SBI Life - RiNn Raksha


One doesn’t hesitate to take loans to fulfil one’s financial desires. Buying a car, a large asset, funding a child’s education or wedding, buying a house, etc. all require loans today. With attractive rates of interest, flexible tenure options and easy EMIs, loans are more than a viable option for today’s highly qualified, educated and employed population.

But what happens if the worst comes to pass, and you’re no longer able to earn and support your family? What will happen to your outstanding loan and those liable to pay it? Your home that’s been purchased on loan, your car and your assets under loan will be seized and repossessed by the bank. That’s where the SBI Life RiNn Raksha group credit life insurance plan comes in. It will take care of all your outstanding credit in the event of your death (or disability of you opt for the rider).

Eligibility Conditions of SBI Life RiNn Raksha




Size of the group in the first year

20 members

No limit

Entry Age

16 years

70 years

Maturity Age


75 years


2 years

30 years

Sum Assured per member


No limit

Key Features of SBI Life RiNn Raksha


Group credit




  • Death Benefit: In the unfortunate event of your death, the cover will be the outstanding loan balance at the time of death, as per the amortization schedule at the rate of interest which was pre-decided during the inception of the plan. If the death occurs anywhere in a given month, the death cover would be the outstanding loan amount at the start of the month.
  • Disability Benefit (with rider): Upon opting for the SBI Life – Accidental Total and Permanent Disability Benefit Rider, the insured person will be covered up to the total outstanding loan amount. In other words, the Sum Assured under the death benefit will be payable in the event of the insured person being totally and permanently disabled because of an accident.
  • Loans covered: The Sum Assured benefit is payable for covering outstanding housing loans, car loans, agricultural loans, education loans, and personal loans.

Sum assured

Minimum – Rs.10,000 (per member)

Maximum – No limit


Minimum – 3 months

Maximum – 72 months

Premium Payment and Policy Terms

Premium Paying Term

Policy Term

Single premium option

2 years – 30 years

5 year premium option

8 years – 30 years

10 year premium option

15 years – 30 years

Premium paying frequency

Monthly, quarterly, half-yearly and yearly.


SBI Life – Accidental Total and Permanent Disability Benefit Rider. Taking this rider will ensure that the sum assured benefit is paid in the event that an accident leaves the insured person disabled.


No bonus offered.

Surrender Value

The surrender value is available after the first year of coverage, after the first year’s premiums have been paid.


Not available.

Free look period

The plan has a 15 days free look period from the date of receipt of the policy document. You will receive refund on the date of allocation along with deductions of proportionate risk charges and expenses incurred on medical examination and the stamp duty charges, if any.

Tax benefits

Insured persons are eligible for tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961.


The master policyholder is required to seek nomination from the members of the scheme.


Suicide exclusion is applicable. If the employee commits suicide (whether sane or insane) during the first year of cover, the full death benefit stated in the benefit payable section will not be paid.

Floating interest rate options

  1. Gold Option.
  2. Platinum Option.

Advantages of SBI Life RiNn Raksha

The has a lot of advantages:

  • It is a comprehensive, customisable benefit package that covers your debts when you are no more (or are rendered disabled, if you take the rider option.)
  • Options exist to increase coverage up to 120% of the loan at inception.
  • You can choose a cover amount that’s less than the total loan outstanding at the time of taking the cover.
  • Up to 2 co-borrowers can be covered in addition to the primary borrower. The cover for the co-borrowers can be either:
    • Each of the borrowers are insured for the entire outstanding loan amount. In case even one of the borrowers dies, the entire loan outstanding is paid off and the surviving borrowers become eligible for the applicable surrender value.
    • Each of the borrowers are insured for only their respective share of the loan. In case even borrower dies, the cover continues for the surviving borrowers.
  • Premiums can be paid in flexible terms. One can pay the premium up front as a single premium or choose to pay level premiums for 5 or 10 years.
  • Financial institutions can fund the premium by including it in the loan amount.
  • A moratorium period of 3 months to 72 months (6 years) is allowed. Disbursements can be staggered during this period. According to the applicable interest, the amount of cover could either rise or remain constant.

How the Plan Works

Mr. Babu bought his dream house for his family with a home loan from a popular bank. He is earning a comfortable amount and is able to meet all his EMI payments and have enough left over to live a comfortable life. He has a few years of payments left due to his outstanding loan balance. He opts for this plan, and when he dies, SBI clears his outstanding loan amount so that his family is not displaced and the bank does not seize his house.

Premium Payment and Riders

The premium can be paid yearly, half-yearly, quarterly or monthly. Additional “Gold” or “Platinum” options are available to cover the loan outstanding at floating rates of interest, at an additional cost. The Policies of SBI Life – Accidental Total and Permanent Disability Benefit Rider is available, which covers the insured in case of disabilities caused by accidents. With the rider, the sum assued under the death benefit is payable.

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GST of 18% is applicable on life insurance effective from the 1st of July, 2017

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