SBI Life Insurance is a joint venture between State Bank of India (SBI) and BNP Paribas Assurance. SBI Life is currently the biggest private sector insurance company in India with a 6.12% share of the total market. The company offers its customers a comprehensive range of life insurance and pension products at competitive prices.
SBI Life operates with a unique multi-distribution model encompassing Bancassurance, Retail Agency, Institutional Alliance and Corporate Solutions distribution channels. Coupled with SBI’s access to over 100 million accounts across India, SBI Life uses this relationship to provide insurance products to customers from all walks of life.
Key Highlights of SBI Life Insurance
1 Crore Life Cover
Get 1 Cr Life cover @ ₹ 18*/day
Claim Settlement Ratio
Claim-settlement ratio of 89.43% for year 2014-2015
99.88% Grievances Settled for year 2014-2015
To be eligible for SBI Life Insurance
You should be at least 18 years old
You should be less than 65 years old
You should be either Salaried, Self- employed, a professional or have your own business
SBI Life Insurance at a Glance
A maximum tenure of 30 years
Min Sum Assured: Rs 20 Lakhs
Max Sum Assured: No limit subject to underwriting
Specific exclusions: Suicide within the first 12 months
Documentation needed to apply for an SBI Life Insurance
- 1. Identity Proof
- 2. Age Proof
- 3. Income Proof
- 4. Address Proof
- 5. PAN Number
SBI Life Insurance Plans in India
- SBI Life Insurance Unit Linked Plans:
Unit linked plans are meant for those people who want to invest in life insurance but still have a bit of an appetite for risks on investments. These plans use a part of the premium to provide insurance cover while the remainder is invested in the market. The plans offered under this scheme are:
- SBI Life Smart Wealth Builder :This is a non-participating unit linked life insurance plan that has been designed to make sure that you can invest as much as you can afford and still manage to watch your wealth grow. The design of the scheme offers policyholders the flexibility to decide their premiums, the policy tenure and even the mode of payment of premiums.
- SBI Life Smart Wealth Assure :This too is a non-participating ULIP which offers investors the advantages of a life insurance policy and an opportunity to invest in the markets via various funds to help their wealth grow. It is a single premium payment scheme that allows for partial withdrawals that can be used to meet financial obligations that may arise at a later stage.
- SBI Life Saral Maha Anand :The Saral Maha Anand scheme is a unit linked, non-participating life insurance plan which allows you to invest in accordance with your appetite for risk. It even lets you decide how much insurance you want to cover yourself which is subject to certain min and max amounts.
- SBI Life Smart Scholar:This is a ULIP that is aimed at those who want to make sure that the needs of their families are taken care of even if they are not around. It offers the beneficiary the benefit of the payment of the sum assured under the policy and a waiver of premiums so that policy remains in force even in the unfortunate event of the death of the policyholder.
- SBI Life Smart Elite:This is unit linked policy that offers life insurance cover of 7 to 10 times the annual premium paid. It also allows for premiums to be paid under the single pay scheme. The benefits of this policy include the option to increase or decrease the insurance cover and cover for accidental death or accidental total permanent disability.
- SBI Life Smart Power Insurance:This ULIP offers investors life insurance cover and investment opportunities at affordable premiums. It also offers liquidity options by letting investors make partial withdrawals and a choice between a level cover or an increasing cover scheme.
- SBI Life Insurance Child Plans:
If you have children then there is no doubt that you have thought about their future and how you can provide for them in the unfortunate event that you are not around. To address such concerns the following plans are offered
- SBI Life Smart Champ Insurance:This is a life insurance policy that can be taken to make sure that the future of your child is secured against all eventualities. This plan offers investors benefits like lump sum payments in 4 installments once your child attains the age of 18 years, waiver of premiums and the opportunity to pay the premium in one go.
- SBI Life Smart Scholar:This insurance plan offers a double death benefit of the payment of the sum assured and a waiver of the remaining premiums. It also offers accidental death and total permanent disability benefits along with partial withdrawal benefits.
- SBI Life Insurance Pension Plans:
The fact of life is that you are not going to be working for the rest of your life. So what happens to your income when you do stop working? The best way to answer that question is to go in for pension plans like:
- SBI Life Saral Pension :It’s never too late to put something aside for retirement and that is why this plan offers investors guaranteed simple reversionary bonuses, maturity bonus which is the sum assured plus the simple reversionary bonus plus terminal bonus if any. This plan can also be associated with various riders that help enhance the life insurance cover provided.
- SBI Life Retire Smart :This is a non-participating unit linked pension plan that invests your money into various funds and guarantees a minimum return of 101% of all premiums paid. It also offers boosted fund value through additions of up to 210% of the annual premium paid subject to certain conditions.
- SBI Life Annuity Plus :The Annuity Plus is a non-participating immediate annuity plan that offers the insured a regular income from the age of 40 years with the option to choose the frequency of annuity payouts. This plan can also be enhanced by purchasing the accidental death rider. The plan also offers a return of premium or a return of balance premium options.
- SBI Life Term Insurance Plans:
Protection plans can be term plans that make sure that, even if you are not there anymore, your family’s financial future is secure. The protection plans offered by SBI are:
- SBI Life Smart Shield: This is a term plan that offers a large sum assured for a nominal premium. It can also be coupled with various rides that enhance the cover this plan provides. It also includes rewards for leading a healthy life. The plan can also be taken as level or increasing term assurance or decreasing term assurance to secure a loan you may have taken.
- SBI Life Saral Shield: This is a traditional term insurance plan that can be taken to ensure that in the unfortunate event of your death, your family is well taken care of. This plan features single premium payment and regular payment options and can be enhanced by the addition of certain riders.
- SBI Life eShield:This is a non-linked and non-participating term plan that has, as its main feature, the option to purchase the life insurance plan online.It too offers rewards for leading a healthy life and accidental death benefits. It is a plan that will offer your family financial security for premiums that are very affordable. This plan is offering 1 crore life cover.
- SBI Life Grameen Bima: This is an individual, micro insurance term plan that is meant to provide the financially weaker segments of society with an opportunity to secure themselves against tough times. This insurance plan does not require health checkups and offers an insurance cover that can be as high as 60 times the total premium paid.
- SBI Life Endowment Plans:
A savings plan is a life insurance plan that can offer you a double advantage. Not only does such a plan provide you with a life cover but it also provides a regular inflow of funds. The plans on offer under this scheme are:
- SBI Life Smart Income Protect :This is an insurance plan that offers two benefits to the insured. The first is that they are provided with a life insurance cover and the second is that they get the benefit of a regular income. The policy also offers reversionary and terminal bonuses along with a guaranteed payouts of 11% of the sum assured for 15 years after the policy matures.
- SBI Life Smart Guaranteed Savings Plan :This is a non-participating savings plan that offers guaranteed additions that are calculated at a rate of 5.5% to 6% and are applied to the cumulative basic premiums that have been paid. They also offer the option to pay premiums only for 7 years.
- SBI Life Smart Money Back Gold :This traditional money back plan offers the advantages of a life insurance policy with an income coming in at regular intervals. The insurance cover under this scheme can be enhanced using a wide range of riders available for this plan.
- SBI Life Shubh Nivesh : This scheme is a non-linked profit endowment assurance plan that offers the flexibility to turn this policy into a whole life insurance policy. It also offers benefits like a choice between single premium payment or regular premium payment options and options to receive the basic sum assured over a period of time.
- SBI Life - Smart Humsafar : A joint life insurance plan with savings options where a person and his/her spouse can be covered under a single policy. With death benefits, this plan also offers maturity benefits in case either or both partners survive till the policy period.
- SBI Life - Smart Money Planner : A limited premium paying individual non linked plan that offers profit endowment and guaranteed cash inflows at regular intervals which also doubles up as a life cover in case of the unfortunate event of the demise of the life insured with tax benefits as per the Income Tax Act of 1961.
- SBI Life - CSC Saral Sanchay : Offered through the Common Service Centre Network under the National eGovernance Plan of India, this is a non-linked, non -participating, variable insurance plan that offers an option of savings too, along with a death benefit that would be paid in case of the unfortunate demise of the life insured.
- SBI Life - Saral Swadhan+ : A non-linked, non-participating term assurance plan meant for individuals that provides life cover for a period of 10 years or 15 years and gives a higher return on investment upon survival of the life insured till the maturity period. The premiums and benefits under this plan are eligible for tax benefits.
- SBI Life - Flexi Smart Plus : An individual, participating variable insurance product that can be custom-tailored to change as per the customer’s needs. It offers a host of bonuses on the maturity value as well as a death benefit as per the Gold or Platinum option.
- SBI Life Group Plans:
SBI offers various corporate solutions for the statutory and voluntary needs of employers.
It also helps an organization retain and reward its employees with attractive benefits.
SBI Life Insurance Group Retirement Plans help provide financial stability and protection to the employee’s family.
- SBI Life Kalyan ULIP plus: A fund based group insurance plan. The benefits offered by this plan can be obtained by the master policy holder as well as by each member of the group.
- SBI Life CapAssure Gold:Offered only to employer/ employee groups i.e. to the employers/ state government/ central government who want SBI Life to manage their employees gratuity, leave encashment and superannuation benefit schemes.
- SBI Life Swarna Jeevan: The SBI Life Swarna Jeevan provides higher annuity rates.
- SBI Life Gaurav Jeevan: The SBI Life Gaurav Jeevan is provided for central government/ state government and government agencies who wish to purchase their existing or emerging in respect to annuity payments for compensation to landowners whose lands are being taken.
- SBI Life - Pradhan Mantri Jeevan Jyoti Bima Yojana : As per the Pradhan Mantri Jeevan Jyoti Yojana, this non-linked, non-participating plan is an annually renewable group term insurance that provides a death benefit of Rs. 2,00,000 at an annual premium of Rs. 330 only. No medical examinations are required for getting enrolled in the plan.
Group Protection Plans
SBI Life Group Protection Plans help secure an employee’s family’s financial future in the event of the unfortunate circumstance of death.
- SBI Life Sampoorn Suraksha: A group term insurance plan that can be renewed. It offers excellent protection at affordable rates.
- SBI Life Suraksha Plus: A group insurance scheme like company employers or government institution.
Group Micro Insurance Plans
SBI Life Group Micro Insurance Plans are for customers with small savings and low household income.
- SBI Life Grameen Shakti: A plan to provide life insurance to the underprivileged sections of the society.
- SBI life Grameen Super Suraksha: This is for the rural section and for the underprivileged parts of the society who opt for life insurance protection without maturity benefit.
Group Loan Protection Products
These are affordable plans that help share the burden of your liabilities.
- SBI Life RiNn Raksha: SBI Life RiNn Raksha plan assures that you get to enjoy the simple joys of life like taking a vacation overseas with the family, buying a dream car, building a house without having to worry about liabilities.
SBI Life Insurance FAQs:
- Q. What are the taxes/cess applicable on insurance premium/ULIP charges?
A. Charges such as service tax / GST (for J&K residents) /cess will be charged at the rates notified by the Central or State government on the following:
- For traditional plans:
- Base premium.
- Rider premium.
- Other charges depending on the features of the product in question.
- For ULIPs:
- Mortality charges.
- Policy administration charges.
- Fund management charges.
- Discontinuance / Surrender charges.
- Partial withdrawal charges.
- Other charges depending on the features of the product in question.
- Q. What kind of benefits will my dependents / nominees receive on my death?
- A. There are different cases to consider, depending on when the unfortunate event of your death occurs.
- In case death occurs during the policy term, the nominee/s will be paid Sum Assured, plus bonuses, if any. If the policy incorporates bonuses or participative profits, bonuses will be payable for the number of years premiums were paid.
- In case death occurs due to accident, the nominee/s will be paid double the Sum Assured, if the accidental benefit rider was purchased.
- If death occurs after the maturity date of the policy, the nominee/s will not be entitled to any kind of death benefit.
- Q. Is it possible to pay premiums online?
A. Yes. Log in to the Mypolicy portal, and pick the “Pay Premium Online” option under the Transaction menu. Pick the policy you’re enrolled under and make the payment.
- Q. What are the other ways to make payments online?
A. Premium payments can be made online through Visa, Master, and Diners & American Express cards. Net banking customers can also pay online, if the bank is listed on the site.
- Q. Can advance payments be made for premiums?
- A. This depends on the frequency of premium payments.
- Under the monthly payment frequency mode, advance payments can be made up to 10 days in advance.
- Under any non-monthly payment frequency mode, advance payments can be made up to 30 days in advance.
- Q. What is the procedure to change the address as mentioned in the policy?
A. To initiate the process of changing the address, a written request needs to be sent to the Central Processing Centre, or any SBI Life branch. The request can also be faxed to the insurer.
- Q. What is the procedure to change the percentage of allocation or to switch between funds?
A. To initiate the process of changing the percentage of allocation or to switch between funds, one must furnish and submit the policy servicing form to any SBI Life branch.
- Q. What is the process to change the nominee named to receive benefits in my SBI Life insurance policy?
A. Nominees can be changed at any time by submitting the Change of Nomination form to SBI Life Central Processing Centre, or the closest SBI Life branch office.
- Q. What is the grievance redressal procedure for SBI Life insurance plans?
A. There are 3 levels of grievance redressal:
- Level 1: You can call SBI Life and inform them of your issue. If you don’t receive a satisfactory solution.
- Level 2: In case your grievance is not satisfactorily resolved in level 1, you can contact the Head Grievance Redressal Officer – Client Relationship.
- Level 3: In case the Head Grievance Redressal Officer is unable to satisfactorily resolve your grievance, you may directly approach the Insurance Ombudsman.
News About SBI Life Insurance
Exclusive insurance plan for women launched by SBI
Commemorating International Women’s day which falls on 8th March every year, EBI has launched an insurance scheme specifically targeted towards women. The scheme is called SBI Life - Smart Women Advantage. The scheme is unique because of the critical illness cover it offers with respect to ailments specific to women.
SBI Life - Smart Women Advantage is a participating, traditional, endowment plan which is individual in nature. The plan covers women specific illnesses like childbirth related complications and congenital anomalies. This plan is available in two variants namely Gold and Platinum. The plan has facility to waive off future premiums as soon as the policyholder is diagnosed with any of the listed critical illnesses.
10th April 2016
New insurance plan launched by SBI Life
SBI Life Insurance has launched a new product called SBI Life - Smart Women Advantage. Launched on International Women’s Day, this insurance plan offers life cover, savings and female-specific critical illness benefits.
As an individual traditional endowment plan, it also provides optional benefits of additional pregnancy complication, congenital anomalies (APC & CA) and childbirth-related abnormalities. It also covers other illnesses. The plan also has an in-built premium waiver benefit, where future premiums would be waived off in case the life assured is diagnosed with any of the covered 'major stage critical illnesses.
Having two basic options - Gold and Platinum, tax benefits under Sections 80D and 80C of the Income Tax Act can be availed for premiums paid towards life cover and health benefits.
23rd March 2016
SBI Life Insurance Progression Plans
Life insurance companies across the nations are well benefitted with the presence of a large network and the same can be aptly noticed from the cases of LIC India and SBI Life Insurance. The top contenders in the the nation have a reach of more than 7000 locations in India.
Aiming to up the ante even more, SBI Life Insurance is now going to go ahead and involve the parent company, State Bank of India and its branches into the stream. That will effectively add close to about 16000 more branches through which insurance policies can be offered to potential customers. In addition to that, SBI Life reportedly will be reducing the percentage of new group insurance schemes from 30% to 20% and slow down on singe premium policies so that it can focus more on regular premium policies that allow return visits to the customers, allowing a better rapport and heightened chances of cross-selling. By March 2017, SBI Life also plans to increase the count of its agents to around 1.05 lakhs to facilitate a better infantry in the insurance battlefield.
10th February 2016
SBI Life net profit rises by 26%
New Delhi: The net profit of SBI Life rose by 26% to Rs.197 crore in the third quarter of FY 2015-16. Similarly, assets under management (AUM) of SBI Life rose by 15% to Rs.77,174 crore.
According to MD and CEO of SBI Life Arijit Basu, emphasis on high-quality customer delivery has resulted in the increase of net profit after tax.
SBI Life, a joint venture between BNP Paribas Cardif and State Bank of India, has Rs.2,000 crore as capital and Rs.1,000 crore as paid up capital.
25th January 2016
SBI Life Insurance ranked as second most-valued insurer
In a recent valuation of all insurance providers, SBI Life Insurance has become the second most-valued insurer among others. Valued at Rs 25,000 crore SBI has moved past HDFC to grab the second position.
SBI Life Insurance has a wide distribution network of over 17,000 branches of India's largest bank and its associates, through which it sells insurance. The company, which is a joint venture between BNP Paribas Cardif and SBI took up the valuation process as part of the stake sale to BNP Paribas Cardif. According to reports, SBI will be selling another 10% shares in the joint venture to its foreign shareholder.
14th January 2016
Dena Bank Ties Up with SBI Life For A Group Life Insurance Product
Dena Bank announced their tie up with SBI Life Insurance Company intending to provide Group Life Insurance coverage to their housing loan customers under the 'Dena Grihaswami Suraksha Yojana'. According to the Memorandum of Understanding (MoU), insurance cover will be given to all housing loan borrowers at a very low premium, according to their release.
The insurance cover is limited to outstanding loan amount. In case of death of the borrower during the term of cover, outstanding loan is set off against the policy proceeds settled by SBI Life Insurance. There would be only one premium for the entire period of the loan at the time of entry into the scheme. In case the amount of death claim is over the outstanding loan, the excess is paid to the nominee of the member according to the press release.
22nd December 2015
SBI to become first insurer with IPO
SBI Life may overtake HDFC Life to become the first insurer in the country to hit the capital market with an initial public offering (IPO). SBI Life Insurance has an authorised capital of around Rs 2,000 crore and a paid-up capital of Rs 1,000 crore.
The company's renewal income grew 20% due to new business premium, or income from sale of new policies which increased by 52% to Rs 3,042 crore in the first half ended September. This was driven by demand for individual policies.
The total asset under management for SBI Life is Rs 76,000 crore. Earlier in 2015, HDFC had sold 9% in HDFC Life to Standard Life for Rs 1,700 crore. The total value of the life insurance business was about Rs 19,000 crore, or about 1.9 times the estimated embedded value for the year 2015-16.
13th November 2015
SBI Life plan an Initial Public Offer after their stake sale in March
SBI will divest 10% of their stake in SBI Life Insurance in March 2016, the valuations, and other aspects are being discussion and is scheduled for completion by December of this year. With a net profit of Rs 820 crore in FY15, plans to provide an Initial Public Offer after the stake sale has been completed. It is still a mystery as to who will invest in the 10% since the government has increased the foreign direct investment stake increased to 49% in this sector.
14th October 2015
SBI plans to wait to sell shares
State Bank of India (SBI) shares have dropped in value by 23% with the global turmoil in stocks and bad loans. They are planning to reduce their stake in the life insurance venture with BNP Paribas Cardiff SA to 49% at the end of this year.
SBI owns 74% of their insurance unit SBI Insurance Co. The process of valuing the company will be too early now. The lender is going to release an Initial Public Offer (IPO) of its insurance unit with the next 2 years. With the voting of foreign investors going up to 49% from the earlier 26% BNP Paribas Cardiff SA can increase their stake as well or an IPO will take place.
29th September 2015
CSC Saral Sanchay Insurance Plan launched by SBI Life Insurance
SBI Life Insurance has recently launched a new life insurance scheme that will be available through the Common Service Centre network set up by the government. The plan is meant for individuals and is a non-linked, non-participating, variable insurance product that offers life cover as well as returns on the savings done through it.
While a rate of interest at 1% per annum may not be as appealing, an additional interest rate of 4% per annum is made available during the first 5 years and the same additional factor will be 0.5% from the sixth year onwards. This plan aims to help customers save systematically and build a corpus that could help the family in their financial goals. With a policy term of 10-15 years, this plan can be availed by individuals within the 18 years to 60 years age group. The plan offers loan facilities through partial withdrawals from the sixth policy year onwards and tax benefits as per the prevailing tax laws.
3rd September 2015