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SBI Life - RiNn Raksha Plan

Life Insurance
  • Premiums as low as Rs.18/day for sum assured of Rs.1 crore
  • Paperless process available
  • Choose between lump sum and monthly payout options

SBI Life – RiNn Raksha is a group credit life insurance plan offered by SBI Life Insurance Company Limited. This plan can be opted for by people who borrow loans to protect their families from the repayment liability. SBI Life – RiNn Raksha plan provides coverage for various types of loans. It offers death benefit, surrender benefit and tax benefit to the members. It also provides additional options for loans that have a floating rate of interest. Apart from primary borrower, it covers the life of a maximum of 2 co-borrowers. Policyholders can choose to add the SBI Life – Accidental Total and Permanent Disability Benefit Rider to the plan.

Eligibility -Who is the SBI Life – RiNn Raksha Plan for?

SBI Life – RiNn Raksha Plan can be applied for by people who fulfil its eligibility requirements.

The eligibility criteria for the plan is mentioned below:

Plan Type Group credit life insurance plan
Minimum Age at Entry 16 years
Maximum Age at Entry 70 years
Maximum Age at Maturity 75 years
Minimum Group Size (1st year) 20 members
Maximum Group Size (1st year) No Limit
Minimum Term 2 years
Maximum Term 30 years

Sum Assured and Premium Range - What you get and what it costs?

Sum Assured is the amount that people will receive from the policy. This amount is guaranteed at the start of the policy. The minimum and maximum Sum Assured for SBI Life – RiNn Raksha Plan is:

Particulars Details
Minimum Sum Assured Rs.10,000
Maximum Sum Assured No Limit

Premium is the amount paid by the customers to SBI Life Insurance Company Limited to avail the SBI Life – RiNn Raksha plan. The plan has 2 Premium Payment Terms, which are Single Premium and Level Premium. Level Premium is paid for a period of 5 years or 10 years.

Policy Term Premium Payment Mode
2 years – 30 years Single Premium
8 years – 30 years Premium Payment Term – 5 years
15 years – 30 years Premium Payment Term – 10 years

Premium can be paid on a yearly, half-yearly, quarterly or monthly basis. Financial institutions that provide the loan can choose finance the premium by including the premium amount in the loan amount.

Plan Coverage - What the SBI Life – RiNn Raksha Plan covers?

SBI Life – RiNn Raksha Plan offers protection from debts in case of disability/death. This debt includes various loans such as car loan, housing loan, education loan, personal loan and agricultural loan. The plan allows people to choose the loan cover term. If the loan tenure is at least 15 years, then the minimum cover should be 2/3rd of the loan tenure. For loans that have floating rates of interest, it offers the following 2 options:

  • Gold Option – This option is available only if the policy term is at least 5 years. If this option is selected by a member, then in case of his/her death during the policy term, the company will pay the total outstanding amount according to the floating rate of interest offered by the member irrespective of the loan schedule mentioned in the COI (Certificate of Insurance). The benefit will be paid only if the outstanding premiums have been paid in full and the policy is active for the member.
  • Platinum Option - This option is also available for a policy term of 5 years and above. If this option is selected by a member, then in case of his/her death during the policy term, the company will pay the higher of the outstanding loan amount according to the floating rate of interest or the outstanding loan amount according to the interest rate that was fixed (mentioned in the COI) at the start of the cover.

Note – To avail any of the above 2 options, the members have to abide by the terms and conditions of the policy.

Particulars Details
Death Benefit In case of death of a member during the term of the policy, the company will pay the Sum Assured as per the option (Gold or Platinum) selected by him/her. If he/she has not selected any of the options, then the company will pay the Sum Assured according to the schedule mentioned in the COI. This benefit will be paid if all the outstanding premiums have been paid by the member. If all the outstanding premiums have not been paid by the member who passed away, then the following will apply:
  • If the member dies within the grace period, then the company will pay the Sum Assured according to the schedule mentioned in the COI after subtracting the outstanding unpaid premiums.
  • If the member dies after the grace period and the policy has become Paid-up, then the company will pay the Paid-up Sum Assured.
  • If the member dies after the grace period and the policy has not become Paid-up, then the company will not pay any death benefit.
Paid-up Sum Assured = (Number of premiums paid/Number of premiums payable) x Original Sum Assured at death. Apart from this, If a member dies after placing a request for surrender, but prior to paying the surrender value or if he/she dies after requesting for cancellation of the cover during the free look period, but before the premium is refunded, then the nominee/Master Policyholder will be eligible to receive the death benefit. The insurance cover will cancel on the date of death.
Coverage for Co-borrowers If the initial Sum Assured and the loan amount is the same for every borrower, then:
  • In the event of death of any one of the borrowers during the policy term, the company will pay the death benefit to the nominee according to the schedule mentioned in the COI. The coverage for surviving members will terminate and they will receive the surrender value (if any).
  • If the claim is rejected in case of death of any of the co-borrowers during the policy term, then the company will not pay the death benefit and the coverage for the surviving members will continue.
  • If more than 1 borrower passes away simultaneously, then the death benefit will be paid only for 1 borrower. The company will assume that the younger member died after the older member. The surrender value (if any) will be given to the members who have not received death benefit.
If the initial Sum Assured for every borrower is the same as his/her loan share, then:
  • In the event of death of any of the members during the policy term, the company will pay the death benefit for the member who passed away. The benefit will be paid according to the Sum Assured schedule mentioned in the COI. The benefit will be paid based on the cover the particular member is entitled to and the coverage provided will be limited to his/her loan share. The coverage for the surviving members will continue until the end of the policy term as long as the premiums are paid on time.
  • If the claim is rejected in case of death of any of the members during the policy term, then the company will not pay any death benefit and the coverage for the surviving members will continue until the end of the policy term, provided they pay their premiums on time.
Surrender Benefit Surrender is allowed after 1st year of the policy term. Surrender Value (SV) will be paid if all the premiums of the 1st year have been paid. Surrender benefit will be paid by the company only if the minimum amount is Rs.250. In case of co-borrowers, surrender by one person will not affect the coverage provided to the other members. The benefit paid will be the higher of SSV (Special Surrender Value) and SV Surrender Value = (50% of premiums paid) x (unexpired term/total term). If the policy is surrendered by the Master Policyholder, but the premiums have been paid by the insured members of the group, then the individual members will be given an option of continuing the plan as an individual policy. Note – Term will be calculated on the basis of the number of months that have been completed. Unexpired policy term refers to the total term minus the completed months on the date of surrender.

Riders/ Add-On Plans – Additional coverage under the SBI Life – RiNn Raksha Plan:

SBI Life – RiNn Raksha Plan holders can opt for the following rider:

Particulars Details
SBI Life – Accidental Total Permanent Disability Benefit This rider pays the outstanding loan amount (or the Sum Assured) as death benefit, if the insured member is permanently and totally disabled due to an accident. The eligibility criteria for this rider is mentioned below:
Minimum Age at Entry 16 years
Maximum Age at Entry 60 years
Maximum Age at Maturity 65 years
Minimum Term 5 years
Maximum Term 10 years

Exclusions - What the SBI Life – RiNn Raksha Plan doesn’t cover?

Suicide Exclusion – If the insured member (sane/insane) dies by suicide within a period of 1 year from the start of the policy, then no benefit will be paid. His/her nominee will receive 80% of the premiums paid that have been paid without interest. The premiums paid as part of the rider will not be refunded.

If the insured member (sane/insane) dies by suicide within a period of 1 year from the revival of the policy, then no benefit will be paid. His/her nominee will receive 80% of the premiums paid or surrender value that have been paid without interest. The premiums paid as part of the rider will not be refunded.

Other Key Features – Free Look Period, Surrender Values, Grace Period etc.

SBI Life – RiNn Raksha Plan has many features. Some of them are mentioned below:

Particulars Details
Waiting Period Death benefit – Up to 60 days. During this period only deaths caused by accident will be covered.
Cancellation of Loan Coverage can be cancelled within a period of 90 days from the date of issue of COI. In case the loan is not taken by the concerned member after it is sanctioned/ is cancelled, but the premium is paid, then the company will refund 90% of the premium (excludes tax and cess) paid by the member. The company will deduct stamp duty from the premium before refunding it.
Grace Period 15 days for monthly mode and 30 days for other days.
Nomination The Master Policyholder has to get the name of the nominees from the members.
Claims Members can choose to permit the Master Policyholder to get the claim amount in case of his/her disability or death. Here, the claim amount equal to the outstanding loan balance of the insured will be paid to the Master Policyholder and the rest of the balance (if any) will be paid to his/her nominee. If a member does not permit the Master Policyholder to receive the claim amount, then the entire amount will be paid to the nominee of the insured member, even if the draft/cheque is sent by the company to the Master Policyholder.
Free Look Period 15 days.
Revival The policy can be revived within 2 years from the 1st unpaid premium payment due date.

Tax Benefits – How you can save with the SBI Life – RiNn Raksha Plan?

SBI Life – RiNn Raksha Plan holders can avail tax benefits as per the Income Tax Act, 1961.

Other Benefits – How you can save with the SBI Life – RiNn Raksha Plan?

Particulars Details
Tools Customers can use various tools such as SBI Life – Easy Access, Tax Calculator, etc., to plan their insurance policy. The tools are present on the website of SBI Life Insurance Company Limited.
Customer Service Customers can contact the customer service of the bank for any policy related queries.
Application Tracker Customers can use the Application Tracker present on the company’s website to track their application.

Why you should buy the SBI Life – RiNn Raksha Plan from SBI Life Insurance Company Limited?

SBI Life Insurance Company Limited is one of the leading and reliable insurance companies in India. It is present all over the country, which makes its services easily accessible. It offers various individual and group insurance plans. SBI Life – RiNn Raksha Plan is a popular group insurance plan offered by the company. Apart from offering some of the best insurance products, SBI Life Insurance Company also conducts Insurance Awareness Program to educate customers about the benefits of insurance protection. It uses the latest technology and provides 24x7 customer care service to its customers.