Shubh Nivesh – FAQs-shubh-nivesh-plan

Q. What is Shubh Nivesh? SBI Shubh Nivesh is a non-linked participating traditional endowment plan with the option of a whole life cover. This traditional endowment plan provides the triple benefits of income benefits with insurance cover and saving option. Additionally, to save regularly for future,Shubh Nivesh offers the choice to choose between a lump sum or as regular income to receive maturity benefits for a specific period based on personal needs. This specially designed plan enables one to build a corpus for important future requirements and also gives the option to significantly improve coverage through 3 optional riders. Q. Explain different types of benefits under Shubh Nivesh in detail. Maturity Benefit Endowment Option Basic Sum Assured + (Vested Simple Reversionary Bonuses + Terminal bonus (if any)) is paid after completion of the endowment term, provided Shubh Nivesh policy is still in force Shubh Nivesh provides Deferred Maturity Payment which can be chosen at the end of your endowment plan. Endowment with Whole Life Option Basic Sum Assured + (Vested Simple Reversionary Bonuses + Terminal bonus(if any)) is paid after the completion of the endowment term, provided Shubh Nivesh policy is still in force Shubh Nivesh provides Deferred Maturity Payment option which can be chosen at the end of endowment plan. Basic Assured Sum amount is paid on the persons 100th birthday Death Benefit Endowment Option In the case of the demise of the insured where the Shubh Nivesh plan is in its term but endowment plan has matured: Regular Premium: Higher of A or B is paid to the nominee, where: Where a, Sum Assured on Death + Vested Simple Reversionary Bonuses + Terminal Bonus (if any) Assured Sum on death is the higher of Basic Assured Sum or a multiple of annualised premium where the multiple is: And b, 105% of all the premiums paid Single Premium: Sum Assured on Death +Vested Reversionary Bonuses + Terminal bonus (if any), is paid to the nominee Assured sum on is higher of Basic Sum Assured or a multiple of single premium where the multiple is: Endowment with Whole Life Option When the policyholder during the endowment plan term, provided the SBI Shubh Nivesh is still active. In this case, the Death Benefit paid to the nominee is same as that defined under point 1 of the Endowment option. When the policyholder dies after the endowment term end or after 100 years of his age: Basic Sum Assured cover is paid to the beneficiaries Balance amount of Deferred Maturity Payment is paid. The beneficiaries can choose to avail the remaining benefits in lumpsum payouts which is equal to the remaining installments in discounted value. Other Benefits – Deferred Maturity Payment Option This endowment plan provides deferred maturity benefit under which the insured can withdraw complete assured sum with his accumulated bonus or only the bonus. In a case, where the insured chooses to withdraw only the bonus amount then he shall receive the entire sum assured to be drawn as his regular income at fixed period of time of 5 / 10 / 15 / 20 years. The frequency of the regular income shall be amongst – Monthly / Quarterly / Half-Yearly / Yearly. Q. Can one take a loan against Shubh Nivesh policy? Yes, there is an option which allows one to take a loan against the SBI Shubh Nivesh policy in times of emergency and need to meet expenses. One can borrow (take a loan) against the SBI Shubh Nivesh policy once the policy acquires a surrender value. The Shubh Nivesh policy loan is limited to a maximum of 90% of the Special Surrender Value (SSV). The company declares loan interest rate from time to time, and people can check these rates to get an idea of how much they need. Q. Explain the rider options available under Shubh Nivesh. Shubh Nivesh – Three Rider Options: Preferred Term Rider: In the unfortunate event of death, the assured sum amount under preferred term rider will be paid additionally with the basic sum assured of Shubh Nivesh. Accidental Death Benefit Rider: In the case of death by an accident, the sum assured under accidental death rider option shall be paid additionally with the basic sum assured amount of Shubh Nivesh plan. Accidental Total and Permanent Disability Benefit Rider: In the case of an unfortunate event of accidental total and permanent disability the sum assured under the rider shall be paid and other benefits will continue. Other riders and covers under Shubh Nivesh continue till the end of chosen endowment term upon payment of premiums. Q. Explain participation in profits under Shubh Nivesh. Shubh Nivesh policy is a traditional insurance policy with reversionary bonus. Simple reversionary bonuses are declared as a percentage on the sum assured amount in respect to the benefits under basic plan. Reversionary bonus is declared based on the companys long term view of investment returns, expenses, mortality and other experience. Once declared, the reversionary bonus one of the guaranteed benefits of the Shubh Nivesh plan. Future bonuses are not guaranteed and depend on future profits. A terminal bonus may also be paid at maturity, earlier death or surrender. The policy is participating during the endowment term only and not later.