Insurance Plans India 3279 views October 9, 2021

SBI Life – RiNn Raksha is a group credit life insurance plan that will pay your loan EMIs in case of your death. The premium for the plan will be paid by the financial institution from where you would take a loan. So, if you have borrowed a loan and need protection for your family, consider having SBI Life – RiNn Raksha Plan. You could also check out the features of the plan below to get an overview of the same.

  • Option to enhance life cover up to 120% of the loan amount
  • Moratorium period of 3 months to 6 years
  • Flexible loan cover, subject to a minimum of 2/3rd of the loan (if the loan tenure is 15 years or more)
  • Coverage up to 2 co-borrowers besides the primary borrower
  • Flexible premium paying terms

Continue reading this page and learn more about these and other benefits of the SBI Life – RiNn Raksha Plan.

SBI Life – RiNn Raksha Death Benefit

In case of your death during the policy term, the insurer shall pay a sum assured as specified in your policy schedule, provided all premiums are paid. If the premium isn’t paid in full and you die during the grace period, the unpaid premium shall be deducted from your death payout. Whereas, if you die after the grace period, provided the policy has acquired the paid-up status, the insurer shall pay the paid-up value.

Paid-up Sum Assured – Number of Paid Premiums/Number of Payable Premiums X Sum Assured at Death.

If the policy hasn’t acquired the paid-up status and you die, no death benefit shall be payable and the policy terminates.

SBI Life – RiNn Raksha Coverage for Co-Borrower Option

If you get coverage for your co-borrower, you can choose the coverage amount for each as per the respective share of the loan amount. However, if each borrower is covered for the entire loan amount, the insurer shall provide a 5% rebate on the premium amount for each member. If the membership forms of all co-borrowers are received together, the insurer shall provide the rebate to all co-borrowers including the primary one. Whereas, if the forms are received later, the rebate applies only to the co-borrowers.

Death Benefit if the Sum Assured for Each Borrower = Entire Loan Amount

Upon the death of the life assured, the insurance company shall pay the death benefit as specified in the certificate of insurance. And surrender value (if any) shall be payable to the surviving life assured and the policy terminates.

Note – In the case of simultaneous death, the death payout is payable only for one borrower.

Death Benefit if the Sum Assured for Each Borrower = a Share of His/Her Loan Amount

If the life assured dies, the insurer shall pay the death benefit as per the certificate of insurance up to his/her share. And the policy continues for the surviving life assured till the end of term, provided premium is paid regularly.

SBI Life – RiNn Raksha Plan Options

SBI Life – RiNn Raksha comes with Gold or Platinum plan options, check out their features below –

Gold Option – This option is available to you if the policy term is 5 years and above. Under this option, the insurer shall pay your EMIs as per the floating interest rate irrespective of the certificate of insurance in the event of death.

Platinum Option – If the policy term is 5 years and above, you can choose this option. Here, the insurer shall pay your EMIs in case of death –

As per the floating interest rate irrespective of the certificate of insurance
Or
As per the fixed interest rate as on the date of inception, provided the same is mentioned in the certificate of insurance.

The above benefits shall be payable as per the following conditions –

  • The interest rate fluctuation is subject to upper and lower cap up to 6% (600 basis points) from the rate as on the date of inception
  • If the interest rate changes, the company will recalculate the benefit amount payable in case of death of the insured member
  • The insurer shall not cover the increase in outstanding loan balance if it is occurred due to EMI default
  • Submission of the history of the interest rate is mandatory for every claim
  • If the EMIs exceed due to the interest rate, the payable amount on death shall remain equal to the outstanding loan balance
  • After resetting the EMI schedule, the revised loan amount shall be used to decide your sum assured

SBI Life – RiNn Raksha Plan Premium Payment Options

The premium can be paid in one lump sum, yearly, half-yearly, quarterly or monthly. Check out the table below to see the policy term as per your chosen premium payment option.

Premium Payment TermPolicy Term (In Years)
Single Premium 2-30
Five Pay8-30
Ten Pay15-30

In a single premium, the premium is paid one-time in a lump sum. Whereas, five or ten pay represents a limited premium payment period.

  • Five Pay – Premium Payment for 5 years
  • Ten Pay – Premium Payment for 10 years

Note – The minimum sum assured per member is INR 10,000 per member and there is no maximum limit.

Types of Loans Covered Under SBI Life – RiNn Raksha Plan

SBI Life Insurance covers a wide variety of loans under this plan, such as –

  • Home loans
  • Car loans
  • Agricultural loans
  • Education loans
  • Personal loans

Eligibility Criteria for SBI Life – RiNn Raksha

SBI Life – RiNn Raksha comes with the following criteria for financial institutions to meet-

  • Minimum Size of the Group – 20 members
  • Minimum Age of the Member at Entry – 16 years
  • Maximum Age of the Member at Entry – 70 years
  • Maximum Age of the Member at Maturity – 75 years

Suicide Clause

If the policyholder commits suicide within one year from the date of policy inception, no death benefit shall be payable. The insurer shall refund 80% of the paid premium amount including taxes and cess without any interest. Whereas, if you commit suicide within one year from the date of revival, the insurer pays the higher of the following –

  • 80% of the paid premium amount including taxes and cess
  • Surrender value

If there are any co-borrowers, the policy shall continue for them.

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