SBI Life RiNn Raksha

This plan provides coverage for a home loan, personal loan, education loan or vehicle loan. SBI Life RiNn Raksha helps you to begin your loan journey with flexible options, budget-friendly premiums and coverage for co-borrowers, giving you peace of mind and financial security.

Key Features of the SBI Life RiNn Raksha

Below are the key features offered by this credit life insurance plan:

• The plan covers the outstanding loan amount in case of the borrower’s death, as per the loan’s amortization schedule and agreed interest rate.

• The premium can be added to the loan amount, so borrowers don’t have to make a separate payment.

• A moratorium period of 3 months to 6 years is available during which disbursements may be staggered and the cover may remain constant or increase depending on terms of interest payments.

• Borrowers can select the loan cover term as per their requirement, with a minimum of two-thirds of the total loan tenure for loans of 15 years or more.

• The financial institution can also cover existing borrowers for the life of the loan.

• This SBI Life Insurance plan allows coverage for up to two co-borrowers along with the primary borrower, with the option to insure each for the full loan amount or for their respective share.

• Premiums can be paid as a single payment or as regular payments for 5 or 10 years, with the choice of yearly, half-yearly, quarterly, or monthly modes.

• Borrowers can also choose Gold or Platinum options for additional protection against changes in floating interest rates.

• The plan does not offer any maturity or survival benefit.

• Premiums paid under this plan may be eligible for tax benefits as per prevailing income tax laws.

Eligibility Conditions for the SBI Life RiNn Raksha Plan

Here are the eligibility conditions for SBI Life RiNn Raksha credit life insurance plan:

The minimum death benefit will be at least 105% of the total premiums paid up till the date of death.

SBI RiNn Raksha Premium Calculator

SBI Rinn Raksha Premium Calculator is a tool to calculate the premium payable for SBI Life RiNn Raksha. Factors that can impact the SBI RiNn Raksha premium amount include:

• Age of Borrower

• Amount of loan

• Coverage period

• loan tenure

• Premium payment option, e.g., single or regular premium

Add your loan and borrower information in the SBI RiNn Raksha calculator to receive an estimated premium and see how much your loan protection cover will cost.

Floating Interest Rate Options Under SBI Life RiNn Raksha

RiNn Raksha SBI Life offers flexibility to manage loans with floating interest rates through two options, Gold & Platinum

• Gold Option:
  Under this option, the benefit amount payable in case of the borrower’s death is equal to the loan outstanding at that time, calculated based on the floating interest rate offered by the lending institution.

• Platinum Option:
  This option provides added security by ensuring that the benefit amount payable in case of death is based on the floating interest rate, but never less than the outstanding loan amount calculated at the fixed interest rate decided at the start of the policy.

What are the General Conditions for the Floating Interest Rate Option?

• According to the option chosen, when the interest rate changes, the amount payable would be recalculated. The loan outstanding will ve calculated by keeping the EMI same as at the time of inception and the original repaynent schedule would be revised based on the changed interest rate. However, if at any time the loan interest exceeds the EMI, the payable amount on death will remain at the same level as in the previous period.

• These options are available only if the cover term is five years or more.

• Fluctuations of up to ±600 basis points from the original fixed interest rate will be considered while calculating the benefit.

• Any increase in the loan outstanding due to EMI defaults will not be covered.

• The cover will end at the completion of the policy term decided at inception, even if the loan remains unpaid due to interest rate fluctuations.

• If loan repayment is not on a monthly basis, the same methodology will apply for other payment frequencies.

• A complete history of interest rates during the loan period will be required at the time of claim.

General Policy Details of the SBI Life RiNn Raksha

• Flexibility of Options: All product features under this plan will be chosen by the Master Policyholder. Only features chosen by the master policyholder will be made available to the group members, based on eligibility. A group member has the flexibility to choose from the options and features made available by the MasterPolicyholder

• Grace Period: A grace period of 15 days (for monthly premiums) and 30 days (for other modes) is allowed. The member policy remains active during this period. If the premium is not paid within the grace period, the policy will lapse.

• Premium Payments: In case the insured member has paid the premium to the Master Policyholder but it is not passed on to the insurer, a valid claim will still be paid after the payment proof has been verified and after the Master Policyholder has paid the pending premium. SBI Rinn Raksha premium amount is determined by the cover amount, policy term, age of the insured member and the coverage opted for.

• Nomination: The Master Policyholder must collect nominations from members as per Section 39 of the Insurance Act, 1938, as amended from time to time.

• Claims: The Master Policyholder may be authorized by Members to receive claim proceeds. Where this is the case, the insurer shall pay the outstanding loan balance to the Master policyholder and balance amount to the nominee or beneficiary. If there is no such nomination, the whole claim amount will be payable directly to the nominee or beneficiary. This is applicable only if the Master Policyholder is a regulated lending institution as per RBI, NHB or other approved authorities.

• Assignment: Assignment of the policy will be governed by Section 38 of the Insurance Act, 1938, as amended.

• Lapse and Revival: For regular premium (LP) policies, if premiums are not paid within the grace period, the policy will lapse. It can be revived within 5 years from the date of the first unpaid premium, subject to applicable rules.

• Paid-up Value: After the first year’s premium is paid, the policy acquires a paid-up value. In the event of the insured’s death, a reduced sum assured will be payable. Paid-up policies can also be surrendered.

• Surrender Value: Available anytime after payment of the first year’s premium. The surrender value is calculated as:
  Surrender Value = 50% × Premium(s) Paid × (Unexpired Term ÷ Total Term)

• Free-look Period There is a 30-day free-look period from the date of receipt of the Master Policy Document or Certificate of Insurance. If the policyholder or member does not agree to the terms and has not made a claim, he/ she can cancel the policy and get refund of the premium paid after deduction of proportionate risk premium, stamp duty and medical expenses (if any).

• Pre-closure of Loan: In case of pre-closure of the loan by a member, he may surrender the cover and avail the surrender benefit, if any, or carry forward the cover for the balance policy term.

• Cancellation of Loan: In case the loan is cancelled or not taken up by the proposed member after sanction within 90 days from the issuance of the Certificate of Insurance, the member may cancel the cover. On submission of the COI, SBI Life shall refund 90% of the premium paid, excluding taxes and cess, after deducting expenses towards stamp duty.

• Termination of Insurance Cover: The insurance cover will automatically end on the earliest of the following:

  • The date the member requests to end the cover.

  • The end of the policy term.

  • The death of the insured member.

  • The date of free-look cancellation.

  • The date when surrender value (if any) is paid.

  • The end of the grace period, if due premiums remain unpaid and no paid-up value exists.

  • The date when the member reaches the maximum cover cessation age.

  • If all co-borrowers are covered for the full loan amount and the death benefit is paid on one borrower’s death, the cover for surviving co-borrowers will cease, and any applicable surrender value will be paid.

• Termination of Master Policy: If the Master Policy is terminated, life cover for existing members will continue until the end of their individual policy term, provided all due premiums are paid or until surrendered.

Suicide Exclusions

In the event of the suicidal death of the life assured within 12 months from the date of commencement of risk of the member, the nominee will receive 80% of the total premiums paid till the date of death, given that the policy is still in force.

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