Insurance Plans 2152 views May 4, 2020

SBI Money Back policy is a non-linked, participating insurance product that helps an individual in accomplishing all special goals of his life. Every individual has certain special goals planned for his lifetime such as marriage, being a parent, owning a big house, higher studies of children, the marriage of children and the list goes on. For the accomplishment of all these special goals, an individual has to be financially sound. Insurance cover and a sufficient amount of cash are the basic requirements for achieving the special goals of life. The SBI Money Back policy for 12 years helps in the accomplishment of these long-term goals of life easily.

Term Insurance

To know the right life insurance cover, please fill the details below and our policy experts will get in touch with you

+91

Key Features of SBI Money Back Policy For 12 Years

The major features of the SBI Money back policy can be listed below.

  1. In the SBI Money Back plan for 12 years, there is the availability of fixed cash inflows by which policyholders can meet his financial obligations.
  2. The SBI Money Back plan for twelve years provides the benefit of full life cover even after the death of the policyholder along with the survival benefits which are paid during the policy term.
  3. This plan offers Guaranteed Survival benefit of 110% of the sum assured which is paid till the maturity of the policy.
  4. In the SBI Money back policy for twelve years, there is the benefit of money back options at pre-defined intervals in the form of Survival Benefits.
  5. In case of a large sum assured being chosen by the policyholder, there is the provision for rebates on the premium of the policy.

SBI Money Back Policy For 12 Years-How it Works?

In the SBI Money Back policy for 12 years, the premium has to be paid throughout the policy term and there are money-back options at specific intervals.

When the tenure of the money-back policy is for 12 years then,

  1. At the end of 4 years of the policy term, 20% of the sum assured is paid as survival benefit.
  2. At the end of 8 years of the policy term, 25% of the sum assured is being paid as the Guaranteed Survival benefit.
  3. At the end of 12 years, the remaining 65% of the sum assured and vested bonus is paid to the policyholder.

Benefits of the SBI Money Back Policy For 12 Years

The major benefits which are provided by the SBI Money Back policy for 12 years are mentioned below.

Death Benefit

If the death of the policyholder occurs during the tenure of the policy, then the death benefit which is received by the nominee of the policyholder is

Death Benefit=Entire Sum Assured + Simple Reversionary Bonus + Terminal Bonus (If any)

Survival Benefit

The Survival Benefit for the SBI Money back policy for 12 years is paid at the pre-defined interval and is a percentage of the sum assured.

Term/Years% of the Sum Assured
4 years20%
8 years25%
12 years65%+Vested Bonus
Total=110% + Bonus

Maturity Benefit

In case of survival of the policyholder, till the SBI Money back policy for 12 years is matured, the maturity benefit which is obtained is represented as

Maturity Benefit=Final instalment of the Survival benefit + Vested Simple Reversionary Bonus + Terminal Bonus (If any)

Income Tax Benefit

Under Section 80C of the Income Tax Act, 1961 the premiums paid up to Rs. 1,00,000 for the SBI Money back policy for twelve years is eligible for tax deduction from the taxable income.

Under Section 10(10D) of the Income Tax Act, 1961 the maturity proceeds are eligible for tax deductions.

Bonus

Reversionary bonus is the bonus that is declared based on investment returns and expenses. Terminal bonus is paid to the policyholders at the time of maturity, survival or death of the policyholder whichever is earlier.

Eligibility and Premium Details of the SBI Money Back Policy For 12 Years

Particular DetailsMinimumMaximum
Entry Age15 years55 years
Maturity Age27 years70 years
Policy Term12 years
Sum AssuredRs.75,000No limit
Premium Payment Tenure12 years
Premium Payment ModeMonthly, Quarterly, Half-yearly, Yearly
Premium Amount PayableMonthly-Rs. 400
Quarterly-Rs. 1200
Half-yearly-Rs. 2400
Yearly-Rs. 4500
No limit

Policy Details of SBI Money Back Policy For 12 Years

Some of the major details associated with the SBI Money back policy for twelve years are mentioned below.

Grace Period

If the payment of premium has not been done by the pre-defined time interval, then a grace period of 30 days is available for those policyholders who have chosen quarterly, half-yearly or yearly premium payment mode. For those policyholders who have opted for a monthly premium payment mode, a grace period of 15 days is available for them to make the unpaid premium payment.

Freelook Period

In case the terms and conditions mentioned in the policy document of the SBI Money back policy for twelve years does not appear to be satisfactory for the policyholder, then a free look period of 15 days from the receipt of the policy document is available for the cancellation of the policy.

Riders

4 additional riders can be included along with the base pln for enhancing the coverage provided by the SBI Money back policy for twelve years.

  1. SBI Life-Accidental Death Benefit Rider
  2. SBI Life-Preferred Term Rider
  3. SBI Life-Accidental Total and Permanent Disability Benefit Rider
  4. SBI Life-Criti-Care 13 Non-Linked Rider

Surrender Benefit

Policyholders can surrender the SBI Money back policy for twelve years only after full premium payment has been done for 3 years. The Surrender Benefit which is obtained by the policyholder can be mentioned as

Surrender Benefit=Highest amongst Guaranteed Surrender Value or the Special Surrender value

Guaranteed Surrender Value (GSV) =GSV Factor*the premiums that have been paid excluding the survival benefits paid including the GSV of accumulated bonus.

Special Surrender Value (SSV) =SSV Factor*paid-up value on the maturity of the plan

Exclusions of SBI Money Back Policy For 12 years

If the policyholder commits suicide within 12 months of policy commencement, then only 80% of the premium that has been paid is returned to the nominee of the policyholder.

If the policyholder commits suicide within 12 months of the revival of the policy, then the nominee of the policyholder would receive an amount which is higher amongst 80% of the already paid premium or the Surrender Value.

Hence, the SBI Money back policy for 12 years is an effective investment avenue which can help in meeting the financial obligations at the crucial points of life and would also be financially supportive for the policyholder’s family in case of his unfortunate demise.  

People Also Read