SBI Life - Grameen Bima Plan

For many, the word “Insurance” is still an expensive affair. Especially in a country like India, where majority of the population is economically backward, many people feel that insurance policies are only meant for the rich ones. To bust this myth, SBI Life Insurance Company has introduced a innovative insurance plan for the deprived sections of the society called the SBI Life Grameen Bima Plan.

SBI Life Grameen Bima Plan is a simple non-participating pure term life insurance plan by SBI that provides life cover to the economically backward sections of the society at affordable prices. This plans provides financial security for the insured person’s family during an unforeseen event.

Eligibility – Who is the SBI Life Grameen Bima Plan for?

To be eligible to purchase the SBI Life Grameen Bima Plan, individuals will have to meet the below mentioned eligibility criteria:

Parameter	Details
Plan Type	Non-participating pure term life insurance plan
Minimum Entry Age	18 years
Maximum Entry Age	50 years
Policy Term	5 years

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

While purchasing the SBI Life Grameen Bima Plan, the policyholder will be given an option to select the sum assured amount. For more information on the sum assured and the premium range under the SBI Life Grameen Bima Plan, read on.

Parameter	Details
Sum Assured	The policyholder should choose the sum assured at the inception of the policy. The minimum sum assured amount is Rs.10,000 and the maximum can go up to Rs.50,000. The sum assured depends on the age of the insured. Please refer to the table below: Age band Sum assured 18-39 60 times of the total premium paid 40-44 40 times of the total premium paid 45-50 25 times of the total premium paid
Total Premium Amount	The minimum premium amount is Rs.300 and the maximum premium amount is Rs.2,000. Please note that premium amount will be in multiples of Rs.100.
Premium Frequency	Single

Plan Coverage – What the SBI Life Grameen Bima Plan Covers?

Following are the benefits offered by the SBI Life Grameen Bima Plan:

Maturity Benefit	Please note that there is no maturity benefit under the SBI Life Grameen Bima Plan.
Death Benefit	In the event of death of the policyholder, guaranteed death benefit is given. This benefit is payable only when the insured person dies during the policy term and provided the policy is in active status. In case of the death of the insured, the nominee will receive the sum assured amount.
Surrender Benefit	Under the SBI Life Grameen Bima Plan, policyholders will have an option to surrender their policy. The surrender value depends on the year of the surrender and the policy term. Surrender option is available from the second year onwards. The surrender value payable will be the single premium(exclusive of service tax) * 50% * unexpired policy term * total term. Please note that no surrender benefit is payable in the last year of the policy.

Riders/Add-On Plans – Additional Coverage under the SBI Life Grameen Bima Plan:

Policyholders can attach a add-on to their base policy if they are looking for extra protection. Please note that when issuing the SBI Life Grameen Bima Plan, riders will not be available. However, the insurance company may allow riders under this plan in the future, subject to approval by regulator.

Other Key Features of SBI Life Grameen Bima Plan:

Following are some of the other key features of the SBI Life Grameen Bima Plan:

Free Look Period	The SBI Life Grameen Bima Plan has a free look period of 15 days within which the policyholder can cancel the policy and and get the premiums paid refunded. For policies purchased through distance marketing, the free look period is 30 days from the receipt of the policy document.
Policy Loan Facility	There is no loan facility under this plan.
Assignment	Assignments are allowed under the SBI Life Grameen Bima Plan. It should comply with provisions of Section 38 of the Insurance Act, 1938.
Nomination	Nominations are allowed under the SBI Life Grameen Bima Plan. It should comply with the provisions of Section 39 of the Insurance Act, 1938.

 

Exclusions – What is excluded from the SBI Life Grameen Bima Plan?

There are no exclusions under the SBI Life Grameen Bima Plan.

Tax Benefits – How You Can Save with the SBI Life Grameen Bima Plan?

Policyholders who have purchased the SBI Life Grameen Bima Plan will enjoy tax benefits under Section 10(10D) and Section 80C of the Income Tax Act, 1961.

Why You Should Choose the SBI Life Grameen Bima Plan?

The first reason to buy the SBI Life Grameen Bima Plan is because it if offered by one of the most reputable insurance providers in India, SBI Life Insurance. This plan offers protection to the insured and their family at an affordable cost, thereby helping the economically backward section of the society to lead a standard life. There is no medical examination required to buy the SBI Life Grameen Bima Plan. As this plan targets the deprived section of the society, there is minimal documentation is required. A simplified questionnaire is all that is need to purchase this plan. As this place is a single premium plan, it is very convenient as policyholder do not have to keep paying the premium regularly. If you are the only earning member in your family and would love to keep your loved ones safe if something unfortunate happened to you, buy the SBI Life Grameen Bima Plan.