the amount that he will get on maturity will include bonus & interest as well. So exact amount of yearly investment he can choose with the help of online calculators. After doing so Rahul was convinced to buy plan from SBI Shubh Nivesh with the term plan for 10 years. This not only helped him in meeting financial goal of his daughter education but helped in saving tax as well. Besides that he got many other benefits like monthly savings and life coverage as well. Like Rahul, we may have many cases whose financial goals may vary. So one must do proper financial analysis before choosing any plan. As financial need may differ from person to person. It also depends upon a number of factors like your age; monthly Income; marital status; dependent parents.
In case of Rahul, his financial goals were to arrange funds for his daughter education and also to secure his family. Both his goals could be easily achieved with the help of SBI Shubh Nivesh. As it's not only an Insurance plan but an Investment plan as well.
To sum up we can summarize Rahul's goal below and how SBI Shubh Nivesh can assist him in achieving the same.
Rahul’s Need
Corpus/Investment
Plan
Use
Daughter’s Education
Rs. 30,00,000
SBI Shubh Nivesh
Investment
Family Security
At the time of death
SBI Shubh Nivesh
Insurance
Tax’s Planning
As per section 80c
SBI Shubh Nivesh
Insurance/Investment
Monthly Savings
Rs. 50000- Rs. 100000
SBI Shubh Nivesh
Insurance/Investment
Maturity Benefits
Bonus
SBI Shubh Nivesh
Insurance
Features & Benefits of SBI Shubh Nivesh
SBI Shubh Nivesh offers many important features which can assist people in achieving their financial goals.
Some of the salient features and benefits are listed below.
Loan Facility - You can take a loan equivalent to 90% of Sum Insured after the locking period.
Rider Benefits - It offers riders which can be availed easily.
Tax Savings - As per section 80c this plan can help in saving huge taxes.
Corpus Building - It can help us in building huge corpus.
Financial Goals - We can achieve our financial goals with ease.
Combination Plan - We get Life coverage; Income and savings with the help of this plan.
Free Lookup period – Grace period of 15 days is provided. Within that period we can cancel the policy. The amount that we can get back is equivalent to the premium amount.
Assured Returns – SBI Shubh Nivesh can guarantee returns after the maturity. This is based on the sum insured amount and other additional factors like Interest and bonus etc.
Riders in SBI Shubh Nivesh
One of the important benefits of this policy is it comes with 3 important riders. These riders are as follows.
S.no.
Riders
1
Preferred Term Rider
2
Accidental Death Benefit Rider
3
Accidental Permanent Disability Rider
Rider can be brought while buying the policy or at the time of renewal. Alternatively after check with distributors if may avail it in interim period as well. However, in case of adding the same we need to pay some additional amount.
How Endowment plan can help meeting our financial goals?
Endowment plans can offer many benefits that includes both Life cover and maturity benefits as well. As we know endowment plans are not just insurance plans they are investment plans as well. As per these plans, we get assured amount. There are lots of financial goals that we can achieve with the help of these endowment plans. Some of them have been tabulated below.
S.no.
Financial Goals
1
Assured Source of Income - We can expect an assured Income after the maturity. There are many kind of endowment plans which can help us in earning regular monthly Incomes as well. They are more or less like pension plans. SBI Shubh Nivesh is also such Endowment plan which provides assured Income based on our Corpus.
2
Major Expenses – Endowment plans are most useful in meeting major expenses. These can be of various kinds. Some of them are like child education; marriage; critical illness or any other financial crisis as well.
3
Wealth Maximization – It can be another major goal of many people. That can also be achieved by taking good endowment plan. We may choose to invest the amount as per our need.
4
Lifestyle – In order to lead desired lifestyle we need funds. In order to bear expenses of same endowment plans acts as a savior .
5
Savings – Some people wants to have compulsory savings at the end of the month. This is specially true in case of people who have started their career and are in habit of compulsive spending . These plans can definitely assist them in saving some amount end of the month or year .
6
Tax planning – Any one who pays taxes will need some financial goals to save the same. Best way to manage it is to do some Investments. Because as per section 80c we are exempted from certain amount if we have some plans like Term or Endowment.
SBI Shubh Nivesh Endowment plans covers all our needs. However, we can invest in the same keeping in mind our financial goals. Our premium amount will be based on our future funds requirement. People often get confused between these endowment plans and term plans. Moreover, at times, they may be allured to buy Term plans as the premium is less. But they should not forget that they may not get any other benefits other than life cover. Whereas in Endowment plans they can get assured sum at the time of maturity along with life. As per SBI Shubh Nivesh policyholder can get both benefits of Life as well as the amount on maturity. This can be further clarified by the comparative table below.
Endowment Plans
Term plans
Premium is more
Premium is less
Covers Insurance as well as Investment
Covers only Insurance Plans
Based on Financial Goals
Based on Life security
SBI Shubh Nivesh not only helps in meeting our short-term financial goals but long-term financial goals as well. It covers dual benefits of Life as well as Investment. Premium can be easily calculated with the help of online calculators based on our financial goals.
Myths and Facts of Endowment Plans
1.Myth- Premium amount is high as compared to other plans:-
Fact - Premium amount is equivalent to corpus we want to build. As we know there are majorly 2 kinds of traditional plans i.e. Term and Endowment. Some people may prefer term because of low premium. However, some may like to Invest in Endowment . Specially if they are looking out for the benefit at the time of maturity than endowment is best. In these plans, we get assured returns be it at time of any mishap i.e death of policyholder and other added maturity benefits based on the sum insured . Premium amount is calculated as per our corpus needs. Its related to our financial goals. Also it depends upon many other factors such as age, duration of policy etc. Since endowment plans covers both life as well as maturity benefits, premium will differ from other plans . But at the same time if we talk about return on investments than premium paid is much less as compared to any other plans.
2.Myth- Policy tenure is too much:- People feel the tenure of Endowment plans is high as compared to any market-linked plan.
Fact - Usually, it is for 10 years but SBI Shubh Nivesh has reduced it to 5 years. But still as compared to other investment plans it may be a little bit higher. But in a way, it can be more beneficial. Because these are not market linked. With investment in such plans, the policyholders not only get the live coverage but also assured maturity benefits. So the duration of the Terms is worth an Investment. All the more some of the latest plans like Shubh Nivesh has reduced it to five years which is more or less equivalent to any other plans.
3.Myth- Surrender Value is less.
Fact - Surrender value is less only to protect our capital and enable us better returns. If this clause is not there then people will never wait till maturity of the policy and will also be tempted to draw the amount. Moreover Surrender value is calculated based on our investment till date and not basis sum insured. So to say surrender value is less is very subjective.
4.Myth- Age limit is just to make more money- Many people feel that there should be no age limit.
Fact - The purpose of creating age limit is to encourage people to invest early. As that promotes the habit of saving and investments.
5.Myth- Term plans are better than Endowment plans – People may think term plans are better than endowment as they may have to pay less premium amount.
Fact - As matter of fact endowment plan may turn out to be cheaper. The reason of hike in price is because it covers investment as well.
How to buy SBI Shubh Nivesh and calculate premium?
We can easily buy this plan in many ways as follows.
Buying it online through Website.
Can buy from any of the web aggregators.
Can buy from any other distributors such as Banks and agents etc.
Can call to customer care or sms to arrange call back.
Another concern which many people may have is how much premium amount they should pay. Premium amount can be easily calculated based on factors like our age; term plans and the corpus that we need to build. Once that amount is decided then we can easily use an online calculator and get the premium amount. It may vary if we choose to have some riders along with the policy.
Details required to Calculate Premium are as follows.
Age
Term of Policy
Corpus
Riders
SBI keeps coming with one plan or other keeping in mind customers short and long-term financial goals. One such initiative is the introduction of SBI Shubh Nivesh plan. Since it helps customers meeting a couple of their needs. Few of them are Investment; Insurance; Savings; Tax planning etc. We can start investing with as low as Rs. 6000 but the accurate amount can come by using an online premium calculator. It is based on a couple of factors as discussed above.
We must choose the plan which can meet our short and long-term financial goals. Corpus is directly related to premium amount. It’s advisable to invest early and select comprehensive plan that can offer multiple benefits.
