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Comparison of Life Insurance Products
Endowment Plans: SBI Life - Shubh Nivesh Vs PNB MetLife Endowment Savings
Insurance is a risk transfer mechanism, removing, for a premium, the potential financial loss
from the individual and placing it upon the insurer. The primary benefit is seen in the financial
compensation made available to insured victims of the various insured events.
On the commercial side, this enables businesses to survive major fires, liabilities, etc. and from a
personal point of view, the money is of great help in times of tragedy (life insurance) or other
times of need.

Life insurance is a contract between an insurer and an insurance policy holder, where the
insurer promises to pay a designated beneficiary a sum of money in exchange for regular or lump
sum premium, upon the death of an insured person or on maturity of the contract. There are
mainly five different types of life insurance policies. Two competing endowment plans are
discussed below.

An endowment policy is a life insurance policy designed to pay a lump sum after a specific
term either on its maturity or on death. It is a combination of savings and protection plan. The
risk is covered for a specific term period only. After maturity the risk cover ceases to exist.
Typical maturities are ten, fifteen or twenty years up to a certain age limit.
If the insured party dies during the contract, the nominee receives the total sum assured and
bonus accumulated to that point if any. If the insured survives the term period, he receives the
sum assured and all the accumulated bonuses for the term of the policy. Due to sum assured
being paid even on maturity and other benefit payments, the premiums on these policies are
comparatively very high and the sum assured is also relatively low.
Two similar endowment plans being offered by SBI Life and PNB MetLife are compared below.

SBI Life - Shubh Nivesh is a non- linked, with profit Endowment Assurance product with an
option of Whole Life coverage. The basic purpose is to provide Savings, Income and Insurance
Cover. Not only can it be used to save regularly for future but it also has the flexibility to receive
the maturity amount as a lump sum or as a regular income for a chosen period, depending upon
insured person’s needs.

MetLife Endowment Savings Plan is a regular savings plan that helps to grow savings while
providing you death coverage. There is a flexibility to choose how much to save as well as
selecting a policy term between 10 to 30 years. It gives the benefit of systematic long term
savings along with the protection deserved. This is one sure way to save for a rainy day and build
a family corpus.

Insurance .

448 124.0 00 120. The rate of change of premiums for with age for SBI is more than that of PNB MetLife.448 94.00.84 3 Sum Assured Yearly Premium Premium changes due to change in Term I1 I2 25 20 Age Term Sum Assured Yearly Premium I3 SBI Life PNB MetLife 35 20 I3 25 25 25.240 120.175 122. .000 25.00.600 122.979 122.00.0 Sum Assured 10.91 7 From these Illustrations it is clear that SBI Life gives more weightage to age of the insured party compared to PNB MetLife.000 25.00.857 128.00.000 25.600 192.20 0 PNB MetLife 122.000 45 20 25.428 73.448 195.96 0 PNB MetLife 48.00.600 91. These effects are illustrated below for the two policies Premium changes due to change in Age I1 I2 25 20 Age Term 25.825 130.00.00. So for young people looking for insurance SBI Life is recommended.0 00 SBI Life 120. Sum Assured and Term of the policy.000 00 Yearly Premium SBI Life 48.000 25 30 25.325 72.00.595 Premium changes due to change in Sum Assured I1 I2 I3 Age 25 25 25 Term 20 20 20 40.Insurance The Premiums are effected by various factors such as Age of Entry.

Insurance Conclusion Both the plans have their own advantages and https://www.metlifeportal.aspx Appendix: Benefit Illustration for SBI Life .Shubh Nivesh . whereas the PNB MetLife plan has limited premium payment option and better claim settlement http://ill. References: The SBI Life plan has many options like deferred maturity payments and http://www.sbilife. Overall the SBI Life plan seems to be slightly better