SBI Life Preferred Term Rider

This rider can be taken along with some base plans of SBI Life. If you take this rider, it provides you with an additional life cover, over and above the life cover provided by the base plan. You will need to pay an additional premium to avail the rider benefits. The additional premiums are much lower than taking a stand-alone cover of the same amount. This rider is not available with all plans offered by SBI Life. Also, this rider is an optional addition to the base plan.

Eligibility Criteria for SBI Life Preferred Term Rider

The rider will be offered on meeting the following criteria:

	Minimum	Maximum
Sum Assured	Rs. 25,000	Rs. 50,00,000
Age at Entry	18 years	65 years
Age at Maturity	-	70 years
Premium Mode	Monthly, Quarterly, Half-yearly, Annual & Single
Rider Term	5 years	30 years

Note:

Minimum Sum Assured can be lower in case the Sum Assured in the base plan is lower
Maximum Sum Assured cannot be greater than the Sum Assured of the base plan
Rider term can never be greater than the term of the base plan

Benefits of SBI Life Preferred Term Rider

In case you take this SBI Life Preferred Term Rider along with the base plan, your nominee will get an Additional Sum Assured as part of the Death Benefit.

Let us understand this better with the help of an example.

Suppose Ramesh who is 42 years old takes the Preferred Term Rider along with the Shubh Nivesh Plan from SBI Life.

Base Plan Details

Sum Assured = Rs. 10,00,000
Policy Term = 20 years
Annual Premium = Rs. 50,870 + Taxes

Now if he wants an additional cover of Rs. 10,00,000 he can opt for the Preferred Term Rider.

Rider Details

Sum Assured = Rs. 10,00,000
Policy Term = 30 years
Annual Premium = Rs. 6,940 + Taxes

By paying an additional amount of Rs. 6,940 Ramesh can double his life cover in this plan.

It is important to understand than Bonus and other Benefits of the base plan which are declared basis the Sum Assured will not include the Rider Sum Assured.

So 3.25% bonus is in a particular year, it will accrue only for Rs. 10,00,000 and not for Rs. 20,00,000 in the example above.

Bonus declared = 3.25%
Bonus Amount = 3.25% of 10,00,000 = Rs. 32,500

Some more points to know...

There is no maturity benefit in this Rider
There is no surrender benefit in this Rider for Regular Premium Payment Plans. In case of Single Premium plans, the Surrender Value is calculated as follows (Rider Premium x 75%) x (Balance Term/Total Term)
Rider Benefits do not acquire any Paid-up Value
Revival, Lapsation and Re-instatement terms will be as per the Base Plan terms

If you have any questions on this Rider, please comment below and we would be happy to help.