• Term Life
  • Investment

Introduction Of SBI Life Insurance

SBI Life Insurance provides a wide range of life insurance products to cater to the Indian market to meet different type of insurance needs of the people. It provides individual as well as group plans.

The SBI Life Insurance Company Limited is a joint venture between the State Bank of India and BNP Paribas. It is one of the most significant players in the Indian Insurance sector. It has nearly 23000 branches across the nation to provide insurance purchase and claim settlement support to its customers

SBI Grameen Bima Term Plan

If you are the breadwinner of your family and they look up to you for their daily requirements, it is needless to say that your presence means their comfort and financial well-being. SBI Life – Grameen Bima is a hassle-free, simple, non-participating pure term life insurance plan that provides financial stability and security to your family in case of your unfortunate demise.

SBI Life Grameen Bima is a micro-insurance policy specially designed for the weaker section of the society. The primary purpose of this policy is to cover the poor section of the society at a low cost.

Features of SBI Grameen Bima Term Plan

Following are some key features of SBI Grameen Bima Plan.

Free look period: SBI Grameen Bima Policy offers a free-look period of 15 days within which the policyholder can cancel the plan and get the refund. For the policies purchased through distance marketing, the free-look period is for 30 days. The proportionate premium for the risk period of cover, stamp duty and corresponding service tax and cess will be deducted from the refund.

Loan facility: No loan facility is applicable under this plan.

Assignment: Assignments are allowed under Section 38 of The Insurance Act, 1938.

Nomination: Nominations are allowed under Section 39 of the Insurance Act, 1938.

Benefits of SBI Grameen Bima Term Plan

Following are the benefits offered by SBI Grameen Bima Policy.

Death benefit: In the event of the death of the life insured, the guaranteed death benefit is given to the nominee. The death benefit is payable only when the policyholder dies during the policy term.

Maturity benefit: SBI Grameen Bima is a pure term insurance plan, and it does not provide any maturity benefit.

Surrender benefit: Policyholder has an option to surrender the policy under SBI Grameen Bima plan. The surrender benefit depends on the year of surrender and the policy tenure. Surrender option is available after completion of the second year from the inception of the policy. It is important to note that no surrender value is payable in the last year of the policy.

Surrender value = single premium x 50% x unexpired policy term / total term.

Eligibility criteria of SBI Grameen Bima

ParameterEligibility details
Plan typeNon-linked, pure term plan
Minimum entry age18 years
Maximum entry age50 years
Policy term50 years
Sum assuredMinimum: Rs. 10,000 ; Maximum: Rs. 50,000
Premium amountMinimum premium amount: Rs. 300, Maximum premium amount: Rs. 2000 (The premium amount will be in multiple of Rs. 100.)
Premium frequencySingle premium

Plans offered by SBI Grameen Bima Term Plan

The policyholder is given an option to select the sum assured under SBI Grameen Bima plan. The policyholder needs to choose the sum assured at the time of inception of the policy. The minimum coverage amount is Rs. 10,000 and maximum coverage can go up to Rs. 50,000.

Age bandSum assured
18-3960 times of the total premium paid
40-4440 times of the total premium paid
45-5025 times of the total premium paid

Other details of SBI Grameen Bima

Rider/add-on plans: Policyholders can enhance their policy coverage by adding riders to it. It is important to note that while issuing the SBI Life Grameen Bima plan, the riders will not be available. However, the company may provide riders under this plan in the future which is subject to approval from the regulatory board.

Tax benefits:

  • Contributions made towards the SBI Life Grameen Bima plan are eligible for tax benefits under Section 80C of the Income Tax Act 1961.
  • The death benefit is exempted from the tax under Section 10 (10D) of the Income Tax Act 1961.

Product details

SBI Life – Grameen Bima plan at a glance.

ParticularMinimumMaximum
Age at entry18 years50 years
Policy term5 years -
Premium amountRs. 300Rs. 2000
Premium frequencySingle -
Sum assuredRs. 10,000Rs. 50,000
Plan optionsAge band
18-39
40-44
45-50
Sum assured
60 times of total premium paid
40 times of total premium paid
25 times of total premium paid

Premium details

ParticularMode of Payment
Premium frequencySingle payment
Premium amountMinimum: Rs. 300, Maximum Rs. 2000

Documents required for SBI Grameen Bima Term Plan

Documents required to process SBI Grameen Bima policy include:

  • Age proof: Driving license, school/college certificate, Passport, PAN card, birth certificate.
  • Identity proof: Passport, voter ID card, a letter from recognised public authority with photograph verifying the identity and address.
  • Address proof: Electricity bill, telephone bill, Bank account statement, Aadhar card, Passport, voter ID card.

Apart from this, the customer has to fill up an application form with accurate medical history.

Review of SBI Grameen Bima

The State Bank of India offers various insurance plans for individuals and their families. The Grameen Bima plan is a pure term plan which provides financial security for your family at a reasonable cost. Under this scheme, the policyholders are entitled to life cover with the single premium payment. No medical examination is required to purchase SBI Grameen Bima plan. Further said, the policyholders are also eligible for tax exemptions under Section 80C and 10(10D) of the Income Tax Act 1961.

The Grameen Bima plan is for five years with a minimum entry age of 18 years and the maximum entry age of 50 years. The minimum sum assured under this scheme is Rs. 10,000 whereas the ceiling limit for the sum assured is Rs. 50,000. For different age bands, the sum assured differs.

There is no medical examination required to purchase The Grameen Bima plan. As this plan targets the poor section of the society, there is minimal documentation is required.

You can consider SBI Grameen Bima plan if you have limited means of earning and you are the breadwinner of our family. You can keep your loved ones financially secure if something unfortunate would happen to you.

FAQs on SBI Life Grameen Bima Term Plan

Why should I buy SBI Grameen Bima Plan?

SBI Grameen Bima plan is specially designed for the poor section of the society. If you are the only earning member of the family and want to secure your family from the financial crisis in your absence, this plan can be your helping hand.

Is medical exam required to buy SBI Grameen Bima Plan?

No medical examination is required to buy SBI Grameen Bima Plan.

What riders are available under SBI Grameen Bima Plan?

Riders are not available at the time of policy commencement. However, the company can add riders in the future.

Can a loan be taken under SBI Grameen Bima Plan?

Loan facility is not available under SBI Grameen Bima Plan.

What are the survival benefits?

Since SBI Saral Shield is a term plan where no survival benefits are payable to the policyholder.

How to buy SBI Grameen Bima Plan?

SBI Grameen Bima Plan can be bought by filling up an application form that requires minimal information pertaining to personal information and basic questions on the health of the customer.

What value can I get if I surrender the policy?

The surrender option is applicable after the second year from the policy commencement. Surrender value = single premium x 50% x unexpired policy term / total term.

What are the advantages of Grameen Bima Plan?

Below listed are the advantages of Grameen Bima Plan.

  • The policy provides protection at an affordable cost. You can choose the premium you can pay.
  • The policy does not require any medical examination. The application would be accepted based on satisfactory health declarations in the application form.