SBI Life Money Back Plan Get your Money Back and still stay Insured
SBI Life Money Back • 4 options: 10 – 15 – 20 –25 years • 4 riders: TA, CI, ADTPD, PWB. • Large choice of S.A. and Premium mode: Rs. 50,000 to Rs. 5 crore. • Attractive rebate for female Competitive premium rates
Make the product simple for your customers… • Basic product: easy to understand, easy to sell • What about competition? • What about the 4 riders? • More details on SBI Life Money Back Plan
SBI Life Money Back Plan • Basic product, easy to understand, easy to sell .
SBI Life Money Back Plan • Survival Benefits: • More than Basic Sum Assured. • At regular intervals during the plan. • Last Survival Benefits with Vested Bonus calculated on Basic S.A. for entire term of the policy • Death benefits: • Sum Assured + Vested Bonus • Irrespective of Survival Benefit already received.
Increasing Survival Benefits 110% + VB 115% + VB 120% + VB 125% + VB
Illustration for Sum Assured Rs. 5 lac Rs. 5.5 lac + VB Rs. 5.75 lac + VB Rs. 6 lac + VB Rs. 6.25 lac + VB
Death Benefits • Full Sum Assured + Vested Bonus • Irrespective of Survival Benefits already received • In case of suicide within the first policy year: Refund of basic premium (-) Commission paid (-) Adm. Expenses.
Tax Rebate Slabs Gross Total Income (GTI) Tax Rebate Max Admissible Amount Upto Rs. 1.5 lakhs 20% Rs. 14,000 1.5 lakhs – 5 lakhs 15% Rs. 10,500 More than Rs. 5 lakhs NIL NIL Gross Salary Income Not exceeding Rs. 1 lakh (should not be less than 90% of GTI) 30% Rs. 21,000 Tax Advantages • At the entry: Tax rebate u/s 88 of I.T. Act • Available for Premium paid on Life Insurance policies with a maximum ceiling p.a. Rs. 70,000 / 20% Basic S.A. whichever is lower. • Policy can be in the name of the spouse, children (major or minor and Married daughter)
Tax advantages • For survival benefits and claim amounts u/s 10 (10D) I.T. Act: • Maturity benefits are tax-free in the hands of the policyholder if, at any point of time during the policy life, premiums paid within one year does not exceed 20% of the basic Sum Assured. • Death benefits are always tax-free. Tax-free maturity benefits along with life cover
Premium rebates • For mode of payment • Yearly: 2% • Half-Yearly: 1% • Quarterly: no rebate • Monthly: • Standing Instruction on Credit Card/Bank account): extra charges +2% • Salary Savings Scheme (Min 30): no extra charges • For gender • 5% discount for female Premium tables provided are net of rebates for mode of payment & gender
Premium rebates • For High value policy Do not forget to deduct this High Value policy rebate from the premium tables
SBI Life Money Back PlanOption1: 10y term - SA: Rs. 3 lac • You pay 10 yearly premiums of: • You will get back:Rs. 3.3 lac + Vested Bonus • End of Year 8: Rs. 90,000 • End of Year 9: Rs. 1,05,000 • End of Year 10: Rs.1,35,000 +VB(for 10 years on Rs. 3 lac)
SBI Life Money Back Plan Option2: 15y term - SA: Rs. 3 lac • You pay 15 yearly premiums of: • You will get back:Rs. 3.45 lac + Vested Bonus • End of Year 3: Rs. 30,000 • End of Year 6: Rs. 45,000 • End of Year 9: Rs. 60,000 • End of Year 12: Rs. 75,000 • End of Year 15: Rs. 1,35,000 + VB(for 15 years on Rs. 3 lac)
SBI Life Money Back PlanOption3: 20y term - SA: Rs. 3 lac • You pay 20 yearly premiums of: • You will get back:Rs. 3.6 lac + Vested Bonus • End of Year 4:Rs. 30,000 • End of Year 8: Rs. 45,000 • End of Year 12: Rs. 60,000 • End of Year 16: Rs. 75,000 • End of Year 20: Rs. 1,50,000 + VB(for 20 years on Rs. 3 lac)
SBI Life Money Back PlanOption4: 25y term - SA: Rs. 3 lac • You pay 25 yearly premiums of: • You will get back: Rs. 3.75 lac + Vested Bonus • End of Year 5: Rs. 30,000 • End of Year 10: Rs. 45,000 • End of Year 15: Rs. 60,000 • End of Year 20: Rs. 75,000 • End of Year 25: Rs. 1,65,000 + VB(for 25 years on Rs. 3 lac)
SBI Life Money Back Plan Medical selection rules
Medical selection rules: Basic Sum Assured + Sum Assured for T.A. rider + 1.5 time Sum Assured for C.I. rider + Sum Under Consideration for existing individual SBI Life policy = Sum Under Consideration Accidental rider and Premium Waiver Benefit riders are not taken into accountfor calculation of Sum Under Consideration
Medical selection Based on Sum under consideration / Age Basic medical test, subject to requirement
SBI Life Money Back Plan 15 days Free Look Period If a client is not satisfied with the features of the policy, he can return it within 15 days of the date of policy receipt SBI Life will give him a complete refund after deducting Administrative Charges (Stamp duty + Medical Expenses + Rs. 200/-)
Who are the Money Back customers? • Those who wants twin benefits of Life Insurance and cash inflow at regular intervals. • Those who are not interested in a lump sum at the end of the term but prefer to receive benefits during the term. • Those who want to approach every milestone in life with ease: • Marriage, child’s college admission, home, car, renovation of your apartment, holiday… • Those who want Guaranteed (no risk) tax-free survival benefits with tax-rebates u/s 88 of IT Act.
Plus of SBI Life Money Back • Flexibility: • Large choice of S.A. • From Rs. 50,000 upto Rs. 5 crore • 4 options • 10 – 15 – 20 and 25 years • Increasing Guaranteed Survival Benefits • 10Y: 110% SA 15Y: 115% SA 20Y: 120% SA 25Y: 125% SA • 4 Riders available • To design the policy according to your needs. • Affordable Money Back policy: • One of the lowest premium rate in the Market • Same premium amount for the entire duration • 5% discount for female lives..
SBI Life Money Back Plan: commissions • Option 1: • 1st year: 30 % P • 2nd & 3rd year: 7.5% P • 4th year onwards: 5% P • Option 2 / 3 / 4: • 1st year: 40% P • 2nd & 3rd year: 7.5% P • 3rd year onwards: 5% P
SBI Life Money Back Plan • What about competition? • One of the lowest premium rates • Survival benefits 110% to 125% Basic S.A. • SBI Life name .
SBI Life Money Back Plan • What about the 4 riders? .
SBI Life Money Back Plan riders Term Assurance (TA) Accidental Death and TPD (ADTPD) Premium Waiver Benefit (PWB) Critical Illness (CI)
4 Riders at a glance * Minor is eligible to join the next policy anniversary following 18th year
SBI Life Money Back Plan Term Assurance rider
Term Assurance Rider • Min. entry age: 18yrs • Max. entry age: as per Max. entry age of the option plan • Max. cover age: 65yrs • Duration: Min. 5yrs - Max.: Term Basic Plan / 65yrs • Min S.A.: Rs. 50,000( in multiple of Rs. 10,000) • Max S.A.: Basic SA/Max.Rs. 50 lac overall ceiling per Life Insured under all individual SBI Life policies. • Premium: Plan / Amount S.A. • Premium Payment Mode: As per Basic Plan Available at entry time only
Term Assurance benefit • Death benefit: • Nominee will receive additional S.A. under this rider. • Survival benefit: • No survival benefit Easy to understand
Term Assurance rider: low premium rate • Increases Insurance Cover at very nominal extra cost An example: • 30 years old man: • Extra premium • Rs. 351 per lac p.a. for Option1: 10 yrs term • Rs. 372 per lac p.a. for Option2: 15 yrs term • Rs. 404 per lac p.a. for Option3: 20 yrs term • Rs. 451 per lac p.a. for Option4: 25 yrs term Less than Rs. 1.25 a day for Rs. 1 lac extra death benefit
SBI Life Money Back plan Death or Total Permanent Disability due to an accident
Accidental Death & TPD rider: • Min. entry age: 18 years • Max. entry age: As per Max. entry age on Option Plan • Min. cover age: 70 years • Duration: Min. 5 yrs / Max. Term of Basic Plan • Min S.A.: Rs. 50,000( multiple of Rs. 10,000) • Max S.A.: Upto basic S.A. subject to overall ceiling of Rs. 20 lakhs per Life insured under all individual SBI Life policies. • Premium Payment Mode: As per the basic cover • Double Cover: • Accidental Death or • Total Permanent Disability due to an accident Available at entry time only - Minor can join policy anniversary following 18th
Accidental Death benefits • Nominee will receive: • Additional Sum Assured for Accidental cover High Protection: Negligible cost - Rs. 1/- per ‘000 S.A. p.a.
Accidental Total Permanent Disability benefits • Policyholder will receive: • In Installments • Sum Assured for accidental benefit in 10 installments till maturity / death whichever is earlier. • At Maturity / Death • Balance of TPD claim installments if any will be paid in one lump sum to the policyholder/nominee. • Policyholder exits from all riders: • No other rider benefit will be paid • Policy continue for the Basic plan: • Regular premiums for basic plan have to be paid • Survival benefits will be paid as per the original schedule if policy is on force.
Extra premium per Rs. 1 lac of S.A. for Accidental rider High protection, negligible cost
SBI Life Money Back Plan Premium Waiver Benefit rider
Premium Waiver Benefit (PWB) Min. Age: 18 years Max. Age: Option1: 55yrs Option2: 50yrs Option3: 45yrs Option4: 40yrs Max. cover age: 65 years Duration: same as basic plan – should be co-terminus with basic cover Premium: based on basic premium paid (inclusive of NSAP) Availability: - Basic S.A. with PWB rider under all individual SBI Life policies should not exceed Rs. 50 lac under one Life Insured. - If Basic S.A. is higher, this rider is not available (ex SA Rs. 60 lac: PWB is not available; you should take Rs. 50 lac with PWB and Rs. 10 lac without PWB)
Premium Waiver Benefit (PWB) • On occurrence of an accidental Total & Permanent Disability: • Life Insured informs SBI Life in writing within maximum 120 days. • Regular Premium for Basic Cover will be waived. • Life Insured exits from all riders: • Survival Benefits • No survival benefit Basic cover continues, Survival Benefits are payable Regular premiums are waived
Extra premium for availing PWB rider Premium rate is applicable on the amount of Basic Premium with NSAP
How to calculate the extra premium for Premium Waiver Benefit rider? • Use Premium table for Premium Waiver benefit rider. • According to Option Plan and Age, find out the rate. • Apply this rate to the premium for Basic Cover (inclusive of NSAP, if any). Ex. SBI Life Money Back Plan - Option 2 SA: Rs. 3 lakh - Basic Yearly Premium for a 30 yrs old male: Rs. 24,552 Rate for WOP: 1.29 Extra premium: (1.29 * 24,552) / 100 = Rs. 317/- For less than Rs. 1 a day, Basic premiums are waived and you will continue to benefits from survival benefits with full protection for your family
SBI Life Money Back Plan Critical Illness rider
Critical Illness Rider Min. Age: 18 years Max. Age: 55 years Max. cover age: 60 years Minimum duration: 5 years Maximum duration: end of basic cover/60 years whichever is earlier Min SA: Rs. 50,000(x 10,000) Max SA: Upto basic S.A. subject to overall ceiling Rs. 10 lakhs per life insured. Premium: Gender, Age, Duration & amount of cover. Premium rate: • valid only till March 2008 • SBI Lifereserves the right to revise the premium thereafter.
6 Critical Illnesses covered • Available for: • Cancer (malignant) including leukaemia Coronary Artery Bypass Surgery • Heart Attack • Kidney Failure • Stroke • Major Organ Transplantation Available at entry time only