SBI Saral Swadhan Plus is a term assurance policy that is meant for individuals and is designed to offer contingency financial support to one’s family in case the policyholder passes away. This is a traditional non-linked, non-participating policy that can be purchased offline through the help of agents and advisors of SBI Life. Along with a level cover for life, the plan also offers maturity benefits.
Eligibility Criteria of SBI Saral Swadhan Plus
The eligibility criteria of this traditional plan can be mentioned as follows -
- Age at Entry –
- Minimum – 18 years
- Maximum – 55 years
- Age at Maturity – 70 years
All ages mentioned are as per the last birthday.
Features of SBI Saral Swadhan Plus
SBI Saral Swadhan Plus is a policy that offers return of premium along with fixed life cover and the following can be mentioned as the normal features of the plan –
Policy Conditions –
- Term of Policy –
- Option 1 – 10 years
- Option 2 – 15 years
- Premium payment term – The policy features a 10-year payment period. That is applicable for both the 10-year as well as the 15-year policy variants
- Premium payment frequency – Premiums are to be paid in a yearly mode
- Sum assured –
- Minimum – INR 30000
- Maximum – INR 475000
General Features –
- A term insurance plan that is quite affordable in terms of premium payments
- Simple policy with minimal paperwork
- Low premium rates for an annual term
- Premium rates are inclusive of service tax and cess
- Plan is accessible to every income category
Benefits of SBI Saral Swadhan Plus
The benefits of this simple term insurance plan are listed as below –
- Death Benefit – Sum Assured subject to the maximum applicable limit will be paid to the nominee upon the demise of the life insured
- Tax Benefit – Premiums paid can avail tax benefit under Section 80C and the maturity benefits as well as the death benefits can avail tax exemptions and/or rebates under Section 10(10D)
Example of SBI Saral Swadhan Plus
Going for a SBI Saral Swadhan Plus, Mukesh pays an annual premium of INR 5000 for a period of 10 years through a policy term of 15 years. Since Mukesh has been paying the highest possible premium amount, upon his demise, his nominee is entitled to receive a death benefit that is equal to INR 475000.
Upon survival till the completion of the policy term, Mukesh would receive a maturity benefit that is equal to 115% of the total premiums paid. That would effectively make his returns as 115% x INR 5000 x 10 years or in other words, INR 57500.
One should keep in mind that the rates and figures mentioned are examples only. The insurer will be responsible for any changes in the same.
Frequently Asked Questions about SBI Saral Swadhan Plus
- Does this plan have maturity benefits?
It is indeed a term insurance policy, but with an option to return the premiums paid. The maturity benefit will include 100% of the premiums paid in case of a 10-year policy and will include 115% of the premiums paid in case of a 15-year policy.
- What is the minimum sum assured under the policy?
The minimum sum assured should be INR 30000.
- What is the minimum policy term?
The minimum term of the policy is 10 years and the only other policy term available is 20 years.
- What are the exclusions to the policy?
If the insured dies within the first 12 months due to a suicide, the insurer will pay 80% of the premiums paid or Surrender Value (whichever is higher) to the nominee
- Are there any deductions or charges that have to be considered?
This is one of the few policies available in the market that include taxes and charges in the premium amount itself. So, nothing extra is charged.
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GST of 18% is applicable on life insurance effective from the 1st of July, 2017