Introduction/Overview
SBI Life ‘Saral Swadhan Plus’ is a non-linked, non-participating term plan that provides options of premium return, where the premiums paid are returned on the maturity of the policy. Therefore, the plan guarantees the protection of the capital invested as well as provides comprehensive coverage at competitive rate.
SBI Life Saral Swadhan Plus - Key Features
- Non-participating term plan with a fixed premium paying term of 10 years.
- Sum Assured is calculated as the multiple of annual premium and depends on the term chosen and age at entry.
- The plan provides life cover at affordable premium based on entry age and policy term.
- It is easy to purchase the policy online.
- The plan offers tax benefits under Section 80C and 10(10D) of the Income Tax Act, 1961.
SBI Life Saral Swadhan Plus - Benefits
- On maturity, 100% or 115% of the premiums paid is returned. The percent depends on the policy term of 10 or 15 years respectively.
- On death, the nominees are paid the sum assured amount as per the plan.
- Policyholders are eligible to receive tax benefits under Indian Income Tax Act on all the premiums paid and the claim amounts as per section 80C and 10(10D).
SBI Life Saral Swadhan Plus - Product Specification
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Minimum
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Maximum
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Entry Age (Last Birthday)
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18 years
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55 years
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Maturity Age (Last Birthday)
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-
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70 years
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Policy Term (PT) in years
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10 or 15
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Premium Paying Term (PPT) in years
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10
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Premium Paying Frequency
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Annual
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Yearly Premium
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1500
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5000
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Sum Assured
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30,000
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475,000
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SBI Life Saral Swadhan Plus - Premium Details
Annual premium (Rupees) and the Sum Assured for a male aged 30 years:
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Premium
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Sum Assured for 10 years term
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Sum Assured for 15 years term
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3000
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240,000
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285,000
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4000
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320,000
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380,000
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5000
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400,000
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475,000
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SBI Life Saral Swadhan Plus - Policy Details
- Grace Period: On failure of the premium payments on the premium due date, the policyholder is provided with a 30 days grace period within which he/she can pay his /her premiums. If the policyholder fails to pay his premiums even within the grace period, then the policy is subject to lapse.
- Policy Termination or Surrender Benefit: Policyholders can surrender the policy, only if premium has been paid for 3 full years. Typically, the Surrender Value is higher of the Special Surrender Value or the Guaranteed Surrender Value.
- Free Look Period: After receiving the policy documents, if the policyholder feels that he/she is not satisfied with the coverage provided or the terms & conditions of the policy; then, he/she is free to cancel his/her plan within the time period of 15 days of receiving the policy documents, if no claims have been done yet.
Exclusions
In the event of suicide committed by the insured within the first 12 months of the inception of the policy, only 80% of the total premiums paid are refunded to the nominee. In case of suicide within the first 12 months of policy renewal, higher of 80% of premiums paid or acquired Surrender Value is paid.
Documents Required
In order to purchase this policy, the policyholder has to submit an insurance application form / proposal form with correct address proof and proper medical health history with other KYC documents. The policyholder has to submit his Income proof as per the age of the insured and the sum assured chosen.
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Frequently Asked Questions:
Q 1: What are the non-forfeiture benefits provided by the plan?
Ans: Below are the surrender benefits available under the plan:
- The policyholder can anytime surrender his policy during the policy term, given if the policyholder has paid at least 3 years of his premiums.
- The policyholder is paid a higher of, Non-Guaranteed Special Surrender Value or the Guaranteed Surrender Value, if he decides to surrender his policy.
- The Guaranteed Surrender Value shall be as follows:
- If the policy is surrendered in the 3rd policy year, then 30% of the total premiums paid.
- If the policy is surrendered in the 4th and 7th policy year, then 50% of the total premiums paid.
- If the policy is surrendered in the 8th and 10th policy year, then 60% of the total premiums paid.
- If the policy is surrendered after 10th policy year, then 65% of the total premiums paid.
- The Special Surrender Value shall be the best-estimated policy value at the time of surrender. The policy value shall be estimated periodically according to the financial and other circumstances.
- If the policyholder surrenders his/her policy, then a higher of the Guaranteed Surrender Value and Special Surrender Value shall be paid.
- On policy surrender, all the policy rights shall be dismissed along with the applicable policy benefits.
Q 2: What are the conditions for making policy claims on the death of the insured?
Ans: Below are the conditions for making the death claims under the plan:
- The policyholder or his nominee or his legal heir should send documented information about the death of the insured individual, mentioning the policy number with the cause and date of death.
- The company requires the following documents to process the claims further:
- Original policy documents.
- Original death certificates from authorized bodies.
- Claimant’s statements and claim forms in prescribed format.
- Any other policy documents including the post-mortem report, first information report, where applicable.
- Claims under the policy can be filed within 90 days of the date of death.
Q 3: What are the conditions on making the claims on the maturity of the policy?
Ans: Below are the conditions for making claims on policy maturity:
- The policyholder is required to submit the original policy documents and the discharge form to further process the surrender request.
- If the policyholder assigns an “Assignee”, then the maturity claims shall be paid to the Assignee.
- If the policyholder does not assign an “Assignee” for his policy, then the maturity claims shall be paid to the policyholder.
Q 4: What are the conditions on making claims while policy surrender?
Ans: Below are the conditions for making claims while surrendering his policy:
- The policyholder has to submit the policy documents and a discharge form to process the surrender request.
- If the policyholder assigns an “Assignee”, then the surrender value shall be paid to the Assignee.
- If the policyholder does not assign an “Assignee” for his policy, then the surrender value shall be paid to the policyholder.
- In the case of the death of the policyholder after the surrender request, the surrender value shall be paid to his legal heir or the beneficiary.
Q 5: What are the conditions of policy termination?
Ans: The policy shall terminate on early occurrence of any of the following events:
- On payment of the death benefit.
- On payment of maturity benefits.
- On payment of the surrender value.
- On payment of the free-look cancellation amount.
- On policy being at the lapsed status without acquiring any paid-up value and expiry of the renewal period.
Written By: PolicyBazaar - Updated: 12 October 2016
