Life Insurance: Rs 8,587.13 Monthly Premium To Offer These Benefits At SBI Life's Saral Jeevan Bima Plan

SBI Life Insurance's Saral Jeevan Bima plan is an Individual, Non-Linked, Non-Participating Life Insurance Pure Risk Premium Product. On the monthly premium amount from a minimum of Rs 120.28 to Rs 8,587.13, this life insurance plan offers sum assurance to the tune of Rs 5 lakh to Rs 25 lakh. The key feature of this life insurance plan is to provide security for families with a standard term plan at an affordable cost. Further, it offers the convenience of paying a premium once, regularly or for a limited (5/10 years) period. There are also tax benefits under the plan.

The minimum age entry for the plan is 18 years which can maximum up to 70 years. The policy term is for a minimum of 5 years to 40 years.

Under the policy terms, there are four types of premium payment options --- 1) regular premium which has a policy term of 5 to 40 years; 2) limited premium: 5 years; 3) limited premiums: 10 years; and 4) single premiums.

The basic sum assured is a minimum of Rs 5 lakh to a maximum of Rs 25 lakh. While the premium frequency loading is -- Half-Yearly: 51.00% of the yearly premium; and Monthly: 8.50% of the yearly premium.

Under SBI Life's Saral Jeevan Bima, the minimum premium amounts are --- Rs 5,480 in the single premium option; Rs 1,415 yearly option; Rs 721.65 half-yearly, and Rs 120.28 monthly. The maximum premium amount is -- Rs 4,15,475 in single; Rs 1,01,025 in yearly; Rs 51,522.75 in half-year; and Rs 8,587.13 monthly. Notably, the maximum premium shall be subject to a board-approved underwriting policy.

For instance, if you pay a premium of Rs 8,587.13 on a monthly basis, here are the host of benefits a policyholder will get:

- On the death of the life assured, during the policy term, after the expiry of the waiting period or due to an accident during the waiting period, the nominee/beneficiary will receive the Sum assured on death, in a lump sum which is:

For Regular & Limited Premium payment policies, it is the highest of: 10 times the Annualized premium; or 105% of all premiums paid as on the date of death; and or the Absolute amount assured to be paid on death.

For Single premium policies, it is higher than 125% of the Single premium; or the absolute amount assured is to be paid on death.

- The policy offers 30 30-day grace period from the premium due date where the mode of payment of Premium is yearly or halfyearly and 15 days in case of monthly for the payment of each renewal premium. The policy will remain in force during the grace period. If the premium is not paid before the expiry of the days of grace, the Policy shall lapse.

- Revival Facility (Applicable for Regular Premium and Limited Premium Payment Policies). Under this, if the Policy has lapsed due to non-payment of due premium within the days of grace, it may be revived during the lifetime of the Life Assured, but within the Revival Period of 5 consecutive years from the date of the first unpaid premium and before the date of maturity, as the case may be, on payment of all the arrears of premium(s) together with interest at a rate.

- Free Look Period: The policy has a free look period of 15 days (30 days in case of electronic policies and policies obtained through distance mode) from the date of receipt of the policy document, to review the terms and conditions of the policy and where you disagree to any of those terms and conditions, you have the option to return the policy to the company for cancellation, stating the reasons for objection. You will be entitled to a refund of the premium paid subject only to the deduction of a proportionate risk premium for the period of cover and expenses incurred by the company on medical examination of the Proposer and stamp duty charges.

- There is also a waiting period of 45 days from the date of commencement of risk is applicable. In case of revival of Policy, the Waiting Period shall not be applicable. This policy will only cover death due to an accident during the waiting period of 45 days from the date of commencement of risk. In case of death of the life assured other than due to accident, during the waiting period, an amount equal to 100% of all premiums excluding taxes, if any, shall be paid.

Here's an illustration by SBI Life:

For instance, Mr Kumar, a healthy 35-year-old, opts to pay a regular premium of 11,480 p.a (excluding taxes) for a Sum Assured of Rs 20,00,000 for a policy term of 30 years. He will be required to pay the annual premium for 30 years or till the policy terminates, whichever is earlier.

However, in case of an unfortunate event of death of the life assured during the policy term, a Sum Assured equal to Rs 20,00,000 will be paid to the nominee/ beneficiary, as the case may be.