SBI Life CSC Saral Sanchay Plan
The SBI Life CSC Saral Sanchay Plan is a traditional, non-participating Endowment Assurance Plan which helps provide the dual benefit of savings and insurance. Though it is a traditional plan, it is variable in nature and thus provides some flexible options under the policy.
Highlights of the SBI Life CSC Saral Sanchay Plan
- This is a traditional Endowment plan which does not participate in the profits of the company and hence does not earn bonus.
- The plan provides the benefit of insurance and savings which can be purchased easily from an authorized Common Service Center (CSC) under the National e-Governance Plan.
- The plan pays a guaranteed interest of 1% every year throughout the policy tenure.
- Partial withdrawals are allowed under the plan from the 6th policy year.
- Top-ups are also allowed where the policyholder can invest extra premium.
Benefits
If the policyholder survives till the end of the term and has paid all due premiums, the maturity benefit would be payable to him which would be higher of:
- Total premiums paid including any top-up premium paid compounded @1% less any partial withdrawals made
- The balance available in the IPA.
If the insured dies during the term of the plan and all premiums have been paid, highest of the following will be paid out as death benefit:
- The Sum Assured including any increased Sum Assured due to top-ups made
- 105% of all premiums paid including any top-up premium paid till the date of death
- Total premiums paid including any top-up premium paid compounded @1%
- The Balance of the IPA
This is a non-participating plan and as such does not participate in bonus declarations
Premiums paid under the plan would be exempt from tax under Section 80C up to a limit of Rs.1.5 lakhs. The death benefit or the maturity benefit received would also be tax exempt under Section 10(10D) of the Income Tax Act.
Loan is not available under the plan
Riders are not available under the plan
Top-up premiums can be paid to increase the Sum Assured and also the value in the IPA. The value of the top-up premium cannot exceed the base premium paid under the policy.
The plan provides the facility of partial withdrawals after the completion of 5 policy years provided all due premiums have been paid till the date of partial withdrawals. The minimum amount of such withdrawal is Rs.1000 and the maximum is limited to 25% of the balance in the IPA. However, the balance in the IPA post the withdrawal should never fall below 1.5 times the annual premium paid under the policy
A grace period of 30 days is allowed for payment of premium after the due date for all modes of premium payment. The life cover under the policy would continue during the grace period.
A cooling off period or a free look period of 15 days is granted to the policyholder after the policy issuance to review the policy terms and conditions. If found unsatisfactory, the plan can be cancelled within this period and the premium paid would be refunded after deducting the relevant mortality charge, service tax, cess and stamp duty paid
How it works
- Being a variable insurance plan, the premiums paid would be invested in an Individual Policy Account (IPA) after deducting the premium allocation charge.
- The Sum Assured is expressed as a multiple of the annual premium paid and would therefore depend on the premium amount.
- The mortality charge for providing insurance coverage would be deducted every month from the IPA.
- A Minimum Floor Rate (MFR) would be added to the IPA every financial quarter @1% till death, surrender or maturity, whichever is earlier.
- An Additional Interest Rate of 4% of the IPA would be added at the start of each quarter for first 5 policy years. After this, the rate would reduce to 0.5% of the IPA from the 6th year onwards.
Bonus Rates
There are three types of charges payable under the plan which are:
- Premium allocation charge – This charge is deducted from the first year premium paid by the policyholder. The rate of the charge is 20% of the premium paid. From the second year, no charge is recovered under this head.
- Mortality charge – Based on the company’s mortality tables, a mortality charge is deducted from the IPA balance at the start of each policy month.
- Service tax and cess – As per the applicable laws, service tax and cess are also charged on your plan and deducted from the IPA along with the other charges.
Eligibility
The plan is available only through the Common Service Centers appointed under the National e-Governance Plan. This plans is available for Indian nations only
The following table gives a gist of the criteria for taking the plan:
| Minimum | Maximum | |
| Entry age (Last Birthday) | 18 years | For policy term 10 years – 60 years For policy term 15 years – 55 years |
| Maturity Age (Last Birthday) | NA | 70 years |
| Plan tenure | 10 years or 15 years | |
| Premium payable | Monthly – Rs.200 Quarterly – Rs.600 Half-yearly – Rs.1200 Annually – Rs.2400 |
Monthly – Rs.1600 Quarterly – Rs.5000 Half-yearly – Rs.10000 Annually – Rs.20000 |
| Top up Premium | Rs.500 and thereafter in multiples of Rs.1000 | - |
| Sum Assured | If age is less than 45 years – 10 times the annual premium If age is 45 years and above – 7 times the annual premium |
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| Top-up Sum Assured | If age is less than 45 years – 125% of top-up premium If age is 45 years and above 110% of top-up premium |
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| Premium payment mode | Monthly, quarterly, half-yearly and annually | |
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Surrender Value
Surrendering is allowed only after the completion of 5 policy years and on surrender, the balance in the IPA would be paid.
Making the policy Paid-up
If premiums are discontinued after 5 years and the policyholder does not revive the plan nor surrenders it, the plan would become a paid-up plan and run on a reduced Paid-up Value which would be the effective Sum Assured.
Paid up Value = Sum Assured * (number of Premiums Paid / total number of premiums payable)
- Death Benefit – On death, higher of the paid up value or the balance in the IPA would be payable
- Maturity benefit – On maturity, the balance in the IPA would be payable
Revival is allowed within 2 years from the date of the first unpaid premium. The policyholder would be required to pay the outstanding premium and any interest charged by the insurer to revive his policy.
Exclusions
- If the policyholder commits suicide within a year of policy issuance or revival, only the balance available in the IPA would be paid to the nominee.
Claim Process
Premium is required to be paid for the entire tenure of the plan. If, however, the policyholder discontinues paying the premium, there are two scenarios:
- Within the first 5 years
If the premium is stopped anytime in the first 5 years, the life cover would cease after the grace period has expired. The policy would continue till the completion of 5 years if it is not revived. Death during this period would result in the payment of the balance of the IPA. At the end of 5 years, the balance in the IPA would be paid and the policy would be terminated.
- After the completion of first 5 years
If the premiums for the first 5 years have been paid and later discontinued, the policyholder has the option of making his policy Paid-up or surrendering it altogether if he does not want to revive it.
