sbi life insurance
DESCRIPTION
sbi life insurance detail projectTRANSCRIPT
CONTENTS
INSURANCE
Needs of Insurance
Introduction
History of Insurance
LIFE INSURANCE
Meaning of Life Insurance
About IRDA
Companies of Life Insurance
SBI LIFE INSURANCE
Background of Company
Vision & Mission
Share of SBI group & BNP PARIBAS
Products
PREFACE
There is a vast difference between theory and practice. The practical training program is designed with the purpose of bridging gap between theory and practice. As such I am fortunate to have an opportunity to undergo my project and thus my practical training with SBI Life Insurance Company Limited.
Summer training was an exposure to corporate functional environment. It was opportunity & great pleasure for me to be in Corporate Environment and having interaction with concerned people.
This project is based on a brief study of six weeks of training period. Efforts have been made to present all authentic information as far as possible.
ACKNOWLEDGEMENTWith a sense of great pleasure & satisfaction I present this report entitled as SBI Life Insurance Co. Ltd. culmination of my efforts of last six weeks. Completion of this project, is no doubt, is a product of invaluable support & contribution of a number of people.
I wish to express my gratitude to those who generously helped me in completing this research work with their knowledge & expertise. A project of this nature calls for intellectual nourishment, professional help & encouragement from various quarters.
I present my gratitude to project guide Mr. DINKAR RAJ PATWA (UNIT MANAGER, SBI LIFE INSURANCE COMPANY LTD,JHALAWAR) for giving me the opportunity to work for SBI Life Insurance Company Ltd. for being constant guiding force & a source of Illumination throughout this entire period.
My special thanks to all employees of SBI Life Insurance Company Ltd, Jhalawar, who extended their precious cooperation & for the patience they showed while entertaining my queries.
I am immensely thankful to all agents who took out time from their busy schedule and enthusiastically responded to my queries and provided me with all the valuable information.
INSURANCE:
Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium, and can be thought of as a guaranteed small loss to prevent a large, possibly devastating loss. An insurer is a company selling the insurance; an insured or policyholder is the person or entity buying the insurance. The insurance rate is a factor used to determine the amount to be charged for a certain amount of insurance coverage, called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.
It is one of those things that one would not like to think and talk about but if you dont you may leave your family unprotected. In simple terms life insurance provides money for my family in the event that I die.
It is a financial resource for my family and loved ones in case of my death. A Contract between me and the insurance company. Insurance is sharing the risk between company and individual
In insurance two type of benefits risk cover and saving. Risks cover Consists of death, accidental recovery and health.
Insurance
Risk cover Saving
1.Death
2.Accidental recovery
3.Health
When age is increase, risk is also increase, so premium is increase.
need insurance?Insurance is a basic need of a individual. Like every man eat food forgiving so insurance is necessary for every human life. If a person not has life insurance and he is died then his families face many financial troubles. So insurance is necessary need.
History of Insurance: -
In some sense we can say that insurance appears simultaneously with the appearance of human society. We know of two types of economies in human societies: money economies (with markets, money, financial instruments and so on) and non-money or natural economies (without money, markets, financial instruments and so on). The second type is a more ancient form than the first. In such an economy and community, we can see insurance in the form of people helping each other. For example, if a house burns down, the members of the community help build a new one. Should the same thing happen to one's neighbors, the other neighbors must help. Otherwise, neighbors will not receive help in the future. This type of insurance has survived to the present day in some countries where modern money economy with its financial instruments is not widespread (for example countries in the territory of the former Soviet Union).
About IRDA
Composition of Authority under IRDA Act, 1999As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development Authority (IRDA, which was constituted by an act of parliament) specify the composition of Authority
The Authority is a ten member team consisting of
(a) a Chairman; (b) five whole-time members;
(c) four part-time members,
(all appointed by the Government of India)Duties, Powers and Functions of IRDA
Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA..
1. Subject to the provisions of this Act and any other law for the time being in force, the Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurance business.
2. Without prejudice to the generality of the provisions contained in sub-section (1), the powers and functions of the Authority shall include, -
i. Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration;
b. protection of the interests of the policy holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance;
c. specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents;
d. Specifying the code of conduct for surveyors and loss assessors;
e. Promoting efficiency in the conduct of insurance business; Promoting and regulating professional organizations connected with the insurance and re-insurance business;
f. Levying fees and other charges for carrying out the purposes of this Act;
g. Calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organizations connected with the insurance business;
h. Control and regulation of the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938)
i. Specifying the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by insurers and other insurance intermediaries;
j. Regulating investment of funds by insurance companies;
k. Regulating maintenance of margin of solvency;
l. Adjudication of disputes between insurers and intermediaries or insurance intermediaries;
m. Supervising the functioning of the Tariff Advisory Committee;
n. Specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organizations referred to in clause (f);
o. Specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector; andp. Exercising such other powers as may be prescribe.
Mechanism of Insurance The concept of insurance is that people exposed to the same risk come together and agreed to share a loss collectively if any of their members suffers it from that risk.
Insurance companies play the role of implementing this concept-
a) They bring together people exposed to the similar risk
b) They collect members contribution in advance in the shape of premiums and create a fund out of which the losses are paid
The life insurance covers contingencies (death, retirement) and provides relief to the family in the event of death or retirement of the breadwinner.
Variable needs of life insurance can be
a) Providing financial security to the family
b) Provision for education, marriage, etc of the children
c) Post-retirement income for self and dependents
d) Special needs like Medical expenses
INSURANCE ACT, 1938
The Insurance Act, 1938 aimed to consolidate and amend the law relating to the business of insurance. It covers both life and non-life insurance business.
It came into effect on 1st. July 1939.
The act was amended in 1950 and again in 1999. Some of the Major changes brought about in 1950 were:
Section 2 (5A)
Chief Agent means person who, not being a salaried employee of an insurer, in consideration of commission
Performs any administrative and organizing function for the insurer.
Procures life insurance business for the insurer by employing or causing to be employed, insurance agents on behalf of the insurer.
Section 2(17)
Special Agent means a person who, not being a salaried employee of an insurer, in consideration of commission:
Procures life insurance business for the insurer whether wholly or in part by employing or causing to be employed insurance agents on behalf of the insurer, but does not include a chief agent.
He only procures business through agents but does not perform any administrative function like a chief agent.
Special agents can do only life insurance business and not general insurance business.
Individuals, companies or firms can become chief agents or special agents. Individuals, Directors or Partners, as the case may be, should be free from disqualifications specified for agents.
Section 42A,
The certificate shall remain valid for a period of 12 months but shall be renewable.
Provisions stipulate the number of insurance agents that a chief agent may employ directly or through special agents. These provisions also stipulate the minimum business requirements.
For special agents also there are similar stipulations of minimum number of agents to be appointed and the minimum business requirements.
Some important Provisions of the Insurance Act, 1938
1.Registration of Insurance companies.
2.Maintenance and scrutiny of accounts and valuation reports.
3.Investment and utilization of funds.
4.Placing limits on the expenses of insurers.
5.Licensing of agents and their remuneration.
6.Prohibition of rebates.
7.Approval of premium rates and plans.8.Maintaining solvency levels.
9.Constitution of Insurance Associations, Insurance Councils and Tariff Advisory Committees.
10.The Act also vests the IRDA with powers to:
Inspect documents.
Appoint additional directors.
Issue directions.
Takeover the management of the insurer through the appointment of an Administrator by the Central Government.
11.Protection of the policy holders interest by prohibition of policies from being called into question after 2 years. [Sec. 45]
12.Provision of nomination. [Sec. 39]
13.Provision for assignment. [Sec. 38]
14.Provision for easy settlement of dispute.
In India many life insurance companies are working. Some of companies are this -
SBI LIFE INSURANCE CO.LTD.
LIC OF INDIA
HDFC STANDARD LIFE INSURANCE CO.LTD.
ICICI PRUDENTIAL LIFE INSURANCE CO. LTD
BAJAJ ALLIANZ LIFE INSURANCE CO. LTD
SHRI RAM LIFE INSURANCE CO. LTD
RELIANCE LIFE INSURANCE CO. LTD
ING-VYASA LIFE INSURANCE CO. LTD
TATA AIG LIFE INSURANCE CO. LTD
MAX NEW YORK LIFE INSURANCE CO. LTD
FUTURE GENERALI LIFE INSURANCE CO. LTD
BHARTI AXA LIFE INSURANCE CO. LTD
AVIVA LIFE INSURANCE CO. LTD
OM KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE CO. LTD
METAIFE INSURANCE CO. LTD
SAHARA LIFE INSURANCE CO. LTD
BIRLA SUN LIFE INSURANCE CO. LTD
RELIGARE LIFE INSURANCE CO.LTD
IDBI FORTISE LIFE INSURANCE CO. LTD
And so on.
What is Life Insurance and a Life Insurance Company? Can a Life Insurance Company Help Me?Life Insurance is insurance for me and my family's peace of mind. Life insurance is a policy that people buy from a life insurance company, which can be the basis of protection and financial stability after one's death. Its function is to help beneficiaries financially after the owner of he policy dies. It can also be a form of savings in the long run if i purchase a plan, which offers the option of contributing regularly. Additionally, a little known function of life insurance is that it can be tied in with a person's pension plan. A person can make contributions to a pension that is funded by a life insurance company.
In addition, you should also make a list of what you feel needs to be protected in your family's way of life. With a life insurance policy in place, you can:
Provide security for your family.
Protect your home mortgage.
Take care of your estate planning needs.
Look at other retirement savings/income vehicles.
Introduction of LIC:
In 1956, Life insurance Company (LIC) of India was started. Up to 2000 LICS no competitors establish in the market and after 2000 its many competitors enter in the market. Its competitors in the India:-
SBI LIFE INSURANCE CO.LTD.
LIC OF INDIA
HDFC STANDARD LIFE INSURANCE CO.LTD.
ICICI PRUDENTIAL LIFE INSURANCE CO. LTD
BAJAJ ALLIANZ LIFE INSURANCE CO. LTD
SHRI RAM LIFE INSURANCE CO. LTD
RELIANCE LIFE INSURANCE CO. LTD
ING-VYASA LIFE INSURANCE CO. LTD
TATA AIG LIFE INSURANCE CO. LTD
MAX NEW YORK LIFE INSURANCE CO. LTD
FUTURE GENERALI LIFE INSURANCE CO. LTD
BHARTI AXA LIFE INSURANCE CO. LTD
AVIVA LIFE INSURANCE CO. LTD
OM KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE CO. LTD
MET LIFE INSURANCE CO. LTD
SAHARA LIFE INSURANCE CO. LTD
BIRLA SUN LIFE INSURANCE CO. LTD
RELIGARE LIFE INSURANCE CO.LTD
IDBI FORTISE LIFE INSURANCE CO. LTD
And so on. in the market 31 LIC companies is establish.
Background of SBI Life :
SBI Life Insurance Company Limited is a joint venture between the State Bank of India and BNP Paribas Assurance. SBI Life Insurance is registered with an authorized capital of Rs 2000 crores and a Paid-up capital of Rs 1000 Crores. SBI owns 74% of the total capital and BNP Paribas Assurance the remaining 26%.
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 14,500 branches across the country, arguably the largest in the world.
BNP Paribas Assurance is the life and property & casualty insurance unit of BNP Paribas - Euro Zones leading Bank. BNP Paribas, part of the worlds top 6 group of banks by market value and a European leader in global banking and financial services, is one of the oldest foreign banks with a presence in India dating back to 1860. BNP Paribas Assurance is the fourth largest life insurance company in France, and a worldwide leader in Creditor insurance products offering protection to over 50 million clients. BNP Paribas Assurance operates in 41 countries mainly through the banc assurance and partnership model.
SBI Life has a unique multi-distribution model encompassing Banc assurance, Agency and Group Corporate.
SBI Life extensively leverages the SBI Group as a platform for cross-selling insurance products along with its numerous banking product packages such as housing loans and personal loans. SBIs access to over 100 million accounts across the country provides a vibrant base for insurance penetration across every region and economic strata in the country ensuring true financial inclusion.
Agency Channel, comprising of the most productive force of more than 63,000 Insurance Advisors, offers door to door insurance solutions to customers.
SBI Life Insurance is the 1st private life insurance company in the country, with total premium income exceeding Rs. 3500 crore in 2008-09, and the first to declare a profit after just 5 years in operation. SBI Life is a joint venture of SBI, India's largest and most trusted bank for 200 years, and CARDIF, the insurance arm of BNP Paribas with global expertise.
CARDIF the life insurance unit of BNP Paribas ASSURANCE has operations in 36 countries and over 35 million personal protection insurance clients worldwide. BNP Paribas ranks among the world top 15 banks by market capitalization and is one of oldest foreign banks with a presence in India dating back to 1860.SBI life insurance is one and only institute which has got AAA grade of CRISIL.
SBI Lifes Mission Statement:- Our Mission: "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".
Our Values:
Trustworthiness
Ambition
Innovation
Dynamism
Excellence
Share of SBI GROUP & BNP PARIBAS:-SBI Life Insurance Company Limited is a joint venture between the State Bank of India and BNP Paribas Assurance. SBI Life Insurance is registered with an authorized capital of Rs 2000 crores and a Paid-up capital of Rs 1000 Crores. SBI owns 74% of the total capital and BNP Paribas Assurance the remaining 26%. SBI GROUP + BNP PARIBAS = SBI LIFE INSURANCE CO. LTD.
74 %
+ 26 % = 100 %
PRODUCT OF SBI LIFE:-
I.Traditional plan:-A.Term Insurance:
Shield Plan
Swadhan Plan
B. Endowment plan:
SUDARSHAN PLAN
Money back plan
C.Children plan:
Scholar II plan
D. Pension plan: Lifelong pension
These all Plans are Traditional Plans.
SHIELD PLAN
Introduction:
Key man is the 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.A Keyman insurance policy is taken to protect the organization against the reduction in profit resulting from the death of the Keyman. As per IRDA circular only Pure Term Assurance Products may be used as a Keyman Insurance. We offer SBI Life Shield as a Keyman Insurance Policy.
Product features available of SBI Life Shield used as Keyman: Minimum / Maximum Age at Entry : 18 Years to 60 Years
Term : 5 Years to 25 Years or Retirement age, whichever is earlier Choice of Increasing Sum Assured @ 5% p.a. or Level Cover No Riders available Mode of Payment : Single Premium or Regular Premium (no monthly mode available)
Sum Assured
Minimum (Per Life Assured):SBI Life Shield Plan: Rs. 10, 00,000/- (in multiples of Rs. 10,000)
Maximum Sum Assured (Per Corporate): The quantum of cover would be based on the following parameters, underwriting requirements and subject to the maximum Sum Assured permitted in the respective plan chosen
Maximum Sum Assured should be LOWER of :
1.5 times the average net profit of the Company for the past 3 years.
2.3 times the average gross profit of the Company for the past 3 years.
A multiple of the individual remuneration/compensation package that the
Key man receive may also be considered.
SUDARSHAN
Introduction:
SBI Life - 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.
Key Features: It offers you the option of tailoring your policy according to your requirement and needs, by opting for various extra covers (Riders) that are offered. This is a unique product that offers you an innovative cover (plan B) which helps you to protect your savings against the financial consequences of inflation with constant premium for the entire duration of the plan.
It gives you protection against unfortunate terminal or dreaded illness. It is an insurance plan which could also act as a hedging instrument.
With this plan you can plan your childrens future education, marriage expenses or even your own retirement - in a most flexible manner.
Product type:
It is a traditional endowment plan i.e. saving - cum protection product.
How does it work?
SBI Life - Sudarshan has two basic plans.
Fixed Sum Assured Plan: Allows you to build a regular saving plan that gives you a secure amount at the end of a fixed period plus a bonus. In the unfortunate event of death before maturity, the nominee would stand to receive the Sum assured and the bonus accrued till that date.
Increasing Sum Assured Plan - the COLA Option: The Cost Of Living Adjustment (COLA) option is so called because it serves as an automatic hedge against inflation. It allows you to increase the Sum Assured automatically by paying an additional premium compared to the Fixed Sum Assured Plan. Moreover, the life cover also automatically increases during the period as added protection to the family.
Benefits
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
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.
Other Benefits:
If the extra cover (riders) have been opted for, the following additional benefits are payable:
Term Assurance Cover benefit The Term Assurance cover is payable in addition to normal death benefit.
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: Critical 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.
SBI Life - Sudarshan policy remains in force for all the other benefits
Tax Benefits 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*
What is the policy term?
Minimum Years Maximum Years
Regular Mode8 years30 years
Single Premium Mode5 years30 years
Who can buy this product?
Minimum Years Maximum Years
Regular Mode12 years62 years
Single Premium Mode12 years65 years
What is the minimum & maximum sum assured?
Minimum Maximum
Rs.25,000Rs.1 Crore
Riders available
SBI Life - Critical Illness Rider
SBI Life - Term Assurance Rider
SBI Life - Accidental Death & Total Permanent Disability Rider
MONEY BACK PLAN
Introduction:
As an individual your life is fueled by dreams. You experience different special moments in life like wedding, birth of a child, childs 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.
Key Features:
The plan has a number of moneyback options specially suited to your needs. The cover is available at competitive premium rates. It has guaranteed cash inflows which can meet your various financial obligations. In addition to normal death cover, the plan also provides you 4 additional covers. Product type: It is a Traditional Saving Plan with added advantage of life cover and guaranteed cash inflow at regular intervals.
How does it work?
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.
Term of the PlanGuaranteed Survival Benefit payableCumulative Guaranteed Survival Benefit
10 YearsThe last 3 years on the term110% of Basic Sum Assured
15 YearsAfter every 3 years on the term115% of Basic Sum Assured
20 YearsAfter every 4 years on the term120% of Basic Sum Assured
25 YearsAfter every 5 years on the term125% of Basic Sum Assured
Benefits Death Benefit:
In the unfortunate event of death during the term of the plan, the nominee will receive Sum Assured + Vested Bonuses, (accrued till the date of death),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
Other Optional Benefits:
SBI Life - Term Assurance Rider:
The benefit under the Term Assurance Rider is payable in addition to death benefit.
SBI Life - Accidental Death and Accidental Total Permanent Disability RiderIn 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.
SBI Life - Premium Waiver Benefit Rider:
Under this rider the policy holder 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.
SBI Life - Critical Illness Rider: On diagnosis of any of the 6 critical illnesses (depending on the C.I. cover you have opted for) and you survive for more than 30 days from diagnosis; the Critical Illness Cover Amount is paid in a lumpsum.No more claims will be admitted under this cover. The Basic policy remains in force for all the other benefits. Tax Benefit:
SBI Life Money Back Plan 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*.
What is the policy term?
Minimum YearsMaximum Years
10 years25 years
Who can buy this product?
Eligibility CriteriaTerm
Option 1: Term 10 YearsOption 2: Term 15 YearsOption 3: Term 20 YearsOption 4: Term 25 Years
Minimum age at entry15151515
Maximum age at entry60555045
What is the min. & max. sum assured?
MinimumMaximum
Rs. 50,000 (and multiples of Rs. 10,000 thereafter)Rs.5 Crore.
Riders Available
SBI Life - Term Assurance Rider
SBI Life - Accidental Death & TPD Rider
SBI Life - Critical Illness Rider
SBI Life - Premium Waiver Benefit Rider
II.Unit Link Plan:
Unit Plus-II
Smart Ulip
Horizon II
Unit Plus Children Plan
Horizon II Pension
Unit Plus II Pension
UNIT PLUS II PLAN IN THIS POLICY, THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORN BY THE POLICYHOLDER
INTRODUCTION:
It may be difficult to understand all your needs but as your preferred life insurance company, SBI Life definitely understands all your financial & insurance needs. SBIBI Life - Unit Plus II Plans are an attempt to meet all your financial & insurance needs through a single non participating product. You can use it the way you like. Whats more you get market linked returns which in the long term has always proved to give better returns than traditional savings products.
Key Features:
Unmatched Flexibility to match your changing requirement.
Choice of 5 investment funds: you can change the allocation percentage when you want, 4 switches free per annum.
Choice of term : Limited term or whole life.
Attractive riders available.
Product type:
This is a non-participating individual unit linked product.
How does it work?
SBI Life - Unit Plus II Plans: II plans depending on your premium mode.
Single Premium Mode : SBI Life - Unit Plus II Single UIN No: 111L029V01)
Regular Premium Mode : SBI Life - Unit Plus II Regular UIN No: 111L028V01)
Decide Your Investment Amount :
Frequency Minimum PremiumMaximum Premium
SingleRs. 40, 000No Limit
RegularRs. 24, 000 p.a.No Limit
Choose Your Life Cover:
It depends upon the total amount you have decided to invest.
Single PremiumMinimum Sum Assured Maximum Sum Assured
Term 5 to 9 years125 % of single premium amount625 % of single premium amount
Term 10 years and above110 % of single premium amount625 % of single premium amount
Regular PremiumMinimum Sum AssuredMaximum Sum Assured
Regular Premium5 times annual premium amountDepends on the age*
Whole Life5 times annual premium amountNo Limit(Subject to underwriting)
Benefits :
Maturity Benefit:
At maturity, the Fund Value as on that date is paid in full.
Death Benefit: In the unfortunate event of the death.
Before or the age 7 years: Fund Value is payable to the nominee.
After attaining age 7 and before 65th birthday, the beneficiary will receive higher of Fund Value or Sum Assured less Partial Withdrawals within the last 12 calendar months.
If death occurs after age 65, the beneficiary will receive the higher of the Fund Value or Sum Assured less all the Partial Withdrawals made in the last 12 calendar months before attaining the age of 65+ all withdrawals made after attaining the age of 65 will be set off against the Sum Assured excluding partial withdrawals from Top Up Amount.
Tax Benefits :
Tax benefit as per section 80C and 10(10D) of Income Tax Act.
What is the policy term?
Limited Term Whole Life TermMinimum Years5 years
Life cover will be available till you attain 99 years of age.
Maximum Years40 years
Equity Optimizer Fund:
AssetsMinMaxRiskEquity & Equity related instruments60%
100%
High
Debt and Money market instrumentsNil
40%
Guaranteed Additions(Only for SBI Life - Unit Plus II Regular):
YearPercentage Of Average Annualised Regular Premium8th
15 % ( Of Annualised Average Premium for the first 8 Policy years )
15th
25% ( Of Annualised Average Premium for the first 15 Policy years )
20th
60 % ( Of Annualised Average Premium for the first 20 Policy years )
Total
100%
UNIT PLUS II PENSION PLAN
Who can buy this product?
If you are in good health and in the age group of 0 to 65 you can opt for this plan.
Riders Available:
SBI Life Accidental Death and Total Permanent Disability Rider
SBI Life Critical Illness Rider
Five Funds for investments :
Equity Fund:
Assets
Min
Max
Risk
Equity & Equity related instruments
80%
100%
High
Money market instruments
Nil
20%
Bond Fund:
Assets
Min
Max
Risk
Debt instruments
60%
100%
Low to medium
Debt and Money market instruments
Nil
40%
Growth Fund:
Assets
Min
Max
Risk
Equity & Equity related instruments
40%
100%
Medium to High
Debt and Money Market instruments
Nil
60%
Balanced Fund: AssetsMinMaxRiskEquity & Equity related instruments40%
60%
Medium
Debt and Money market instruments40%
60%
Equity Optimizer Fund:
Assets
Min
Max
Risk
Equity & Equity related instruments
60%100%High
Debt and Money market instruments
Nil
40%
Guaranteed Additions(Only for SBI Life - Unit Plus II Regular):
Year
Percentage Of Average Annualised Regular Premium
8th15 % ( Of Annualized Average Premium for the first 8 Policy years )
15th25% ( Of Annualized Average Premium for the first 15 Policy years )
20th60 % ( Of Annualized Average Premium for the first 20 Policy years )
Total
100%
SMART ULIP PLAN IN THIS POLICY, THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORN BY THE POLICYHOLDER
Features of SMART ULIP:-
NAV guarantee
Growth potential
Assured safety
Choice of 3 or 5 yrs premium paying term
Investment cum insurance plan giving market related returns
Innovative structured investment funds flexi protect fund
Attractive tax benefits under section 80(C)& 10(10D)
How does SMART ULIP work?
This product is split into four phases subscription phase will be first 12 month period from the launch date of this series of the products during which new policies will be issued. Depending upon your ppt, premium payment phase will be either 3yrs or 5yrs from launch date. NAV build up phase will last for 7 yrs from the date of launch. The last 3yrs of plan term will be called as Accumulation phase.
This is a limited premium payment plan, where you choose to pay premium either for 3yrs or 5yrs .you can opt for this plan during the subscription period. The maturity date shall be at the end of 10 yrs from the start of subscription period.
Premium paid by you, deduction of premium allocation charges is automatically invested into the money market fund.on specific reset dates on 8th & 23rd of each calendar month , your investments will automatically be moved to the flexi protect fund. The objective of this fund is to optimize your returns , while providing significant capital protection by adopting dynamic assets allocation strategy.
Maturity benefit:
On completion of policy term , fund value will be paid to you.
Fund value will be calculate based on NAV which is higher of :
NAV as on date of maturity
The guaranteed maturity NAV
Death benefit:
In case of the unfortunate event of the death of the life insured during the policy term, we will pay to the nominee, the higher of fund value or sum assured.
Surrender:
Policy will acquire a surrender value after payment of at least one full years premium in case of 5 year PPT and 6 month premium in case of 3 year PPT,and will be payable after the completion of third policy year. The surrender value will be 100% of fund value less surrender charges applicable if any.
Surrender charges:
The surrender charges will be recovered from the surrender amount.surrender charges are expressed as a percentage of the fund value and will be based on the policy year in which surrender request has been received or based on policy year of the first unpaid premium, as the case may be:
Y1 20%
Y2 12%
Y3 9%
Y4 2%
Y5 onwards nil
Partial withdrawal:
We give you flexibility to withdraw your money after completion of 5 policy years 20% of fund value to meet any sudden or unforeseen expenses. you can make one partial withdrawal per policy year.
Fund option:
The two investment fund currently offered are flexi protect fund and money market fund. Premiums received net of allocation charges are invested into money market fund and balance in money market fund is automatically switched to flexi protect fund on each reset date using the prevailing at the end of that day.
Flexi Protect Fund:
The objective of this fund is to provide capital production and optimum returns based on systematic asset allocation model.
Assets
Minimum
Maximum
Risk profile
Equity and equity related instruments
Nil
100%
Low
Debt and money market instruments
Nil
100%
Medium
Flexi Protect Fund Management Charges:- 1.50 % p.a.
Money Market Fund:
Assets
Minimum
Maximum
Risk profile
Debt instruments
Nil
20%
Low
Money market instruments
80%
100%
Money market Fund Management charges: 0.25% p.a.
Tax benefit*:
u/s 80 (c) of the income tax act 1961 on your premiums.
u/s 10(10D) Of The IT act 1961 on your maturity processed/the
death benefit under the policy.
Free Look Period:
The policy holder has a period of 15 days from the date of the receipt of the policy document to review the term and conditions of the policy and where the insured disagrees to any of those terms or conditions, he has the option to return the policy stating the reason for his obligation when he shall be entitled to a refund of the amount as follows:
Fund value(units repurchased based on the price of the units on the date of cancellation) + (premium allocation charges + mortality charges, if applicable + policy administration charges) already deducted MINUS (stamp duty + medical expenses, if any).
Grace Period :
15 days for monthly mode and 30 days for other modes.
Revival period:
We offer you a revival period of 2 years. Revival is subject to underwriting acceptance under the applicable terms and conditions.
Charges for the Plan
Premium allocation charges:
Policy year
Premium payment term
3 years
5 years
Year 1
15%
15%
Year 2
5%
5%
Year 3
-
5%
Policy administration charges:
The Policy Administration Charges will be recovered by cancelling unit on a monthly basis proportionately from each investment fund.
A flat charges of Rs 60 per month will apply throughout the term of the
policy.
For the last three policy year, additional annual policy administration
charges @ of Rs 5 per thousand of the sum assured will be charges.
Mortality charges:
These charges are deducted on the 1st business day of each policy month from fund value by way of cancellation of units. Mortality charges will be based on your age of sum at risk.
HORIZON II IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDERIntroduction:
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 where as increasing death benefits provides higher security to your family.
Key Feature:
Twin benefit of insurance cover and market linked returns 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. Automatic cover continuance. Liquidity option after 3 years Facility to top up your investment kitty. Tax benefit as per section 80C and 10(10D) of income tax act. 15 days free look period from the date on which you receive the policy. document.
Product type:
It is a uniq, non participating unit linked plan.
How does it work?
As per the Plan and Term chosen by you , SBI Life will invest the net
premium amount into each of the funds mentioned. The number of Units of
each fund will be allocated is calculated as:
No. of Units Fund(x) =
Net Investment in Fund(x)
NAV of Fund(x)
A unit of each Fund has its own price called the Net asset Value(NAV).
The NAV of each Fund is calculated on a daily basis with the following
formula:
{Market Value of Investment + Current Assets - Current Liabilities & Provisions}
NAV =
INCLUDEPICTURE "horizon_files/horline.gif" \* MERGEFORMAT
INCLUDEPICTURE "horizon_files/horline.gif" \* MERGEFORMAT
No of Units outstanding
Benefits:
Hassle Free Investment Management:You simply invest we will manage it for you.
Maturity Benefits:At the end of the term you will get the fund value.
Increasing Death Benefit:For all inforced policies , In case of death after completion of age 7 your nominee will receive Fund Value + Sum Assured otherwise fund value is payable. What is the policy term?
Minimum Years Maximum Years 10 years
40 years
Who can buy this? Product?
If you are in good health and in the age group of 0 to 60 years you are
welcome to join our wagon.
Maximum age at Maturity is 70 years.
What is the sum assured?
Decide the amount you can put aside to be invested in SBI Life - Horizon II every year. Your Minimum Life Cover Sum Assured can be 5 x AP Maximum can be (T/2) x AP Where, T = Term of Policy, AP = Annualised Premium.
Riders Available:
No Riders are available.
Three Funds for investments
Equity Fund:For Long Term Capital Appreciation.
Assets
Min
Max
Risk
Equity & Equity related instruments
80%
100%
High
Debt & money market instruments
Nil
20%
Bond Fund:For Generating good returns by taking calculated risks.
Assets
Min
Max
Risk
Debt instruments
80%
100%
Low to medium
Money market instruments
Nil
20%
Money Market Fund:For cutting the risk while reaching maturity.
Assets
Min
Max
Risk
Debt instruments
Nil
20%
Low
Money market instruments
80%
100
WHAT ARE THE CHARGES TO MY POLICY?
Premium Allocation Charges:
Policy Year
Entry Charges as a percentage of the Premium /Rs.Amount*
Year 1
15% with a ceiling of Rs.60,000/- per year
10% with a ceiling of Rs.40,000/- per year
Year 4th onwards
5% with a ceiling of Rs. 20,000/-per year
Top Up
1% with a ceiling of Rs.50,000/- per year
Policy Administration Charge (by way of cancellation of units):
Monthly administrative charges are equal to Rs.70/- for Financial Year 2006-07 and will be increased by 2% p.a.on the first Policy Month following 1st of April each, subject to a ceiling of Rs.300/- per Policy Month.
Fund Management Charge:
The Annual Fund Management Charge for each fund are as follows:
Equity Fund : 1.5 %
Bond Fund : 1.00%
Money Market Fund : 0.25%
Fund Management Charges are calculated and recoverd from value of the funds on a daily basis. Maximum fund management charges applicable 2.0% subject to prior IRDA approval.
Partial Withdrawal Charge:
First two withdrwals in a Policy Year will be free of charge. A fee of 1% will be deducted from the third and subsequent withdrawal amount.
Surrender Charges: 1% of the Fund Value.
Mortality Charges:
Mortality Charges are recoverd on a Policy Month basis by way of cancellation of units. Rates are renewed on yearly basis.
UNIT PLUS CHILD PLANI
IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER Introduction:
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 childs life and theres 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.
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.
Key Feature :
Market related returns to match increase coast of education
Peace of mind giving you triple benefits
Loyalty units to celeberate your child reaching 18 years.
New Investment Fund (Equity Optimizer Fund)in addition to existing funds
Pay Premium for a limited period of and reap benefits over a long time.
Flexible plan which adapts to your changing needs as and when you want.
Why Should I take Unit Plus Child Plan?
To sequre your childs future by gaining more from financial markets along with.
Triple Benefits for your family, in case you are not around.
Loyalty Units by way of free allocation of units.
Flexible option to meet your changing requirement.
What is Unit Plus Chil Plan?
It is a Unit Linked Insurance available for parents who have a child between age 0-15 years. You pay premium for a limited period and your benefits continue till your child becomes an adult. After deducted of charges, your money can be invested in five funds as per your choice and risk appetite. At the end of the term your accumulated Fund Value can be used for your chils Higher Education , Marrige, Financial Sequrity or anything else while withdrawals facility helps you to meet unplanned expenses.
Benefits of Unit Plus Child Plan:
Triple Benefits for your childs future in your absence:
In case of your unfortunate demise
Benefit1: We pay the Sum Assured lump sum.
Benefit2: We continue to pay your regular premium on your behalf
Premium Payor Waiver Benefit)
Benefit3: Fund Values is payable at maturity.
Loyalty Units by way of free allocation of Units :
To celebrate the 18th year of your child, we offer Loyalty Units by Way of free allocation of Unit based on the averge of last 24 month Fund Value in the 24 month preceeding the 18th birthday.
Maturity Benefit :
On completion of the Policy Term , Fund Value will be paid to you.
Settlement Options:
Within a period of 2 month before the Maturity Date, you can opt for a settlement option and choose to take the Fund Value in the form of periodical annual * payments maximum up to 5 years. At any point of time, you can ask for full payment of balance Fund Value.
Fund Option:
Currently there are 5 investment fund option which are available to you viz.
Equity Optimiser Fund:
Asset
Minimum
Maximum
Risk Profile
Equity & Equity Related Instruments
60 %
100%
, HighDebt & Money Market Instruments
NIL
40%
Equity Fund:
Asset
Minimum
Maximum
Risk Profile
Equity & Equity Related Instruments
80 %
100%
, HighDebt & Money Market Instruments
NIL
20%
Bond Fund:
Asset
Minimum
Maximum
Risk Profile
Debt Instruments
60 %
100%
Low to MidiumMoney Market Instruments
NIL
40%
Growth Fund:
Asset
Minimum
Maximum
Risk Profile
Equity & Equity Related Instruments
40 %
100%
Medium to HighDebt & Money Market Instruments
NIL
60%
Balanced Fund:
Asset
Minimum
Maximum
Risk Profile
Equity & Equity Related Instruments
40%
60%
Medium
Debt & Money Market Instruments
40%
40%
Eligibility Criteria:
Entry Age
Parent
Min: 18 years
Max: 57 years
Child
Min: 0 years
Max: 15 years
Age at Maturity
Parent
Max: 65 years
Min: 18 years
Max:25 years
Premium Payment Term
PPT
3yrs/5yrs/7yrs/Till the child attains 18 years
Min Premium (x100)
Min Yearly Premium
PPT of 3 yrs:84,000
PPT of 5 yrs:60,000
PPT of 7 yrs:48,000
PPT till child attains 18 yrs : Rs 12,000
There is no limit for the maximum premium for any Premium Payment Term
Premium Mode
yearly, half-yearly ,quarterly or monthly
Policy Term
Min. Term
8 yrs or (18-chils age at entry)whichever is higher
Max. Term
25 yrs
Sum Assure
Min Sum Assured
For Policy Term 8-10 : 5 * AP(Annualized Prm)
For Policy Term 11-25yrs : Term/2 * AP
Max Sum Assured
For Age 18-40yrs:25*AP
For Age 41-50yrs:20*AP
For Age 51-57yrs:15*AP
Additional Features of the Plan:
Tax Benefit*:
U/s 80C of the Income Tax Act 1961 on your premium.
U/s 10(10D) of the Income Tax Act 1961 on your maturity proceeds of the policy.
Free Look Period:
You can review the term and conditions of the policy, 15 days from the date of the receipt of the policy document and where you disagree to any of those terms and conditions, you have the option to return the policy stating the reason for your objection.
The amount refunded to you would be:
Fund Value + (Premium Allocation Charges + Mortality Charge + Rider Charge, if any + Policy Administration Charge) Already deducted (Stamp duty + Medical Expenses if any and payment Instrument Collection Charges).
Grace Period:
30 days for Yearly, Half Yearly and Quarterly Premium Payment Mode; 15 days if the Premium Payment Mode is Monthly.
UNIT PLUS II PENSION
IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER
CLASSIFICATION:
Individual/unit linked pension product/ with or without life cover.
Nature of the product:
This product is a pension unit linked product wherein the policy holder chooses an investment period from 5 to 52 years. You can to choose pay either single premium or pay regular premium for the entire policy term.
The unit plus II pension plan offer 2 options
Option 1- pure pension plan
Option 2-pension cum life cover
No switch option is allowed.
Introduction:
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 into5 fund options as per your choice.
Key Features:
Choice to invest & control four different funds as per your risk appetite.
Flexibility to choose between two options
Pure Pension
Pension cum Life Cover
No medical required for Pure Pension, automatic acceptance facility.
Flexibility to increase regular contribution.
Top up payments: any amount, anytime.
Customize your plan by adding riders.
15 days free look period.
Product type:
This is a non participating Unit Linked Pension product.
How does it work?
Choose your vesting age: Any age between 50 years - 70 years.Choose premium frequency and premium amount.
Premium FrequencyMinimum frequencyMaximum Frequency
Single25,000(in multiples of 1000)No Limit
Yearly24,000(in multiples of 100)No Limit
Half Yearly12,000(in multiples of 100)No Limit
Quarterly6,000(in multiples of 100)No Limit
Monthly2,000(in multiples of 100)No Limit
Choose plan option:
Option I Pure Pension Plan (For age group 18-65) Option II Pension Plan with life cover (For age group 18-60)
In case you have opted for option II, your sum assured will be as mentioned below.
For single premium mode:
Age at entrySum Assured
18-35125 % of single premium subject to maximum SA of Rs. 10 lacs
36-45125 % of single premium subject to maximum SA of Rs. 5 lacs
46-60125 % of single premium subject to maximum SA of Rs. 1.2 lacs
For regular premium mode
Age at entrySum Assured
18-355 or 10 times first annualised premium subject to maximum SA of Rs. 10 Lacs
36-455 or 10 times first annualised premium subject to maximum SA of Rs. 5 Lacs
46-601.2 lacs
Choose your investment funds: You can invest in5 investment funds viz. Equity Pension Fund, Bond Pension Fund, Growth Pension Fund, Balanced Pension Fund and Equity Optimiser Fund.
Benefits:
Death Benefit:
During accumulation phase
If you opt for option I : Pure Pension Plan
Fund value will be paid in lump sum to nominee.
If you opt for option I : Pure Pension Plan with life cover
The higher of fund value or sum assured will be paid in lump sum to nominee.
Guaranteed additions by way of free allocation of units to increase your retirement kitty.
On Vesting:
Its your income; you decide how it works for you. You have choice and flexibility. You can take upto one third of the fund value in lump sum. Tax-free as per current tax law.
The tax free limit applicable for the commutated value may change as per change in Income Tax rules
During Annuity Phase:
Balance amount has to be used to purchase annuity. The rate at which the amount at vesting date will be converted to an annuity is not guaranteed and will be based on the prevailing immediate anniuty rates under the relevant annuity option at the vesting date. Currently SBI Life Insurance offers the following annuity options.
Life annuity at constant rate.
Annuity payable at constant rate throughout the life of Annuitant with facility of receiving on death of Annuitant refund of purchase price less the sum total of annuity already paid till date of death.
Annuity payable at constant rate throughout the life of Annuitant with facility of receiving on death of Annuitant 100% refund of purchase price.
Annuity increasing at the simple rate of 1%, 2% or 3% per annum as the case may be and payable during the life of the Annuitant.
Annuity certain for 5/10/15 years as the case may be and for life thereafter.
Last survivor annuity, whereby upon the death of Annuitant his / her spouse will receive a life annuity, which will be either 50% or 100% of the last annuity amount paid to the Annuitant, as selected. This annuity option will not be available if the difference in the age of annuitant and spouse is more than 10 years.
What is the policy term?
Term = Vesting Age - Age at Entry
Minimum YearsMaximum Years
5 Years52 Years
Who can buy this product?
If you are in the age group of 18 to 65 you can opt for SBI Life - Unit Plus II pension plan without life cover. For Unit Plus II pension plan with life cover it should be between 18-60 years.
Riders available:
SBI Life - Accidental Death and Total Permanent Disability Rider
SBI Life - Critical Illness Rider
You can invest in the following investment funds viz. Equity Pension Fund, Bond Pension Fund, Growth Pension Fund, Balanced Pension Fund and Equity Optimiser Fund.
Equity Pension Fund: AssetsMinMaxRisk
Equity & Equity related instruments80%100%High
Debt & Money market instrumentsNil20%
Bond Pension Fund: AssetsMinMaxRisk
Debt instruments60%100%Low to medium
Money market instrumentsNil40%
Growth Pension Fund: AssetsMinMaxRisk
Equity and Equity related instruments40%100%Medium to High
Debt & Money Market instrumentsNil60%
Balanced Pension Fund :AssetsMinMaxRisk
Equity and Equity related instruments40%60%Medium
Debt & Money Market instruments40%60%
Equity Optimiser Fund :AssetsMinMaxRisk
Equity and Equity related instruments60%100%High
Debt & Money Market instrumentsNil40%
Guaranteed additions by way of free allocation of units: The bonus units are rewarded for the policy term of 20 years and above, when no premiums are due and the policy is in full force.
For Regular Premium Mode End of Policy YearFree allocation of unit as a % of annualized average Regular Premium
1010 % of annualized average Regular Premium for the first 10 policy years
1520 % of annualized average Regular Premium for the first 15 policy years
2030 % of annualized average Regular Premium for the first 20 policy years
For Single Premium Mode End of Policy YearFree allocation of unit as a % of Single Premium
10
1 % of single premium
15
2 % of single premium
20
3 % of single premium
TAX BENEFIT:
Contribution paid in unit plus 2nd pension product are eligible to tax deduction u/s it act 80CCC(1) up to Rs 1 lakh within the overall ceiling of section 80(c) of the it act.
PERSONS COVERED:
Individuals, residents and non residents Indians.
Two type of premium mode is available:
1. Single Premium Mode
2. Regular Premium ModeHORIZON II PENSION
IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER
NATURE OF THE PLAN:
Horizon 2ndpension plan is a non participating unit linked pension plan with a unique feature of automatic assets allocations by means of which you truly, dont need to be an expert to grow your money.
Horizon 2nd pension plan is the most simple unit linked pension plan, all you need to do is:
Choose your retirement date, the plan option and the regular premium amount.
Based on the plan option and the term opted, SBI life invest your money in three different funds viz., equity pension fund, bond pension fund, and money market pension fund.
The funds are invested keeping in mind the term opted for and your money is invested in safer funds as your policy approaches maturity.
ABOVE FEATURES IN BRIEF:
Available in two options:
option 1: pure pension and option 2 : pension cum life cover.
Age at entry: 18- 60 years.
Vesting age: 50- 70 years.
Term: min. 10 and maximum 52 years.
Premium: minimum 12,000 p.a. (6000 for h.y./3000 for quarterly/ rs. 1000 for monthly mode.), maximum no limit.
INVESTMENT PLAN AVAILABLE:
PLAN A-DYNAMIC PLAN:Here, a higher proportion of your money is invested in the equity. It is ideal for longer period of term.
PLAN B-GROWTH PLAN: Here, the Investment in equity automatically Decrease more rapidly as the funds are put into less risky options. This leads to a more balanced approach, hence lower volatility coupled with good returns in the long run.
OPTIONS AVAILABLE:
Option 1: pure pension-automatic acceptance (no life cover)
Option 2: pension cum life cover:
Sum assured available:
Age group 18-35 Year: 5 times the first annualized premium subject to max. SA of Rs 10 LAKHS.
Age group of 36-45 years: 5 times the first annualized premium subject to max. SA of Rs 5 LAKH.
Age group 46-60 years: fixed Rs 1.2 LAKH.
Get started..
All you need to do is decide on the premium you want to contribute , choose the frequency mode (yearly/half yearly/quarterly/monthly), select an investment plan (A-dynamic / B-growth) and an option (1/2) ,decide upon the vesting age (age from when you want to receive your pension) and just relax!
Your regular premiums net of entry charges are invested into the three funds: equity pension Fund, bond pension fund and money market pension fund as per the allocation grid of the plan opted for.
EQUITY PENSION FUND: for long term capital appreciation.
Assets Minimum Maximum Risk profile
Equity and equity related instruments 80%
100% High
Debt and money market instruments Nil 20% High
BOND PENSION FUND:
For Generating good returns by taking calculated risk.Assets MinimumMaximumRisk profile
Debt Instruments 60% 100% Low to medium
Money Market instruments Nil 40%Low to medium
MONEY MARET PENSION FUND:
For Cutting the risk while reaching the maturity.
Assets Minimum MaximumRisk profile
Debt instruments Nil 20%Low
Money market instruments 80% 100%Low
BENEFITS:
PREMIUMS paid on horizon 2ndpension product are eligible for tax deduction u/s 80 CCC (1) up to Rs. 1 LAKH within the overall ceiling of section 80 C of the IT Act.
*The tax benefits are subject to change in Tax laws.
RETIREMENT BENEFIT:At vesting age you get a choice to withdraw up to one third of the fund value in the LUMPSUMtax free as per the current tax law. The remaining has to be used to buy annuity from either SBI life or from any other annuity provider.
DEATH BENEFIT: Death during the term of the policy:
Option 1: pure pension-fund value is payable to the nominee.
Option 2: Pension with life cover- fund value + SA after deducting any
Mortality charges due but not paid during the policy year in which death occurs, provided the policy is in full force.
Death after vesting age: death benefits depends upon the annuity option chosen.
ANNUITY OPTIONS CURRENTLY AVAILABLE AT VESTING AGE: Option 1 : life annuity at a constant rate. No death benefit.
Option 2 : annuity payable at constant rate throughout the life of the annuitant a refund of purchase price less the sum total of annuity already paid till date of death.
Option 3 : annuity payable at constant rate throughout the life of the annuitant with the facility of receiving on death of the annuitant 100% refund of purchase price.
Option 4: annuity increase at a simple rate of 1% or 2% or 3% per premium as the case may be and payable during the life of the annuitant. No death benefits is payable.
Option 5: annuity certain for 5/10/15 years as the case may be and for the life thereafter. Death benefit payable- if death occurs during
The annuity certain period, the nominee will receive the annuity amount on the original dates scheduled for the unexpired portion of the annuity certain period and thereafter contract ceases. If death occurs after the annuity certain period, no benefit would be payable.
Option 6: last survivor annuity, whereby upon the death of the annuitant his/her spouse will receive a life annuity, which will be either 50%/ 100% of the last annuity amount paid to the annuitant, as the case may be. This annuity option is not available if the difference in age of the annuitant and the spouse is more than10years.
SURRENDER FACILITY:You have the option to surrender policy from the 4th policy year onwards. Surrender value will acquire after payment of at least one year full premium, and will be payable after completion of three policy years.
Policy yearSurrender value as % of fund value
During the first three policy yearNil
From the 4th policy year onwards100% of fund value less surrender Charges
COMPUTATION OF NAV:
A unit of each fund has its own price called the net asset value (NAV). The NAV of each fund is calculated on daily basis with the following formula:
(market value of investment + C.A.- C.L. & provisions)
Number of units outstanding
Where-
1. C.A.= Current Assets 2. C.L.= Current Liabilities
CHARGES: PREMIUM ALLOCATION CHARGES:
Policy yearEntry charges as % of the annualized premium/Rs. Amount
Year 115% Rs 60,000*
Year 2 & 37.5% Rs 40,000*
Year 4 to year 101.5% Rs 10,000*
Year 11 onwardsNil
Top up (year 1-10)1.5% Rs 10,000*
Top up (year 11 onwards)Nil
whichever is lower.
POLICY ADMINISTRATION CHARGES:
Monthly administrative charges are fixed to Rs. 70/- for the financial year 2006-07. These charges are increased@ 2% p.a. subject to a ceiling of Rs. 300 per month and this increase will be effective from 1st of April, each financial year.
PARTIAL WITHDRAWAL:In pension plans no partial withdrawal is allowed during the policy term.
GRACE PERIOD:30 days for yearly, half yearly, quarterly mode. 15 days for monthly mode.
UNPAID PREMIUM:UNPAID WITHIN FIRST THREE POLICY YEARS-
Life cover lapses
A revival period of 5 years from the date of first unpaid premium is given.
If policy is not revived within the revival period then surrender value is paid.
Policy ends thereafter.
UNPAID PREMIUM AFTER 3 POLICY YEARS-
Automatic life cover maintenance till end of revival period.
If fund value reaches to an amount to equivalent to full one year premium then policy lapses.
If the policy has not been revived before the end of the revival period you have the option of:
Continuing the policy by asking for continuance of the policy, the policy will continue till the fund value reaches a minimum of one full years premium or
Ending the policy by taking home the surrender value.
REVIVAL PERIOD:
The policy holder may revive the lapsed policy by making a written application within a period of 5 years from the due date of the first unpaid premium.
FREE LOOK PERIOD:
The policy holder has a period of 15 days from the date of the receipt of the policy document to review the term and conditions of the policy and where the insured disagrees to any of those terms or conditions, he has the option to return the policy stating the reason for his obligation when he shall be entitled to a refund of the amount as follows:
Fund value(units repurchased based on the price of the units on the date of cancellation) + (premium allocation charges + mortality charges, if applicable + policy administration charges) already deducted MINUS (stamp duty + medical expenses, if any).
SBI Life has established itself as a distinctive life insurance brand with an innovative, attractive and customer-friendly portfolio ranging from protection, savings, retirement and investment plans; which it sells through a unique tool-The Life Maker.
Agent must have full knowledge of the products of company and good Public Relation & communication skills.
Agent must be engrossed with marketing & selling techniques and must have friendly approach towards his customers and must keep the insurers records for long- term usage.
Customer shall be satisfied with the services of an Agent & Agents efforts should be distinguish appreciated by the company.
Agent shall work in the direction of providing its customer maximum comfort & best of services.
SBI Life is rich in services & produces a wide range of products for various needs. Further it requires making more efforts to advertise its products through Agents & other Media.
THANK
YOU Age BandMaximum Sum Assured Multiplicator Factor0 to 4050 Times Of Annualized Premium41 to 5040 Times Of Annualized Premium51 to 6025 Times Of Annualized Premium61 to 6520 Times Of Annualised Premium
INCLUDEPICTURE "http://124.153.83.194/sbilife/images/contentimages/smartulip.jpg" \* MERGEFORMATINET
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