Life Insurance 171 views August 12, 2021

If you want to save your family from financial stress in case of your death, SBI Life Grameen Bima Plan could be the right option. This plan will provide a lump sum amount to your family in case of your unfortunate death during the coverage period. The best part is that you can get this plan without any medical examination.

Let’s check out the key features of the plan mentioned below.

  1. Multiple Sum Insured Options up to INR 50,000
  2. Coverage Against Death
  3. Affordable Premium Amount
  4. A Free Look Period of 15 or 30 Days
  5. Single-Premium Payment Frequency
  6. Surrender Benefit After 12 months of Policy Term
  7. Tax Benefits Under Income Tax Act, 1961

Continue reading this page to understand the features and benefits of the plan extensively. Let’s start without any further ado.

Features and Benefits of the SBI Life Grameen Bima Plan in Detail

You can have detailed information about the top features of the SBI Life Grameen Bima Plan below.

What is the Basic Sum Assured?

Under the SBI Life Grameen Bima Plan, the minimum basic sum assured stands at INR 10,000, while it can go up to INR 50,000. However, the basic sum assured also depends on the age of the insured members. To know more, check the below table.

Age Band (In Years)Basic Sum Assured (In INR)
18 - 3960 times the Single Premium Paid
40 - 4440 times the Single Premium Paid
45 - 5025 times the Single Premium Paid

What will be the Single Premium Amount?

This plan from SBI Life allows policyholders to pay the premium amount only once at the inception of the policy. The minimum premium amount stands at INR 300 and can be increased in multiples of INR 100 up to INR 2,000.

What is the Policy Term?

The policy term stands at a maximum of five years.

Death Benefit in case of Insured Member’s Unfortunate Demise

If a life assured dies during the policy term, SBI Life Grameen Plan pays the sum assured (as mentioned in the policy document) to the nominee or legal heir. This lump sum amount will be higher of the following amounts.

  1. Basic Sum Assured
  2. 1.25 times the single premium

Under the plan, SBI Life will pay a maximum benefit of INR 50,000 through single or multiple policies of the same life assured. If there is more than one claim in respect of the same life assured, the insurer will process the claims in the chronological order of their receipt up to INR 50,000.

On the death of the life assured, the nominee should intimate the same to the insurer (in writing) and submit the following documents to process the claim within 90 days of the date of the claim event.

  1. Original policy document
  2. Original death certificate from municipal/local authorities
  3. Claimant’s statement and claim forms in prescribed formats
  4. Any other documents (Including post-mortem report, first information report where applicable)

Surrender Benefit

You can also surrender your policy after the completion of the first 12 months of the policy and before the last policy year. You will need to submit your original policy document and discharge form so that the insurer can process the surrender benefit. The surrender value will be as follows.

Single-Premium Paid (exclusive of applicable taxes) X 50% X (Unexpired term/ Overall Policy term)

Here, the unexpired term will be the total policy term in months minus the completed number of months as on the date of surrender.

When Will the Policy Terminate?

SBI Life Grameen Bima Plan will terminate in any of the following situations.

  1. On the payment of death benefit
  2. After the completion of your policy term
  3. On the payment of surrender value
  4. Once the insurer has paid the free-look cancellation amount
  5. If there is suppression of material facts or you have submitted false documents to get the policy
  6. If SBI Life notices that the life assured is not eligible for insurance cover

SBI Life Grameen Bima Plan Eligibility Criteria

Have a look at the conditions related to the SBI Life Grameen Bima Plan shown below.

  1. Minimum Age at Entry – 18 years
  2. Maximum Age at Entry – 50 years

Suicide Exclusion

If a policyholder dies due to suicide within 12 months from the date of commencement of risk, the plan will pay an amount to the nominee. This will be higher of the following amounts.

  1. 80% of the overall premiums paid up to the date of death
  2. Available surrender value as on the date of death

Free Look Period

SBI Life Grameen Bima Plan allows policyholders to review the terms and conditions of the policy within a free look period of 15 or 30 days (if the policy is sold through distance marketing) from the date of receipt of the policy. If a policyholder is not satisfied, he/she can return the policy to the insurer with a letter stating the reason for cancellation. In such a case, SBI Life will refund the premiums after deducting stamp duty, medical expenses (if any), etc.

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