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Investment Plans 5883 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.
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The major features of the SBI Money back policy can be listed below.
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,
The major benefits which are provided by the SBI Money Back policy for 12 years are mentioned below.
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)
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 years | 20% |
8 years | 25% |
12 years | 65%+Vested Bonus |
Total=110% + Bonus |
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)
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.
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.
Particular Details | Minimum | Maximum |
---|---|---|
Entry Age | 15 years | 55 years |
Maturity Age | 27 years | 70 years |
Policy Term | 12 years | |
Sum Assured | Rs.75,000 | No limit |
Premium Payment Tenure | 12 years | |
Premium Payment Mode | Monthly, Quarterly, Half-yearly, Yearly | |
Premium Amount Payable | Monthly-Rs. 400 Quarterly-Rs. 1200 Half-yearly-Rs. 2400 Yearly-Rs. 4500 | No limit |
Some of the major details associated with the SBI Money back policy for twelve years are mentioned below.
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.
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.
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.
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
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.