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    Yash  sbi life insurance. Yash sbi life insurance. Document Transcript

    • INDEX CHAPTE R NO. TITLE PAGE NO. 1. Insurance 02 2. Role Of Life Insurance 04 3. About Sbi Life Insurance 07 4. Life Long Pension 09 5. Sudarshan-An Endowment Policy 17 6. Money Back 23 7. Bancassurance Product 27 8. Corporate Group Product 29 9. Time & Cost Of Insurance 33 10. Questionnaire 35 11. Conclusion 43 12. Bibilography 44 K.E.S. SHROFF COLLEGE Page 1
    • CHAPTER-1 INSURANCE The insurance is related to the protection of the economic value of assets. Every asset has a value. The asset would have been created through the efforts of the owner, in the expectation that, either through the income generated there from or some other output, some of his needs would be met. In the case of a motorcar, it provides comfort and convenience in transportation. There is no direct income. There is a normally expected lifetime for the asset during which time it is expected to perform. The owner, aware of this, can so manage his affairs that by the end of that lifetime, a substitute is made available to ensure that the value or income is not lost. However, if the asset gets lost earlier, being destroyed or made non-functional, through an accident or other unfortunate event, the owner and those deriving benefits there from suffer. Insurance is a mechanism that helps to reduce such adverse consequences. Insurance is a contract between two parties - the insurer (the insurance company) and the insured (the person or entity seeking the cover) - wherein the insurer agrees to pay the insured for financial losses arising out of any unforeseen events in return for a regular payment of "premium". These unforeseen events are defined as "risk" and that is why insurance is called a risk cover. Hence, insurance is essentially the means to financially compensate for losses that life throws at people - corporate and otherwise. Insurance Companies are active in the field of Life, Health & General Insurance. The major part of insurance business is life insurance, the operation of which depends on the law of the morality. Why Insurance? The entire effort of human life is to proceed from uncertainty to certainty. The rigmarole of life proceeds with first acquiring the wherewithal to earn a living and then striving for its betterment and ensuring that the comfort and pleasure derived from a physical commodity or a human being continues. It is at the latter stage that the mechanism of insurance comes in play. The concept of insurance is in essence related to the protection of the economic value of assets. Every asset whether physical or in form of a human being has a value. The asset is built up in the expectation that, either through the income generated there from or some other output, some needs of the individual would be met. For example, In the case of an industry its production is sold and income generated. In the case of a vehicle, it provides comfort and convenience in transportation. K.E.S. SHROFF COLLEGE Page 2
    • However there is a normally expected life cycle for every asset during which time it is expected to perform its assigned role. So, a prudent individual can manage his affairs so that by the end of that life cycle, a substitute is in place to ensure continued benefit/comfort. However, if due to an accident or other unfortunate event, the asset gets destroyed or made non- functional earlier, the person deriving benefits therefore suffer. Insurance is the mechanism that helps to soften the impact of such adverse consequences by providing for some monetary substitution to face such unforeseen circumstance. The need of insurance arises from the chances of an accidental occurrence destroying or making an asset non-functional. Such loss producing eventualities are called perils e.g. fire, floods, breakdowns, lightning, earthquakes, etc however, it has to be remembered that what is being talked about is only a probability of a loss. The protection of Insurance is against a contingency that may or may not happen. Definition “Insurance is a contract by which one party for a compensation called in the premium assumes particular risks of the other party and promises to pay to him or his nominee a certain sum of money on a specified contingency.” Life Insurance Life Insurance is a contract between person and a life insurance company, which provides your beneficiary with a pre-determined amount in case of your death during the contract term. Buying insurance is extremely useful if you are the principal earning member in the family. In case of your unfortunate premature demise, your family can remain financially secure because of the life insurance policy that you have purchased. The primary purpose of life insurance is therefore protection of the family in the event of death. Today, insurance is also seen as a tool to plan effectively for your future years, your retirement, and for your children's future needs. Today, the market offers insurance plans that not just cover your life and but at the same time grow your wealth too. Definition “A contract of life assurance is that in which one party agrees to pay a given sum on the happening of a particular event contingent upon the duration of human life in consideration of immediate payment of a smaller sum by another.” K.E.S. SHROFF COLLEGE Page 3
    • CHAPTER-2 ROLE OF LIFE INSURANCE Role 1: Life insurance as "Investment" Insurance is an attractive option for investment. While most people recognize the risk hedging and tax saving potential of insurance, many are not aware of its advantages as an investment option as well. Insurance products yield more compared to regular investment options, and this is besides the added incentives (read bonuses) offered by insurers. You cannot compare an insurance product with other investment schemes for the simple reason that it offers financial protection from risks, something that is missing in non-insurance products. In fact, the premium you pay for an insurance policy is an investment against risk. Thus, before comparing with other schemes, you must accept that a part of the total amount invested in life insurance goes towards providing for the risk cover, while the rest is used for savings. In life insurance, unlike non-life products, you get maturity benefits on survival at the end of the term. In other words, if you take a life insurance policy for 20 years and survive the term, the amount invested as premium in the policy will come back to you with added returns. In the unfortunate event of death within the tenure of the policy, the family of the deceased will receive the sum assured. Now, let us compare insurance as an investment options. If you invest Rs 10,000 in PPF, your money grows to Rs 10,950 at 9.5 per cent interest over a year. But in this case, the access to your funds will be limited. One can withdraw 50 per cent of the initial deposit only after 4 years. The same amount of Rs 10,000 can give you an insurance cover of up to approximately Rs 5-12 lakh (depending upon the plan, age and medical condition of the life insured, etc) and this amount can become immediately available to the nominee of the policyholder on death. Thus insurance is a unique investment avenue that delivers sound returns in addition to protection. Role 2: Life insurance as "Risk cover" First and foremost, insurance is about risk cover and protection - financial protection, to be more precise - to help outlast life's unpredictable losses. Designed to safeguard against losses suffered on account of any unforeseen event, insurance provides you with that unique sense of security that no other form of investment provides. By buying life insurance, you buy peace of mind and are prepared to face any financial demand that would hit the family in case of an untimely demise. To provide such protection, insurance firms collect contributions from many people who face the same risk. A loss claim is paid out of the total premium collected by the insurance companies, who act as trustees to the monies. K.E.S. SHROFF COLLEGE Page 4
    • Insurance also provides a safeguard in the case of accidents or a drop in income after retirement. An accident or disability can be devastating, and an insurance policy can lend timely support to the family in such times. It also comes as a great help when you retire, in case no untoward incident happens during the term of the policy. With the entry of private sector players in insurance, you have a wide range of products and services to choose from. Further, many of these can be further customized to fit individual/group specific needs. Considering the amount you have to pay now, it's worth buying some extra sleep. Role 3: Life insurance as "Tax planning" Insurance serves as an excellent tax saving mechanism too. The Government of India has offered tax incentives to life insurance products in order to facilitate the flow of funds into productive assets. Under Section 88 of Income Tax Act 1961, an individual is entitled to a rebate of 20 per cent on the annual premium payable on his/her life and life of his/her children or adult children. The rebate is deductible from tax payable by the individual or a Hindu Undivided Family. This rebate is can be availed upto a maximum of Rs 12,000 on payment of yearly premium of Rs 60,000. By paying Rs 60,000 a year, you can buy anything upwards of Rs 10 lakh in sum assured. (Depending upon the age of the insured and term of the policy) This means that you get an Rs 12,000 tax benefit. The rebate is deductible from the tax payable by an individual or a Hindu Undivided Family. Role 4: Life insurance as "Financial Planning" Most insurance plans available today have a built in savings element. Plans like the Endowment Plan, Money back Plan, Child Advantage Plan, Preferred Retirement Plans, etc allow you to meet your dual financial goals of life cover and Savings for the future. You may avail of a loan from the insurance company against certain plans. Your policy could also be pledged as a collateral to raise funds from banks and other financial institutions. In case of your unfortunate death the loans may be repaid from the proceeds of the life insurance policy. Insurance promotes compulsory savings with regular premium payments and helps build up a corpus of funds along with financial security for the dependants in case of premature death. For your medical needs and that of your family. Hospitalization costs and quality healthcare is becoming increasingly expensive. Without insurance, you can actually face a situation where you have withdrawn all your money and borrowed to pay the medical bills. This can be provided with our Critical Illness Benefit. Insurance provides you the option of covering yourself towards any critical illnesses that can become extremely costly. Choosing this facility pays you a lump sum upon diagnosis of certain diseases like cancer, kidney failure, heart attack, stroke, coronary bypass, vital organ transplants, Alzheimer's disease, paralysis, etc. K.E.S. SHROFF COLLEGE Page 5
    • Role 5:Role of Insurance as "Economic Development." It reducing burden of Government in providing relief to the old citizens as well as providing funds to Govt. for nation building activities. Direct investments made by Insurance serve a twofold purpose. It acts as a major instrument for the mobilization of savings of people, particularly from the middle and lower income groups. These savings are channeled into investments for economic growth thereby creating employment. These savings in turn go into the task of nation building. K.E.S. SHROFF COLLEGE Page 6
    • CHAPTER-3 ABOUT SBI LIFE INSURANCE Life is full of surprises, some pleasant and some not so pleasant. Our families and we have to live with these uncertainties. Preparing for the uncertainties of life is what Insurance is all about. Insurance is a tool, a solution for delegating the worries concerning tomorrow onto a trustworthy institution so that you can start living today. With SBI Life, you could smoothen the rough edges of life; make it a bit easier, so you needn't worry about your children's education, or your family's future. Whether you are looking for a safe investment vehicle with good returns or life cover with regular returns in the future, all it needs is one small action on your part. Leave the rest to us and SBI Life will take care of your near and dear ones, and most importantly you. SBI Life Insurance is a joint venture between the State Bank of India and Cardif SA of France. SBI Life Insurance is registered with an authorised capital of Rs 500 crore and a paid up capital of Rs 350 crores. SBI owns 74% of the total capital and Cardif the remaining 26%. SBI Life has already covered more than 8 lacs group lives with an additional 2.5 lacs lives through individual policies. State Bank of India enjoys the largest banking franchise in India. Along with its 7 Associate Banks, SBI Group has the unrivalled strength of over 14,000 branches across the country, the largest in the world. Cardif is a wholly owned subsidiary of BNP Paribas, which is The Euro Zone’s leading Bank. BNP is one of the oldest foreign banks with a presence in India dating back to 1860. It has 9 branches in the metros and other major towns in the country. Cardif is a vibrant insurance company specializing in personal lines such as long-term savings, protection products, and creditor insurance. Cardif has also been a pioneer in the art of selling insurance products through commercial banks in France and 29 more countries. While sharing its aggressive plans, SBI Life also announced the infusion of additional fresh capital of Rs. 75 crores to take its capital base up to its authorized share capital limit of Rs. 500 crores. Speaking on the occasion, Mr. S. Krishnamurthy, MD and CEO, SBI Life Insurance said, “The additional capital has been injected to maintain stipulated solvency margins for the exponential new business growth and expanding branch network” SBI Life Insurance’s mission is to emerge as the leading company offering a comprehensive range of Life Insurance and pension products at competitive prices, ensuring high standards of customer service and world class operating efficiency. The company plans to make the insurance buying process quick, simple, and based on well-informed judgments. In 2004, SBI Life Insurance became the first company amongst private insurance players to cover 30 lakh lives. The company expects to carve a niche in the Indian insurance market through extensive product innovation and aims to provide the highest standards of customer service through a technological interface. To facilitate this, call centers have been already installed and help lines will be installed and customers will have access to their accounts through the Internet or through SBI branches. The company proposes to make available ready liquidity to its Life Insurance policies by way of loans at SBI counters. This will make Life Insurance a liquid asset in the financial portfolio of households. K.E.S. SHROFF COLLEGE Page 7
    • SBI Life Insurance is uniquely placed as a pioneer to usher bancassurance into India. The company hopes to extensively utilise the SBI Group as a platform for cross- selling insurance products along with its numerous banking product packages such as housing loans, personal loans, and credit cards. SBI’s access to over 100 million accounts provides a vibrant base to build insurance selling across every region and economic strata in the country. Mission Statement:To emerge as the leading company offering a comprehensive range of life insurance and pension products at competitive prices, ensuring high standards of customer satisfaction and world class operating efficiency, and become a model life insurance company in India in the post liberalization period 5 reasons to select SBI Life as people preferred insurance company. • Customer Satisfaction - many of their customers who have bought an insurance policy with them have bought a second one! • Financially sound with over a 100 years of Banking experience, when people trusted company with their money, why would they trust somebody else with their protection needs. • Affordability • Easy to buy (accessibility) Trust & reliability. K.E.S. SHROFF COLLEGE Page 8
    • CHAPTER-4 LIFE LONG PENSION Life expectancy is improving rapidly. People live longer. A person cannot work throughout their life. You will have to retire from work. In the post retirement period you have lot of time for yourself. You would like to do things you have not done while you were working. You need to have a comprehensive plan to meet our post retirement financial needs ensuring complete peace of mind. Advantages of the plan:  A maximum of Rs. 1,00,000 p.a. paid as a contribution on a pension plan is fully deductible from the taxable income (within the max. ceiling Rs. 1 lakh)  Minimum Guaranteed returns of 4% p.a. (compounded annually) on your Personal Pension Account (till 31st March 2010) + Vested bonus.  It helps you to accumulate enough savings to meet the old age needs and look for a reliable and enduring pension payment.  It is an extremely flexible plan:  Choice of the contribution amount you want depending on your premium paying capacity  You may exercise the Top-up facility whenever by paying additional amount to increase your retirement kitty, irrespective of contribution payment mode.  Convenient Contribution payment mode monthly, quarterly, half-yearly, yearly, and single contribution is also available.  Choice of the choosing your own retirement age.  Postponing/ Proponing to a convenient date, the decision for receiving the Pension Benefits.  Contribution holiday available from year 4 onwards  The total/balance amount (after withdrawal from PPA, if any) can be utilized in seeking immediate annuity  Free to chose annuity from either SBI Life or other insurance companies  At Vesting Age you have multiple choices of Pension/ Annuity options including Joint Life Time Annuity.  On maturity you have a choice to withdraw up to 33% from your Personal Pension Account in a lump sum. This withdrawal amount is tax-free as per the current fiscal law.  Helps you to utilize all alternatives of tax savings today and also plan for a worry free tomorrow.  In “Pension cum Life Cover” plan, you have the facility of Automatic Cover Maintenance, which ensures that the cover remains in force even when you miss the premium payments. This facility is available after the first three years of the term. K.E.S. SHROFF COLLEGE Page 9
    •  In “Pension cum Life Cover” plan, the life cover acceptance is based on a simple medical questionnaire without any Medical examination  Rebates for Annual, Semi- Annual mode of premium and on high Contribution amount. Enjoy financial independence when you retire.  30 days Free Look Period from the date on which you receive the policy documents. Lifelong Pensions plan helps to meet your financial requirement no matter which life stage you are at. It is designed specially for individuals who wish to build their kitty retirement with no risk and tax advantage u/s 80 CCC (1) of IT Act. SBI Life Insurance have designed 2 plans to meet different requirements: Plan 1: Pure Pension This plan is a pure savings accumulation vehicle. No medical underwriting required. You can enjoy the benefits of this plan without any hassles, Automatic Acceptance. You have to just fill a simplified Proposal form. Plan 2: Pension cum life cover This plan is a pension builder plan with life insurance option. A simple medical questionnaire needs to be filled. The term of the life cover is equal to the Vesting Age / 65 whichever is earlier. If Life cover is extended due to postponement of Vesting Age, new medical questionnaire and new premium amount will be applicable. In this plan you have the facility of Automatic Cover Maintenance, which ensures that the cover remains in force even when you miss the premium payments. This facility is available after the first three years of the term. The Premiums due for Life Cover will be deductible from your Personal Pension Account How do the Plans work? Customer will have the right to convert your accumulated balance in the personal pension account and ask for pension at any vesting age between 50 and 70. Customer can choose the age based on your work style and your current earning profile. Customer has the right to make use of the balance amount in the personal pension account in several ways. 1) Withdraw up to 33% of the accumulated sum for the customers immediate cash need. This amount is tax-free. 2) Use the remaining amount to buy annuity payment benefit fro any other insurance company. 3) Ask SBI Life insurance adviser agent to utilize the balance amount (Annuity purchase Price) to draw pension payment from SBI Life Insurance under one of several Choices. K.E.S. SHROFF COLLEGE Page 10
    • Fixed annuity amount as long as policyholder live as well as minimum guaranteed period of 5,10,or 15 years Increasing life annuities that provides progressively higher pension to keep with the increasing cost of living. Joint pension plan, which means payment of annuities during the lifetime of the person and thereafter as long as the spouses live. The joint pension could be at the same rate of pension as drawn by the person while he was alive, or half of that amount as optioned at the beginning. The annuities could be payable monthly, quarterly half yearly or yearly as per customer choice option. Pure Pension Plan 1 Pension cum Life Cover Plan2 Minimum term 2 years 5 years Maximum term 52 years 52 years Eligibility: - Contribution Holiday This facility is available from year 4 onwards for both options. If you have opted for Plan 2 Pension cum Life Cover, and you have not paid your regular contribution after year 4 as per the schedule, Life cover premium will be deductible from the Personal Pension Account to keep in force the Life Cover option*. Contribution payment mode 1) Regular contribution payment Monthly Quarterly, Half-yearly and Yearly 2) Single contribution payment one time premium payment for the selected term at commencement. K.E.S. SHROFF COLLEGE Page 11 Pure Pension Plan1 Pension cum Life Cover Plan2 Minimum Age at entry* 18 years 18 year Maximum Age at entry* 65 Years 60 years Maximum cover age for life cover Not Applicable 65 years
    • EDU SHIELD As a loving parent you dream of a bright future for your child. You want your child’s higher education secured and fulfilled under all circumstances. We have a scheme for you to accomplish your wishes! Edu Shield is a unique insurance plan from SBI Life that provides Life Insurance Protection for Education Loan borrowers. With a policy under Edu Shield in hand, you can cross the important milestones of your life with a broad smile. Edu Shield is a non-participating plan. It provides level insurance cover to the education loan customers throughout the term of the loan. It is meant for the students and parents. Both the lives are covered separately. In case of claim, the Life Cover sum assured is payable to the Bank. The Bank will refund any surplus over the outstanding loan amount to the legal heir. The Premiums are Payable on annual basis through Standing Instructions to the Bank to debit the loan account. Salient Features: • Dedicated insurance plan for educational loan borrowers (students and/or parents). Both lives are covered separately for the same loan amount and term. • It secures the family from the financial obligation under the loan, incase of a claim. • It is available at a very nominal cost. Premium payment is constant throughout the term of the plan. • Hassle free premium payment (automatic debit from your loan account). • Attractive Rebates for Annual mode of Premium payment, High Sum Assured and Female Lives. • Tax benefit u/s 80 C of IT Act* • Automatic Assignment, in favor of the Bank. • 15 days free look period. Eligibility: - Age Students Parents Minimum age at entry 18 years 36 years Maximum age at entry 30 years 60 years Maximum age at exit 45 years 65 years Sum Assured Minimum: Rs. 3 lakh (multiple of 10,000 only) Sum Assured Maximum: Rs.50 lakh Minimum term cover: 5 year Maximum term cover: 15 year K.E.S. SHROFF COLLEGE Page 12
    • Benefits: - I Maturity Benefits: No benefits are payable to the surviving borrower/s on maturity of the term of the policy. II Death Benefit: The life cover sum assured is payable to the Bank (as the Bank is the assignee). Surplus amount after adjusting the dues, if any, will be paid to the legal heir by the Bank No death benefit is available for suicide within the first year of the policy. III Tax Benefit You are eligible for Tax benefit for the premium payment u/s 80 C and 10 (10 D) of IT Act* SCHOLAR II As a caring parent you would always want your child to get the very best. Is there a way to protect your children against life’s risks? Is there a way to make tomorrow safe for them? Therefore this is the time when careful financial planning can help you fulfill the aspirations that you have for your children’s. We at SBI Life can help you ensure that your children’s future is secure and prosperous. SCHOLAR II is designed to protect your child’s future educational needs. Advantages: Twin benefit of saving for your child's education and securing a bright future despite the uncertainties of life. Full risk cover throughout the policy term irrespective of payment of survival benefits installments. Option to receive the installments in lump sum at the due date of first installment of Survival benefit. Tax benefit u/s 80 C and 10 (10 D) of IT Act* Attractive rider options Attractive rebate for Female lives and High Sum Assured. • 15 days Free Look Period K.E.S. SHROFF COLLEGE Page 13
    • Features: - Scholar II is designed to meet the twin objectives that concern every parent: - saving for your child's education and securing a bright future despite the uncertainties of life. It ensures that your child's future plans remain on track, no matter what! The life assured is the parent. It is a participating plan. Guaranteed benefits are payable at regular interval within the policy term. In the unfortunate event your nominee would receive full Sum Assured along with Vested Bonus, plus regular Survival Benefit as per the original schedule. Riders In addition to the Basic Cover, you are also entitled to opt for extra covers (riders) – Accidental Death and Accidental Total Permanent Disability Rider, Premium Waiver Benefit Rider and Critical Illness Rider, by paying nominal additional premiums. Exclusions applicable under the riders. Premium payment mode: - 1) Regular premium payment mode: Yearly, half yearly, quarterly and monthly premium mode* by giving standing instruction to your bank or pay through your credit card (Visa or Master Card) or pay through SBI ATM’s or you can also pay it online at www.onlinesbi.com 2) Single premium payment: One time premium payment for the selected term at commencement. Monthly premium mode available only for Credit Card and Standing Instruction. 3 months premium to be paid in advance Premium rate is different depending on the age, term, gender, Sum Assured, and mode of payment Benefits I. Survival Benefit Guaranteed payment at regular intervals When the child attains 18 years of age, the parent has an option of: Receiving the Sum Assured in 4 installments: Age Guaranteed Benefit Payment 18 years 25 % of Sum Assured 19 years 25 % of Sum Assured 20 years 25 % of Sum Assured 21 years 25 % of Sum Assured + Vested Bonus * K.E.S. SHROFF COLLEGE Page 14
    • II. Death benefit In the event of unfortunate incident of your early death during the term of the plan, your child’s future remains secured in 3 ways: Child future educational needs: 25% of Sum Assured is payable in 4 equal installments when the child attains the age 18 years to 21 years. This ensures the child higher educational needs are meet. Immediate Payment: The nominee receives the Sum Assured along with the bonus declared until that date. All future basic premiums need not be paid: Ensuring that your family is not financially burdened in your absence. No deductions are made from the claim amount for the Survival Benefits already paid. Exclusions applicable to the Basic Cover: Suicide within the first year III. Other Optional Benefit Accidental Death and Accidental Total Permanent Disability Rider In case of death due to an accident, the nominee gets the additional rider Sum Assured. If the policyholder is involved in an accident, resulting in total permanent disability, he/she will get Sum Assured under this rider in 10 equal annual installments; He/she will exit from all the rider covers thereafter, but continue to be covered for basic cover on receipt of further premium due, if any.  Premium Waiver Benefit Rider: Under this rider the policyholder need not pay future premiums for the base product, if he/she suffers from total and permanent disability due to an accident after the rider is opted for.  Critical Illness Rider: On diagnosis of any of the 6 critical illnesses and you survive for more than 30 days from diagnosis; the Critical Illness Cover Amount is paid in a lump sum. No more claims will be admitted under this cover. The Basic policy remains in force for all the other benefits. IV. Tax Benefit SBI Life Scholar II enjoys Tax benefit u/s 80 C and 10 (10 D) of IT Act* Premiums paid for Critical Illness Benefit qualify for tax exemption under Sec 80D* K.E.S. SHROFF COLLEGE Page 15
    • Eligibility Parent/ Guardian Age* Minimum entry age: Maximum entry age: Maximum age at maturity: 18 years 60 years 70 years Child Age* Minimum entry age: Maximum entry age: 0 years 15 years 15 years Term The premium payment term depends on the age of the child and ends when the child attains the age 18 years. You are covered till the child attains the age 21 years. Sum Assured Minimum Sum Assured: Rs.50, 000 Maximum Sum Assured: Rs.1 Crore (in multiples of Rs.10, 000) *Age as on last birthday K.E.S. SHROFF COLLEGE Page 16
    • CHAPTER-5 SUDARSHAN-AN ENDOWMENT POLICY Sudarshan is an Endowment Policy designed to provide savings and protection to you and your family. You can save regularly for the future. Thus at the end of the plan, you will receive a substantial amount of savings along with the accumulated bonuses declared. At the same time, your family will be protected for death risk for the full Sum Assured. 'Sudarshan' is available under two Plans. Fixed Sum Assured (Plan A): Fixed amount of cover for the entire duration of the plan Increasing Sum Assured (Plan B): Increasing amount of cover every year for the entire duration of the plan with level premium. In addition to the Basic Cover, you are also entitled to opt for extra covers (riders): Term Assurance Cover, Accidental Death and Accidental Total Permanent Disability Cover and Critical Illness Covers by paying nominal additional premiums. This Scheme is ideal for you: If you intend to provide for your children's future education, marriage expenses or even your own retirement - in a most flexible manner. If you look for an insurance plan which could also act as a hedging instrument. If you want to provide for medical expenses. If you have to unfortunately face any of the terminal or dreaded illnesses. Features: - Fixed Sum Assured (Plan A) Under this Cover, at the end of the plan period, you are guaranteed to receive the Fixed Sum Assured opted plus the vested bonus. For e.g. if you want to build a savings of Rs. 1 lakh and you are say 25 years of old you can build your savings by paying just Rs. 4310/- as premium per annum over a period of 20 years. On maturity of the plan, you are guaranteed to receive Rs. 1 lakh as proposed and also the Bonus declared by the Company from time to time. Also, in the unfortunate event of death, the Fixed Sum Assured along with the vested bonus are payable to Nominee. K.E.S. SHROFF COLLEGE Page 17
    • Increasing Sum Assured (Plan B) This Cover is also known as COLA Option Cover, i.e., Cost Of Living Adjustment, as it serves as an automatic hedge against inflation. This plan provides for increasing the Sum Assured automatically. Under this Cover, the Sum Assured gets increased at a rate of 5% per annum (for every completed year). Taking the above example, your savings get accumulated to Rs. 2 lakhs at the end of 20 years. As a matter of fact, you stand to receive a higher savings plus the entire accumulated Bonus. As in the Traditional Cover (Fixed Sum Assured Plan), in the unfortunate event of death, the nominees stand to get a Cover increased at the rate of 5% per annum (for every completed year) along with the bonus accrued. This plan offers an increasing cover as well as increasing savings amount consistent with the need of protection of savings future value in the coming years. Rider Covers Sudarshan offers you additional covers viz. Term Assurance Rider, Critical Illness Rider (6 critical illnesses) or Accidental Death and Accidental Total Permanent Disability Rider. Term Assurance Rider This Rider enables you to increase just the pure risk cover without the need for paying additional premium for the savings component. You can get pure life assurance cover for a maximum of Rs. 50 lakhs or 3 times the Basic Sum Assured whichever is lower. Critical Illness Rider On diagnosis of any of the 6 critical illnesses and you survive for more than 30 days from diagnosis; the Critical Illness Cover Amount is paid in a lump sum. No hospitalization bills need to be submitted. The Basic policy remains in force for all the other benefits. Accidental Death and Accidental Total Permanent Disability (TPD) Rider Under this rider, you can cover yourself against the risks of accidental death or accidental disability. In the event of accidental death: Additional Accidental Death benefit cover amount would be payable along with normal Life Cover benefit; K.E.S. SHROFF COLLEGE Page 18
    • The event of Total Permanent disability on account of an accident: Two benefits are payable: 1. Immediate Payment Depending upon the plan option chosen: Fixed Sum Assured (Plan A) Flat Sum Assured + Vested Bonus OR Increasing Sum Assured (Plan B) Increased Sum Assured @ 5% p.a (every completed year) + Vested Bonus 2. Yearly Installment Payment Accidental Total Permanent Disability Rider amount is payable in 10 installments till maturity / death. At maturity/death, the remaining installments are payable in a lump sum to you/your nominee. Policy ends immediately. Eligibility: - Regular Premium Payment Single Premium Payment Particulars Minimum Maximum Minimum Maximum Age at entry 12 years 62 years 12 years 65 years Term 8 years 30 years 5 years 30 years You may be required to undergo a simple medical examination depending upon the Sum Assured and your age. Sum Assured to be in multiples of Rs. 1000/- Benefits 1) Maturity Benefit: Depending upon the plan option chosen: Fixed Sum Assured (Plan A) Basic Sum Assured along with Vested Bonus* is payable Increasing Sum Assured (Plan B) Increased Sum Assured @ 5% p.a along with Vested Bonus* is payable K.E.S. SHROFF COLLEGE Page 19
    • 2) Death Benefit: In the unfortunate event of death of the Life Assured, depending upon the plan option chosen: Fixed Sum Assured (Plan A) The Sum Assured along with Vested Bonus * is payable to your nominee. Increasing Sum Assured (Plan B) Increased Sum Assured @ 5% p.a along with Vested Bonus* is payable to your nominee. 3) Other Benefits: If the extra cover (riders) have been opted for, the following additional benefits are payable: a) Term Assurance Cover benefit: - The Term Assurance cover is payable in addition to normal death benefit. b) Accidental Death and Accidental Total Permanent Disability Cover Benefit: - In case death due to an accident: The rider Sum Assured is payable in addition to normal Life cover. In case of Total Permanent Disability due to an accident: Two benefits are payable: 1. Immediate Payment Depending upon the plan chosen: Fixed Sum Assured (Plan A) Flat Sum Assured + Vested Bonus OR Increasing Sum Assured (Plan B) Increased Sum Assured @ 5% p.a (every completed year) + Vested Bonus 2. Yearly Installment Payment Accidental Death and Accidental Total Permanent Disability Cover amount is payable in 10 installments till maturity / death. At maturity/death, the remaining installments are payable in a lump sum to you/your nominee. Policy ends immediately. C) Criticall Illness cover On diagnosis of any of the 6 critical illnesses and you survive for more than 30 days; the Critical Illness Cover Sum Assured is paid in a lump sum. No more claims will be admitted under this cover. Sudarshan policy remains in force for all the other benefits. 4. Tax Benefit K.E.S. SHROFF COLLEGE Page 20
    • SBI Life Sudarshan enjoys Tax benefit u/s 80 C and 10 (10 D) of IT Act* Premiums paid for Critical Illness Benefit qualify for tax exemption under Sec 80D* SETUBANDHAN Setubandhan is Investment - cum - Life Insurance opportunity A unique Life Insurance bond that helps you, the NRI living abroad, build a bridge between you and your dear ones back in India. Eligibility Minimum sum assured on each policy Rs.3 lakhs, maximum Rs. 1 crore. Entry age minimum 18, maximum 60. Cover available up to maximum 70 years. Benefits: - Base Policy for NRIs: Guaranteed 5% annual additions (Simple) on Sum Assured with benefit of Single Premium payment In the event of death, the Sum Assured as increased by the annual addition on the date of death will become payable. Upon survival, the Sum Assured with total additions during the period will be payable Rider benefits for NRIs: Critical illness cover (Dhanwantari-Supreme), subject to maximum of Rs.5 lakhs. Premium payable annually, and the rate will be valid for maximum 5 years, subject to review thereafter for 10-year Plan. Optional Life Cover for Dependant Term insurance cover for a dependant living in India, subject to a minimum sum assured of Rs. 3 lakhs and maximum Rs. 10 Lakhs. Premium payable annually. `Dependant’ will mean spouse, and parents not above the age of 55 at the time of entry. Term insurance premium will be refundable at the end of the term upon survival of the life covered (Swadhan). Full refund of premium for a 10-year term and 50% for a 5-year term. Critical illness covers for the dependant, subject to the maximum of Rs.5 lakhs. Premium payable annually. Surrender benefits: No surrender benefit during the first year. 90% of basic premium paid for surrender during 2nd and 3rd year. 95% of basic premium paid for surrender from the 4th year. No guaranteed addition will be payable for policies surrendered under the 5-year Plan. In respect of policies with 10-year term, the guaranteed addition to the extent of 50% will become payable for policies surrendered between 6th and 7th years, and 75% in respect of policies surrendered from the 8th year. Loan facility available from Branches of SBI and Associate Banks based on the surrender value of the policy. Rebate on premium on high value policies K.E.S. SHROFF COLLEGE Page 21
    • Characteristics: - Product is open for subscription by NRIs. Single premium product. It is for a term of 5 and 10 years. Uniform premium without regard to age difference. Sum assured of Rs.1000, single premium is Rs.1019 for 5-year Plan, and Rs.996 for 10-year Plan. Sum assured will carry guaranteed addition at 5% per annum (simple) for 5 and 10 years. Life cover will increase over the original sum assured to the extent of the annual additions. 15-day Free Look Period. Guaranteed 5% annual returns(Simple) on your investment with benefit of Single Premium payment. Savings-cum-Protection plan for two terms of 5 or 10 years. Optional Critical Illness cover against six major ailments like heart attack, cancer etc. Optional life insurance cover for dependants upto Rs.10 lakhs with return of premium. Facility of repatriation at prevailing exchange rates. K.E.S. SHROFF COLLEGE Page 22
    • CHAPTER-6 MONEY BACK Introducing SBI Life Money Back plan, a smooth way to plan for all the special moments in your life. As an individual your life is fueled by dreams. You experience different special moments in life like wedding, birth of a child, child’s education, or purchasing a new home. You have to be financially prepared for these special moments. What you need is easy liquidity at regular intervals with life insurance protection to take care of these special moments. Benefits of the plan: Twin benefits of Life Insurance and increased cash inflow at regular intervals. Guaranteed Survival Benefit Payments more than 100% of the Sum Assured. Increasing Survival Benefit payments. Bonus for the entire term of the policy. Available in a wide range of terms: 10, 15, 20, or 25 years to suit your needs. In the event of claim your beneficiary would receive full sum assured and bonuses, Irrespective of Survival Benefits already paid. Tax benefit u/s 80 C and 10 (10 D) of IT Act* Convenient premium payment options. & Attractive rider cover. Attractive rebate for Female lives. Rebates for Annual / Semi- Annual modes of Premium. Rebates on high value policies. &15 days Free Look Period. Feature: SBI Life Money Back is a saving plan with added advantage of life cover and cash inflow at regular intervals. This plan is designed for individuals who want to plan for various financial obligations at specified times in life. Keeping customers convenience in mind, we have designed four plan options: for 10, 15, 20, or 25 years Term of the Plan Guaranteed Survival Benefit payable Cumulative Guaranteed Survival Benefit A) 10 Years The last 3 years on the term 110% of Basic Sum Assured B) 15 Years After every 3 years on the term 115% of Basic Sum Assured C) 20 Years After every 4 years on the term 120% of Basic Sum Assured D) 25 Years After every 4 years on the term 125% of Basic Sum Assured The premium payment term is less than the policy term. Your investment goes through a "Growth/Deferment Period" in which the money you've invested continues to K.E.S. SHROFF COLLEGE Page 23
    • multiply; in the Growth/Deferment Period you will not be entitled for any Survival benefit. At the end of this Period, you get your money back annually for 5 years or 10 years, depending on the plan option chosen by you. However you remain covered for the entire duration of the policy for the full Sum Assured, irrespective of survival benefit already received. In addition to the Basic Cover, you are also entitled to opt for extra covers (riders): Term Assurance rider and Accident rider (Accidental Death and Accidental Total Permanent Disability), by paying nominal additional premiums. No riders available for Single Premium Mode. Rider Sum Assured cannot exceed the Basic Sum Assured Premium Payment Mode 1) Regular premium payment mode: Quarterly, half-yearly and yearly. Single premium payment: One time premium payment for the selected term at commencement 2) Premium Amount Premium rate is different depending on the plan selected, term, the gender, the Sum Assured, and mode of payment. SWADHAN Happiness and security for your family is what you want. However life has its uncertainties and risks. All that you’re interested in is how best to afford a secure future for your loved one. Have you ever wished for a low premium insurance policy that is not only provides security to your loved ones but also returns back the premium paid. Advantages:  Protection at affordable premium.  Life cover comes to you at no cost**  Tax benefit u/s 80 C and 10 (10 D) of IT Act*  5% rebate for Female lives & Rebate on High Sum Assured  Flexible benefit premium paying mode & Free look period of 30 days Features: Swadhan is an ideal life insurance policy that covers your near and dear ones against financial risk. It is available at a very affordable premium, yet substantial. In the unfortunate event of death during the term of the policy, the nominees would receive full Sum Assured. This plan offers a benefit unlike other term policies, on Survival portion of the premium paid or entire premium are refunded without interest, depending upon the term chosen. It is a non – participating plan. Term %Age of Basic Premium refunded 5 years 50% K.E.S. SHROFF COLLEGE Page 24
    • 6 years 60% 7 years 70% 8 years 80% 9 years 90% 10 years 100% Flexible premium paying mode You can choose monthly, quarterly, half yearly, or yearly. Premium Amount Premium rate is different depending on the term, the gender, the Sum Assured and mode of payment. Guaranteed surrender value You can surrender your policy and get the appropriate surrender value, provided you have paid premiums at least for first 3 years. Policy year Guaranteed Surrender Value Y4 /5 / 6 60% Basic Premium Paid less 1st year Basic Premium Y7 onwards 65% Basic Premium Paid less 1st year Basic Premium Eligibility: Age: Minimum entry age* 18 years Minimum entry age* 55 years Term: Minimum term 5 years (in multiple of 1 year) Maximum term 10 years Maximum age at maturity is 65 years. Sum Assured: Minimum Sum Assured: Rs. 3,00,000 (in multiple of Rs. 10,000) Maximum Sum Assured: Rs.1 Crore K.E.S. SHROFF COLLEGE Page 25
    • Benefits: Maturity benefit: If you survive for the entire term of the plan, you would be eligible to a refund of the premiums depending upon the term of the policy Term %Age of Basic Premium refunded 5 years 50% 6 years 60% 7 years 70% 8 years 80% 9 years 90% 10 years 100% Death benefit: In the event of claim, your nominee would receive full Sum Assured Exclusion applicable to the basic cover -Suicide within the year CHAPTER-7 BANCASSURANCE PRODUCT HOME LOAN INSURANCE. A place where you return after a hard day's work and relax, a place where you share precious moments with your family. A place that gives you a sense of belonging. There are few things that are common to all living beings. Every human being dreams of having a safe and secured home for themselves and their family. Where can stay happily K.E.S. SHROFF COLLEGE Page 26
    • with our family members. Most of us take a Home Loan from the financial institutions to achieve this dream. However, the uncertainties in life often worry us. In the unfortunate event of death, your family will have the burden to pay the outstanding loan amount. We have especially designed an insurance plan for the Home Loan borrowers of State Bank Group. Salient Features: Life cover equivalent to the outstanding loan amount as per the original repayment schedule of the loan. Protects the home loan borrower against death due to any reason except suicide in the first year of cover In the event of death, SBI Life pays the Sum Assured directly to the Bank. No medical examination upto Rs. 7.5 lakhs (18 to 60) and Rs. 3 lakhs (61 to 65). Available for existing and new home loan borrowers 50% discount in case of joint borrower for the youngest life. Eligibility: - Criteria Minimum Maximum Age at entry 18 years 65 years Sum Assured Rs.25, 000/- No Limit Single Premium Rs.1, 000 No Limit Term 5 Years 20 Years Maximum coverage: 71st birthday Features: Home loan Insurance provides unmatched security to all State Bank Group home loan borrowers. It insures the borrower's life during the loan repayment period to the extent of his outstanding loan liability as per the original repayment schedule. So that even in case of unfortunate event of death of the housing loan borrower due to any reason, SBI Life would pay the amount outstanding in the loan account as per the original repayment schedule. • The premiums* are paid in a lump sum for the entire duration of the loan. K.E.S. SHROFF COLLEGE Page 27
    • • In the case of a joint borrower, the joint borrowers can be covered and the youngest life could avail of a 50% discount on his/her insurance premium. • If the Borrower forecloses Loan, the unexpired portion of the premium will be refunded, less charge. • A Good Health Declaration* needs to be completed. • Simple claims settlement process Benefits: - Death Benefit In the unfortunate event of the death of the borrower, SBI Life steps in and pays the amount outstanding in the loan as per the original repayment schedule. Maturity Benefit To keep premium rates low, Home Loan Insurance is a pure Term Assurance , therefore, there is no benefit on maturity of the policy. Exclusion: Death due to suicide is not covered within the first year of joining. CHAPTER-8 CORPORATE GROUP PRODUCT Economic growth is today decided more by human capital than by material capital. Equipment, processes, and intellectual property are leveraged not by their inherent capability but by the actions of human beings. Investment on human resource has today become the core of production force and the competing focus among corporate. Employee Benefit solutions are just what you need to retain your most valuable asset and win the confidence and loyalty of your employees. SBI Life dedicates itself to K.E.S. SHROFF COLLEGE Page 28
    • meet an employer's commitment towards its employees cost effectively, and to strengthen the employer-employee relationship in the long run. SBI Life Group Solutions offers an integrated basket of employee benefit plans catering to both statutory as well as voluntary needs of the employers. Retirement Solutions: You value your employees’ contribution. You value their loyalty. And you want to pass on to them blissful golden years ahead as a token of gratitude. Retirement planning is crucial to assure your employees from any worries of improving longevity, increasing inflation; medical bills, or taxes, so that they can actually enjoy the benefits of their hard-earned savings. SBI Life offers competitively rewarding and attractive retirement solutions for your employees. SBI Life Group Gratuity Plan is a Non-linked scheme designed to help employers to manage their gratuity liability in a scientific manner through a host of flexible plan options. Wider investment avenues and prudent asset allocation ensuring maximization of value Free annual actuarial valuation Option of Pooling or Ring fencing (only for large funds) Flexible and competitive term life insurance cover. SBI Life Group Pension Plan ensures quality benefits for the employees post-retirement with tax-advantages for both the employer as well as the employees. SBI Life offers flexible plan options protecting the retirees against increasing cost of living and medical bills, and ensuring the same quality of life as before. Minimum guaranteed return of 4%* p.a. compounded annually plus Vested Bonus will be credited to the Personal Pension Account (* Till 31st March ‘2010) Automatic Cover Maintenance to ensure that the cover remains in force even when you miss the premium payments. Top-up facility at any time irrespective of contribution payment mode. Flexible plan options with Defined Contribution arrangements. Different annuity options available at the time of retirement. Protection Plans: Never compromise on your dreams. Never compromise on the dreams of your family and children. If you believe in this, you must make your employees believe in the same too. SBI Life offers pure protection cover for your employees to ensure that their families are financially well secured in the event of unforeseen and unfortunate circumstances. SBI Life Group Term Life Scheme in lieu of EDLI has been designed to help employers to meet this liability at cost effective rates with enhanced benefits. Life cover available to employees irrespective of their Provident Fund Balance. K.E.S. SHROFF COLLEGE Page 29
    • Lower premium rates than RPFC. No medical evidence required. Sum Assured ranges between minimum Rs. 65,000/- (min.) to Rs. 1,00,000/- maximum. Additional coverage for Accidental Death Benefit (ADB). Premium paid by employer is treated as normal business expenditure for Income Tax purposes. SBI Life’s Group Term Life for employees (Supersuraksha) It is a highly convenient yearly renewable term insurance product, which pays a fair amount to the employees against the risk of death. It gives employees peace of mind that comes from knowing that their families are protected. Enhanced benefits for the employees ensuring their families’ future. Uniform premium to all employees. Hassle free implementation and faster claim settlements. Minimum administrative costs to the policyholder. Additional benefits from Accidental Death Benefit (ADB) rider and Accidental Total Permanent Disability (ATPD) rider. Specialized Term Life Insurance: Key man is a key member or staff of the organization who is a major contributor to its growth and the profit and whose absence may affect the continuity of the business. SBI Life’s Key man Insurance It is a pure term life cover to protect the organization from adverse financial consequences arising due to death of a key employee. The aim is to indemnify the company for these losses and to allow for business continuity. Protection from potential losses combined with advantages of tax savings. In case of key man leaving the company, options available to either surrender or assign absolutely to the key man. OTHER GROUP PRODUCTS If you own a business or are responsible for your company's employee benefit plans, you would know that employees are the most valuable assets of any organisation. They not only help the company grow but shape its course of growth. Precisely why, the world's successful companies constantly emphasise the need to keep employees happy and motivated. Every organization faces some employee turnover. However the fact remains that an organisation also needs to have a pool of good working staff that chooses to stay for the long haul. Today, as top management churn has increased, loyal staff has become more important to companies. Employee benefits schemes including Group K.E.S. SHROFF COLLEGE Page 30
    • Insurance policies can help retain and create a bonding between the employee and the company. Make a choice on how to protect employees and company for life. Super suraksha - A Group Insurance policy provides your employees pure Life Insurance cover. At a very low cost - a price which they cannot possibly get if they choose to arrange for insurance cover by themselves, individually. Swarna ganga - A Group Insurance Plan that combines security with tax-free savings, it provides life cover to your employees as a group. It also helps the employees to accumulate savings as they pay the premium. What's great about this plan is that a portion of the monthly contribution of the employee is utilized towards insurance premium and the balance is kept as a savings portion with SBI Life. At the end of the fixed term, or upon retirement of the employee or his leaving the company, the savings portion is returned to him with interest. All such receipt is treated as tax-free at the hands of the employees. In the event of any unfortunate death, the sum assured is paid to the nominee along with the savings portion. It is just what you need to build team spirit in the company & show your employees how much you care for them. By insuring them. And securing their families & their future. A group insurance policy can work as a morale booster for employees& helps retain top employees. Whether you are a small business organisation with 50 employees or a top rung corporate, we'll design and provide individualized Group Term Life Insurance packages based upon your company's needs. Coverage schedules and amounts can be customised to take into account salary, employee classification, or other criteria. COMPARISON WITH KOTAK LIFE INSURANCE PRODUCT Kotak Money Back Plan SBI-Money Back Plan Guaranteed Survival Benefit 5 year guaranteed survival benefit is payable 3,4 or 5 year guaranteed survival benefit is payable. Minimum age of entry K.E.S. SHROFF COLLEGE Page 31
    • 18 year 15 year for all option plan Maximum age of entry 60 year Option 1: 60 year Option 2: 55 year Option 3: 50 year Option 4: 45 year Maximum Maturity Age 75 year 70 year Special Rebate No any declaration Women get special rebate of 5% on premium base. Kotak Endowment Plan SBI-Endowment Plan Entry Age Minimum 18 year Maximum 65 year Minimum 12 year Maximum 65 year Term Minimum 10 year Maximum 30 year Minimum 8 year Maximum 30 year Death Benefit In event of death nominee will receive basic sum assured or accumulated account which is higher Sum assured + bonus K.E.S. SHROFF COLLEGE Page 32
    • CHAPTER-9 TIME & COST OF INSURANCE The minute you have people dependent on your income, you should insure yourself. The younger the age, the lower is your premium. At SBI-Life, they believe anybody who is married and has children or plans to have children needs to be insured. Even if you are single, earning and intending to marry, you should think of buying a policy now, as it costs less now than it will when you marry. Remember, it is never too late to buy an insurance policy. Even if you are 45, and are not insured, you could choose insurance products that provide benefits to your family and provide income during your retirement period. Ideally, you should insure yourself for as long as you are the critical or crucial breadwinning member of the family. With the growing nuclear families and the typical Indian sacrificing mothers/wives, it may be prudent to ensure that the working man covers himself for his whole life; to ensure that his wife receives a lump sum upon his death. A general rule of thumb is that you should insure yourself for at least six times your annual income. This amount is normally adequate for your family to sustain themselves at present levels, until they recover from the financial loss caused by your absence. The cost of buying an insurance policy depends on:  Your age, health, and the nature of work you do  The type of policy you select  The sum assured i.e. amount you insure yourself for  The term i.e. number of years you insure yourself for  The premium paying term i.e. number of years you choose to pay premium  The mode i.e. the frequency with which you choose to pay premium (monthly, quarterly, half-yearly, yearly)  The rider's i.e. additional benefits you select, their term and premium paying term Example of an Endowment product for a 30-year old male An Endowment with profit policy, for a sum assured of Rs 100,000, a premium paying term and insurance term of 25 years, can cost between Rs 3,500-4,500 per annum. However, there are a number of riders you can add on to an insurance policy, which could increase your insurance cost by 20-30 per cent. Upon maturity or in the event of death of the insured, the insured or the nominee receives the sum assured plus bonus for the term of the policy. K.E.S. SHROFF COLLEGE Page 33
    • Example of a Term product for a 30-year old male A Term insurance product, for a sum assured of Rs 100,000, a premium paying term and insurance term of 25 years, can cost between Rs 500-950 per annum. Upon death of the insured, the nominee receives the sum assured immediately; while upon maturity, the insured does not receive any money. Again, a variety of policies are available - some policies offer a refund of the premium to the insured while some offer a portion of the insurance amount or the full sum assured at the end of the term. The cost of a policy could be lowered if you  Buy insurance at an early age (while the risk is lower)  Insure yourself for a long period  Insure yourself for a large sum assured; offer to pay premium annually, thereby receiving discounts  Select a low cost policy such as a Term product, which offers negligible to minimum returns upon maturity. Do not buy riders or additional benefits that do not seem to add value to you or are available as other insurance policies at lower prices. K.E.S. SHROFF COLLEGE Page 34
    • CHAPTER-10 QUESTIONNAIRE Q1)DO YOU KNOW ABOUT SBI LIFE INSURANCE YES OR NO ANS-YES SBI, a leading figure in banking sector, entered the insurance industry as SBI Life Insurance which is a joint venture between State Bank of India and BNP Paribas assurance-a French company ranked the 5th largest banking company worldwide. In the year 2005-2006, SBI Life Insurance became the first insurer to make profit. SBI Life offers a variety of products designed for various segments of society. These include individual plans, group plans and health plans. All these products cater to various requirements of its end users. In 2007-2008, SBI was placed with the global top 5 life insurance companies with largest number of MDRT members. The products of SBI are listed below. Individual Plans United Linked Investment Plans (ULIP) These plans offer long term investment and insurance so that you can avail marked linked returns along with getting insured. There are a range of ULIP products from which you can select the one according to your risk appetite. These plans, with their extreme transparency and flexibility, help you achieve your dream at the earliest. SBI Life - Smart performer SBI Life - Unit Plus super SBI Life - Saral Maha Anand SBI Life - Smart Elite SBI Life - Smart Scholar SBI Life - Smart Horizon SBI Life - Smart Pension SBI Life - Smart Wealth Assure Child Plans It is a pleasure to watch your children grow. But it isn't easy to meet your child's financial requirements unless you plan for them. The child plans at SBI are SBI Life Scholar II SBI Life - Smart Scholar Pension Plans Financial independence after retirement is a must. Take a look at the following retirement plans to make sure that you plan for it well in advance. SBI Lifelong Pension Plus SBI Life - Smart Pension Protection Plans K.E.S. SHROFF COLLEGE Page 35
    • Protection plans are so called because they provide assured cash benefits to the family of the insurer in the unfortunate event of his/her demise. The protection plans at SBI are: SBI Life - Smart Shield SBI Life - Saral Shield SBI Life – Swadhan Saving Plans These plans help you save up enough, by way of regular premiums, so that you can fulfill your long term goals as and when required. SBI Life - Money Back SBI Life - Sanjeevan Supreme SBI Life - Subh Nivesh SBI Life - Saral Life Group Plans Corporate SolutionsCorporate solutions include two types of insurance policies. They are retirement solutions & benefits and group protection plans to cover the employees and their families from unexpected twists of life. Retirement Solutions SBI Life - CapAssure Gratuity Scheme SBI Life - Cap Assure Superannuation Scheme SBI Life - CapAssure Leave Encashment scheme SBI Life - Dhanrashi SBI Life - Swarna Jeevan SBI Life - Swarna Ganga SBI Life – CapAssure Group Protection Plans SBI Life - Sampoorn Suraksha SBI Life - Credit guard SBI Life – Suraksha Plus Group Term With ROP: SBI Life - Swadhan (Group) This is a non-participating plan with Return Of Premium (ROP). It is available in easy premiums and offers benefits of life cover protection in case of death and refund of premium in case of survival. Group Loan Protection Products: SBI Life - RiNn Raksha This plan gives a protective cover for personal loans from 1 to 30 years. Such plans make sure that your credit is taken care of even if, due to unforeseen events, you fail to meet all the payments. Group Savings Protection Products: SBI Life - Nidhi Raksha RP This is a group protection plan that aids savings and is ideal for those organizations where employees and their benefits are of utmost importance. Group Micro Insurance Plans These plans provide protection to the weaker sections of the society by providing life insurance at low costs and facilitating refund of the loan premium. SBI Life - Grameen Shakti SBI Life - Grameen Super Suraksha K.E.S. SHROFF COLLEGE Page 36
    • Health Plans With medical expenses going sky-high, it is only logical that you make arrangements for the rainy days in advance. Staying prepare would include investing in health plans. Health policies at SBI are: SBI Life – Group Criti9 SBI Life Hospital Cash Q2)IF YES THAN THAN WHICH PRODUCT ARE YOU AWARE OF ? ANS- YES I M AWARE OF FEW PRODUCTS MENTIONED OVER YEAR ARE AS FOLLOWS:- Horizon- II SBI Life - Horizon II is a unique, non participating Unit Linked Insurance Plan in Indian Insurance Industry, where you need not to be a financial market expert. This plan offers the flexibility of Unit Linked Plan along with Automatic Asset Allocation which provides relatively higher returns on your money twin where as increasing death bench. benefit of insurance cover and market linked returns profits provides higher security to Hassle-free investment management of funds from inception to maturity, Automatic Asset Allocation of funds, automatic rebalancing of funds at yearly intervals, free of cost higher protection, to meet your family financial needs. It is a unique, non-participating Unit Linked Insurance Plan. As per the plan and term chosen by you, SBI Life will invest the net premium amount into each of the funds mentioned. Maha Anand SBI Life - Maha Anand is a simple & convenient unit linked plan, which provides you insurance cover without any medicals. Life begins afresh when you become a parent and when the child takes that first step towards you, the moment is filled with cheer, enthusiasm never felt before. This moment marks a new beginning in the child’s life and there’s no looking back after that. The child keeps growing and so are his dreams, aspirations which always aim to reach horizon and you want your child achieve his/her dreams. But at the same time as a proud parent you also want to secure their future against rising cost of education and other necessities. K.E.S. SHROFF COLLEGE Page 37
    • Unit Plus- II We at SBI Life understand the basic needs for pension plan and give you financial strength to maintain your life style even after the retirement. SBI Life - Unit Plus II Pension plan makes sure that you have regular income after you retire and also helps you to maintain your standard of living. This is a unit linked pension plan wherein the policyholder chooses an investment period from 5 to 52 years for a vesting age between 50 to 70 years. You can choose to pay either single premium or pay regular premium for the entire policy term. Your contributions are invested into 5 fund options as per your choice. Unit Plus Child Plan We at SBI LIFE understand you better and hence have developed SBI Life - Unit Plus Child Plan to suit you and your needs best. This Plan is meant for parents in the age group of 18-57 having a child between the age group of 0-15 years. Q3)WHO IS THE MANAGING DIRECTOR OF SBI LIFE INSURANCE COMPANY ANS-MR ATANU SEN Atanu Sen is new MD & CEO of SBI Life TOPICS economy, business and financeHYPERLINK "http://www.thehindu.com/topics/? categoryId=702"company information Atanu Sen has taken over as the new Managing Director and CEO of SBI Life Insurance from M. N. Rao, who retired on August 31. “Given the evolutionary phase the sector is witnessing, this will be a challenging assignment. Continuing to leverage SBI’s strong brand equity, my mandate will be to focus on impacting a profitable growth and extending the reach of life insurance to the farthest corners of the country, thus driving life insurance penetration”. Mr. Sen said. A Post-Graduate in Economics from Calcutta University, Mr. Sen started his career with SBI in 1977 as a probationary officer. During his tenure, spanning over 35 years, he held several key assignments in various circles of the bank, including the bank’s office at Frankfurt. He also held the key position of Chief General Manager in the Mumbai Circle. His previous assignment was Deputy Managing Director and Chief Credit and Risk Officer of SBI. K.E.S. SHROFF COLLEGE Page 38
    • Q4) WHAT BENEFIT ARE OFFERED BY THE COMPANY TO OTHER LIFE INSURANCE COMPANY ANS- What does my family get on my death? What do I get if I survive the term of the policy? Will my family receive the insurance amount immediately after my death? How do I collect the maturity amount from the insurance company? What are the Tax benefits applicable to me if I invest in a Life Insurance Policy? 1.What does my family get on my death? If death takes place during the term of the insurance policy, then the nominee receives the sum assured plus the bonus, if any. If the policy is a ’with bonus’ policy or ’with participative profits’, the bonus is payable for the number of years the premium has been paid, in addition to the sum assured. If death takes place due to an accident, and the insured has purchased the accident benefit rider, then double the sum assured (up to a limit of Rs 500,000-10,00,000; varies by company), is receivable by the nominee. Even if an additional term rider has been purchased, double the sum assured would be receivable by the nominee. If death takes place after the policy has matured, then the nominee does not receive anything from the insurance company, unless specifically mentioned in the policy. Certain policies offer to cover the insured for the sum assured or a part of the sum assured, even after the policy has matured. (The insurance company would mention such details in the brochure and the policy.) 2.What do I get if I survive the term of the policy? If you have purchased a term policy, you may not receive any money from the insurance company upon maturity. However, some companies offer a term policy with return of premium or the sum assured upon maturity. For policies that offer bonus or profits upon surviving the term of the policy, you would receive the sum assured along with the accumulated bonus (if you have a with bonus policy) for the term of the policy. For example, if you have insured yourself for 25 years you will receive the sum assured plus the accumulated bonus for 25 years. 3.Will my family receive the insurance amount immediately after my death? Usually the proceeds of the insurance policy are made available to the nominee in a period of 3 months; provided all the relevant paperwork has been done. If you have purchased a policy for your child, then please verify the details of the policy. Few children’s policies offer no money to the nominee upon the death of the proposer or the parent. K.E.S. SHROFF COLLEGE Page 39
    • 4.How do I collect the maturity amount from the insurance company? Usually, insurance companies send information regarding the maturity of the policy in advance, along with the forms to be filled and the documents to be sent. If the required documents are sent duly completed and signed, the payment is sent by post or in certain cases, even directly credited to your bank account. 5.What are the Tax benefits applicable to me if I invest in a Life Insurance Policy? Under Sec 80C of Income Tax Act Available for Premium paid (max. up to 20% of SA) on Life Insurance policies with a maximum ceiling p.a. Rs. 1,00,000 irrespective of the Gross Total Income. A maximum of Rs. 1,00,000 p.a. paid as a contribution on a pension plan is fully deductible from the taxable income (within the max. ceiling Rs. 1 lakh ) Under Sec 80D of Income Tax Act Premium paid for Critical Illness rider is deductible as medical insurance premium from the Gross Total Income chargeable to tax up to a maximum amount of Rs. 15000 & an additional amount of Rs 5000/- (when policy is taken on the health of a senior citizen). Exemption from the Life Insurance proceeds Under Sec 10(10D) of IT Act •Maturity benefits are tax-free in the hands of the policyholder if, at any point of time during the policy life, premiums paid within one year do not exceed 20% of the basic Sum Assured. •Death benefits are tax-free. •Please note that tax laws are subject to change and changes in tax laws could be with retrospective effect. This information should not be construed as tax, legal or investment opinion from SBI Life Insurance Company Limited. SBI Life Insurance Company Limited is not responsible in any manner for decisions made on the basis of the above information. K.E.S. SHROFF COLLEGE Page 40
    • Q5)HOW MANY TYPES OF LIFE INSURANCE IS SOLD BY SBI LIFE INSURANCE COMPANY ANS – Individual Plans United Linked Investment Plans (ULIP) These plans offer long term investment and insurance so that you can avail marked linked returns along with getting insured. There are a range of ULIP products from which you can select the one according to your risk appetite. These plans, with their extreme transparency and flexibility, help you achieve your dream at the earliest. SBI Life - Smart performer SBI Life - Unit Plus super SBI Life - Saral Maha Anand SBI Life - Smart Elite SBI Life - Smart Scholar SBI Life - Smart Horizon SBI Life - Smart Pension SBI Life - Smart Wealth Assure Child Plans It is a pleasure to watch your children grow. But it isn't easy to meet your child's financial requirements unless you plan for them. The child plans at SBI are SBI Life Scholar II SBI Life - Smart Scholar Pension Plans Financial independence after retirement is a must. Take a look at the following retirement plans to make sure that you plan for it well in advance. SBI Lifelong Pension Plus SBI Life - Smart Pension Protection Plans Protection plans are so called because they provide assured cash benefits to the family of the insurer in the unfortunate event of his/her demise. The protection plans at SBI are: SBI Life - Smart Shield SBI Life - Saral Shield SBI Life – Swadhan Saving Plans These plans help you save up enough, by way of regular premiums, so that you can fulfill your long term goals as and when required. SBI Life - Money Back SBI Life - Sanjeevan Supreme SBI Life - Subh Nivesh SBI Life - Saral Life K.E.S. SHROFF COLLEGE Page 41
    • Group Plans Corporate SolutionsCorporate solutions include two types of insurance policies. They are retirement solutions & benefits and group protection plans to cover the employees and their families from unexpected twists of life. Retirement Solutions SBI Life - CapAssure Gratuity Scheme SBI Life - Cap Assure Superannuation Scheme SBI Life - CapAssure Leave Encashment scheme SBI Life - Dhanrashi SBI Life - Swarna Jeevan SBI Life - Swarna Ganga SBI Life – CapAssure Group Protection Plans SBI Life - Sampoorn Suraksha SBI Life - Credit guard SBI Life – Suraksha Plus Group Term With ROP: SBI Life - Swadhan (Group) This is a non-participating plan with Return Of Premium (ROP). It is available in easy premiums and offers benefits of life cover protection in case of death and refund of premium in case of survival. Group Loan Protection Products: SBI Life - RiNn Raksha This plan gives a protective cover for personal loans from 1 to 30 years. Such plans make sure that your credit is taken care of even if, due to unforeseen events, you fail to meet all the payments. Group Savings Protection Products: SBI Life - Nidhi Raksha RP This is a group protection plan that aids savings and is ideal for those organizations where employees and their benefits are of utmost importance. Group Micro Insurance Plans These plans provide protection to the weaker sections of the society by providing life insurance at low costs and facilitating refund of the loan premium. SBI Life - Grameen Shakti SBI Life - Grameen Super Suraksha Health Plans With medical expenses going sky-high, it is only logical that you make arrangements for the rainy days in advance. Staying prepare would include investing in health plans. Health policies at SBI are: SBI Life – Group Criti9 K.E.S. SHROFF COLLEGE Page 42
    • CHAPTER-11 CONCLUSION Economic growth & development has been widely accepted as major goal of national policy in country. Economic growth is today decided more by human capital than material capital. Equipment, process, & property are leveraged not by their inherent capability but by action of human being. Therefore Human Resources is significant asset for country but this human life is full of uncertainties & risks. Preparing for uncertainties SBI life Insurance company is came out with the different insurance policy as a solution for delegating worries. It reimburses people for lovered losses in the event of an unfortunable occurrence such as illness, accident, & death. At the some time, it can encourage safety measure, provide investment capital, lend money, & help to reduce anxiety for society at large. SBI Life Insurance is to emerged as leading company offering a comprehensive range of life Insurance & pension product at competitive price, ensuring high standard of customer service & world class operating efficiency. Different products are designed to a suitable in different life event stage. Bancassurance recorded a premium income of Rs 163 crore, about 80% of the total premium income, he said, adding that other channels too showed good growth over the corresponding period last year. The company's business was growing 4-5 times a stood at Rs. 100 crore till July, of which Rs. 84 crore came from premium from new business. If the company continues to grow at this rate, SBI Life could end this fiscal with a premium income of Rs. 1,000 crore as against Rs. 225.65 crore in 2003-04.The company plans to make insurance buying process quick, simple based on well-informed judgment, which will satisfy customer in all manners. As looking growing function of SBI Life Insurance sector we assume that 100% function of human will become insured in coming 2010 with different product in low cost. K.E.S. SHROFF COLLEGE Page 43
    • CHAPTER-12 BIBLIOGRAPHY  Nature & Scope of Banking, Insurance & other Financial Service In Economic Growth - P.K. Bandgar  SBI- life Insurance Brochure, Pamphlet, magazines.  Life Insurance Handbook.  DNA  Financial Express.  Economics Time.  www.scribd.com  www.irdaindia.org  www.sbilife.co.in K.E.S. SHROFF COLLEGE Page 44