SBI Life Shubh Nivesh Plan: Review, Eligibility and Benefits

SBI Life Shubh Nivesh Plan : Keeping in mind the welfare of families and offering them financial security with a fixed income plan, SBI has launched the Shubh Nivesh Plan. SBI Shubh Nivesh Plan is a non-participating endowment plan that offers policyholders a lump sum payout on the maturity of the plan and the option of an annuity plan or a fixed income plan.

SBI Life Shubh Nivesh Plan

SBI Life Shubh Nivesh Plan is a participating endowment plan with the option to opt for whole life coverage. This is a traditional plan with bonus facility.

There are 2 options in this scheme:

Endowment Assurance: Under this option, the Sum Assured + accrued Simple Reversionary Bonuses will be paid as death benefit on the death of the life assured within the policy term or on survival till the end of the policy term as maturity benefit.

Whole Life Endowment: Under this option, the policy is converted to a Whole Life cum Endowment plan. Thus, Sum Assured + Earned Simple Reversionary Bonuses will be paid at the end of the endowment period and the policy will continue. An additional amount of Basic Sum Assured will be paid on survival of 100 years of age or on the death of the life assured, whichever is earlier.

What is SBI Life Shubh Nivesh Plan?

The following are the features and benefits offered by SBI Life Shubh Nivesh Plan:Offers two types of insurance plans – Endowment Plan, and Whole Life with Endowment Option.

• Life insurance for a maximum of 30 years or whole life
• Reversionary bonus covered during the policy term
• Provides the flexibility to choose between two payout options for the principal sum assured on completion of the policy term – lump sum, or fixed and regular source of income
• To increase its effectiveness, it offers three rider options available at a nominal premium over the base plan premium

Key Features of SBI Life Shubh Nivesh Plan

The main features of this plan are as follows –

• SBI Shubha Nivesh is a participating plan with regular or single premium payment options.
• In this plan, there is an option to opt for whole life coverage
• This plan has 2 options: Endowment Assurance and Whole Life Endowment Assurance.
• There is a unique option of deferred maturity benefit in this plan which can be taken for 5, 10, 15 or 20 years after maturity.
• There are 3 additional riders in this plan This plan has a higher sum assured rebate

Coverage options in SBI Shubh Nivesh Plan

There are 3 coverage options in SBI Shubh Nivesh Plan:

• Endowment Option: SBI Shubh Nivesh with Endowment Option is a traditional participating plan which offers simple reversionary bonuses. The sum assured and all bonuses are paid either on the survival of the life assured at the end of the endowment period or to the nominee of the life assured in case of his/her death.
• Endowment with Whole Life Option: SBI Shubh Nivesh has the option to extend the insurance cover for whole life or up to the age of 100 years, if one opts for a policy term of 15 years or more. This plan option offers Endowment + Whole Life Option benefit in which the endowment benefit is the same Basic Sum Assured if the policyholder survives till the age of 100 years or dies before the extension period.
• Deferred Maturity Payment Option: This cover option is a part of the previous two SBI Shubh Nivesh options.

SBI Shubh Nivesh Plan Benefits

• SBI Shubh Nivesh Endowment Option, Additional Sum Assured along with accrued bonus is paid on death or maturity
• With SBI Shubh Nivesh’s Endowment Whole Life Option, the plan can be extended as a Whole Life Plan where the sum assured is paid on maturity and again on death before the age of 100 years. If the insured person survives at the age of 100, the sum assured is paid.
• Deferred Maturity Payment option of SBI Shubh Nivesh, regular payment can be received after maturity in a period of 5, 10, 15 or 20 years
• In case of death, the remaining payment is compensated at a discounted value to the nominees.
• Tax benefits are available on premiums paid under Section 80C of the Income Tax Act and claims received under Section 10(10D).

Other key features of SBI Shubh Nivesh Plan – Freelook period, surrender value, grace period etc.

• Grace Period: The policyholder is given a grace period of 30 days to pay the premium due for annual, half-yearly and quarterly mode of payment and 15 days in case of monthly mode of premium payment.
• Revival: Policy holders have the option to revive their policy within three years of the first unpaid premium. Provided that the due premiums are paid and the policy is revived, the policyholder remains liable for all the benefits.
• Nomination: The policyholder can make nomination as per section 39 of the Insurance Act, 1938.
• Freelook Period: Policyholders are given a freelook period of 15 days from the inception of the policy. If the policyholder disagrees with the terms and conditions of the policy, he or she can return the policy and receive a refund of the premium – minus cancellation and stamp duty charges.
• Surrender of the policy: The policyholder can surrender the policy only after one year of policy initiation. On surrender of the policy, the policyholder is liable up to 75% of the original fund amount plus premiums paid less applicable deductions.

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SBI Shubh Nivesh Plan FAQS