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SBI Life Shubh Nivesh

SBI Life Shubh Nivesh insurance policy is a non-linked participating traditional endowment policy that offers a wide range of benefits through a single plan. It enables you to plan your finances well in advance and build a robust corpus for financially securing your family during unforeseen emergencies and plan your future aspirations. Designed to offer a whole life cover, it presents a range of options in terms of types of plans, premium payment frequencies, death and maturity benefits, add-on riders, etc. Policyholders have the convenience of selecting the benefits, according to their unique needs.

Simple reversionary bonuses that accumulates throughout the policy tenure, along with the benefit of opting for regular income, makes it a versatile plan. Last but not the least, cost-friendly premiums are well complimented with nominal overhead charges for add-on riders. This enhances the effectiveness of SBI Life Shubh Nivesh insurance plan without reducing its affordability.

SBI Life Shubh Nivesh Policy Details

  • Grace Period – SBI Life Shubh Nivesh plan offers a grace period of 15 days for monthly premium payment and 30 days for other modes of premium payment – quarterly, bi-yearly and yearly. Failure of premium payment within the grace period leads to the lapse of the SBI Life Shubh Nivesh policy.
  • Surrender Benefit – SBI Shubh Nivesh offers a surrender value on termination of the insurance policy within the policy tenure. This amount can either be Guaranteed Surrender Value or Special Surrender value, whichever is higher.
    • Regular Guaranteed Surrender Value – Guaranteed Surrender Value Factor * Basic premiums
    • Single Guaranteed Surrender Value – 70% of premium for the first 3 years and 90% after that
  • Free Look Period – SBI Life Shubh Nivesh offers its policyholders a period of 30 days for policies sourced through distance marketing and 15 days for policies sourced through any other channel. This offers them the advantage of returning the policy in case its features and benefits dos not meet his/her expectations.

  • Documents required
    1. Duly filled up SBI Life Shubh Nivesh form
    2. Proof of Address (PoA)
    3. Proof of Identity (POI)
    4. Proof of Income
    5. Proof of medical diagnostic tests
    6. KYC documents

Key Features of SBI Life Shubh Nivesh

  • Offers a life cover for a maximum of 30 years or whole life, according to your unique insurance needs
  • Simple reversionary bonuses paid throughout the policy term
  • Offers two types of insurance plans - Endowment Plan, and Endowment with Whole Life option
  • Offers the flexibility of choosing between two payout options at maturity i.e. lump sum or regular income
  • Get comprehensive coverage at an affordable cost with three rider options

Benefits of SBI Life Shubh Nivesh Insurance Plan

Offers two types of insurance plans:

  • Endowment Option: For endowment plans, the payout benefit that can be availed during the policy term includes the basic sum assured plus vested simple reversionary bonuses and terminal bonus. Policyholder is eligible for Deferred Maturity Payment option that can be selected at the end of the endowment term.

  • Endowment with Whole Life Option: For this type of insurance plan, the payout benefits comprise of the basic sum assured plus vested simple reversionary bonuses and terminal bonuses after the completion of the policy term, provided the policy is in force. Policyholder is also eligible for Deferred Maturity Payment option, which can be selected after the completion of the endowment term. If the policyholder survives till his/her 100th birthday, he/she will be eligible for the basic sum assured.

Death Benefit under the endowment option:

  • Death before the completion of endowment term provided the policy is in force:

a. For Regular Premium: A or B, whichever is higher, is paid to the nominee:

  • Sum Assured on death + Vested Simple Reversionary Bonuses + Terminal bonus (if any) Sum assured on death is higher of Basic Sum Assured or a multiple of annualised premium; where multiple is:
Policy TermAge at entry of Life Assured less than 45 yearsAge at entry of Life Assured 45 years or more
Less than 10 years55
10 years or more107
  • 105% of all the premiums paid.

b. In the case of single premium payment: Sum assured on death +vested reversionary bonuses and terminal bonus (if any) is paid to the nominee

Sum assured on death is higher of Basic Sum Assured or a multiple of single premium; where multiple is:

Age at entry of Life Assured < 45 yearsAge at entry of Life Assured >= 45 years
1.251.1

Endowment with Whole Life Option

In case of death before the completion of endowment policy term, provided the policy is in-force:

  • Death Benefit that will consist of the total sum of sum assured on death, vested simple reversionary bonuses and terminal bonus (if any) will be paid to the nominee

  • Death post the completion of the endowment plan tenure and up to 100 years of age:

    • Basic sum assured benefit is payable to the nominee
    • Balance amount of Deferred Maturity Payment Option, in case it has been availed and if any, is payable to the nominee. The nominee is offered the flexibility to take the remaining installments in lump sum in the form of equal installments to the discounted value of the remaining installments.

Other Benefits through Deferred Maturity Payment Option

This serves as an effective option for receiving stable and reliable source of income at regular intervals. After the completion of the endowment term, the policyholder can either withdraw the entire sum assured along with the accumulated bonuses, or withdraw the bonus only while the basic sum assured can be drawn as income at regular intervals over a certain pre-determined time period of 5 years or 10 years or 15 years or 20 years. Income is payable at the frequency of your preference – yearly, half-yearly, and quarterly or monthly.

Eligibility & Annual Premium Details - SBI Life Shubh Nivesh Insurance Plan

How SBI Life Shubh Vivesh Plan Works?

Under this SBI Life Shubh Nivesh policy, an applicant can select between an endowment plan, and an endowment with whole-life cover, as per his/her preference. Further, he/she can also choose between the premium payment frequencies – regular or single premium for a policy tenure ranging between 5 years and 30 years. On the maturity of the policy tenure, that is, after its completion, he/she is eligible for receiving a maturity benefit. This benefit can be paid in two ways, as the policyholder’s preference –

  • Lump sum that includes the basic sum assured and accrued bonus
  • Regular periodic payouts or deferred payout, which includes the accrued bonus payable after the completion of the policy tenure, while the sum assured is payable over the deferred payout period of 5 years / 10 years / 15 years / 20 years.

Riders in SBI Life Shubh Nivesh Plan

  • SBI Life - Preferred Term Rider (UIN: 111B014V02): The Preferred Term Rider Sum Assured is payable in addition to normal death benefit
  • SBI Life - Accidental Death Benefit Rider (UIN: 111B015V02): In case of death due to an accident, the rider Sum Assured is payable in addition to normal death benefit
  • SBI Life - Accidental Total and Permanent Disability Benefit Rider (UIN 111B016V02): The rider Sum Assured will be paid on the Life Assured being found eligible for the Total Permanent Disability Benefit as defined in the policy document.

Inclusions of SBI Life Shubh Nivesh Insurance Plan

It offers loan benefits of a maximum of 90% of the SSV, which is the SSV Factor * Paid-up Maturity Value.

Exclusions of SBI Life Shubh Nivesh Insurance Plan

  • Claims cannot be made in case of suicide committed within a year of the commencement of the SBI Life Shubh Nivesh Insurance policy
  • Self-inflicted injuries
  • Disability or death arising due to certain specific infection, except those caused by accident injuries and wounds
  • Disability or death caused due to driving under the influence of alcohol, drugs or psychotropic substance
  • Disability or death as a result of flying activity when the policyholder is not a commercial licensed pilot
  • Disability or death caused due to the policyholder’s criminal activities
  • Specific incidence like war and nuclear contamination
  • Disability or death due to hazardous sports activities

Tax Benefits in SBI Shubh Nivesh Plan

Premiums of up to Rs. 1.5 lakh are eligible for deduction from the policyholder’s annual taxable income as per Section 80C of the Income Tax Act, 1961. The maturity benefit is tax free under Section 10(10D) of the Income Tax Act, 1961 on the fulfilment of certain terms and conditions.

FAQ on SBI Shubh Nivesh Plan

What is SBI Life Shubh Nivesh plan?

The following are the features and benefits offered by SBI Life Shubh Nivesh plan:

  • Offers two types of insurance plans - Endowment Plan, and Endowment with Whole Life option
  • Life cover ranges to a maximum of 30 years or whole life
  • Includes reversionary bonuses throughout the policy tenure
  • Offers the flexibility of choosing between two payout options for the basic sum assured on the completion of the policy tenure - lump sum, or stable and regular source of income
  • Offers three rider options, available on nominal premium over the premium of the basic plan, to enhance its effectiveness

When does SBI Life Shubh Nivesh policy offer surrender benefits?

The surrender benefit on SBI Shubh Nivesh is offered after completion of pre-defined number of policy years. For policyholders who have opted for regular premiums, the Surrender Benefit is offered after 3 years, while for single premiums, the benefit is applicable after 1 year.

Guaranteed Surrender Value for regular premium is 30% of all premiums, payable on the premium for the first year Guaranteed Surrender Value for single premium is 70% of the single premium paid for the second and the third year. The surrender value is 90% thereafter.

What are the rider options under SBI Life Shubh Nivesh Plan?

  • SBI Life - Preferred Term Rider (UIN: 111B014V02): The Preferred Term Rider Sum Assured is paid over and above the normal death benefit.
  • SBI Life - Accidental Death Benefit Rider (UIN: 111B015V02): In case of an accidental death, the sum assured is paid as normal death benefit.
  • SBI Life - Accidental Total and Permanent Disability Benefit Rider (UIN 111B016V02): The rider sum assured is paid to the life assured when he/she is found eligible for the Total Permanent Disability Benefit, as per the terms mentioned in the policy document.

Can one take a loan against SBI Life Shubh Nivesh Policy?

Loan facility can be availed against the SBI Shubh Nivesh insurance plan after it acquires the Surrender Value.

  • Loan will not be more than 90% of the Special Surrender Value
  • The loan interest rate is revised by SBI from time to time
  • The policy will be assigned to SBI and will be in force till the entire loan along with the interest is repaid
  • SBI reserves the right to take a final call on the loan amount and defer the granting of the loan for not more than 6 months from the date of loan application against SBI Life Shubh Nivesh
  • In case the policyholder fails to pay the outstanding loan, including the interest, within the pre-determined due dates, and this amount exceeds the Surrender Value:
  • The loan will be foreclosed automatically by SBI
  • SBI will pay the residual value of the SBI Life Shubh Nivesh insurance policy
  • The benefits accrued against the loan will cease to exist and the insurance contract will get terminated automatically