A Summer Internship Project Report

On
“A STUDY OF BEHAVIOURAL BIASES ON LIFE INSURANCE OF STATE
BANK OF INDIAI”
at

SBI LIFE INSURANCE, WARDHA

SUBMITTED BY: -

Mr. Manoj Maheshrao Khandare

MBA 2nd YEAR
UNDER THE GUIDANCE OF: -
(Dr. Shailesh Kediya)
HOD-MBA
MBA, D.M.I.E.T.R. SAWANGI (MEGHE) WARDHA
DEPARTMENT OF BUSINESS MANAGEMENT

DATTA MEGHE INSTITUTE OF ENGINEERING, TECHNOLOGY

AND RESEARCH,
SAWANGI (MEGHE) WARDHA (M.S.)
ACADEMIC YEAR 2019-21

Manoj Maheshrao Khandare

 CERTIFICATE

This is to certify that Mr. Manoj Maheshrao Khandare of DMIETR School of

Management (PG) has successfully completed the project work titled A STUDY OF
BEHAVIOURAL BIASES ON LIFE INSURANCE OF STATE BANK OF
INDIAI in partial
fulfillment of requirement for the award of MBA prescribed by the DMIETR World
Peace University, Nagpur, from 15th Sep to 15th Nov.

This project is the record of authentic work carried out by him out during the academic
year 2019-2021

Authorized signature with stamp

Manoj Maheshrao Khandare

 ACKNOWLEDGEMENT

“Words have never expressed human sentiments. This is only an attempt to express my
deep gratitude which comes from my heart “It is a great pleasure for me to express
my deep feeling of gratitude to my respected guide, faculties, for his great
encouragement & support to carry out my work.
I am grateful to Dr. Prasanna Zade, Principle of Datta Meghe Institute of
Engineering Technology and Research, Salod, Wardha for making all facilities
available for my Work.
I am thankful to Dr. Shailesh Kediya (HOD-MBA) and for giving me their valuable
guidance and direction throughout the project. I express my whole hearted sense of
gratitude and indebtedness to my guides.
Last but not the least; I am thankful to my parents, colleagues, friends, & other faculty
members for their direct & indirect help for completion of this work.

Date: Manoj Maheshrao Khandare

Place: Wardha

Manoj Maheshrao Khandare

 INDEX

CHAPTE TITLE PAGE NO.

R NO.
1. 05
Insurance
2. 07
Role of Life Insurance
3. About Sbi Life Insurance 10

4. Life Long Pension 12

5. Sudarshan-An Endowment Policy 20

6. Money Back 26

7. Bancassurance Product 29

8. Corporate Group Product 31

9. Time & Cost of Insurance 36

10. Conclusion 38

12. Bibliography 39

Manoj Maheshrao Khandare

 CHAPTER-1

INSURANCE
The insurance is related to the protection of the economic value of assets. Every
asset has a value. The asset would have been created through the efforts of the owner, in
the expectation that, either through the income generated there from or some other output,
some of his needs would be met. In the case of a motorcar, it provides comfort and
convenience in transportation. There is no direct income. There is a normally expected
lifetime for the asset during which time it is expected to perform. The owner, aware of
this, can so manage his affairs that by the end of that lifetime, a substitute is made
available to ensure that the value or income is not lost. However, if the asset gets lost
earlier, being destroyed or made non-functional, through an accident or other unfortunate
event, the owner and those deriving benefits there from suffer. Insurance is a mechanism
that helps to reduce such adverse consequences.
Insurance is a contract between two parties - the insurer (the insurance company) and
the insured (the person or entity seeking the cover) - wherein the insurer agrees to pay the
insured for financial losses arising out of any unforeseen events in return for a regular
payment of "premium". These unforeseen events are defined as "risk" and that is why
insurance is called a risk cover. Hence, insurance is essentially the means to financially
compensate for losses that life throws at people - corporate and otherwise.
Insurance Companies are active in the field of Life, Health & General Insurance.
The major part of insurance business is life insurance, the operation of which depends on
the law of the morality.

Why Insurance?

The entire effort of human life is to proceed from uncertainty to certainty. The
rigmarole of life proceeds with first acquiring the wherewithal to earn a living and then
striving for its betterment and ensuring that the comfort and pleasure derived from a
physical commodity or a human being continues. It is at the latter stage that the
mechanism of insurance comes in play.

The concept of insurance is in essence related to the protection of the economic

value of assets. Every asset whether physical or in form of a human being has a value.
The asset is built up in the expectation that, either through the income generated there
from or some other output, some needs of the individual would be met. For example, In
the case of an industry its production is sold and income generated. In the case of a
vehicle, it provides comfort and convenience in transportation.

Manoj Maheshrao Khandare

 However, there is a normally expected life cycle for every asset during which
time it is expected to perform its assigned role. So, a prudent individual can manage his
affairs so that by the end of that life cycle, a substitute is in place to ensure continued
benefit/comfort. However, if due to an accident or other unfortunate event, the asset gets
destroyed or made non- functional earlier, the person deriving benefits therefore suffer.
Insurance is the mechanism that helps to soften the impact of such adverse consequences
by providing for some monetary substitution to face such unforeseen circumstance.
The need of insurance arises from the chances of an accidental occurrence
destroying or making an asset non-functional. Such loss producing eventualities are
called perils e.g. fire, floods, breakdowns, lightning, earthquakes, etc however, it has to
be remembered that what is being talked about is only a probability of a loss. The
protection of Insurance is against a contingency that may or may not happen.

Definition

“Insurance is a contract by which one party for a compensation called in the premium
assumes particular risks of the other party and promises to pay to him or his nominee a
certain sum of money on a specified contingency.”

Life Insurance

Life Insurance is a contract between person and a life insurance company, which
provides your beneficiary with a pre-determined amount in case of your death during the
contract term.
Buying insurance is extremely useful if you are the principal earning member in
the family. In case of your unfortunate premature demise, your family can remain
financially secure because of the life insurance policy that you have purchased.
The primary purpose of life insurance is therefore protection of the family in the
event of death. Today, insurance is also seen as a tool to plan effectively for your future
years, your retirement, and for your children's future needs. Today, the market offers
insurance plans that not just cover your life and but at the same time grow your wealth
too.
Definition

“A contract of life assurance is that in which one party agrees to pay a given sum
on the happening of a particular event contingent upon the duration of human life in
consideration of immediate payment of a smaller sum by another.”

Manoj Maheshrao Khandare

 CHAPTER-2

ROLE OF LIFE INSURANCE

Role 1: Life insurance as "Investment"

Insurance is an attractive option for investment. While most people recognize the
risk hedging and tax saving potential of insurance, many are not aware of its advantages
as an investment option as well. Insurance products yield more compared to regular
investment options, and this is besides the added incentives (read bonuses) offered by
insurers.
You cannot compare an insurance product with other investment schemes for the
simple reason that it offers financial protection from risks, something that is missing in
non-insurance products. In fact, the premium you pay for an insurance policy is an
investment against risk. Thus, before comparing with other schemes, you must accept
that a part of the total amount invested in life insurance goes towards providing for the
risk cover, while the rest is used for savings.
In life insurance, unlike non-life products, you get maturity benefits on survival at
the end of the term. In other words, if you take a life insurance policy for 20 years and
survive the term, the amount invested as premium in the policy will come back to you
with added returns. In the unfortunate event of death within the tenure of the policy, the
family of the deceased will receive the sum assured.
Now, let us compare insurance as an investment options. If you invest Rs 10,000
in PPF, your money grows to Rs 10,950 at 9.5 per cent interest over a year. But in this
case, the access to your funds will be limited. One can withdraw 50 per cent of the initial
deposit only after 4 years.
The same amount of Rs 10,000 can give you an insurance cover of up to
approximately Rs 5-12 lakh (depending upon the plan, age and medical condition of the
life insured, etc) and this amount can become immediately available to the nominee of
the policyholder on death.
Thus insurance is a unique investment avenue that delivers sound returns in addition to
protection.

Role 2: Life insurance as "Risk cover"

First and foremost, insurance is about risk cover and protection - financial
protection, to be more precise - to help outlast life's unpredictable losses. Designed to
safeguard against losses suffered on account of any unforeseen event, insurance provides
you with that unique sense of security that no other form of investment provides. By
buying life insurance, you buy peace of mind and are prepared to face any financial
demand that would hit the family in case of an untimely demise.
To provide such protection, insurance firms collect contributions from many
people who face the same risk. A loss claim is paid out of the total premium collected by
the insurance companies, who act as trustees to the monies.

Manoj Maheshrao Khandare

 Insurance also provides a safeguard in the case of accidents or a drop in income
after retirement. An accident or disability can be devastating, and an insurance policy can
lend timely support to the family in such times. It also comes as a great help when you
retire, in case no untoward incident happens during the term of the policy.
With the entry of private sector players in insurance, you have a wide range of
products and services to choose from. Further, many of these can be further customized
to fit individual/group specific needs. Considering the amount you have to pay now, it's
worth buying some extra sleep.

Role 3: Life insurance as "Tax planning"

Insurance serves as an excellent tax saving mechanism too. The Government of
India has offered tax incentives to life insurance products in order to facilitate the flow of
funds into productive assets. Under Section 88 of Income Tax Act 1961, an individual is
entitled to a rebate of 20 per cent on the annual premium payable on his/her life and life
of his/her children or adult children. The rebate is deductible from tax payable by the
individual or a Hindu Undivided Family. This rebate is can be availed upto a maximum
of Rs 12,000 on payment of yearly premium of Rs 60,000. By paying Rs 60,000 a year,
you can buy anything upwards of Rs 10 lakh in sum assured. (Depending upon the age of
the insured and term of the policy) This means that you get an Rs 12,000 tax benefit. The
rebate is deductible from the tax payable by an individual or a Hindu Undivided Family.

Role 4: Life insurance as "Financial Planning"

Most insurance plans available today have a built in savings element. Plans like
the Endowment Plan, Money back Plan, Child Advantage Plan, Preferred Retirement
Plans, etc allow you to meet your dual financial goals of life cover and Savings for the
future.
You may avail of a loan from the insurance company against certain plans. Your
policy could also be pledged as a collateral to raise funds from banks and other financial
institutions. In case of your unfortunate death the loans may be repaid from the proceeds
of the life insurance policy. Insurance promotes compulsory savings with regular
premium payments and helps build up a corpus of funds along with financial security for
the dependants in case of premature death. For your medical needs and that of your
family.
Hospitalization costs and quality healthcare is becoming increasingly expensive.
Without insurance, you can actually face a situation where you have withdrawn all your
money and borrowed to pay the medical bills. This can be provided with our Critical
Illness Benefit. Insurance provides you the option of covering yourself towards any
critical illnesses that can become extremely costly. Choosing this facility pays you a lump
sum upon diagnosis of certain diseases like cancer, kidney failure, heart attack, stroke,
coronary bypass, vital organ transplants, Alzheimer's disease, paralysis, etc.

Manoj Maheshrao Khandare

 Role 5:Role of Insurance as "Economic Development."

It reducing burden of Government in providing relief to the old citizens as well as

providing funds to Govt. for nation building activities. Direct investments made by
Insurance serve a twofold purpose. It acts as a major instrument for the mobilization of
savings of people, particularly from the middle and lower income groups. These savings
are channeled into investments for economic growth thereby creating employment. These
savings in turn go into the task of nation building.

Manoj Maheshrao Khandare

 CHAPTER-3

ABOUT SBI LIFE INSURANCE

Life is full of surprises, some pleasant and some not so pleasant. Our families and
we have to live with these uncertainties. Preparing for the uncertainties of life is what
Insurance is all about. Insurance is a tool, a solution for delegating the worries concerning
tomorrow onto a trustworthy institution so that you can start living today.
With SBI Life, you could smoothen the rough edges of life; make it a bit easier,
so you needn't worry about your children's education, or your family's future. Whether
you are looking for a safe investment vehicle with good returns or life cover with regular
returns in the future, all it needs is one small action on your part. Leave the rest to us and
SBI Life will take care of your near and dear ones, and most importantly you.
SBI Life Insurance is a joint venture between the State Bank of India and Cardif
SA of France. SBI Life Insurance is registered with an authorised capital of Rs 500 crore
and a paid up capital of Rs 350 crores. SBI owns 74% of the total capital and Cardif the
remaining 26%. SBI Life has already covered more than 8 lacs group lives with an
additional 2.5 lacs lives through individual policies. State Bank of India enjoys the largest
banking franchise in India. Along with its 7 Associate Banks, SBI Group has the
unrivalled strength of over 14,000 branches across the country, the largest in the world.
Cardif is a wholly owned subsidiary of BNP Paribas, which is The Euro Zone’s
leading Bank. BNP is one of the oldest foreign banks with a presence in India dating back
to 1860. It has 9 branches in the metros and other major towns in the country. Cardif is a
vibrant insurance company specializing in personal lines such as long-term savings,
protection products, and creditor insurance. Cardif has also been a pioneer in the art of
selling insurance products through commercial banks in France and 29 more countries.
While sharing its aggressive plans, SBI Life also announced the infusion of
additional fresh capital of Rs. 75 crores to take its capital base up to its authorized share
capital limit of Rs. 500 crores. Speaking on the occasion, Mr. S. Krishnamurthy, MD
and CEO, SBI Life Insurance said, “The additional capital has been injected to maintain
stipulated solvency margins for the exponential new business growth and expanding
branch network” SBI Life Insurance’s mission is to emerge as the leading company
offering a comprehensive range of Life Insurance and pension products at competitive
prices, ensuring high standards of customer service and world class operating efficiency.
The company plans to make the insurance buying process quick, simple, and based on
well-informed judgments. In 2004, SBI Life Insurance became the first company amongst
private insurance players to cover 30 lakh lives.
The company expects to carve a niche in the Indian insurance market through
extensive product innovation and aims to provide the highest standards of customer
service through a technological interface. To facilitate this, call centers have been already
installed and help lines will be installed and customers will have access to their accounts
through the Internet or through SBI branches. The company proposes to make available
ready liquidity to its Life Insurance policies by way of loans at SBI counters. This will
make Life Insurance a liquid asset in the financial portfolio of households.

Manoj Maheshrao Khandare

 SBI Life Insurance is uniquely placed as a pioneer to usher bancassurance into
India. The company hopes to extensively utilise the SBI Group as a platform for cross-
selling insurance products along with its numerous banking product packages such as
housing loans, personal loans, and credit cards. SBI’s access to over 100 million accounts
provides a vibrant base to build insurance selling across every region and economic strata
in the country.

Mission Statement:To emerge as the leading company offering a comprehensive

range of life insurance and pension products at competitive prices, ensuring high
standards of customer satisfaction and world class operating efficiency, and
become a model life insurance company in India in the post liberalization period

5 reasons to select SBI Life as people preferred insurance company.

 Customer Satisfaction - many of their customers who have bought an insurance

policy with them have bought a second one!

 Financially sound with over a 100 years of Banking experience, when people
trusted company with their money, why would they trust somebody else with their
protection needs.

 Affordability

 Easy to buy

(accessibility) Trust &

reliability.

Manoj Maheshrao Khandare

Manoj Maheshrao Khandare
 CHAPTER-4

LIFE LONG PENSION

Life expectancy is improving rapidly. People live longer. A person cannot work
throughout their life. You will have to retire from work. In the post retirement period you
have lot of time for yourself. You would like to do things you have not done while you
were working. You need to have a comprehensive plan to meet our post retirement
financial needs ensuring complete peace of mind.

Advantages of the plan:

 A maximum of Rs. 1,00,000 p.a. paid as a contribution on a pension plan is fully
deductible from the taxable income (within the max. ceiling Rs. 1 lakh)
 Minimum Guaranteed returns of 4% p.a. (compounded annually) on your
Personal Pension Account (till 31st March 2010) + Vested bonus.
 It helps you to accumulate enough savings to meet the old age needs and look for
a reliable and enduring pension payment.
 It is an extremely flexible plan:
 Choice of the contribution amount you want depending on your premium
paying capacity
 You may exercise the Top-up facility whenever by paying additional
amount to increase your retirement kitty, irrespective of contribution
payment mode.
 Convenient Contribution payment mode monthly, quarterly, half-yearly,
yearly, and single contribution is also available.
 Choice of the choosing your own retirement age.
 Postponing/ Proponing to a convenient date, the decision for receiving the
Pension Benefits.
 Contribution holiday available from year 4 onwards
 The total/balance amount (after withdrawal from PPA, if any) can be
utilized in seeking immediate annuity
 Free to chose annuity from either SBI Life or other insurance companies
 At Vesting Age you have multiple choices of Pension/ Annuity options
including Joint Life Time Annuity.
 On maturity you have a choice to withdraw up to 33% from your Personal
Pension Account in a lump sum. This withdrawal amount is tax-free as per the
current fiscal law.
 Helps you to utilize all alternatives of tax savings today and also plan for a worry
free tomorrow.
 In “Pension cum Life Cover” plan, you have the facility of Automatic Cover
Maintenance, which ensures that the cover remains in force even when you miss
the premium payments. This facility is available after the first three years of the
term.

Manoj Maheshrao Khandare

  In “Pension cum Life Cover” plan, the life cover acceptance is based on a simple
medical questionnaire without any Medical examination
 Rebates for Annual, Semi- Annual mode of premium and on high Contribution
amount. Enjoy financial independence when you retire.
 30 days Free Look Period from the date on which you receive the policy
documents.

Lifelong Pensions plan helps to meet your financial requirement no matter which life
stage you are at. It is designed specially for individuals who wish to build their kitty
retirement with no risk and tax advantage u/s 80 CCC (1) of IT Act.

SBI Life Insurance have designed 2 plans to meet different requirements:

Plan 1: Pure Pension

This plan is a pure savings accumulation vehicle. No medical underwriting

required. You can enjoy the benefits of this plan without any hassles, Automatic
Acceptance. You have to just fill a simplified Proposal form.

Plan 2: Pension cum life cover

This plan is a pension builder plan with life insurance option. A simple medical
questionnaire needs to be filled. The term of the life cover is equal to the Vesting Age /
65 whichever is earlier. If Life cover is extended due to postponement of Vesting Age,
new medical questionnaire and new premium amount will be applicable. In this plan you
have the facility of Automatic Cover Maintenance, which ensures that the cover remains
in force even when you miss the premium payments. This facility is available after the
first three years of the term. The Premiums due for Life Cover will be deductible from
your Personal Pension Account

How do the Plans work?

Customer will have the right to convert your accumulated balance in the personal
pension account and ask for pension at any vesting age between 50 and 70. Customer
can choose the age based on your work style and your current earning profile.
Customer has the right to make use of the balance amount in the personal pension
account in several ways.
1) Withdraw up to 33% of the accumulated sum for the customers immediate cash
need. This amount is tax-free.
2) Use the remaining amount to buy annuity payment benefit fro any other insurance
company.
3) Ask SBI Life insurance adviser agent to utilize the balance amount (Annuity
purchase Price) to draw pension payment from SBI Life Insurance under one of
several Choices.

Manoj Maheshrao Khandare

 Fixed annuity amount as long as policyholder live as well as minimum guaranteed
period of 5,10,or 15 years
Increasing life annuities that provides progressively higher pension to keep with
the increasing cost of living.
Joint pension plan, which means payment of annuities during the lifetime of the
person and thereafter as long as the spouses live. The joint pension could be at
the same rate of pension as drawn by the person while he was alive, or half of that
amount as optioned at the beginning. The annuities could be payable monthly,
quarterly half yearly or yearly as per customer choice option.

Pure Pension Plan 1 Pension cum Life Cover Plan2

Minimum term 2 years 5 years

Maximum term 52 years 52 years

Eligibility: -
Pension cum Life Cover
Pure Pension Plan1
Plan2
Minimum Age at entry* 18 years 18 year
Maximum Age at entry* 65 Years 60 years
Maximum cover age for life
Not Applicable 65 years
cover

Contribution Holiday

This facility is available from year 4 onwards for both options. If you have opted
for Plan 2 Pension cum Life Cover, and you have not paid your regular contribution after
year 4 as per the schedule, Life cover premium will be deductible from the Personal
Pension Account to keep in force the Life Cover option*.

Contribution payment mode

1) Regular contribution payment Monthly Quarterly, Half-yearly and Yearly

2) Single contribution payment one time premium payment for the selected term at
commencement.

Manoj Maheshrao Khandare

 EDU SHIELD
As a loving parent you dream of a bright future for your child. You want your
child’s higher education secured and fulfilled under all circumstances. We have a scheme
for you to accomplish your wishes!
Edu Shield is a unique insurance plan from SBI Life that provides Life Insurance
Protection for Education Loan borrowers. With a policy under Edu Shield in hand,
you can cross the important milestones of your life with a broad smile.
Edu Shield is a non-participating plan. It provides level insurance cover to the
education loan customers throughout the term of the loan. It is meant for the students and
parents. Both the lives are covered separately. In case of claim, the Life Cover sum
assured is payable to the Bank. The Bank will refund any surplus over the outstanding
loan amount to the legal heir. The Premiums are Payable on annual basis through
Standing Instructions to the Bank to debit the loan account.

Salient Features:
 Dedicated insurance plan for educational loan borrowers (students and/or
parents). Both lives are covered separately for the same loan amount and term.
 It secures the family from the financial obligation under the loan, incase of a
claim.
 It is available at a very nominal cost. Premium payment is constant throughout the
term of the plan.
 Hassle free premium payment (automatic debit from your loan account).
 Attractive Rebates for Annual mode of Premium payment, High Sum Assured and
Female Lives.
 Tax benefit u/s 80 C of IT Act*
 Automatic Assignment, in favor of the Bank.
 15 days free look period.

Eligibility: -

Age Students Parents

Minimum age at entry 18 years 36 years
Maximum age at entry 30 years 60 years
Maximum age at exit 45 years 65 years

Sum Assured Minimum: Rs. 3 lakh (multiple of 10,000 only)

Sum Assured Maximum: Rs.50 lakh
Minimum term cover: 5 year
Maximum term cover: 15 year

Manoj Maheshrao Khandare

 Benefits: -

I Maturity Benefits:
No benefits are payable to the surviving borrower/s on maturity of the term of the policy.

II Death Benefit:
The life cover sum assured is payable to the Bank (as the Bank is the assignee). Surplus
amount after adjusting the dues, if any, will be paid to the legal heir by the Bank
No death benefit is available for suicide within the first year of the policy.

III Tax Benefit

You are eligible for Tax benefit for the premium payment u/s 80 C and 10 (10 D) of IT
Act*

SCHOLAR II
As a caring parent you would always want your child to get the very best. Is there
a way to protect your children against life’s risks? Is there a way to make tomorrow safe
for them? Therefore this is the time when careful financial planning can help you fulfill
the aspirations that you have for your children’s. We at SBI Life can help you ensure that
your children’s future is secure and prosperous. SCHOLAR II is designed to protect your
child’s future educational needs.

Advantages:

Twin benefit of saving for your child's education and securing a bright future
despite the uncertainties of life.
Full risk cover throughout the policy term irrespective of payment of survival
benefits installments.
Option to receive the installments in lump sum at the due date of first installment
of Survival benefit.
Tax benefit u/s 80 C and 10 (10 D) of IT Act*
Attractive rider options
Attractive rebate for Female lives and High Sum Assured.
 15 days Free Look Period

Manoj Maheshrao Khandare

 Features: -

Scholar II is designed to meet the twin objectives that concern every parent: -
saving for your child's education and securing a bright future despite the uncertainties of
life. It ensures that your child's future plans remain on track, no matter what! The life
assured is the parent. It is a participating plan. Guaranteed benefits are payable at regular
interval within the policy term. In the unfortunate event your nominee would receive full
Sum Assured along with Vested Bonus, plus regular Survival Benefit as per the original
schedule.

Riders

In addition to the Basic Cover, you are also entitled to opt for extra covers (riders) –
Accidental Death and Accidental Total Permanent Disability Rider, Premium Waiver
Benefit Rider and Critical Illness Rider, by paying nominal additional premiums.
Exclusions applicable under the riders.

Premium payment mode: -

1) Regular premium payment mode: Yearly, half yearly, quarterly and monthly
premium mode* by giving standing instruction to your bank or pay through your credit
card (Visa or Master Card) or pay through SBI ATM’s or you can also pay it online at
www.onlinesbi.com
2) Single premium payment: One time premium payment for the selected term at
commencement. Monthly premium mode available only for Credit Card and Standing
Instruction. 3 months premium to be paid in advance
Premium rate is different depending on the age, term, gender, Sum Assured, and mode of
payment

Benefits

I. Survival Benefit
Guaranteed payment at regular intervals
When the child attains 18 years of age, the parent has an option of:
Receiving the Sum Assured in 4 installments:
Age Guaranteed Benefit Payment
18 years 25 % of Sum Assured
19 years 25 % of Sum Assured
20 years 25 % of Sum Assured
21 years 25 % of Sum Assured + Vested Bonus *

Manoj Maheshrao Khandare

 II. Death benefit

In the event of unfortunate incident of your early death during the term of the
plan, your child’s future remains secured in 3 ways:
Child future educational needs: 25% of Sum Assured is payable in 4 equal
installments when the child attains the age 18 years to 21 years. This ensures the child
higher educational needs are meet.
Immediate Payment: The nominee receives the Sum Assured along with the bonus
declared until that date.
All future basic premiums need not be paid: Ensuring that your family is not financially
burdened in your absence.
No deductions are made from the claim amount for the Survival Benefits already paid.

Exclusions applicable to the Basic Cover:

Suicide within the first year

III. Other Optional Benefit

Accidental Death and Accidental Total Permanent Disability Rider
In case of death due to an accident, the nominee gets the additional rider Sum Assured.
If the policyholder is involved in an accident, resulting in total permanent disability,
he/she will get Sum Assured under this rider in 10 equal annual installments; He/she will
exit from all the rider covers thereafter, but continue to be covered for basic cover on
receipt of further premium due, if any.

 Premium Waiver Benefit Rider: Under this rider the policyholder need
not pay future premiums for the base product, if he/she suffers from total and
permanent disability due to an accident after the rider is opted for.
 Critical Illness Rider: On diagnosis of any of the 6 critical illnesses and you
survive for more than 30 days from diagnosis; the Critical Illness Cover Amount
is paid in a lump sum. No more claims will be admitted under this cover. The
Basic policy remains in force for all the other benefits.

IV. Tax Benefit

SBI Life Scholar II enjoys Tax benefit u/s 80 C and 10 (10 D) of IT Act*
Premiums paid for Critical Illness Benefit qualify for tax exemption under Sec 80D*

Manoj Maheshrao Khandare

 Eligibility

Parent/ Guardian Age*

Minimum entry age: 18 years
Maximum entry age: 60 years
Maximum age at 70 years
maturity:
Child Age*
Minimum entry age: 0 years
Maximum entry age: 15 years
15 years

Term

The premium payment term depends on the age of the child and ends when the child
attains the age 18 years. You are covered till the child attains the age 21 years.

Sum Assured

Minimum Sum Assured: Rs.50, 000

Maximum Sum Assured: Rs.1 Crore
(in multiples of Rs.10, 000)
*Age as on last birthday

Manoj Maheshrao Khandare

 CHAPTER-5

SUDARSHAN-AN ENDOWMENT POLICY

Sudarshan is an Endowment Policy designed to provide savings and protection to

you and your family. You can save regularly for the future. Thus at the end of the plan,
you will receive a substantial amount of savings along with the accumulated bonuses
declared. At the same time, your family will be protected for death risk for the full Sum
Assured. 'Sudarshan' is available under two Plans.

Fixed Sum Assured (Plan A): Fixed amount of cover for the entire duration of
the plan
Increasing Sum Assured (Plan B): Increasing amount of cover every year for
the entire duration of the plan with level premium.
In addition to the Basic Cover, you are also entitled to opt for extra covers (riders): Term
Assurance Cover, Accidental Death and Accidental Total Permanent Disability
Cover and Critical Illness Covers by paying nominal additional premiums.

This Scheme is ideal for you:

If you intend to provide for your children's future education, marriage expenses or
even your own retirement - in a most flexible manner.
If you look for an insurance plan which could also act as a hedging instrument.
If you want to provide for medical expenses. If you have to unfortunately face any
of the terminal or dreaded illnesses.

Features: -

Fixed Sum Assured (Plan A)

Under this Cover, at the end of the plan period, you are guaranteed to receive the Fixed
Sum Assured opted plus the vested bonus. For e.g. if you want to build a savings of Rs. 1
lakh and you are say 25 years of old you can build your savings by paying just Rs. 4310/-
as premium per annum over a period of 20 years. On maturity of the plan, you are
guaranteed to receive Rs. 1 lakh as proposed and also the Bonus declared by the
Company from time to time.
Also, in the unfortunate event of death, the Fixed Sum Assured along with the vested
bonus are payable to Nominee.

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 Increasing Sum Assured (Plan B)
This Cover is also known as COLA Option Cover, i.e., Cost Of Living Adjustment, as it
serves as an automatic hedge against inflation. This plan provides for increasing the Sum
Assured automatically. Under this Cover, the Sum Assured gets increased at a rate of 5%
per annum (for every completed year). Taking the above example, your savings get
accumulated to Rs. 2 lakhs at the end of 20 years. As a matter of fact, you stand to
receive a higher savings plus the entire accumulated Bonus.
As in the Traditional Cover (Fixed Sum Assured Plan), in the unfortunate event of death,
the nominees stand to get a Cover increased at the rate of 5% per annum (for every
completed year) along with the bonus accrued.
This plan offers an increasing cover as well as increasing savings amount consistent with
the need of protection of savings future value in the coming years.

Rider Covers

Sudarshan offers you additional covers viz. Term Assurance Rider, Critical Illness Rider
(6 critical illnesses) or Accidental Death and Accidental Total Permanent Disability
Rider.

Term Assurance Rider

This Rider enables you to increase just the pure risk cover without the need for paying
additional premium for the savings component. You can get pure life assurance cover for
a maximum of Rs. 50 lakhs or 3 times the Basic Sum Assured whichever is lower.

Critical Illness Rider

On diagnosis of any of the 6 critical illnesses and you survive for more than 30 days from
diagnosis; the Critical Illness Cover Amount is paid in a lump sum. No hospitalization
bills need to be submitted. The Basic policy remains in force for all the other benefits.
Accidental Death and Accidental Total Permanent Disability (TPD) Rider
Under this rider, you can cover yourself against the risks of accidental death or accidental
disability. In the event of accidental death: Additional Accidental Death benefit cover
amount would be payable along with normal Life Cover benefit;

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 The event of Total Permanent disability on account of an accident:

Two benefits are payable:

1. Immediate Payment
Depending upon the plan option chosen:
Fixed Sum Assured (Plan A)
Flat Sum Assured + Vested Bonus
OR
Increasing Sum Assured (Plan B)
Increased Sum Assured @ 5% p.a (every completed year) + Vested Bonus
2. Yearly Installment Payment
Accidental Total Permanent Disability Rider amount is payable in 10 installments till
maturity / death. At maturity/death, the remaining installments are payable in a lump
sum to you/your nominee. Policy ends immediately.

Eligibility: -

Regular Premium Payment Single Premium Payment

Particulars Minimum Maximum Minimum Maximum

Age at entry 12 years 62 years 12 years 65 years

Term 8 years 30 years 5 years 30 years

You may be required to undergo a simple medical examination depending upon the Sum
Assured and your age.
Sum Assured to be in multiples of Rs. 1000/-

Benefits

1) Maturity Benefit:

Depending upon the plan option chosen:

Fixed Sum Assured (Plan A)
Basic Sum Assured along with Vested Bonus* is payable
Increasing Sum Assured (Plan B)
Increased Sum Assured @ 5% p.a along with Vested Bonus* is payable

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 2) Death Benefit:

In the unfortunate event of death of the Life Assured, depending upon the plan option
chosen:
Fixed Sum Assured (Plan A)
The Sum Assured along with Vested Bonus * is payable to your nominee.
Increasing Sum Assured (Plan B)
Increased Sum Assured @ 5% p.a along with Vested Bonus* is payable to your nominee.

3) Other Benefits:

If the extra cover (riders) have been opted for, the following additional benefits are
payable:
a) Term Assurance Cover benefit: - The Term Assurance cover is payable in
addition to normal death benefit.
b) Accidental Death and Accidental Total Permanent Disability Cover Benefit : -
In case death due to an accident: The rider Sum Assured is payable in addition
to normal Life cover.
In case of Total Permanent Disability due to an accident:

Two benefits are payable:

1. Immediate Payment
Depending upon the plan chosen:
Fixed Sum Assured (Plan A)
Flat Sum Assured + Vested Bonus OR Increasing Sum Assured (Plan B)
Increased Sum Assured @ 5% p.a (every completed year) + Vested Bonus

2. Yearly Installment Payment Accidental Death and Accidental Total Permanent

Disability Cover amount is payable in 10 installments till maturity / death. At
maturity/death, the remaining installments are payable in a lump sum to you/your
nominee. Policy ends immediately.

C) Criticall Illness cover

On diagnosis of any of the 6 critical illnesses and you survive for more than 30
days; the Critical Illness Cover Sum Assured is paid in a lump sum. No more
claims will be admitted under this cover. Sudarshan policy remains in force for all
the other benefits.

4. Tax Benefit

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 SBI Life Sudarshan enjoys Tax benefit u/s 80 C and 10 (10 D) of IT Act*
Premiums paid for Critical Illness Benefit qualify for tax exemption under Sec 80D*

SETUBANDHAN
Setubandhan is Investment - cum - Life Insurance opportunity
A unique Life Insurance bond that helps you, the NRI living abroad, build a bridge
between you and your dear ones back in India.

Eligibility

Minimum sum assured on each policy Rs.3 lakhs, maximum Rs. 1 crore.
Entry age minimum 18, maximum 60. Cover available up to maximum 70 years.

Benefits: -

Base Policy for NRIs:

Guaranteed 5% annual additions (Simple) on Sum Assured with benefit of Single
Premium payment In the event of death, the Sum Assured as increased by the
annual addition on the date of death will become payable. Upon survival, the Sum
Assured with total additions during the period will be payable
Rider benefits for NRIs:
Critical illness cover (Dhanwantari-Supreme), subject to maximum of Rs.5 lakhs.
Premium payable annually, and the rate will be valid for maximum 5 years,
subject to review thereafter for 10-year Plan.
Optional Life Cover for Dependant
Term insurance cover for a dependant living in India, subject to a minimum sum
assured of Rs. 3 lakhs and maximum Rs. 10 Lakhs. Premium payable annually.
`Dependant’ will mean spouse, and parents not above the age of 55 at the time of
entry. Term insurance premium will be refundable at the end of the term upon
survival of the life covered (Swadhan). Full refund of premium for a 10-year term
and 50% for a 5-year term.
Critical illness covers for the dependant, subject to the maximum of Rs.5 lakhs.
Premium payable annually.

Surrender benefits:
No surrender benefit during the first year.
90% of basic premium paid for surrender during 2nd and 3rd year.
95% of basic premium paid for surrender from the 4th year.
No guaranteed addition will be payable for policies surrendered under the 5-year
Plan. In respect of policies with 10-year term, the guaranteed addition to the
extent of 50% will become payable for policies surrendered between 6th and 7th
years, and 75% in respect of policies surrendered from the 8th year.
Loan facility available from Branches of SBI and Associate Banks based on the
surrender value of the policy. Rebate on premium on high value policies

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 Characteristics: -

Product is open for subscription by NRIs.

Single premium product. It is for a term of 5 and 10 years.
Uniform premium without regard to age difference. Sum assured of Rs.1000,
single premium is Rs.1019 for 5-year Plan, and Rs.996 for 10-year Plan.
Sum assured will carry guaranteed addition at 5% per annum (simple) for 5 and
10 years. Life cover will increase over the original sum assured to the extent of
the annual additions. 15-day Free Look Period.
Guaranteed 5% annual returns(Simple) on your investment with benefit of Single
Premium payment.
Savings-cum-Protection plan for two terms of 5 or 10 years.
Optional Critical Illness cover against six major ailments like heart attack, cancer
etc.
Optional life insurance cover for dependants upto Rs.10 lakhs with return of
premium.
Facility of repatriation at prevailing exchange rates.

Manoj Maheshrao Khandare

 CHAPTER-6

MONEY BACK
Introducing SBI Life Money Back plan, a smooth way to plan for all the special
moments in your life. As an individual your life is fueled by dreams. You experience
different special moments in life like wedding, birth of a child, child’s education, or
purchasing a new home. You have to be financially prepared for these special moments.
What you need is easy liquidity at regular intervals with life insurance protection to take
care of these special moments.

Benefits of the plan:

Twin benefits of Life Insurance and increased cash inflow at regular intervals.
Guaranteed Survival Benefit Payments more than 100% of the Sum Assured.
Increasing Survival Benefit payments. Bonus for the entire term of the policy.
Available in a wide range of terms: 10, 15, 20, or 25 years to suit your needs.
In the event of claim your beneficiary would receive full sum assured and bonuses,
Irrespective of Survival Benefits already paid.
Tax benefit u/s 80 C and 10 (10 D) of IT Act*
Convenient premium payment options. & Attractive rider cover.
Attractive rebate for Female lives.
Rebates for Annual / Semi- Annual modes of Premium.
Rebates on high value policies. &15 days Free Look Period.

Feature:
SBI Life Money Back is a saving plan with added advantage of life cover and
cash inflow at regular intervals. This plan is designed for individuals who want to plan
for various financial obligations at specified times in life.
Keeping customers convenience in mind, we have designed four plan options: for 10, 15,
20, or 25 years

Term of the Guaranteed Survival Benefit Cumulative Guaranteed Survival

Plan payable Benefit
A) 10 Years The last 3 years on the term 110% of Basic Sum Assured
B) 15 Years After every 3 years on the term 115% of Basic Sum Assured
C) 20 Years After every 4 years on the term 120% of Basic Sum Assured
D) 25 Years After every 4 years on the term 125% of Basic Sum Assured
The premium payment term is less than the policy term. Your investment goes through a
"Growth/Deferment Period" in which the money you've invested continues to

Manoj Maheshrao Khandare

 multiply; in the Growth/Deferment Period you will not be entitled for any Survival
benefit. At the end of this Period, you get your money back annually for 5 years or 10
years, depending on the plan option chosen by you. However you remain covered for the
entire duration of the policy for the full Sum Assured, irrespective of survival benefit
already received.
In addition to the Basic Cover, you are also entitled to opt for extra covers (riders): Term
Assurance rider and Accident rider (Accidental Death and Accidental Total Permanent
Disability), by paying nominal additional premiums.
No riders available for Single Premium Mode.
Rider Sum Assured cannot exceed the Basic Sum Assured

Premium Payment Mode

1) Regular premium payment mode: Quarterly, half-yearly and yearly.

Single premium payment: One time premium payment for the selected term at
commencement
2) Premium Amount
Premium rate is different depending on the plan selected, term, the gender, the Sum
Assured, and mode of payment.

SWADHAN
Happiness and security for your family is what you want. However life has its
uncertainties and risks. All that you’re interested in is how best to afford a secure future
for your loved one. Have you ever wished for a low premium insurance policy that is not
only provides security to your loved ones but also returns back the premium paid.

Advantages:
 Protection at affordable premium.
 Life cover comes to you at no cost**
 Tax benefit u/s 80 C and 10 (10 D) of IT Act*
 5% rebate for Female lives & Rebate on High Sum Assured
 Flexible benefit premium paying mode & Free look period of 30 days

Features:
Swadhan is an ideal life insurance policy that covers your near and dear ones
against financial risk. It is available at a very affordable premium, yet substantial. In the
unfortunate event of death during the term of the policy, the nominees would receive full
Sum Assured. This plan offers a benefit unlike other term policies, on Survival portion of
the premium paid or entire premium are refunded without interest, depending upon the
term chosen. It is a non – participating plan.

Term %Age of Basic Premium refunded

5 years 50%

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 6 years 60%
7 years 70%
8 years 80%
9 years 90%
10 years 100%

Flexible premium paying mode

You can choose monthly, quarterly, half yearly, or yearly.

Premium Amount

Premium rate is different depending on the term, the gender, the Sum Assured and mode
of payment.
Guaranteed surrender value

You can surrender your policy and get the appropriate surrender value, provided you
have paid premiums at least for first 3 years.

Policy year Guaranteed Surrender Value

Y4 /5 / 6 60% Basic Premium Paid less 1st year Basic Premium
Y7 onwards 65% Basic Premium Paid less 1st year Basic Premium

Eligibility:

Age:
Minimum entry age* 18 years
Minimum entry age* 55 years
Term:
Minimum term 5 years (in multiple of 1 year)
Maximum term 10 years
Maximum age at maturity is 65 years.
Sum Assured:
Minimum Sum
Rs. 3,00,000 (in multiple of Rs. 10,000)
Assured:
Maximum Sum
Rs.1 Crore
Assured:

Manoj Maheshrao Khandare

 Benefits:

Maturity benefit:

If you survive for the entire term of the plan, you would be eligible to a refund of the
premiums depending upon the term of the policy

Term %Age of Basic Premium refunded

5 years 50%
6 years 60%
7 years 70%
8 years 80%
9 years 90%
10 years 100%

Death benefit:

In the event of claim, your nominee would receive full Sum Assured
Exclusion applicable to the basic cover
-Suicide within the year

CHAPTER-7

BANCASSURANCE PRODUCT
HOME LOAN INSURANCE.
A place where you return after a hard day's work and relax, a place where you
share precious moments with your family. A place that gives you a sense of belonging .
There are few things that are common to all living beings. Every human being dreams of
having a safe and secured home for themselves and their family. Where can stay happily

Manoj Maheshrao Khandare

 with our family members. Most of us take a Home Loan from the financial institutions to
achieve this dream. However, the uncertainties in life often worry us. In the unfortunate
event of death, your family will have the burden to pay the outstanding loan amount. We
have especially designed an insurance plan for the Home Loan borrowers of State Bank
Group.

Salient Features:

Life cover equivalent to the outstanding loan amount as per the original
repayment schedule of the loan.
Protects the home loan borrower against death due to any reason except suicide in
the first year of cover
In the event of death, SBI Life pays the Sum Assured directly to the Bank.
No medical examination upto Rs. 7.5 lakhs (18 to 60) and Rs. 3 lakhs (61 to 65).
Available for existing and new home loan borrowers
50% discount in case of joint borrower for the youngest life.

Eligibility: -
Criteria Minimum Maximum
Age at entry 18 years 65 years
Sum Assured Rs.25, 000/- No Limit
Single Premium Rs.1, 000 No Limit
Term 5 Years 20 Years
Maximum coverage: 71st birthday

Features:

Home loan Insurance provides unmatched security to all State Bank Group home loan
borrowers. It insures the borrower's life during the loan repayment period to the extent of
his outstanding loan liability as per the original repayment schedule. So that even in case
of unfortunate event of death of the housing loan borrower due to any reason, SBI Life
would pay the amount outstanding in the loan account as per the original repayment
schedule.
 The premiums* are paid in a lump sum for the entire duration of the loan.

Manoj Maheshrao Khandare

  In the case of a joint borrower, the joint borrowers can be covered and the
youngest life could avail of a 50% discount on his/her insurance premium.
 If the Borrower forecloses Loan, the unexpired portion of the premium will be
refunded, less charge.
 A Good Health Declaration* needs to be completed.
 Simple claims settlement process

Benefits: -
Death Benefit

In the unfortunate event of the death of the borrower, SBI Life steps in and pays the
amount outstanding in the loan as per the original repayment schedule.

Maturity Benefit

To keep premium rates low, Home Loan Insurance is a pure Term Assurance , therefore,
there is no benefit on maturity of the policy.

Exclusion:

Death due to suicide is not covered within the first year of joining.

CHAPTER-8

CORPORATE GROUP PRODUCT

Economic growth is today decided more by human capital than by material
capital. Equipment, processes, and intellectual property are leveraged not by their
inherent capability but by the actions of human beings. Investment on human resource
has today become the core of production force and the competing focus among corporate.
Employee Benefit solutions are just what you need to retain your most valuable
asset and win the confidence and loyalty of your employees. SBI Life dedicates itself to

Manoj Maheshrao Khandare

 meet an employer's commitment towards its employees cost effectively, and to strengthen
the employer-employee relationship in the long run. SBI Life Group Solutions offers an
integrated basket of employee benefit plans catering to both statutory as well as voluntary
needs of the employers.

Retirement Solutions:

You value your employees’ contribution. You value their loyalty. And you want
to pass on to them blissful golden years ahead as a token of gratitude. Retirement
planning is crucial to assure your employees from any worries of improving longevity,
increasing inflation; medical bills, or taxes, so that they can actually enjoy the benefits of
their hard-earned savings. SBI Life offers competitively rewarding and attractive
retirement solutions for your employees.

SBI Life Group Gratuity Plan is a Non-linked scheme designed to help employers to
manage their gratuity liability in a scientific manner through a host of flexible plan
options.
Wider investment avenues and prudent asset allocation ensuring maximization of value
Free annual actuarial valuation
Option of Pooling or Ring fencing (only for large funds)
Flexible and competitive term life insurance cover.

SBI Life Group Pension Plan ensures quality benefits for the employees post-retirement
with tax-advantages for both the employer as well as the employees. SBI Life offers
flexible plan options protecting the retirees against increasing cost of living and medical
bills, and ensuring the same quality of life as before.
Minimum guaranteed return of 4%* p.a. compounded annually plus Vested Bonus will
be credited to the Personal Pension Account
(* Till 31st March ‘2010)
Automatic Cover Maintenance to ensure that the cover remains in force even when you
miss the premium payments.
Top-up facility at any time irrespective of contribution payment mode.
Flexible plan options with Defined Contribution arrangements.
Different annuity options available at the time of retirement.

Protection Plans:

Never compromise on your dreams. Never compromise on the dreams of your family and
children. If you believe in this, you must make your employees believe in the same too.
SBI Life offers pure protection cover for your employees to ensure that their families are
financially well secured in the event of unforeseen and unfortunate circumstances.

SBI Life Group Term Life Scheme in lieu of EDLI has been designed to help
employers to meet this liability at cost effective rates with enhanced benefits.
Life cover available to employees irrespective of their Provident Fund Balance.

Manoj Maheshrao Khandare

 Lower premium rates than RPFC.
No medical evidence required.
Sum Assured ranges between minimum Rs. 65,000/- (min.) to Rs. 1,00,000/- maximum.
Additional coverage for Accidental Death Benefit (ADB).
Premium paid by employer is treated as normal business expenditure for Income Tax
purposes.

SBI Life’s Group Term Life for employees (Supersuraksha)

It is a highly convenient yearly renewable term insurance product, which pays a fair
amount to the employees against the risk of death. It gives employees peace of mind that
comes from knowing that their families are protected.
Enhanced benefits for the employees ensuring their families’ future.
Uniform premium to all employees.
Hassle free implementation and faster claim settlements.
Minimum administrative costs to the policyholder.
Additional benefits from Accidental Death Benefit (ADB) rider and Accidental Total
Permanent Disability (ATPD) rider.

Specialized Term Life Insurance:

Key man is a key member or staff of the organization who is a major contributor to its
growth and the profit and whose absence may affect the continuity of the business.

SBI Life’s Key man Insurance

It is a pure term life cover to protect the organization from adverse financial
consequences arising due to death of a key employee. The aim is to indemnify the
company for these losses and to allow for business continuity.
Protection from potential losses combined with advantages of tax savings.
In case of key man leaving the company, options available to either surrender or assign
absolutely to the key man.

OTHER GROUP PRODUCTS

If you own a business or are responsible for your company's employee benefit
plans, you would know that employees are the most valuable assets of any organisation.
They not only help the company grow but shape its course of growth. Precisely why, the
world's successful companies constantly emphasise the need to keep employees happy
and motivated. Every organization faces some employee turnover. However the fact
remains that an organisation also needs to have a pool of good working staff that chooses
to stay for the long haul. Today, as top management churn has increased, loyal staff has
become more important to companies. Employee benefits schemes including Group

Manoj Maheshrao Khandare

 Insurance policies can help retain and create a bonding between the employee and the
company. Make a choice on how to protect employees and company for life.
Super suraksha - A Group Insurance policy provides your employees pure Life
Insurance cover. At a very low cost - a price which they cannot possibly get if they
choose to arrange for insurance cover by themselves, individually.
Swarna ganga - A Group Insurance Plan that combines security with tax-free savings, it
provides life cover to your employees as a group. It also helps the employees to
accumulate savings as they pay the premium. What's great about this plan is that a portion
of the monthly contribution of the employee is utilized towards insurance premium and
the balance is kept as a savings portion with SBI Life. At the end of the fixed term, or
upon retirement of the employee or his leaving the company, the savings portion is
returned to him with interest. All such receipt is treated as tax-free at the hands of the
employees. In the event of any unfortunate death, the sum assured is paid to the nominee
along with the savings portion. It is just what you need to build team spirit in the
company & show your employees how much you care for them. By insuring them. And
securing their families & their future. A group insurance policy can work as a morale
booster for employees& helps retain top employees.
Whether you are a small business organisation with 50 employees or a top rung
corporate, we'll design and provide individualized Group Term Life Insurance packages
based upon your company's needs. Coverage schedules and amounts can be customised
to take into account salary, employee classification, or other criteria.

COMPARISON WITH KOTAK LIFE INSURANCE PRODUCT

Kotak Money Back Plan SBI-Money Back Plan

Guaranteed Survival Benefit
3,4 or 5 year guaranteed survival benefit
5 year guaranteed survival benefit is payable
is payable.
Minimum age of entry

Manoj Maheshrao Khandare

 18 year 15 year for all option plan
Maximum age of entry
Option 1: 60 year
Option 2: 55 year
60 year
Option 3: 50 year
Option 4: 45 year
Maximum Maturity Age
75 year 70 year
Special Rebate
Women get special rebate of 5% on
No any declaration
premium base.

Kotak Endowment Plan SBI-Endowment Plan

Entry Age
Minimum 18 year Minimum 12 year
Maximum 65 year Maximum 65 year
Term
Minimum 10 year Minimum 8 year
Maximum 30 year Maximum 30 year
Death Benefit
In event of death nominee will receive basic Sum assured + bonus
sum assured or accumulated account which
is higher

Manoj Maheshrao Khandare

 CHAPTER-9

TIME & COST OF INSURANCE

The minute you have people dependent on your income, you should insure
yourself. The younger the age, the lower is your premium. At SBI-Life, they believe
anybody who is married and has children or plans to have children needs to be insured.
Even if you are single, earning and intending to marry, you should think of buying a
policy now, as it costs less now than it will when you marry.
Remember, it is never too late to buy an insurance policy. Even if you are 45, and
are not insured, you could choose insurance products that provide benefits to your family
and provide income during your retirement period. Ideally, you should insure yourself for
as long as you are the critical or crucial breadwinning member of the family.
With the growing nuclear families and the typical Indian sacrificing mothers/wives, it
may be prudent to ensure that the working man covers himself for his whole life; to
ensure that his wife receives a lump sum upon his death. A general rule of thumb is that
you should insure yourself for at least six times your annual income. This amount is
normally adequate for your family to sustain themselves at present levels, until they
recover from the financial loss caused by your absence.

The cost of buying an insurance policy depends on:

 Your age, health, and the nature of work you do

 The type of policy you select
 The sum assured i.e. amount you insure yourself for
 The term i.e. number of years you insure yourself for
 The premium paying term i.e. number of years you choose to pay premium
 The mode i.e. the frequency with which you choose to pay premium (monthly,
quarterly, half-yearly, yearly)
 The rider's i.e. additional benefits you select, their term and premium paying term

Example of an Endowment product for a 30-year old male

An Endowment with profit policy, for a sum assured of Rs 100,000, a premium paying
term and insurance term of 25 years, can cost between Rs 3,500-4,500 per annum.
However, there are a number of riders you can add on to an insurance policy, which
could increase your insurance cost by 20-30 per cent. Upon maturity or in the event of
death of the insured, the insured or the nominee receives the sum assured plus bonus for
the term of the policy.

Manoj Maheshrao Khandare

 Example of a Term product for a 30-year old male

A Term insurance product, for a sum assured of Rs 100,000, a premium paying term and
insurance term of 25 years, can cost between Rs 500-950 per annum. Upon death of the
insured, the nominee receives the sum assured immediately; while upon maturity, the
insured does not receive any money. Again, a variety of policies are available - some
policies offer a refund of the premium to the insured while some offer a portion of the
insurance amount or the full sum assured at the end of the term.

The cost of a policy could be lowered if you

 Buy insurance at an early age (while the risk is lower)

 Insure yourself for a long period
 Insure yourself for a large sum assured; offer to pay premium annually, thereby
receiving discounts
 Select a low cost policy such as a Term product, which offers negligible to
minimum returns upon maturity.
Do not buy riders or additional benefits that do not seem to add value to you or are
available as other insurance policies at lower prices.

Manoj Maheshrao Khandare

 CHAPTER-10

CONCLUSION
Economic growth & development has been widely accepted as major goal of
national policy in country. Economic growth is today decided more by human capital
than material capital. Equipment, process, & property are leveraged not by their inherent
capability but by action of human being. Therefore Human Resources is significant asset
for country but this human life is full of uncertainties & risks.

Preparing for uncertainties SBI life Insurance company is came out with the
different insurance policy as a solution for delegating worries. It reimburses people for
lovered losses in the event of an unfortunable occurrence such as illness, accident, &
death. At the some time, it can encourage safety measure, provide investment capital,
lend money, & help to reduce anxiety for society at large.

SBI Life Insurance is to emerged as leading company offering a comprehensive

range of life Insurance & pension product at competitive price, ensuring high standard of
customer service & world class operating efficiency. Different products are designed to a
suitable in different life event stage. Bancassurance recorded a premium income of Rs
163 crore, about 80% of the total premium income, he said, adding that other channels
too showed good growth over the corresponding period last year . The company's business
was growing 4-5 times a stood at Rs. 100 crore till July, of which Rs. 84 crore came from
premium from new business. If the company continues to grow at this rate, SBI Life
could end this fiscal with a premium income of Rs. 1,000 crore as against Rs. 225.65
crore in 2003-04.The company plans to make insurance buying process quick, simple
based on well-informed judgment, which will satisfy customer in all manners. As looking
growing function of SBI Life Insurance sector we assume that 100% function of human
will become insured in coming 2010 with different product in low cost.

Manoj Maheshrao Khandare

 CHAPTER-11

BIBLIOGRAPHY

 Nature & Scope of Banking, Insurance & other Financial Service

In Economic Growth - P.K. Bandgar

 SBI- life Insurance Brochure, Pamphlet, magazines.

 Life Insurance Handbook
 Financial Express.
 www.sbilife.co.in

Manoj Maheshrao Khandare