TITLE PAGE NO.
3. Role Of Life Insurance 05
4. About Sbi Life Insurance 08
5. Life Long Pension 10
6. Sudarshan-An Endowment Policy 18
7. Money Back 24
8. Bancassurance Product 28
9. Corporate Group Product 30
10. Time & Cost Of Insurance 34
11. Conclusion 41
12. Bibilography 42
K.E.S. SHROFF COLLEGE Page 1
We live in a risky world. Forces, largely outside our control, that makes threats
our financial well being, constantly surround us. Thus, some of us will experience the
premature and dreadful death of a beloved family member; others will experience the loss
or destruction of their property from natural disasters. Still others will experience poor
health from cancer, heart attacks, and other diseases. In addition, some of us will be
totally and permanently disabled from a crippling automobile accident or a catastrophic
illness. Finally, others will experience the traumatic effects of a liability lawsuit. They're
all built into the working of the Universe, waiting to happen. Therefore Risk is pervasive
conditions of human existence. It has a simple meaning in every day usage but sometime
it has a specialized connotation when used in particular fields.
Definition of Risk
Risk is defined as "a condition in which there is a possibility of an adverse
deviation from a desired outcome that is expected or hoped for". Thus risk is a
combination of circumstances, and in this combination there is possibility of loss. An
adverse even is possible and it has a probability from a zero to one. This it is neither
possible nor definite. We may or may not be able to measure the degree of risk but the
probability of the adverse outcome must be between zero and one. The undesirable even
is known as deviation.
A pure & perfect technique for handling risk is by insurance. For most
individuals, this is the most practical method for handling a major risk. First, risk transfer
is used since a pure risk is transferred to the insurer. Second, the pooling technique is
used to spread the losses of the few over the entire group so that average loss is
substituted for actual loss. Finally, the risk may be reduced by application of the law of
large numbers, whereby an insurer can predict future loss experience with some accuracy.
K.E.S. SHROFF COLLEGE Page 2
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.
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 3
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.
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
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
K.E.S. SHROFF COLLEGE Page 4
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
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
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 5
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
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
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 6
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 7
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 8
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
Easy to buy (accessibility)
Trust & reliability.
K.E.S. SHROFF COLLEGE Page 9
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
You may exercise the Top-up facility whenever by paying additional
amount to increase your retirement kitty, irrespective of contribution
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
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
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
K.E.S. SHROFF COLLEGE Page 10
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
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
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
K.E.S. SHROFF COLLEGE Page 11
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
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
K.E.S. SHROFF COLLEGE Page 12
Pure Pension Plan1
Pension cum Life Cover
Minimum Age at entry* 18 years 18 year
Maximum Age at entry* 65 Years 60 years
Maximum cover age for life
Not Applicable 65 years
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.
• 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
• 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
• Tax benefit u/s 80 C of IT Act*
• Automatic Assignment, in favor of the Bank.
• 15 days free look period.
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 13
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
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.
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
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 14
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
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
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
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 15
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 16
Parent/ Guardian Age*
Minimum entry age:
Maximum entry age:
Maximum age at
Minimum entry age:
Maximum entry age:
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.
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 17
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
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.
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 18
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.
Sudarshan offers you additional covers viz. Term Assurance Rider, Critical Illness Rider
(6 critical illnesses) or Accidental Death and Accidental Total Permanent Disability
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 19
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
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.
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/-
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
2) Death Benefit:
K.E.S. SHROFF COLLEGE Page 20
In the unfortunate event of death of the Life Assured, depending upon the plan option
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
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
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*
K.E.S. SHROFF COLLEGE Page 21
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.
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.
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.
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 22
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
Savings-cum-Protection plan for two terms of 5 or 10 years.
Optional Critical Illness cover against six major ailments like heart attack, cancer
Optional life insurance cover for dependants upto Rs.10 lakhs with return of
Facility of repatriation at prevailing exchange rates.
K.E.S. SHROFF COLLEGE Page 23
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.
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
Guaranteed Survival Benefit
Cumulative Guaranteed Survival
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
K.E.S. SHROFF COLLEGE Page 24
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
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
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
2) Premium Amount
Premium rate is different depending on the plan selected, term, the gender, the Sum
Assured, and mode of payment.
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.
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
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
K.E.S. SHROFF COLLEGE Page 25
Flexible premium paying mode
You can choose monthly, quarterly, half yearly, or yearly.
Premium rate is different depending on the term, the gender, the Sum Assured and mode
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
Minimum entry age* 18 years
Minimum entry age* 55 years
Minimum term 5 years (in multiple of 1 year)
Maximum term 10 years
Maximum age at maturity is 65 years.
Rs. 3,00,000 (in multiple of Rs. 10,000)
K.E.S. SHROFF COLLEGE Page 26
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%
In the event of claim, your nominee would receive full Sum Assured
Exclusion applicable to the basic cover
-Suicide within the year
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
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
K.E.S. SHROFF COLLEGE Page 27
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.
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
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
• The premiums* are paid in a lump sum for the entire duration of the loan.
• 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
K.E.S. SHROFF COLLEGE Page 28
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.
To keep premium rates low, Home Loan Insurance is a pure Term Assurance , therefore,
there is no benefit on maturity of the policy.
Death due to suicide is not covered within the first year of joining.
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
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.
K.E.S. SHROFF COLLEGE Page 29
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
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
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.
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.
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
K.E.S. SHROFF COLLEGE Page 30
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
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
K.E.S. SHROFF COLLEGE Page 31
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
Minimum age of entry
18 year 15 year for all option plan
Maximum age of entry
Option 1: 60 year
Option 2: 55 year
Option 3: 50 year
Option 4: 45 year
K.E.S. SHROFF COLLEGE Page 32
Maximum Maturity Age
75 year 70 year
No any declaration
Women get special rebate of 5% on
Kotak Endowment Plan SBI-Endowment Plan
Minimum 18 year
Maximum 65 year
Minimum 12 year
Maximum 65 year
Minimum 10 year
Maximum 30 year
Minimum 8 year
Maximum 30 year
In event of death nominee will receive basic
sum assured or accumulated account which
Sum assured + bonus
K.E.S. SHROFF COLLEGE Page 33
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 34
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
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.
NEED OF INSURANCE IN DIFFERENT LIFE STAGE
1) Single Male in Twenties
Vijay Mehra is a single individual in his early twenties. He has just graduated one
and a half year ago. He earns around Rs 1.5 lakhs per annum. His mother is a housewives
and his father works in a government company. He is going to retire after another 7 years.
If you are like Vijay, You are just getting started in life, have a great deal of your
life, and career to look forward to. Maybe you think you don't need life insurance yet,
you are single, and your folks don't really depend on you financially yet. Soon you will
be the rising 'sun' in their golden years. But In the event something unexpected happens,
you don't want to leave behind just memories - some money could be the sweetener they
Therefore Life insurance protects you and your loved ones in the event that you
meet with an untimely demise. You may not have a family who relies on you for support,
but life insurance may still serve important functions for you and your family. It can
provide a way for you to leave resources behind for your loved ones when you die. You
are starting to think about your future. Right now, you are probably in good financial
shape. You are probably focused on earning more money to buy yourself a car, maybe
save up enough money for your long yearned holiday abroad, or even have marriage
K.E.S. SHROFF COLLEGE Page 35
2) Single Female in Twenties
Shreya Dev is a young single lady in her early twenties. She has just completed
graduation, and has been working for the last one year. She earns around Rs 1 lakhs per
annum. Shreya's mother is working in the bank, about to retire in the next 2 years, while
her father has just retired.
If you are like Shreya, you are young, just getting started in life and have a great
deal of your life and career to look forward to. Maybe you think you don't need life
insurance yet, you are single, and your folks don't really depend on you financially.
Maybe you think you may stop working when you marry and have children. But will you
like the idea of being financially dependent on your husband for the smallest of things?
Especially when you are used to being financially independent?
If you think you should not buy a life insurance policy because you are not sure
how long you will work (and hence pay for your insurance), try looking at an insurance
policy that offers you a limited premium paying term. Alternatively, buy a policy where
you can start receiving money in the next few years (in order to support yourself in case
you stop working while you are raising the kids). In the event something unexpected
happens, you don't want to leave behind just memories - some money could be the
sweetener your family could use.
According to SBI Life Insurance expert Term Plan, Money Back, and Endowment
policy suitable for above2 situation
3) Joined a New Job
Starting a new job is exciting, but it could be slightly stressful as well. It needs to
adjust to different route to commute, a new work environment, new co-workers, bosses,
and most importantly new responsibilities at the work place.
Group life insurance provides insurance to a group of employees through a
contract between an insurance company and the employer. It is similar to the types of life
insurance that are available on an individual basis, although most companies cover their
employees through a term life policy. Usually, a company offers a minimal amount of life
insurance - around one to two times your salary at no additional cost to you.
If new employer does not offer group life insurance; Person should recognize the
need for insurance and may want to consider purchasing an individual policy.
If person have a family that is financially dependent on him, life insurance can be very
important. Starting a new job may mean that he have new insurance needs. For example,
if your income has increased, you may need to increase your insurance to maintain a
consistent relationship between your annual earnings and your coverage amount. But if
any of these factors have changed as a result of your move, then you should take steps
now to protect you and your loved ones.
You may have gotten by without life insurance when you were single, or maybe
bought an insurance policy just to make some tax-savings.
K.E.S. SHROFF COLLEGE Page 36
However, getting married has changed your life insurance needs. There is now at
least one other person in your life that expects you and your income to help cover current
and future living expenses. You will want to ensure that your spouse is taken care of
financially, should anything ever happen to you.
Now that you are married, you have a spouse, and possibly children, who are
dependent on you for financial support. If you die suddenly without life insurance, your
family may have a crucial time for meeting their financial needs.
To put things a little frankly, will your spouse be able to pay for your car loan,
maybe your housing loan as well, or take care of your parent's health expenses, maybe
your child's schooling and higher education, all alone? Will your family be forced to
move to a less expensive residence (if the existing one has a higher rent), or will your
spouse be forced to leave your children with your aging parents in order to work full-time
since you are gone?
If anyone in your family will suffer an economic loss or hardship as the result of your
death, then you need life insurance.
5) Buying a new house
Buying a house is an important step in life, and is probably one of the biggest
investments will ever making! Even if it means having to take a loan from a bank or
getting an interest-free loan from your employer, having "your own home" is always
worth it all
Like most new homebuyers, you have probably financed your purchase with a
home loan. Simultaneously, you may want to ensure that you have enough life insurance
to enable your family to pay off any existing loan on your home in the event of your
death. By having adequate life insurance, you can be sure that your family will be able to
keep the house if something ever happens to you.
Moreover, having your own house feels like making a new start! Think about
what your life insurance needs will be once you are settled. Take a moment to consider
these issues. A little planning now may help protect you and your family in the long run.
Taking a housing loan may be convenient but read the fine print - it means that you own
as much of the home as you have made principal payments for, the housing or finance
company owns the rest.
Making all the principal payments may take up to 10-15 years or even 20 years.
What if something untoward happens to you during this period, before the loan is paid
off? Your family may be put in the difficult position of having to pay the balance
installments or to surrender the house to the finance company in case they are unable to
pay the balance amount of money. This could present serious financial difficulties for
your family. They may even have to sell the house in order to make up the balance
payments. This is where the proceeds of a life insurance policy would help. A life
insurance may be used to payoff the remaining loan amount and keep the home for your
K.E.S. SHROFF COLLEGE Page 37
6) If you have children
If you have children, you will want to opt for more life insurance. Should
something ever happen to you, your children will be your spouse's biggest expense. Your
spouse will have to provide your children with food, clothing, toys, tuitions, a higher
education and maybe provide for marriage expenses. You should want to make sure that
you have enough life insurance to cover these costs. The more children you have, the
more life insurance you will need. As like Money Back, Scholar, Edu Shield is very
significant in Marriage event.
You've worked hard to attain various goals: a home, a good education for your
children, married both your daughters in to good families and now all you want to do is
live a peaceful, retired life. In many ways, you have arrived, and now you look forward to
your golden years. However, you continue to face risks - financial and otherwise - and
these risks could endanger the security of your future. To provide yourself with adequate
protection against the risks you face, it is necessary to maintain sufficient insurance.
Retirement is a good time to re-assess your life insurance needs to ensure that
they accurately reflect your new stage in life. Because you may no longer want your
insurance to replace your salaried income, nor do you have any loans or liabilities and nor
do you have to worry about providing for your children's higher education and marriage
expenses (hopefully). In fact, you may now be focused on being financially independent -
ensuring that you and your spouse are not dependent on your children for your finances at
least. When you retire, it is time to re-evaluate your insurance coverage. Because your
financial responsibilities and priorities are changing, your insurance needs change as
well. Your monthly income declines as you stop earning your salary. Your household
expenditure declines as you incur lower expenses on commuting, clothing, and eating-
out. You may be in a lower income tax bracket. With so many changes in your financial
position, you need to ensure that your avenues to retirement are as secured as your life
has been. Insurance companies offer pension products that allow the individual to receive
pension immediately or to receive pension at a certain age. During the term of the policy,
the individual remains insured.
Upon his death, his spouse or nominee have the option of either receiving a
monthly pension for a guaranteed term (which would have been selected by the insured)
or receiving a lump sum amount, where the policy ceases.
Usually these policies allow individuals to pay money on a regular basis as
premium or even accept single premiums, where only one payment is made. Moreover,
some of the pension policies offer tax benefits, under section 10CCC, which are not
available on any other products. However, keep in mind that the premium paid for such a
policy may offer tax benefits, the money received as pension is subject to being taxed.
K.E.S. SHROFF COLLEGE Page 38
Going through a divorce can be very stressful and frustrating; it disrupts your life,
family, and financial stability. Perhaps there are issues that you are only learning to come
to terms with, such as single handedly taking care of your children, your financial
stability now that it is all dependent on you. Now is the time to review your policies so
that you and your loved ones remain protected. Typically, divorce raises a number of
issues regarding life insurance. If you have a life insurance policy already, you may want
to re-evaluate your coverage and change your nominee. Your divorce may have left you
with fewer assets or more people to protect in the event of your premature death. Because
of the impact divorce can have on your finances, your need for life insurance will most
likely change. The impact will be greatest when there are children involved.
Purchasing a life insurance policy on your ex-spouse is perhaps the easiest way to
protect yourself. However, you could have problems in paying the premiums, or your ex-
spouse may not co-operate to do the necessary medical examinations and tests. You could
help solve the problem by nominating the children as the beneficiaries.
If your ex-spouse has an existing policy on his/her life, you could ask her/him to
designate you as the nominee, to provide protection of your alimony and/or your child
TIMES OF INDIA
Currently managing a portfolio of whopping 6 million lives; SBI Life is set to
maintain its leadership in Group Lives coverage. So far this financial year, SBI Life has
already covered more than 8 lacs group lives with an additional 2.5 lacs lives through
individual policies. SBI Life is now the fastest growing life insurance company, with
New Premiums growing at a scorching 264% (YTD) basis, from Rs. 275 crores to 1000
crores and Total Premiums keeping pace, growing at 211% from Rs. 370 crores to Rs.
1150 crores. A strong growth across all its channels namely Bancassurance, Agency
Channel, and Group Corporate is the major attributing factor for SBI Life’s exponential
business growth. 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” He added, “This growth has come primarily on account
of our multi-channel business model coupled with a balanced mix of savings and
protection products. SBI Life currently has the largest and most robust Bancassurance
network complimenting the most productive and active Insurance Advisor force of
Agency Channel in the country.”
K.E.S. SHROFF COLLEGE Page 39
SBI Life Insurance Policyholder
Feedback of SBI Life Insurance
SBI Life has rapidly expanded its operations this year to strengthen its unique
multi-distribution network. The company now is leveraging the 14,500-strong SBI Group
branch network from where SBI Life products are currently available. SBI Life also has
increased its own branch network from 68 branches as March 06 to 95 as on December
06. While the number of Life Insurance Advisors recruitment has gone up by more than
double from 8000 as on March 06 to 18,525 as on December 06. The two other channels
of Group Insurance & Credit Life have also been showing significant growth.
With the help of survey on SBI Life Insurance policyholder we can see that there
is 40% Money back policyholder, 24% Pension, 20% other & 16% Endowment policy
holder. So overall research & analysis say that Money back policy is popular due to its
convenient term period: 10,15,20,25 years, easy liquidity at regular interval & fair
guaranteed survival benefits. It is really benefited to meet various financial obligations at
crucial junctures. Next Pension policy is popular due to their goodwill & attractive
benefits. The insured has the option of selecting when and for how long (term) she or he
would like to receive the pension amount. Endowment & other policy are quite popular
due to their selective benefits & low premium amount. Mostly smart person use
endowment amount to buy an annuity policy to generate a monthly pension for the rest of
your life, or put it into any other suitable investment of your choice. This is the major
benefit that an endowment policy offers over a whole life one.
Overall survey, Insurance advisors, &
experts' comments I conclude here that
numerous policyholders are satisfactory
with SBI-Life Insurance service for the
reason that its reputation, brand name,
Convenient premium payment mode, large
network branches, attractive returns bonus
incentives, affordability etc. It will further
grow with high marketing & new
innovative product & services.
K.E.S. SHROFF COLLEGE Page 40
Pension Money Back Endow ment other
SBI Life Insurance Policy
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 41
Nature & Scope of Banking, Insurance & other Financial Service In
Economic Growth - P.K. Bandgar
SBI- life Insurance Brochure, Pamphlet, magazines.
Life Insurance Handbook.
www.sbilife.co.in- Only 20 % information
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