SBI Life Shubh Nivesh Plan

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Policy discontinued 

SBI Life Shubh Nivesh Plan
 
SBI Life Shubh Nivesh Plan is a Participating Endowment Plan with an option to opt for Whole Life Coverage as well. It is a Traditional Plan with Bonus facility.
 
How it works – In this plan, premium can be paid in a lumpsum under Single Premium Option or till the end of the policy tenure under Regular Premium Option. This plan offers Simple Reversionary Bonus till the end of the basic Policy Tenure chosen. The plan may continue beyond that for Deferred Maturity Option or Whole Life Option. This plan also may have Terminal Bonus at the end of the policy tenure.
 
There are 2 options in this plan:
  • Endowment Assurance: Under this option, the Sum Assured + accrued Simple Reversionary Bonus would be paid on death of the Life Insured within the Policy Tenure as Death Benefit or on survival till the end of the Policy Tenure as Maturity Benefit.
  • Whole Life Endowment: Under this option, the policy is converted to a whole life cum Endowment Plan. Thus, the Sum Assured + accrued Simple Reversionary Bonus would be paid at the end of the Endowment Tenure and the policy continues. An additional amount of basic Sum Assured will be paid on survival till 100 years of age or on the death of the Life Assured, whichever is earlier.
 
This plan has a unique option of Deferred Maturity Benefit which can be taken for 5, 10, 15 or 20 years post maturity.
 
There are 3 additional riders in this plan.
 
 
Key Features of SBI Life Shubh Nivesh Policy
 
  • It is a participating Endowment Plan with Single and Regular premium payment option
  • In this plan, there is an option to opt for Whole Life Coverage
  • There are 2 options in this plan:
    • Endowment Assurance
    • Whole Life Endowment Assurance
  • This plan has a unique option of Deferred Maturity Benefit which can be taken for 5, 10, 15 or 20 years post maturity
  • There are 3 additional riders in this plan
  • There is high sum assured rebate in this plan

 

 

 

Benefits you get from SBI Life Shubh Nivesh Insurance Policy
 
Death Benefit – In case of death of the Life Insured within the Policy Tenure, the nominee gets according to the plan option chosen:
Endowment Assurance:
  • Death before the completion of Policy Tenure: Sum Assured + Simple Reversionary Bonus (if any) is paid to the nominee as Death Benefit and policy terminates
  • Deferred Maturity Payment Option has been opted for and death happens after the completion of Endowment term: The Balance amount of the Deferred Maturity Payment Option, if any would continue to be paid to the legal heirs till the end of the stipulated period as chosen
Whole Life Endowment Assurance:
  • Death before the completion of Endowment term: Sum Assured + Simple Reversionary Bonus (if any) is paid to the nominee as Death Benefit and the policy terminates
  • Death after the completion of the endowment term up to 100 years of age: Basic Sum Assured is paid to the nominee as Death Benefit and the policy terminates
  • If deferred Maturity Payment Option has been opted for and death happens after the completion of Endowment term but before the receipt of the final installment under the deferred payment option, the basic Sum Assured would be paid to the nominee as Death Benefit and the policy continues. The remaining amount of the Deferred Maturity Payment Option would continue to be paid to the nominee till the end of the stipulated period as chosen.
 
Maturity Benefit – On survival till the end of the policy tenure, the policyholder gets Maturity Benefit according to the plan option chosen:
Endowment Assurance:
  • After completion of Policy Tenure, the Basic Sum Assured + vested Simple Reversionary Bonus is paid as Maturity Benefit and the policy terminates
  • If Deferred Maturity Payment option has been chosen, the accrued bonus will be paid on the date of policy maturity and the policyholder may choose to receive the sum assured in regular installments over the next 5/10/15/20 years as selected
Whole Life Endowment Assurance:
  • After completion of endowment term the Basic Sum Assured + vested Simple Reversionary Bonus is paid as Maturity Benefit and the policy continues
  • If, Deferred Maturity Payment option has been chosen, the accrued bonus will be paid on the date of policy maturity and the policyholder may choose to receive the sum assured in regular instalments over the next 5/10/15/20 years as selected
  • Again an amount equal to the basic sum assured will be paid when the Life Insured is 100 years old.
 
Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C and the Maturity Proceeds are tax free under section 10(10)D subject to fulfilment of terms and conditions.
 
 
Eligibility conditions & other restrictions in SBI Life Shubh Nivesh Insurance Plan
 

 
Minimum
Maximum
Sum Assured (in Rs.)
75,000
No Limit
Policy Term (in years)
5
30
Premium Payment Term (in years)
Single
Equal to Policy Tenure
Entry Age of Life Insured (in years)
18
60
Age at Maturity (in years)
23
65
Annualized Premium (in Rs.)
6,000
No Limit
Payment modes
Yearly, Half-Yearly, Quarterly, Monthly & Single

 
 
Sample illustration of Premium of SBI Life Shubh Nivesh Plan
 

The below illustration is for a healthy male of 40 years of age opting for a Regular Premium for 20 years with Sum Assured of Rs 1,00,000

 

SBI Life Shubh Nivesh Plan Sample Premiums

 

Additional Features and Benefits of SBI Life Shubh Nivesh Plan
 
Riders – There are 3 additional riders in this plan:
  1. Preferred Term Rider
  2. Accidental Death Benefit Rider
  3. Accidental Total and Permanent & Disability Rider
 
 
What happens if?
 
You stop paying the premium - If the policy holder stops paying the premium, the policy lapses and all benefits cease. However, if at least 3 years premiums have been paid, then the policy gets converted to a Paid Up Policy and continues with reduced coverage.
 
You want to surrender the policy – Surrender Benefit is available after 3 years for Regular Premium and 1 year for Single Premium.
Guaranteed Surrender Value for Regular Premium=30% of all premiums paid – 1st year’s premium
Guaranteed Surrender Value for Single Premium= 80% of Single Premium in 2nd and 3rd year and 90% thereafter.
 
You want a loan against your policy – Loan facility is available in this plan after the policy acquires Surrender Value.
 
 
Other Endowment Insurance Plans from SBI Life Insurance
 
 
 
Some Endowment Plans from other insurance companies
 
~ By Deepak Yohannan
Note: This is a statement of facts based on the information collected from the SBI Life Shubh Nivesh Plan brochure and insurance company's website. It should not be construed as a Critical or Favourable SBI Life Shubh Nivesh Plan Review, Analysis or Recommendation.
Insurance is a subject matter of the solicitation.


Leave a Comment

Dear All,

It would be of great help for me from your end.

Here is my plan & I have not yet paid my premium due this month. Before paying I would like to get some doubts cleared, hence I request you people to help me out.

Plan: SBI Subh Nivesh Whole life Plan
Mode of payment: Quarterly-Rs. 15,000 (Annually- 60,000)
Commencement of policy: July 2013
Sum assured: 4,66,000
Term: 10 years
Total premiums paid: 5
Total Money paid at the end of 10th year: 6,00,000
Age as on policy start: 28

Questions:
1) What is the % allotted for the year 2013 for Subh Nivesh?
2) What is meant by reversionary bonus & Interim bonus rate?
3) Should we consider both revisionary & Interim bonus rate for that particular year, bonus rate calculation?
3) What would be my returns after 10years considering 6% bonus through out 10 years?
4) What would be the returns if I surrender my policy & will I get any bonus on surrender?
5) Should I continue with my policy or not?
6) If I should surrender when should I surrender?
7) Do we get any bonus on SUM ASSURED at the time of maturity?
8) Will I get the money more than, for what I have paid i.e 6,00,000 at the end of 10 years?
Considering 6% throughout 10 years.

Note: Kindly explain for the values as explained above.

Regards,
Pravin

By Pravin Kumar on Sep 30, 2014 Reply

Hi Pravin,

I would be glad to answer all your questions but I understand (from all your doubts) that you have not read your policy brochure or document - before/after buying..
I would request you to go to the nearest SBI Life Insurance Branch (not the bank) and speak to a senior officer and understand your plan in detail. If you are not happy with the projected returns, then surrender the plan.

 

Replied By Manoj Aswani (MIC Staff) on Sep 30, 2014 Reply

Hi Manoj,

I have a SBI Shubh Nivesh with a SA of 6lacs and yearly premium of 35k for 20yrs. On maturity I will get 12lacs and another 6lacs if I cross 100yrs or die before that.
I know that closing after 3 premiums will be huge loss bcoz of the surrender charges involved, so thought of making it paid up after 3rd premium (I am due for 3rd premium next month). But would it wise to wait for another 17yrs to get that 35k * 3 = 1lac+ ?

Wanted to know if there are surrender charges involved if I pay the premium for 5yrs and then close the policy ?

Kind Regards,
Ashwin
Bangalore

I was wondering

By Ashwin Rao on Sep 05, 2014 Reply

If you have decided to stop paying future premiums towards the policy (and making it paid up) then I would not suggest paying the 3rd premium too.

There is a high deduction if you surrender your policy early. Such (endowment) plans offer guaranteed returns but the quantum is moderate or low. So it’s okay if you have decided to invest your money elsewhere and want t stop paying premiums here. 

 

Replied By Manoj Aswani (MIC Staff) on Sep 06, 2014 Reply

Hi Manoj,

Thank you for the reply. The policy guidelines mentions that a minimum of 3 premiums have to be paid for making the policy paid-up (since the policy exceeds 10yrs term, 3 premiums are mandatory for paid-up).
So now, my question is, even after making it paid-up, will surrendering the policy still attract charges ? thus eating up a lot of the amount accrued as of now ?

Kind Regards,
Ashwin
Bangalore

Replied By Ashwin Rao on Sep 09, 2014 Reply

Yes the policy will still attract surrender charges

Hence I suggested not to pay the 3rd premium if you have decided not to continue further.

Replied By Manoj Aswani (MIC Staff) on Sep 12, 2014

Hi Sir,

I have taken SBI Life - Shubh Nivesh Endowment Plan. 50,000 Per year. After how many years i will get the Premium returns? Do we get returns in this plan at all! The agent communicated that, we will be getting returns after 3 years of paying premium regularly. But i have not yet received the Policy bond or documents to make sure on that.

Regards,
Sandhya

By Sandhya Bm on Aug 19, 2014 Reply

You will get the money (sum assured) at the end of your policy term. You will need to refer to the policy document to know what is your policy term.

Kindly visit the nearest SBI Life branch and place a request for your original policy document
 

Replied By Manoj Aswani (MIC Staff) on Aug 19, 2014 Reply

SA 1000000,AGE 42,TERM 20. What is the payable premium and maturity amount?

By Ambarish Kalita on Aug 13, 2014 Reply

For the above requirement, your annua premium will be Rs.52,442/-

You will have to pay this amount every year for a period of 20 years

Replied By Manoj Aswani (MIC Staff) on Aug 14, 2014 Reply

Dear Sir,
Thank you for your valuable reply.
Could you please answer of my few doubts please as
Example as :
SBI Life - Shubh Nivesh Whole Life Plan Base Cover.
as Rs. 60,000 per Year upto 5 year.(5 years term total). There i saw the Sum Insured (Rs.) is Rs.2,34,000.
if i continue upto 5 years, i would be giving Rs. 3,00,000(3 lakhs).
I know some bonus amount will be coming every year.
1. Could you please tell me how much i would be getting after 5 years roughly (I know again it's depends on each year bonus let's put min bonus)?_____________
2. If I surrender after 1 year, How much would i get in return (Rs. 60,000 per Year and term 5 year plan) ? ______________
3. If I surrender after 3 years, How much would i get in return (Rs. 60,000 per Year and term 5 year plan) ?_______________
4. Can I change(if i feel) this plan to another SBI life plan after 1 0r 2 years ?________________

I would be really feel happy if you could reply with the above my doubts.
Thanks

By Saroj Nayak on Jul 13, 2014 Reply

For age = 30, Sum Assured = 3 lacs, the sample illustration is shown below -

(Click on the image for bigger size)

Replied By Manoj Aswani (MIC Staff) on Jul 14, 2014 Reply

hi sir,
i want to invest in insurance plan 75k annual premium for 20 years policy term, i need clarity on SBI shubh nivesh plan and how it works.
Thanks in advance
By Rajesh Kumar

By Rajesh B on Dec 23, 2013 Reply

Hi Rajesh, this is a simple endowment plan. It is a traditional plan. You pay premiums throughout the policy term and you get the Sum Assured and the Bonuses which have been declared on a yearly basis. There no guaranteed bonus amount as such.To get to know more you will need to share factors like your age etc.. I suggest you visit the link below and check out the illustration to get a better idea

http://www.sbilife.co.in/sbilife/images/contentimages/shubhnivesh_bi.htm.

Pls write back in case of any queries.

 

Replied By Deepak Yohannan (MIC Staff) on Dec 24, 2013 Reply

Hi Sir,
I want to invest in insurance plans putting 50K annual premium for 10 years policy term, I verified the plans 1) SBI Shubh nivesh and 2) LIC Jeevan Anand, both looked the same, but Shubh Nivesh agent has told that I will get cumulative returns of 8.5% per annum along with the bonus at the time Maturity. He mentioned like below.....If I pay 50K annually for 10 years for SA of 400000, I will get around 8,10,000(Cumulative returns of 8.5% of premium paid) + 1,20,000(Bonus on Sum assured say if it is 3%). Can you let me know is it really true abt Cumulative returns, also could you please suggest which one is better in the below things 1) SBI Shubh nivesh and 2) LIC Jeevan Anand

By Hari Kishore Palla on Dec 11, 2013 Reply

Hi Hari, so here is the deal. Both are participating plans and are similar in nature.

On the returns piece - there can be NO guarantee of returns in both plans. It will completley depend on the bonus rates which get delcared evey year. Theorotically, you may find a year in which no bonus is declared also. So what the agent said is something which is NOT guaranteed. He is hoping that the company will declare adequate bonus. 8.5% and bonus seems difficult to achieve though.

Do write back in case of any more queries.

Replied By Deepak Yohannan (MIC Staff) on Dec 11, 2013 Reply

SBI Life is just existing to make money. No wonder it gets into partnership with DSA like India Infoline who are equally great cheaters. Just fool people into buying these bogus policies and make money. There will be people who will say why don't you do research before buying. Well why the hell do these guys work if they provide wrong information.

By Sumanth Rao on Dec 01, 2013 Reply

Dear sir
I have purchased sbi subh nivesh insurance plan.Agents told me that that i have paid amount for 5 years there after i got approx 75000 Plus bonus means it may be appox 120000/-.But plan was not five years mentioned in my certificate its mentioned 10 years and sum assured is mentioned 75000/- plus bonus,Means i have cheated,What i should do.Its should be continued or surrendered it.I have paid approx 3 premium.

By Ajeet Singh on Oct 04, 2013 Reply

Dear Ajeet, I do not know the premium you are paying so it is difficult to know the approximate amount that you will get. However, the bonus amount mentioned by you seems unlikely to happen in 5 years. So yes, there seems to have been some wrong communication to you.

The minimum premium term is 5 years. Please check the document properly. The policy term could be 10 years and the premium paying term could be 10 years. This plan has that feature.

I would not recommend surrendering the plan unless you are VERY desperate for cash. Surrendering a policy results in considerable loss of money. If you can afford it, pay off the whole period. The surrender amount will be much lesser than the amount which you have paid so far.

Replied By Deepak Yohannan (MIC Staff) on Oct 16, 2013 Reply

Hi!
I have a purchased a SBI Life Insurance Shubh Nivesh Policy of 50,816 annual premium for the period of 5 yrs. I have paid 3 premiums till date. The agent that has described the policy has told me that the sum assured will be Rs. 372300 and atleast 4% bonus on capital value is mini. guaranteed. But in policy documents sum assured mentioned is only 202000 and the bonus that I have seen on the SBI website is only Rs. 11000 till date. Tell me the truth of this policy. Should i continue or surrender the policy. What will be my losses if surrendered and what could be the benefits if I continued with the policy in terms of financial gains.
Sonia Sharma

By Sonia Sharma on Sep 06, 2013 Reply

Hi Sonia, the Sum Assured in the plan will be what is mentioned in the policy document. So if something more has been communicated verbally, it would be incorrect.

Now again, in such plans there can never be a guaranteed returns %. The communicated bonus of 4% is never guaranteed, It depends on the company's perforamance and gets declared every year. It could even be 0%. It could be 4% also. But from what you have written, the bonus is very good. You have Rs. 11,000 as bonus by paying Rs. 1 lakh odd over 2 years. So i am a bit confused with the information shared.

The silver lining is that it is only a 5 year plan and you have paid off 3 premiums. Surrendering now will lead to huge losses. You will get back something close to Rs. 30,000 odd. I would suggest paying off the next 2 premiums and recover your premiums + bonuses which have accrued in the plan. Don't expect any great returns as these are traditional plans.

Replied By Deepak Yohannan (MIC Staff) on Sep 07, 2013 Reply

Hi Sir,



Hi Sir,
I have invested in insurance plans putting 60K annual premium for 5 years policy term, Shubh Nivesh agent has told that I will get cumulative returns of 8.5% interest per annum along with the bonus at the time Maturity. I feel it's wrong information that agent gave me about 8.5% interest per annum. I paid first year premium as 60k, if surrender, how much I would get as return ? shall I get how much I paid or less than that ?
Saroj

Replied By Saroj Nayak on Dec 26, 2013 Reply

Hi Saroj, if you surrender now, you will get back much less than what you have paid. Surrender value is 30% of premiums paid less the 1st year's premium.

Traditional plans do not offer such high returns. Plus they can never be guaranteed. They offer low to moderate returns along with the insurance cover and the tax benefits which come along with it. So overall it can be a decent package. If you are in it only for high returns, it might not be the most suitable product for you.

Please check the term you have selected. Take a call if you want to surrender and forget the losses or you want to continue paying - it is something you will have to decide.

Replied By Deepak Yohannan (MIC Staff) on Dec 28, 2013

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