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.
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 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:
|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.
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:
Note – To avail any of the above 2 options, the members have to abide by the terms and conditions of the policy.
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:
|Coverage for Co-borrowers||
If the initial Sum Assured and the loan amount is the same for every borrower, then:
|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.|
SBI Life – RiNn Raksha Plan holders can opt for the following rider:
|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:
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.
SBI Life – RiNn Raksha Plan has many features. Some of them are mentioned below:
|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.|
SBI Life – RiNn Raksha Plan holders can avail tax benefits as per the Income Tax Act, 1961.
|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.|
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.