yash sbi life insurance

INDEX

CHAPTER NO.

TITLE PAGE NO.

1.Introduction

02

2.Insurance

03

3. Role Of Life Insurance 05

4. About Sbi Life Insurance 08

5. Life Long Pension 10

6. Sudarshan-An Endowment Policy 18

7. Money Back 24

8. Bancassurance Product 28

9. Corporate Group Product 30

10. Time & Cost Of Insurance 34

11. Conclusion 41

12. Bibilography 42

CHAPTER-1

INTRODUCTION

K.E.S. SHROFF COLLEGE

We live in a risky world. Forces, largely outside our control, that makes threats our financial well being, constantly surround us. Thus, some of us will experience the premature and dreadful death of a beloved family member; others will experience the loss or destruction of their property from natural disasters. Still others will experience poor health from cancer, heart attacks, and other diseases. In addition, some of us will be totally and permanently disabled from a crippling automobile accident or a catastrophic illness. Finally, others will experience the traumatic effects of a liability lawsuit. They're all built into the working of the Universe, waiting to happen. Therefore Risk is pervasive conditions of human existence. It has a simple meaning in every day usage but sometime it has a specialized connotation when used in particular fields.

Definition of Risk

Risk is defined as "a condition in which there is a possibility of an adverse deviation from a desired outcome that is expected or hoped for". Thus risk is a combination of circumstances, and in this combination there is possibility of loss. An adverse even is possible and it has a probability from a zero to one. This it is neither possible nor definite. We may or may not be able to measure the degree of risk but the probability of the adverse outcome must be between zero and one. The undesirable even is known as deviation.

A pure & perfect technique for handling risk is by insurance. For most individuals, this is the most practical method for handling a major risk. First, risk transfer is used since a pure risk is transferred to the insurer. Second, the pooling technique is used to spread the losses of the few over the entire group so that average loss is substituted for actual loss. Finally, the risk may be reduced by application of the law of large numbers, whereby an insurer can predict future loss experience with some accuracy.

CHAPTER-2

INSURANCE

The insurance is related to the protection of the economic value of assets. Every asset has a value. The asset would have been created through the efforts of the owner, in


the expectation that, either through the income generated there from or some other output, some of his needs would be met. In the case of a motorcar, it provides comfort and convenience in transportation. There is no direct income. There is a normally expected lifetime for the asset during which time it is expected to perform. The owner, aware of this, can so manage his affairs that by the end of that lifetime, a substitute is made available to ensure that the value or income is not lost. However, if the asset gets lost earlier, being destroyed or made non-functional, through an accident or other unfortunate event, the owner and those deriving benefits there from suffer. Insurance is a mechanism that helps to reduce such adverse consequences.

Insurance is a contract between two parties - the insurer (the insurance company) and the insured (the person or entity seeking the cover) - wherein the insurer agrees to pay the insured for financial losses arising out of any unforeseen events in return for a regular payment of "premium". These unforeseen events are defined as "risk" and that is why insurance is called a risk cover. Hence, insurance is essentially the means to financially compensate for losses that life throws at people - corporate and otherwise.

Insurance Companies are active in the field of Life, Health & General Insurance. The major part of insurance business is life insurance, the operation of which depends on the law of the morality.

Why Insurance?

The entire effort of human life is to proceed from uncertainty to certainty. The rigmarole of life proceeds with first acquiring the wherewithal to earn a living and then striving for its betterment and ensuring that the comfort and pleasure derived from a physical commodity or a human being continues. It is at the latter stage that the mechanism of insurance comes in play.

The concept of insurance is in essence related to the protection of the economic value of assets. Every asset whether physical or in form of a human being has a value. The asset is built up in the expectation that, either through the income generated there from or some other output, some needs of the individual would be met. For example, In the case of an industry its production is sold and income generated. In the case of a vehicle, it provides comfort and convenience in transportation.

However there is a normally expected life cycle for every asset during which time it is expected to perform its assigned role. So, a prudent individual can manage his affairs so that by the end of that life cycle, a substitute is in place to ensure continued benefit/comfort. However, if due to an accident or other unfortunate event, the asset gets destroyed or made non- functional earlier, the person deriving benefits therefore suffer.


Insurance is the mechanism that helps to soften the impact of such adverse consequences by providing for some monetary substitution to face such unforeseen circumstance.

The need of insurance arises from the chances of an accidental occurrence destroying or making an asset non-functional. Such loss producing eventualities are called perils e.g. fire, floods, breakdowns, lightning, earthquakes, etc however, it has to be remembered that what is being talked about is only a probability of a loss. The protection of Insurance is against a contingency that may or may not happen.

Life Insurance

Life Insurance is a contract between person and a life insurance company, which provides your beneficiary with a pre-determined amount in case of your death during the contract term.

Buying insurance is extremely useful if you are the principal earning member in the family. In case of your unfortunate premature demise, your family can remain financially secure because of the life insurance policy that you have purchased.

The primary purpose of life insurance is therefore protection of the family in the event of death. Today, insurance is also seen as a tool to plan effectively for your future years, your retirement, and for your children's future needs. Today, the market offers insurance plans that not just cover your life and but at the same time grow your wealth too.

CHAPTER-3

ROLE OF LIFE INSURANCE


Role 1: Life insurance as "Investment"

Insurance is an attractive option for investment. While most people recognize the risk hedging and tax saving potential of insurance, many are not aware of its advantages as an investment option as well. Insurance products yield more compared to regular investment options, and this is besides the added incentives (read bonuses) offered by insurers.

You cannot compare an insurance product with other investment schemes for the simple reason that it offers financial protection from risks, something that is missing in non-insurance products. In fact, the premium you pay for an insurance policy is an investment against risk. Thus, before comparing with other schemes, you must accept that a part of the total amount invested in life insurance goes towards providing for the risk cover, while the rest is used for savings.

In life insurance, unlike non-life products, you get maturity benefits on survival at the end of the term. In other words, if you take a life insurance policy for 20 years and survive the term, the amount invested as premium in the policy will come back to you with added returns. In the unfortunate event of death within the tenure of the policy, the family of the deceased will receive the sum assured.

Now, let us compare insurance as an investment options. If you invest Rs 10,000 in PPF, your money grows to Rs 10,950 at 9.5 per cent interest over a year. But in this case, the access to your funds will be limited. One can withdraw 50 per cent of the initial deposit only after 4 years.

The same amount of Rs 10,000 can give you an insurance cover of up to approximately Rs 5-12 lakh (depending upon the plan, age and medical condition of the life insured, etc) and this amount can become immediately available to the nominee of the policyholder on death.Thus insurance is a unique investment avenue that delivers sound returns in addition to protection.

Role 2: Life insurance as "Risk cover"

First and foremost, insurance is about risk cover and protection - financial protection, to be more precise - to help outlast life's unpredictable losses. Designed to safeguard against losses suffered on account of any unforeseen event, insurance provides you with that unique sense of security that no other form of investment provides. By buying life insurance, you buy peace of mind and are prepared to face any financial demand that would hit the family in case of an untimely demise.

To provide such protection, insurance firms collect contributions from many people who face the same risk. A loss claim is paid out of the total premium collected by the insurance companies, who act as trustees to the monies.

Insurance also provides a safeguard in the case of accidents or a drop in income after retirement. An accident or disability can be devastating, and an insurance policy can lend timely support to the family in such times. It also comes as a great help when you retire, in case no untoward incident happens during the term of the policy.


With the entry of private sector players in insurance, you have a wide range of products and services to choose from. Further, many of these can be further customized to fit individual/group specific needs. Considering the amount you have to pay now, it's worth buying some extra sleep.

Role 3: Life insurance as "Tax planning"

Insurance serves as an excellent tax saving mechanism too. The Government of India has offered tax incentives to life insurance products in order to facilitate the flow of funds into productive assets. Under Section 88 of Income Tax Act 1961, an individual is entitled to a rebate of 20 per cent on the annual premium payable on his/her life and life of his/her children or adult children. The rebate is deductible from tax payable by the individual or a Hindu Undivided Family. This rebate is can be availed upto a maximum of Rs 12,000 on payment of yearly premium of Rs 60,000. By paying Rs 60,000 a year, you can buy anything upwards of Rs 10 lakh in sum assured. (Depending upon the age of the insured and term of the policy) This means that you get an Rs 12,000 tax benefit. The rebate is deductible from the tax payable by an individual or a Hindu Undivided Family.

Role 4: Life insurance as "Financial Planning"

Most insurance plans available today have a built in savings element. Plans like the Endowment Plan, Money back Plan, Child Advantage Plan, Preferred Retirement Plans, etc allow you to meet your dual financial goals of life cover and Savings for the future.

You may avail of a loan from the insurance company against certain plans. Your policy could also be pledged as a collateral to raise funds from banks and other financial institutions. In case of your unfortunate death the loans may be repaid from the proceeds of the life insurance policy. Insurance promotes compulsory savings with regular premium payments and helps build up a corpus of funds along with financial security for the dependants in case of premature death. For your medical needs and that of your family.

Hospitalization costs and quality healthcare is becoming increasingly expensive. Without insurance, you can actually face a situation where you have withdrawn all your money and borrowed to pay the medical bills. This can be provided with our Critical Illness Benefit. Insurance provides you the option of covering yourself towards any critical illnesses that can become extremely costly. Choosing this facility pays you a lump sum upon diagnosis of certain diseases like cancer, kidney failure, heart attack, stroke, coronary bypass, vital organ transplants, Alzheimer's disease, paralysis, etc.

Role 5:Role of Insurance as "Economic Development."


It reducing burden of Government in providing relief to the old citizens as well as providing funds to Govt. for nation building activities. Direct investments made by Insurance serve a twofold purpose. It acts as a major instrument for the mobilization of savings of people, particularly from the middle and lower income groups. These savings are channeled into investments for economic growth thereby creating employment. These savings in turn go into the task of nation building.

CHAPTER-4

ABOUT SBI LIFE INSURANCE


Life is full of surprises, some pleasant and some not so pleasant. Our families and we have to live with these uncertainties. Preparing for the uncertainties of life is what Insurance is all about. Insurance is a tool, a solution for delegating the worries concerning tomorrow onto a trustworthy institution so that you can start living today.

With SBI Life, you could smoothen the rough edges of life; make it a bit easier, so you needn't worry about your children's education, or your family's future. Whether you are looking for a safe investment vehicle with good returns or life cover with regular returns in the future, all it needs is one small action on your part. Leave the rest to us and SBI Life will take care of your near and dear ones, and most importantly you.

SBI Life Insurance is a joint venture between the State Bank of India and Cardif SA of France. SBI Life Insurance is registered with an authorised capital of Rs 500 crore and a paid up capital of Rs 350 crores. SBI owns 74% of the total capital and Cardif the remaining 26%. SBI Life has already covered more than 8 lacs group lives with an additional 2.5 lacs lives through individual policies. State Bank of India enjoys the largest banking franchise in India. Along with its 7 Associate Banks, SBI Group has the unrivalled strength of over 14,000 branches across the country, the largest in the world.

Cardif is a wholly owned subsidiary of BNP Paribas, which is The Euro Zone’s leading Bank. BNP is one of the oldest foreign banks with a presence in India dating back to 1860. It has 9 branches in the metros and other major towns in the country. Cardif is a vibrant insurance company specializing in personal lines such as long-term savings, protection products, and creditor insurance. Cardif has also been a pioneer in the art of selling insurance products through commercial banks in France and 29 more countries.

While sharing its aggressive plans, SBI Life also announced the infusion of additional fresh capital of Rs. 75 crores to take its capital base up to its authorized share capital limit of Rs. 500 crores. Speaking on the occasion, Mr. S. Krishnamurthy, MD and CEO, SBI Life Insurance said, “The additional capital has been injected to maintain stipulated solvency margins for the exponential new business growth and expanding branch network” SBI Life Insurance’s mission is to emerge as the leading company offering a comprehensive range of Life Insurance and pension products at competitive prices, ensuring high standards of customer service and world class operating efficiency. The company plans to make the insurance buying process quick, simple, and based on well-informed judgments. In 2004, SBI Life Insurance became the first company amongst private insurance players to cover 30 lakh lives.

The company expects to carve a niche in the Indian insurance market through extensive product innovation and aims to provide the highest standards of customer service through a technological interface. To facilitate this, call centers have been already installed and help lines will be installed and customers will have access to their accounts through the Internet or through SBI branches. The company proposes to make available ready liquidity to its Life Insurance policies by way of loans at SBI counters. This will make Life Insurance a liquid asset in the financial portfolio of households.

SBI Life Insurance is uniquely placed as a pioneer to usher bancassurance into India. The company hopes to extensively utilise the SBI Group as a platform for cross-selling insurance products along with its numerous banking product packages such as housing loans, personal loans, and credit cards. SBI’s access to over 100 million accounts


provides a vibrant base to build insurance selling across every region and economic strata in the country.

Mission Statement:To emerge as the leading company offering a comprehensive range of life insurance and pension products at competitive prices, ensuring high standards of customer satisfaction and world class operating efficiency, and become a model life insurance company in India in the post liberalization period

5 reasons to select SBI Life as people preferred insurance company.

Customer Satisfaction - many of their customers who have bought an insurance policy with them have bought a second one!

Financially sound with over a 100 years of Banking experience, when people trusted company with their money, why would they trust somebody else with their protection needs.

Affordability Easy to buy (accessibility) Trust & reliability.


CHAPTER-5

LIFE LONG PENSION

Life expectancy is improving rapidly. People live longer. A person cannot work throughout their life. You will have to retire from work. In the post retirement period you have lot of time for yourself. You would like to do things you have not done while you were working. You need to have a comprehensive plan to meet our post retirement financial needs ensuring complete peace of mind.

Advantages of the plan: A maximum of Rs. 1,00,000 p.a. paid as a contribution on a pension plan is fully

deductible from the taxable income (within the max. ceiling Rs. 1 lakh) Minimum Guaranteed returns of 4% p.a. (compounded annually) on your

Personal Pension Account (till 31st March 2010) + Vested bonus. It helps you to accumulate enough savings to meet the old age needs and look for

a reliable and enduring pension payment. It is an extremely flexible plan:

Choice of the contribution amount you want depending on your premium paying capacity

You may exercise the Top-up facility whenever by paying additional amount to increase your retirement kitty, irrespective of contribution payment mode.

Convenient Contribution payment mode monthly, quarterly, half-yearly, yearly, and single contribution is also available.

Choice of the choosing your own retirement age. Postponing/ Proponing to a convenient date, the decision for receiving the

Pension Benefits. Contribution holiday available from year 4 onwards The total/balance amount (after withdrawal from PPA, if any) can be

utilized in seeking immediate annuity Free to chose annuity from either SBI Life or other insurance companies At Vesting Age you have multiple choices of Pension/ Annuity options

including Joint Life Time Annuity. On maturity you have a choice to withdraw up to 33% from your Personal

Pension Account in a lump sum. This withdrawal amount is tax-free as per the current fiscal law.

Helps you to utilize all alternatives of tax savings today and also plan for a worry free tomorrow.

In “Pension cum Life Cover” plan, you have the facility of Automatic Cover Maintenance, which ensures that the cover remains in force even when you miss the premium payments. This facility is available after the first three years of the term.


In “Pension cum Life Cover” plan, the life cover acceptance is based on a simple medical questionnaire without any Medical examination

Rebates for Annual, Semi- Annual mode of premium and on high Contribution amount. Enjoy financial independence when you retire.

30 days Free Look Period from the date on which you receive the policy documents.

Lifelong Pensions plan helps to meet your financial requirement no matter which life stage you are at. It is designed specially for individuals who wish to build their kitty retirement with no risk and tax advantage u/s 80 CCC (1) of IT Act.

SBI Life Insurance have designed 2 plans to meet different requirements:

Plan 1: Pure Pension

This plan is a pure savings accumulation vehicle. No medical underwriting required. You can enjoy the benefits of this plan without any hassles, Automatic Acceptance. You have to just fill a simplified Proposal form.

Plan 2: Pension cum life cover

This plan is a pension builder plan with life insurance option. A simple medical questionnaire needs to be filled. The term of the life cover is equal to the Vesting Age / 65 whichever is earlier. If Life cover is extended due to postponement of Vesting Age, new medical questionnaire and new premium amount will be applicable. In this plan you have the facility of Automatic Cover Maintenance, which ensures that the cover remains in force even when you miss the premium payments. This facility is available after the first three years of the term. The Premiums due for Life Cover will be deductible from your Personal Pension Account

How do the Plans work?

Customer will have the right to convert your accumulated balance in the personal pension account and ask for pension at any vesting age between 50 and 70. Customer can choose the age based on your work style and your current earning profile.Customer has the right to make use of the balance amount in the personal pension account in several ways.

1) Withdraw up to 33% of the accumulated sum for the customers immediate cash need. This amount is tax-free.

2) Use the remaining amount to buy annuity payment benefit fro any other insurance company.

3) Ask SBI Life insurance adviser agent to utilize the balance amount (Annuity purchase Price) to draw pension payment from SBI Life Insurance under one of several Choices.


Fixed annuity amount as long as policyholder live as well as minimum guaranteed period of 5,10,or 15 yearsIncreasing life annuities that provides progressively higher pension to keep with the increasing cost of living. Joint pension plan, which means payment of annuities during the lifetime of the person and thereafter as long as the spouses live. The joint pension could be at the same rate of pension as drawn by the person while he was alive, or half of that amount as optioned at the beginning. The annuities could be payable monthly, quarterly half yearly or yearly as per customer choice option.

Pure Pension Plan 1 Pension cum Life Cover Plan2

Minimum term 2 years 5 years

Maximum term 52 years 52 years

Eligibility: -

Pure Pension Plan1Pension cum Life Cover

Plan2

Minimum Age at entry* 18 years 18 year

Maximum Age at entry* 65 Years 60 years

Maximum cover age for life cover

Not Applicable 65 years

Contribution Holiday

This facility is available from year 4 onwards for both options. If you have opted for Plan 2 Pension cum Life Cover, and you have not paid your regular contribution after year 4 as per the schedule, Life cover premium will be deductible from the Personal Pension Account to keep in force the Life Cover option*.

Contribution payment mode

1) Regular contribution payment Monthly Quarterly, Half-yearly and Yearly

2) Single contribution payment one time premium payment for the selected term at commencement.


EDU SHIELD

As a loving parent you dream of a bright future for your child. You want your child’s higher education secured and fulfilled under all circumstances. We have a scheme for you to accomplish your wishes!

Edu Shield is a unique insurance plan from SBI Life that provides Life Insurance Protection for Education Loan borrowers. With a policy under Edu Shield in hand, you can cross the important milestones of your life with a broad smile.

Edu Shield is a non-participating plan. It provides level insurance cover to the education loan customers throughout the term of the loan. It is meant for the students and parents. Both the lives are covered separately. In case of claim, the Life Cover sum assured is payable to the Bank. The Bank will refund any surplus over the outstanding loan amount to the legal heir. The Premiums are Payable on annual basis through Standing Instructions to the Bank to debit the loan account.

Salient Features: Dedicated insurance plan for educational loan borrowers (students and/or

parents). Both lives are covered separately for the same loan amount and term. It secures the family from the financial obligation under the loan, incase of a

claim. It is available at a very nominal cost. Premium payment is constant throughout the

term of the plan. Hassle free premium payment (automatic debit from your loan account). Attractive Rebates for Annual mode of Premium payment, High Sum Assured and

Female Lives. Tax benefit u/s 80 C of IT Act* Automatic Assignment, in favor of the Bank. 15 days free look period.

Eligibility: -

Age Students Parents

Minimum age at entry 18 years 36 years

Maximum age at entry 30 years 60 years

Maximum age at exit 45 years 65 years

Sum Assured Minimum: Rs. 3 lakh (multiple of 10,000 only)Sum Assured Maximum: Rs.50 lakhMinimum term cover: 5 yearMaximum term cover: 15 year


Benefits: -

I Maturity Benefits:No benefits are payable to the surviving borrower/s on maturity of the term of the policy.

II Death Benefit:The life cover sum assured is payable to the Bank (as the Bank is the assignee). Surplus amount after adjusting the dues, if any, will be paid to the legal heir by the BankNo death benefit is available for suicide within the first year of the policy.

III Tax Benefit You are eligible for Tax benefit for the premium payment u/s 80 C and 10 (10 D) of IT Act*

SCHOLAR IIAs a caring parent you would always want your child to get the very best. Is there

a way to protect your children against life’s risks? Is there a way to make tomorrow safe for them? Therefore this is the time when careful financial planning can help you fulfill the aspirations that you have for your children’s. We at SBI Life can help you ensure that your children’s future is secure and prosperous. SCHOLAR II is designed to protect your child’s future educational needs.

Advantages:

Twin benefit of saving for your child's education and securing a bright future despite the uncertainties of life.

Full risk cover throughout the policy term irrespective of payment of survival benefits installments.

Option to receive the installments in lump sum at the due date of first installment of Survival benefit.

Tax benefit u/s 80 C and 10 (10 D) of IT Act* Attractive rider options Attractive rebate for Female lives and High Sum Assured. 15 days Free Look Period


Features: -

Scholar II is designed to meet the twin objectives that concern every parent: - saving for your child's education and securing a bright future despite the uncertainties of life. It ensures that your child's future plans remain on track, no matter what! The life assured is the parent. It is a participating plan. Guaranteed benefits are payable at regular interval within the policy term. In the unfortunate event your nominee would receive full Sum Assured along with Vested Bonus, plus regular Survival Benefit as per the original schedule.

Riders

In addition to the Basic Cover, you are also entitled to opt for extra covers (riders) – Accidental Death and Accidental Total Permanent Disability Rider, Premium Waiver Benefit Rider and Critical Illness Rider, by paying nominal additional premiums. Exclusions applicable under the riders. Premium payment mode: -

1) Regular premium payment mode : Yearly, half yearly, quarterly and monthly premium mode* by giving standing instruction to your bank or pay through your credit card (Visa or Master Card) or pay through SBI ATM’s or you can also pay it online at www.onlinesbi.com 2) Single premium payment: One time premium payment for the selected term at commencement. Monthly premium mode available only for Credit Card and Standing Instruction. 3 months premium to be paid in advancePremium rate is different depending on the age, term, gender, Sum Assured, and mode of payment

Benefits

I. Survival Benefit Guaranteed payment at regular intervals When the child attains 18 years of age, the parent has an option of: Receiving the Sum Assured in 4 installments:

Age Guaranteed Benefit Payment

18 years 25 % of Sum Assured



21 years 25 % of Sum Assured + Vested Bonus *


II. Death benefit

In the event of unfortunate incident of your early death during the term of the plan, your child’s future remains secured in 3 ways:

Child future educational needs: 25% of Sum Assured is payable in 4 equal installments when the child attains the age 18 years to 21 years. This ensures the child higher educational needs are meet.Immediate Payment: The nominee receives the Sum Assured along with the bonus declared until that date.All future basic premiums need not be paid: Ensuring that your family is not financially burdened in your absence.No deductions are made from the claim amount for the Survival Benefits already paid.

Exclusions applicable to the Basic Cover:Suicide within the first year

III. Other Optional Benefit

Accidental Death and Accidental Total Permanent Disability RiderIn case of death due to an accident, the nominee gets the additional rider Sum Assured.If the policyholder is involved in an accident, resulting in total permanent disability, he/she will get Sum Assured under this rider in 10 equal annual installments; He/she will exit from all the rider covers thereafter, but continue to be covered for basic cover on receipt of further premium due, if any.

Premium Waiver Benefit Rider : Under this rider the policyholder need not pay future premiums for the base product, if he/she suffers from total and permanent disability due to an accident after the rider is opted for.

Critical Illness Rider : On diagnosis of any of the 6 critical illnesses and you survive for more than 30 days from diagnosis; the Critical Illness Cover Amount is paid in a lump sum. No more claims will be admitted under this cover. The Basic policy remains in force for all the other benefits.

IV. Tax Benefit

SBI Life Scholar II enjoys Tax benefit u/s 80 C and 10 (10 D) of IT Act*Premiums paid for Critical Illness Benefit qualify for tax exemption under Sec 80D*


Eligibility

Parent/ Guardian Age*

Minimum entry age:Maximum entry age:Maximum age at maturity:

18 years60 years70 years

Child Age*

Minimum entry age:Maximum entry age:

0 years15 years

15 years

Term

The premium payment term depends on the age of the child and ends when the child attains the age 18 years. You are covered till the child attains the age 21 years.

Sum Assured

Minimum Sum Assured: Rs.50, 000Maximum Sum Assured: Rs.1 Crore (in multiples of Rs.10, 000)*Age as on last birthday


CHAPTER-6

SUDARSHAN-AN ENDOWMENT POLICYSudarshan is an Endowment Policy designed to provide savings and protection to

you and your family. You can save regularly for the future. Thus at the end of the plan, you will receive a substantial amount of savings along with the accumulated bonuses declared. At the same time, your family will be protected for death risk for the full Sum Assured. 'Sudarshan' is available under two Plans.

Fixed Sum Assured (Plan A): Fixed amount of cover for the entire duration of the plan

Increasing Sum Assured (Plan B): Increasing amount of cover every year for the entire duration of the plan with level premium.

In addition to the Basic Cover, you are also entitled to opt for extra covers (riders): Term Assurance Cover, Accidental Death and Accidental Total Permanent Disability Cover and Critical Illness Covers by paying nominal additional premiums.

This Scheme is ideal for you: If you intend to provide for your children's future education, marriage expenses or

even your own retirement - in a most flexible manner. If you look for an insurance plan which could also act as a hedging instrument. If you want to provide for medical expenses. If you have to unfortunately face any

of the terminal or dreaded illnesses.

Features: -

Fixed Sum Assured (Plan A)

Under this Cover, at the end of the plan period, you are guaranteed to receive the Fixed Sum Assured opted plus the vested bonus. For e.g. if you want to build a savings of Rs. 1 lakh and you are say 25 years of old you can build your savings by paying just Rs. 4310/- as premium per annum over a period of 20 years. On maturity of the plan, you are guaranteed to receive Rs. 1 lakh as proposed and also the Bonus declared by the Company from time to time.Also, in the unfortunate event of death, the Fixed Sum Assured along with the vested bonus are payable to Nominee.


Increasing Sum Assured (Plan B)This Cover is also known as COLA Option Cover, i.e., Cost Of Living Adjustment, as it serves as an automatic hedge against inflation. This plan provides for increasing the Sum Assured automatically. Under this Cover, the Sum Assured gets increased at a rate of 5% per annum (for every completed year). Taking the above example, your savings get accumulated to Rs. 2 lakhs at the end of 20 years. As a matter of fact, you stand to receive a higher savings plus the entire accumulated Bonus.As in the Traditional Cover (Fixed Sum Assured Plan), in the unfortunate event of death, the nominees stand to get a Cover increased at the rate of 5% per annum (for every completed year) along with the bonus accrued.This plan offers an increasing cover as well as increasing savings amount consistent with the need of protection of savings future value in the coming years.

Rider Covers

Sudarshan offers you additional covers viz. Term Assurance Rider, Critical Illness Rider (6 critical illnesses) or Accidental Death and Accidental Total Permanent Disability Rider.

Term Assurance Rider

This Rider enables you to increase just the pure risk cover without the need for paying additional premium for the savings component. You can get pure life assurance cover for a maximum of Rs. 50 lakhs or 3 times the Basic Sum Assured whichever is lower.

Critical Illness Rider

On diagnosis of any of the 6 critical illnesses and you survive for more than 30 days from diagnosis; the Critical Illness Cover Amount is paid in a lump sum. No hospitalization bills need to be submitted. The Basic policy remains in force for all the other benefits. Accidental Death and Accidental Total Permanent Disability (TPD) RiderUnder this rider, you can cover yourself against the risks of accidental death or accidental disability. In the event of accidental death: Additional Accidental Death benefit cover amount would be payable along with normal Life Cover benefit;


The event of Total Permanent disability on account of an accident: Two benefits are payable:

1. Immediate PaymentDepending upon the plan option chosen:

Fixed Sum Assured (Plan A) Flat Sum Assured + Vested Bonus OR Increasing Sum Assured (Plan B) Increased Sum Assured @ 5% p.a (every completed year) + Vested Bonus

2. Yearly Installment PaymentAccidental Total Permanent Disability Rider amount is payable in 10 installments till maturity / death. At maturity/death, the remaining installments are payable in a lump sum to you/your nominee. Policy ends immediately.

Eligibility: -

Regular Premium Payment Single Premium Payment

Particulars Minimum Maximum Minimum Maximum

Age at entry 12 years 62 years 12 years 65 years

Term 8 years 30 years 5 years 30 years

You may be required to undergo a simple medical examination depending upon the Sum Assured and your age. Sum Assured to be in multiples of Rs. 1000/-

Benefits

1) Maturity Benefit:

Depending upon the plan option chosen: Fixed Sum Assured (Plan A) Basic Sum Assured along with Vested Bonus* is payable Increasing Sum Assured (Plan B) Increased Sum Assured @ 5% p.a along with Vested Bonus* is payable

2) Death Benefit:


In the unfortunate event of death of the Life Assured, depending upon the plan option chosen: Fixed Sum Assured (Plan A) The Sum Assured along with Vested Bonus * is payable to your nominee. Increasing Sum Assured (Plan B) Increased Sum Assured @ 5% p.a along with Vested Bonus* is payable to your nominee. 3) Other Benefits:

If the extra cover (riders) have been opted for, the following additional benefits are payable:

a) Term Assurance Cover benefit: - The Term Assurance cover is payable in addition to normal death benefit.

b) Accidental Death and Accidental Total Permanent Disability Cover Benefit : - In case death due to an accident: The rider Sum Assured is payable in addition to normal Life cover.

In case of Total Permanent Disability due to an accident:

Two benefits are payable:

1. Immediate Payment Depending upon the plan chosen: Fixed Sum Assured (Plan A) Flat Sum Assured + Vested Bonus OR Increasing Sum Assured (Plan B) Increased Sum Assured @ 5% p.a (every completed year) + Vested Bonus

2. Yearly Installment Payment Accidental Death and Accidental Total Permanent Disability Cover amount is payable in 10 installments till maturity / death. At maturity/death, the remaining installments are payable in a lump sum to you/your nominee. Policy ends immediately.

C) Criticall Illness cover On diagnosis of any of the 6 critical illnesses and you survive for more than 30 days; the Critical Illness Cover Sum Assured is paid in a lump sum. No more claims will be admitted under this cover. Sudarshan policy remains in force for all the other benefits.

4. Tax BenefitSBI Life Sudarshan enjoys Tax benefit u/s 80 C and 10 (10 D) of IT Act*Premiums paid for Critical Illness Benefit qualify for tax exemption under Sec 80D*


SETUBANDHANSetubandhan is Investment - cum - Life Insurance opportunityA unique Life Insurance bond that helps you, the NRI living abroad, build a bridge between you and your dear ones back in India.

Eligibility

Minimum sum assured on each policy Rs.3 lakhs, maximum Rs. 1 crore. Entry age minimum 18, maximum 60. Cover available up to maximum 70 years.

Benefits: -

Base Policy for NRIs: Guaranteed 5% annual additions (Simple) on Sum Assured with benefit of Single Premium payment In the event of death, the Sum Assured as increased by the annual addition on the date of death will become payable. Upon survival, the Sum Assured with total additions during the period will be payableRider benefits for NRIs: Critical illness cover (Dhanwantari-Supreme), subject to maximum of Rs.5 lakhs. Premium payable annually, and the rate will be valid for maximum 5 years, subject to review thereafter for 10-year Plan.Optional Life Cover for DependantTerm insurance cover for a dependant living in India, subject to a minimum sum assured of Rs. 3 lakhs and maximum Rs. 10 Lakhs. Premium payable annually. `Dependant’ will mean spouse, and parents not above the age of 55 at the time of entry. Term insurance premium will be refundable at the end of the term upon survival of the life covered (Swadhan). Full refund of premium for a 10-year term and 50% for a 5-year term.Critical illness covers for the dependant, subject to the maximum of Rs.5 lakhs. Premium payable annually.

Surrender benefits:No surrender benefit during the first year. 90% of basic premium paid for surrender during 2nd and 3rd year. 95% of basic premium paid for surrender from the 4th year. No guaranteed addition will be payable for policies surrendered under the 5-year Plan. In respect of policies with 10-year term, the guaranteed addition to the extent of 50% will become payable for policies surrendered between 6th and 7th years, and 75% in respect of policies surrendered from the 8th year.Loan facility available from Branches of SBI and Associate Banks based on the surrender value of the policy. Rebate on premium on high value policies


Characteristics: -

Product is open for subscription by NRIs. Single premium product. It is for a term of 5 and 10 years. Uniform premium without regard to age difference. Sum assured of Rs.1000, single premium is Rs.1019 for 5-year Plan, and Rs.996 for 10-year Plan. Sum assured will carry guaranteed addition at 5% per annum (simple) for 5 and 10 years. Life cover will increase over the original sum assured to the extent of the annual additions. 15-day Free Look Period.Guaranteed 5% annual returns(Simple) on your investment with benefit of Single Premium payment. Savings-cum-Protection plan for two terms of 5 or 10 years. Optional Critical Illness cover against six major ailments like heart attack, cancer etc. Optional life insurance cover for dependants upto Rs.10 lakhs with return of premium. Facility of repatriation at prevailing exchange rates.


CHAPTER-7

MONEY BACK

Introducing SBI Life Money Back plan, a smooth way to plan for all the special moments in your life. As an individual your life is fueled by dreams. You experience different special moments in life like wedding, birth of a child, child’s education, or purchasing a new home. You have to be financially prepared for these special moments. What you need is easy liquidity at regular intervals with life insurance protection to take care of these special moments.

Benefits of the plan:

Twin benefits of Life Insurance and increased cash inflow at regular intervals. Guaranteed Survival Benefit Payments more than 100% of the Sum Assured. Increasing Survival Benefit payments. Bonus for the entire term of the policy.Available in a wide range of terms: 10, 15, 20, or 25 years to suit your needs. In the event of claim your beneficiary would receive full sum assured and bonuses,

Irrespective of Survival Benefits already paid. Tax benefit u/s 80 C and 10 (10 D) of IT Act* Convenient premium payment options. & Attractive rider cover. Attractive rebate for Female lives. Rebates for Annual / Semi- Annual modes of Premium. Rebates on high value policies. &15 days Free Look Period.

Feature:

SBI Life Money Back is a saving plan with added advantage of life cover and cash inflow at regular intervals. This plan is designed for individuals who want to plan for various financial obligations at specified times in life.Keeping customers convenience in mind, we have designed four plan options: for 10, 15, 20, or 25 years

Term of the Plan

Guaranteed Survival Benefit payable

Cumulative Guaranteed Survival Benefit

A) 10 Years The last 3 years on the term 110% of Basic Sum Assured

B) 15 Years After every 3 years on the term 115% of Basic Sum Assured

C) 20 Years After every 4 years on the term 120% of Basic Sum Assured

D) 25 Years After every 4 years on the term 125% of Basic Sum Assured


The premium payment term is less than the policy term. Your investment goes through a "Growth/Deferment Period" in which the money you've invested continues to multiply; in the Growth/Deferment Period you will not be entitled for any Survival benefit. At the end of this Period, you get your money back annually for 5 years or 10 years, depending on the plan option chosen by you. However you remain covered for the entire duration of the policy for the full Sum Assured, irrespective of survival benefit already received.In addition to the Basic Cover, you are also entitled to opt for extra covers (riders): Term Assurance rider and Accident rider (Accidental Death and Accidental Total Permanent Disability), by paying nominal additional premiums. No riders available for Single Premium Mode.Rider Sum Assured cannot exceed the Basic Sum Assured Premium Payment Mode

1) Regular premium payment mode: Quarterly, half-yearly and yearly. Single premium payment: One time premium payment for the selected term at commencement 2) Premium AmountPremium rate is different depending on the plan selected, term, the gender, the Sum Assured, and mode of payment.

SWADHAN

Happiness and security for your family is what you want. However life has its uncertainties and risks. All that you’re interested in is how best to afford a secure future for your loved one. Have you ever wished for a low premium insurance policy that is not only provides security to your loved ones but also returns back the premium paid.

Advantages: Protection at affordable premium. Life cover comes to you at no cost** Tax benefit u/s 80 C and 10 (10 D) of IT Act* 5% rebate for Female lives & Rebate on High Sum Assured Flexible benefit premium paying mode & Free look period of 30 days

Features:

Swadhan is an ideal life insurance policy that covers your near and dear ones against financial risk. It is available at a very affordable premium, yet substantial. In the unfortunate event of death during the term of the policy, the nominees would receive full Sum Assured. This plan offers a benefit unlike other term policies, on Survival portion of the premium paid or entire premium are refunded without interest, depending upon the term chosen. It is a non – participating plan.


Term %Age of Basic Premium refunded

5 years 50%

6 years 60%

7 years 70%

8 years 80%

9 years 90%

10 years 100%

Flexible premium paying mode

You can choose monthly, quarterly, half yearly, or yearly.Premium Amount

Premium rate is different depending on the term, the gender, the Sum Assured and mode of payment.Guaranteed surrender value

You can surrender your policy and get the appropriate surrender value, provided you have paid premiums at least for first 3 years.

Policy year Guaranteed Surrender Value

Y4 /5 / 6 60% Basic Premium Paid less 1st year Basic Premium

Y7 onwards 65% Basic Premium Paid less 1st year Basic Premium

Eligibility:

Age:

Minimum entry age* 18 years

Minimum entry age* 55 years

Term:

Minimum term 5 years (in multiple of 1 year)

Maximum term 10 years

Maximum age at maturity is 65 years.

Sum Assured:

Minimum Sum Assured:

Rs. 3,00,000 (in multiple of Rs. 10,000)


Maximum Sum Assured:

Rs.1 Crore

Benefits:

Maturity benefit:

If you survive for the entire term of the plan, you would be eligible to a refund of the premiums depending upon the term of the policy

Term %Age of Basic Premium refunded

5 years 50%

6 years 60%

7 years 70%

8 years 80%

9 years 90%

10 years 100%

Death benefit:

In the event of claim, your nominee would receive full Sum AssuredExclusion applicable to the basic cover-Suicide within the year

CHAPTER-8

BANCASSURANCE PRODUCT

HOME LOAN INSURANCE.A place where you return after a hard day's work and relax, a place where you

share precious moments with your family. A place that gives you a sense of belonging.


There are few things that are common to all living beings. Every human being dreams of having a safe and secured home for themselves and their family. Where can stay happily with our family members. Most of us take a Home Loan from the financial institutions to achieve this dream. However, the uncertainties in life often worry us. In the unfortunate event of death, your family will have the burden to pay the outstanding loan amount. We have especially designed an insurance plan for the Home Loan borrowers of State Bank Group.

Salient Features:

Life cover equivalent to the outstanding loan amount as per the original repayment schedule of the loan. Protects the home loan borrower against death due to any reason except suicide in the first year of cover In the event of death, SBI Life pays the Sum Assured directly to the Bank. No medical examination upto Rs. 7.5 lakhs (18 to 60) and Rs. 3 lakhs (61 to 65). Available for existing and new home loan borrowers 50% discount in case of joint borrower for the youngest life.

Eligibility: -

Criteria Minimum Maximum

Age at entry 18 years 65 years

Sum Assured Rs.25, 000/- No Limit

Single Premium Rs.1, 000 No Limit

Term 5 Years 20 Years

Maximum coverage: 71st birthday

Features:

Home loan Insurance provides unmatched security to all State Bank Group home loan borrowers. It insures the borrower's life during the loan repayment period to the extent of his outstanding loan liability as per the original repayment schedule. So that even in case of unfortunate event of death of the housing loan borrower due to any reason, SBI Life would pay the amount outstanding in the loan account as per the original repayment schedule.

The premiums* are paid in a lump sum for the entire duration of the loan.


In the case of a joint borrower, the joint borrowers can be covered and the youngest life could avail of a 50% discount on his/her insurance premium.

If the Borrower forecloses Loan, the unexpired portion of the premium will be refunded, less charge.

A Good Health Declaration* needs to be completed. Simple claims settlement process

Benefits: -

Death Benefit

In the unfortunate event of the death of the borrower, SBI Life steps in and pays the amount outstanding in the loan as per the original repayment schedule.

Maturity Benefit

To keep premium rates low, Home Loan Insurance is a pure Term Assurance , therefore, there is no benefit on maturity of the policy.

Exclusion:

Death due to suicide is not covered within the first year of joining.

CHAPTER-9

CORPORATE GROUP PRODUCT

Economic growth is today decided more by human capital than by material capital. Equipment, processes, and intellectual property are leveraged not by their inherent capability but by the actions of human beings. Investment on human resource has today become the core of production force and the competing focus among corporate.

Employee Benefit solutions are just what you need to retain your most valuable asset and win the confidence and loyalty of your employees. SBI Life dedicates itself to


meet an employer's commitment towards its employees cost effectively, and to strengthen the employer-employee relationship in the long run. SBI Life Group Solutions offers an integrated basket of employee benefit plans catering to both statutory as well as voluntary needs of the employers.

Retirement Solutions :

You value your employees’ contribution. You value their loyalty. And you want to pass on to them blissful golden years ahead as a token of gratitude. Retirement planning is crucial to assure your employees from any worries of improving longevity, increasing inflation; medical bills, or taxes, so that they can actually enjoy the benefits of their hard-earned savings. SBI Life offers competitively rewarding and attractive retirement solutions for your employees.

SBI Life Group Gratuity Plan is a Non-linked scheme designed to help employers to manage their gratuity liability in a scientific manner through a host of flexible plan options. Wider investment avenues and prudent asset allocation ensuring maximization of value Free annual actuarial valuation Option of Pooling or Ring fencing (only for large funds) Flexible and competitive term life insurance cover.

SBI Life Group Pension Plan ensures quality benefits for the employees post-retirement with tax-advantages for both the employer as well as the employees. SBI Life offers flexible plan options protecting the retirees against increasing cost of living and medical bills, and ensuring the same quality of life as before.Minimum guaranteed return of 4%* p.a. compounded annually plus Vested Bonus will be credited to the Personal Pension Account(* Till 31st March ‘2010)Automatic Cover Maintenance to ensure that the cover remains in force even when you miss the premium payments. Top-up facility at any time irrespective of contribution payment mode. Flexible plan options with Defined Contribution arrangements. Different annuity options available at the time of retirement.

Protection Plans:

Never compromise on your dreams. Never compromise on the dreams of your family and children. If you believe in this, you must make your employees believe in the same too. SBI Life offers pure protection cover for your employees to ensure that their families are financially well secured in the event of unforeseen and unfortunate circumstances.

SBI Life Group Term Life Scheme in lieu of EDLI has been designed to help employers to meet this liability at cost effective rates with enhanced benefits. Life cover available to employees irrespective of their Provident Fund Balance.


Lower premium rates than RPFC. No medical evidence required. Sum Assured ranges between minimum Rs. 65,000/- (min.) to Rs. 1,00,000/- maximum. Additional coverage for Accidental Death Benefit (ADB). Premium paid by employer is treated as normal business expenditure for Income Tax purposes.

SBI Life’s Group Term Life for employees (Supersuraksha)

It is a highly convenient yearly renewable term insurance product, which pays a fair amount to the employees against the risk of death. It gives employees peace of mind that comes from knowing that their families are protected.Enhanced benefits for the employees ensuring their families’ future. Uniform premium to all employees. Hassle free implementation and faster claim settlements. Minimum administrative costs to the policyholder. Additional benefits from Accidental Death Benefit (ADB) rider and Accidental Total Permanent Disability (ATPD) rider.

Specialized Term Life Insurance :

Key man is a key member or staff of the organization who is a major contributor to its growth and the profit and whose absence may affect the continuity of the business.

SBI Life’s Key man Insurance

It is a pure term life cover to protect the organization from adverse financial consequences arising due to death of a key employee. The aim is to indemnify the company for these losses and to allow for business continuity.Protection from potential losses combined with advantages of tax savings. In case of key man leaving the company, options available to either surrender or assign absolutely to the key man.

OTHER GROUP PRODUCTS

If you own a business or are responsible for your company's employee benefit plans, you would know that employees are the most valuable assets of any organisation. They not only help the company grow but shape its course of growth. Precisely why, the world's successful companies constantly emphasise the need to keep employees happy and motivated. Every organization faces some employee turnover. However the fact remains that an organisation also needs to have a pool of good working staff that chooses to stay for the long haul. Today, as top management churn has increased, loyal staff has become more important to companies. Employee benefits schemes including Group


Insurance policies can help retain and create a bonding between the employee and the company. Make a choice on how to protect employees and company for life.Super suraksha - A Group Insurance policy provides your employees pure Life Insurance cover. At a very low cost - a price which they cannot possibly get if they choose to arrange for insurance cover by themselves, individually.Swarna ganga - A Group Insurance Plan that combines security with tax-free savings, it provides life cover to your employees as a group. It also helps the employees to accumulate savings as they pay the premium. What's great about this plan is that a portion of the monthly contribution of the employee is utilized towards insurance premium and the balance is kept as a savings portion with SBI Life. At the end of the fixed term, or upon retirement of the employee or his leaving the company, the savings portion is returned to him with interest. All such receipt is treated as tax-free at the hands of the employees. In the event of any unfortunate death, the sum assured is paid to the nominee along with the savings portion. It is just what you need to build team spirit in the company & show your employees how much you care for them. By insuring them. And securing their families & their future. A group insurance policy can work as a morale booster for employees& helps retain top employees.Whether you are a small business organisation with 50 employees or a top rung corporate, we'll design and provide individualized Group Term Life Insurance packages based upon your company's needs. Coverage schedules and amounts can be customised to take into account salary, employee classification, or other criteria.

COMPARISON WITH KOTAK LIFE INSURANCE PRODUCT

Kotak Money Back Plan SBI-Money Back Plan

Guaranteed Survival Benefit

5 year guaranteed survival benefit is payable3,4 or 5 year guaranteed survival benefit is payable.

Minimum age of entry


18 year 15 year for all option plan

Maximum age of entry

60 year

Option 1: 60 yearOption 2: 55 yearOption 3: 50 yearOption 4: 45 year

Maximum Maturity Age

75 year 70 year

Special Rebate

No any declarationWomen get special rebate of 5% on premium base.

Kotak Endowment Plan SBI-Endowment Plan

Entry Age

Minimum 18 yearMaximum 65 year


Term



Death Benefit

In event of death nominee will receive basic sum assured or accumulated account which is higher

Sum assured + bonus


CHAPTER-10

TIME & COST OF INSURANCE

The minute you have people dependent on your income, you should insure yourself. The younger the age, the lower is your premium. At SBI-Life, they believe anybody who is married and has children or plans to have children needs to be insured. Even if you are single, earning and intending to marry, you should think of buying a policy now, as it costs less now than it will when you marry.

Remember, it is never too late to buy an insurance policy. Even if you are 45, and are not insured, you could choose insurance products that provide benefits to your family and provide income during your retirement period. Ideally, you should insure yourself for as long as you are the critical or crucial breadwinning member of the family. With the growing nuclear families and the typical Indian sacrificing mothers/wives, it may be prudent to ensure that the working man covers himself for his whole life; to ensure that his wife receives a lump sum upon his death. A general rule of thumb is that you should insure yourself for at least six times your annual income. This amount is normally adequate for your family to sustain themselves at present levels, until they recover from the financial loss caused by your absence.

The cost of buying an insurance policy depends on:

Your age, health, and the nature of work you do The type of policy you select The sum assured i.e. amount you insure yourself for The term i.e. number of years you insure yourself for The premium paying term i.e. number of years you choose to pay premium The mode i.e. the frequency with which you choose to pay premium (monthly,

quarterly, half-yearly, yearly) The rider's i.e. additional benefits you select, their term and premium paying term

Example of an Endowment product for a 30-year old male

An Endowment with profit policy, for a sum assured of Rs 100,000, a premium paying term and insurance term of 25 years, can cost between Rs 3,500-4,500 per annum. However, there are a number of riders you can add on to an insurance policy, which could increase your insurance cost by 20-30 per cent. Upon maturity or in the event of death of the insured, the insured or the nominee receives the sum assured plus bonus for the term of the policy.


Example of a Term product for a 30-year old male

A Term insurance product, for a sum assured of Rs 100,000, a premium paying term and insurance term of 25 years, can cost between Rs 500-950 per annum. Upon death of the insured, the nominee receives the sum assured immediately; while upon maturity, the insured does not receive any money. Again, a variety of policies are available - some policies offer a refund of the premium to the insured while some offer a portion of the insurance amount or the full sum assured at the end of the term.

The cost of a policy could be lowered if you

Buy insurance at an early age (while the risk is lower) Insure yourself for a long period Insure yourself for a large sum assured; offer to pay premium annually, thereby

receiving discounts Select a low cost policy such as a Term product, which offers negligible to

minimum returns upon maturity. Do not buy riders or additional benefits that do not seem to add value to you or are available as other insurance policies at lower prices.

NEED OF INSURANCE IN DIFFERENT LIFE STAGE

1) Single Male in Twenties

Vijay Mehra is a single individual in his early twenties. He has just graduated one and a half year ago. He earns around Rs 1.5 lakhs per annum. His mother is a housewives and his father works in a government company. He is going to retire after another 7 years.

If you are like Vijay, You are just getting started in life, have a great deal of your life, and career to look forward to. Maybe you think you don't need life insurance yet, you are single, and your folks don't really depend on you financially yet. Soon you will be the rising 'sun' in their golden years. But In the event something unexpected happens, you don't want to leave behind just memories - some money could be the sweetener they could use.

Therefore Life insurance protects you and your loved ones in the event that you meet with an untimely demise. You may not have a family who relies on you for support, but life insurance may still serve important functions for you and your family. It can provide a way for you to leave resources behind for your loved ones when you die. You are starting to think about your future. Right now, you are probably in good financial shape. You are probably focused on earning more money to buy yourself a car, maybe save up enough money for your long yearned holiday abroad, or even have marriage plans already!


2) Single Female in Twenties

Shreya Dev is a young single lady in her early twenties. She has just completed graduation, and has been working for the last one year. She earns around Rs 1 lakhs per annum. Shreya's mother is working in the bank, about to retire in the next 2 years, while her father has just retired.

If you are like Shreya, you are young, just getting started in life and have a great deal of your life and career to look forward to. Maybe you think you don't need life insurance yet, you are single, and your folks don't really depend on you financially. Maybe you think you may stop working when you marry and have children. But will you like the idea of being financially dependent on your husband for the smallest of things? Especially when you are used to being financially independent?

If you think you should not buy a life insurance policy because you are not sure how long you will work (and hence pay for your insurance), try looking at an insurance policy that offers you a limited premium paying term. Alternatively, buy a policy where you can start receiving money in the next few years (in order to support yourself in case you stop working while you are raising the kids). In the event something unexpected happens, you don't want to leave behind just memories - some money could be the sweetener your family could use.According to SBI Life Insurance expert Term Plan, Money Back, and Endowment policy suitable for above2 situation

3) Joined a New Job

Starting a new job is exciting, but it could be slightly stressful as well. It needs to adjust to different route to commute, a new work environment, new co-workers, bosses, and most importantly new responsibilities at the work place.

Group life insurance provides insurance to a group of employees through a contract between an insurance company and the employer. It is similar to the types of life insurance that are available on an individual basis, although most companies cover their employees through a term life policy. Usually, a company offers a minimal amount of life insurance - around one to two times your salary at no additional cost to you.

If new employer does not offer group life insurance; Person should recognize the need for insurance and may want to consider purchasing an individual policy. If person have a family that is financially dependent on him, life insurance can be very important. Starting a new job may mean that he have new insurance needs. For example, if your income has increased, you may need to increase your insurance to maintain a consistent relationship between your annual earnings and your coverage amount. But if any of these factors have changed as a result of your move, then you should take steps now to protect you and your loved ones.

4) Marriage

You may have gotten by without life insurance when you were single, or maybe bought an insurance policy just to make some tax-savings.


However, getting married has changed your life insurance needs. There is now at least one other person in your life that expects you and your income to help cover current and future living expenses. You will want to ensure that your spouse is taken care of financially, should anything ever happen to you.

Now that you are married, you have a spouse, and possibly children, who are dependent on you for financial support. If you die suddenly without life insurance, your family may have a crucial time for meeting their financial needs.

To put things a little frankly, will your spouse be able to pay for your car loan, maybe your housing loan as well, or take care of your parent's health expenses, maybe your child's schooling and higher education, all alone? Will your family be forced to move to a less expensive residence (if the existing one has a higher rent), or will your spouse be forced to leave your children with your aging parents in order to work full-time since you are gone?If anyone in your family will suffer an economic loss or hardship as the result of your death, then you need life insurance.

5) Buying a new house

Buying a house is an important step in life, and is probably one of the biggest investments will ever making! Even if it means having to take a loan from a bank or getting an interest-free loan from your employer, having "your own home" is always worth it all

Like most new homebuyers, you have probably financed your purchase with a home loan. Simultaneously, you may want to ensure that you have enough life insurance to enable your family to pay off any existing loan on your home in the event of your death. By having adequate life insurance, you can be sure that your family will be able to keep the house if something ever happens to you.

Moreover, having your own house feels like making a new start! Think about what your life insurance needs will be once you are settled. Take a moment to consider these issues. A little planning now may help protect you and your family in the long run.Taking a housing loan may be convenient but read the fine print - it means that you own as much of the home as you have made principal payments for, the housing or finance company owns the rest.

Making all the principal payments may take up to 10-15 years or even 20 years.What if something untoward happens to you during this period, before the loan is paid off? Your family may be put in the difficult position of having to pay the balance installments or to surrender the house to the finance company in case they are unable to pay the balance amount of money. This could present serious financial difficulties for your family. They may even have to sell the house in order to make up the balance payments. This is where the proceeds of a life insurance policy would help. A life insurance may be used to payoff the remaining loan amount and keep the home for your family.


6) If you have children

If you have children, you will want to opt for more life insurance. Should something ever happen to you, your children will be your spouse's biggest expense. Your spouse will have to provide your children with food, clothing, toys, tuitions, a higher education and maybe provide for marriage expenses. You should want to make sure that you have enough life insurance to cover these costs. The more children you have, the more life insurance you will need. As like Money Back, Scholar, Edu Shield is very significant in Marriage event.

7) Retirements

You've worked hard to attain various goals: a home, a good education for your children, married both your daughters in to good families and now all you want to do is live a peaceful, retired life. In many ways, you have arrived, and now you look forward to your golden years. However, you continue to face risks - financial and otherwise - and

these risks could endanger the security of your future. To provide yourself with adequate protection against the risks you face, it is necessary to maintain sufficient insurance.

Retirement is a good time to re-assess your life insurance needs to ensure that they accurately reflect your new stage in life. Because you may no longer want your insurance to replace your salaried income, nor do you have any loans or liabilities and nor do you have to worry about providing for your children's higher education and marriage expenses (hopefully). In fact, you may now be focused on being financially independent - ensuring that you and your spouse are not dependent on your children for your finances at least. When you retire, it is time to re-evaluate your insurance coverage. Because your financial responsibilities and priorities are changing, your insurance needs change as well. Your monthly income declines as you stop earning your salary. Your household expenditure declines as you incur lower expenses on commuting, clothing, and eating-out. You may be in a lower income tax bracket. With so many changes in your financial position, you need to ensure that your avenues to retirement are as secured as your life has been. Insurance companies offer pension products that allow the individual to receive pension immediately or to receive pension at a certain age. During the term of the policy, the individual remains insured.

Upon his death, his spouse or nominee have the option of either receiving a monthly pension for a guaranteed term (which would have been selected by the insured) or receiving a lump sum amount, where the policy ceases.

Usually these policies allow individuals to pay money on a regular basis as premium or even accept single premiums, where only one payment is made. Moreover, some of the pension policies offer tax benefits, under section 10CCC, which are not available on any other products. However, keep in mind that the premium paid for such a policy may offer tax benefits, the money received as pension is subject to being taxed.

8) Divorce


Going through a divorce can be very stressful and frustrating; it disrupts your life, family, and financial stability. Perhaps there are issues that you are only learning to come to terms with, such as single handedly taking care of your children, your financial stability now that it is all dependent on you. Now is the time to review your policies so that you and your loved ones remain protected. Typically, divorce raises a number of issues regarding life insurance. If you have a life insurance policy already, you may want to re-evaluate your coverage and change your nominee. Your divorce may have left you with fewer assets or more people to protect in the event of your premature death. Because of the impact divorce can have on your finances, your need for life insurance will most likely change. The impact will be greatest when there are children involved.

Purchasing a life insurance policy on your ex-spouse is perhaps the easiest way to protect yourself. However, you could have problems in paying the premiums, or your ex-spouse may not co-operate to do the necessary medical examinations and tests. You could help solve the problem by nominating the children as the beneficiaries.If your ex-spouse has an existing policy on his/her life, you could ask her/him to designate you as the nominee, to provide protection of your alimony and/or your child support payments

NEWS REPORTS

TIMES OF INDIA

Currently managing a portfolio of whopping 6 million lives; SBI Life is set to maintain its leadership in Group Lives coverage. So far this financial year, SBI Life has already covered more than 8 lacs group lives with an additional 2.5 lacs lives through individual policies. SBI Life is now the fastest growing life insurance company, with New Premiums growing at a scorching 264% (YTD) basis, from Rs. 275 crores to 1000 crores and Total Premiums keeping pace, growing at 211% from Rs. 370 crores to Rs. 1150 crores. A strong growth across all its channels namely Bancassurance, Agency Channel, and Group Corporate is the major attributing factor for SBI Life’s exponential business growth. While sharing its aggressive plans, SBI Life also announced the infusion of additional fresh capital of Rs. 75 crores to take its capital base up to its authorized share capital limit of Rs. 500 crores. Speaking on the occasion, Mr. S. Krishnamurthy, MD and CEO, SBI Life Insurance said," The additional capital has been injected to maintain stipulated solvency margins for the exponential new business growth and expanding branch network” He added, “This growth has come primarily on account of our multi-channel business model coupled with a balanced mix of savings and protection products. SBI Life currently has the largest and most robust Bancassurance network complimenting the most productive and active Insurance Advisor force of Agency Channel in the country.”

FINANCIAL EXPRESS


SBI Life has rapidly expanded its operations this year to strengthen its unique multi-distribution network. The company now is leveraging the 14,500-strong SBI Group branch network from where SBI Life products are currently available. SBI Life also has increased its own branch network from 68 branches as March 06 to 95 as on December 06. While the number of Life Insurance Advisors recruitment has gone up by more than double from 8000 as on March 06 to 18,525 as on December 06. The two other channels of Group Insurance & Credit Life have also been showing significant growth.

SURVEY REPORT

With the help of survey on SBI Life Insurance policyholder we can see that there is 40% Money back policyholder, 24% Pension, 20% other & 16% Endowment policy holder. So overall research & analysis say that Money back policy is popular due to its convenient term period: 10,15,20,25 years, easy liquidity at regular interval & fair guaranteed survival benefits. It is really benefited to meet various financial obligations at crucial junctures. Next Pension policy is popular due to their goodwill & attractive benefits. The insured has the option of selecting when and for how long (term) she or he would like to receive the pension amount. Endowment & other policy are quite popular due to their selective benefits & low premium amount. Mostly smart person use endowment amount to buy an annuity policy to generate a monthly pension for the rest of your life, or put it into any other suitable investment of your choice. This is the major benefit that an endowment policy offers over a whole life one.

Overall survey, Insurance advisors, & experts' comments I conclude here that numerous policyholders are satisfactory with SBI-Life Insurance service for the reason that its reputation, brand name, Convenient premium payment mode, large network branches, attractive returns bonus incentives, affordability etc. It will further grow with high marketing & new innovative product & services.

CONCLUSION


Economic growth & development has been widely accepted as major goal of national policy in country. Economic growth is today decided more by human capital than material capital. Equipment, process, & property are leveraged not by their inherent capability but by action of human being. Therefore Human Resources is significant asset for country but this human life is full of uncertainties & risks.

Preparing for uncertainties SBI life Insurance company is came out with the different insurance policy as a solution for delegating worries. It reimburses people for lovered losses in the event of an unfortunable occurrence such as illness, accident, & death. At the some time, it can encourage safety measure, provide investment capital, lend money, & help to reduce anxiety for society at large.

SBI Life Insurance is to emerged as leading company offering a comprehensive range of life Insurance & pension product at competitive price, ensuring high standard of customer service & world class operating efficiency. Different products are designed to a suitable in different life event stage. Bancassurance recorded a premium income of Rs 163 crore, about 80% of the total premium income, he said, adding that other channels too showed good growth over the corresponding period last year. The company's business was growing 4-5 times a stood at Rs. 100 crore till July, of which Rs. 84 crore came from premium from new business. If the company continues to grow at this rate, SBI Life could end this fiscal with a premium income of Rs. 1,000 crore as against Rs. 225.65 crore in 2003-04.The company plans to make insurance buying process quick, simple based on well-informed judgment, which will satisfy customer in all manners. As looking growing function of SBI Life Insurance sector we assume that 100% function of human will become insured in coming 2010 with different product in low cost.

BIBLIOGRAPHY


Nature & Scope of Banking, Insurance & other Financial Service In Economic Growth - P.K. Bandgar

SBI- life Insurance Brochure, Pamphlet, magazines. Life Insurance Handbook. DNA Financial Express. Economics Time. www.sbilife.co.in- Only 20 % information


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