Investment Plans 343 views April 22, 2021

SBI Life Shubh Nivesh is an individual, non-linked, participating life insurance savings plan that offers life cover up to the age of 100 years if you opt for Endowment with Whole Life Option. Here’s a list of benefits that you’ll receive under SBI Life Shubh Nivesh Whole Life Plan –

  1. Death Benefit
  2. Maturity Benefit
  3. Deferred Maturity Payment Option
  4. Non-forfeiture Benefits
  5. Rider Option
  6. Loan Benefit

Know more about the benefits of the SBI Life Shubh Nivesh Whole Life Plan below.

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List of SBI Life Shubh Nivesh Whole Life Plan Benefits

You are entitled to the following benefits if you purchase SBI Life Shubh Nivesh Whole Life Plan

Death Benefit

If the death occurs before the completion of the policy term, a higher of –

  1. Sum assured on death + Vested Simple Reversionary Bonuses + Terminal Bonus if any
  2. 105% of the total paid premiums as on the date of death

will be payable to the nominee for regular premium policies.

Note – The sum assured on death is higher of – Basic Sum Assured or 10X the annualized premium.

For single premium policies, the company will pay a sum assured on death + vested simple reversionary bonuses + terminal bonus, if any.

Note – The sum assured on death is higher of – basic sum assured or 1.25X the single premium.

If the death occurs after the completion of the policy term but before the completion of 100 years of age, only the additional Basic Sum Assured shall be payable to the nominee.

Maturity Benefit

If you survive till the endowment maturity date, the company will pay a basic sum assured + vested simple reversionary bonus + terminal bonus, if any. The life insurance company shall also pay an additional amount equal to the basic sum assured when you complete 100 years of age.

Deferred Maturity Payment Options

You can choose the Deferred Maturity Payment Option at the end of the endowment term of your policy. And if you choose this option, you can receive the basic sum assured as an income spread over a chosen period. To get this benefit, you should inform the insurer in writing 3 months before the date of maturity.

You can select the deferment period and the frequency of payment from the following –

  1. Yearly
  2. Half-yearly
  3. Quarterly
  4. Monthly

The installments will be based on the interest rate applicable at the time of the endowment maturity date. And the Interest rate is decided as –

10-year benchmark G- Sec rate – 100 basis points as on the 1st business day of the financial year in which the maturity date falls

Anytime during the deferment period, you can receive the balance of the installments in one lump sum. The company will pay the discounted value of the remaining installments on your request.

If your death occurs after the endowment maturity date but before endowment assurance with the whole life maturity date, the insurer will pay the basic sum assured to the nominee plus the balance installments till the expiry of the deferment period. However, the nominee can receive the remaining installments in a lump sum if he/she requests the same.

Non-forfeiture Benefits

If you don’t pay a premium even before the expiry of the grace period, the policy lapses and acquires a paid-up value, provided at least 2 consecutive policy years in full. If your policy is not in force but has acquired paid-up value, it will impact your death and maturity benefits as follows:

Death Benefit – If the death occurs before the completion of the endowment term, the paid-up value on death will be payable to the nominee, and the policy gets terminated. Whereas if the death occurs after the completion of the endowment term but before endowment assurance with the whole life maturity date, only the paid-up basic sum assured shall be payable to the nominee.

Maturity Benefit – You will receive the paid-up value on maturity on the endowment maturity date and also get an additional amount equal to the paid-up basic sum assured on reaching 100 years of age.

Rider Option

You can add any of the following rider covers to your SBI Life Shubh Nivesh Whole Life Plan for extra coverage.

  1. SBI Life – Accidental Death Benefit Rider – Under this rider cover, the rider sum assured shall be payable to the nominee in case the life assured dies in an accident during the rider term. The rider benefit is payable to the nominee if the death of the life assured occurs within 120 days from the date of the accident but before the expiry of the rider, and accident injuries are the sole and independent cause of the death.
  2. SBI Life – Accidental Total & Permanent Disability Benefit Rider – The life insurance company will pay the rider sum assured to the life assured on the occurrence of accidental total and permanent disability during the rider term.
  3. SBI Life – Preferred Term Rider – A lump sum amount will be payable to the nominee in case of unfortunate death of the life assured during the rider term.

Note – The total sum assured under SBI Life Shubh Nivesh Whole Life Plan plus rider cover should not exceed INR 50,00,000.

Loan Benefit

You can apply for a loan against SBI Life Shubh Nivesh Whole Life Plan if the policy has acquired a surrender value. The loan amount will be limited to up to 90% of the surrender value. And the interest rate will be declared by the insurance company. If you apply for a loan, your policy will be assigned to the insurer and the assignment shall be in force till the entire loan is repaid.

SBI Life reserves the right to determine the loan amount to be granted and to defer the granting of a loan for a period not more than 6 months from the date of request. In case you fail to repay the loan interest on the due date and the due amount exceeds the surrender value for the reduced paid-up policy, the policy is foreclosed automatically. You will be informed beforehand if the policy is to be terminated, and the company will pay the residual value of the policy, if any.

Note – SBI Life Shubh Nivesh Whole Life Plan shall not terminate, provided the policy is in force and the outstanding loan exceeds the surrender value.

SBI Life Shubh Nivesh Whole Life Plan Claim Procedure

By following the below procedures, you can claim the death or maturity benefit under SBI Life Shubh Nivesh Whole Life Plan

Death Claim

Your nominee/legal heir can intimate the insurer about your death in writing stating the policy number, cause and date of death. The insurer will require the following documents to process the claim –

  1. Original policy document
  2. Original death certificate from municipal/local authorities
  3. Claimant’s statement and duly filled claim form
  4. Hospital records including discharge summary, etc, wherever applicable
  5. Post-mortem report, First Information Report (FIR), wherever applicable

Note – For any other document, the insurer will call the claimant. A death claim should be filed within 90 days from the date of death.

Maturity Claim – To claim SBI Life Shubh Nivesh Whole Life Plan maturity benefit, you are required to submit the following –

  1. Original policy document
  2. Discharge form and KYC documents

Free Look Period

If you are not satisfied with the terms and conditions of the SBI Life Shubh Nivesh Whole Life Plan, you can return the policy stating the reasons for cancellation. You have 15 days from the date of receipt of this policy document to review its terms and conditions. And if you have purchased the policy via distance marketing mode, the free look period will be 30 days.

On such cancellation, the company will refund the paid premium after deducting the stamp duty charges, medical expenses, if any, applicable taxes and any other statutory levies, duty or surcharges. The proportionate risk premium, along with the applicable tax will also be deducted from the refund.

Suicide Exclusion 

If the life assured commits suicide within 12 months from the date of commencement of risk or the date of revival of the policy, the insurance company will not pay the death benefit to the nominee. The insurer will pay 80% of the total paid premiums as on the date of death if the death occurs due to suicide occurs within 12 months from the date of commencement of risk, provided the policy is in force. In case of suicide within 12 months from the date of revival of the policy, the insurer will pay a higher of

  1. 80% of the total paid premiums
  2. Surrender value, if any

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