Dissertation Report On

“COMPARATIVE STUDY OF SBI LIFE INSURANCE

COMPANY”

Prepared By
Mr. Subham Choudhury
Roll no. 19DM017
Batch 2019-21

Under the guidance of

Prof. Surya Dev

As a partial fulfilment of PGDM Program of IMIS

Institute of Management &Information Science, Bhubaneswar
 CONTENT
Declaration
Acknowledgement
Chapter 1
Introduction
1.1 Research Design
1.2 Abstract
Chapter 2
Background of the Study
2.1 what is Life insurance?
2.2 Need of life insurance
2.3 Major Market Players
2.4 SBI life insurance
2.5 Opportunities and Challenges
Chapter 3

SBI life insurance

3.1 Need for SBI life insurance
3.2 Products of SBI life insurance
3.3 Need of insurance in different stages of life

Chapter 4

Findings, Conclusion and Recommendation

4.1 Findings
4.2 Conclusion and Recommendation
Chapter 5

Reference
 DECLARATION

I, Subham Choudhury, student of PGDM Term VI, studying at Institute of Management &
Information Science, Bhubaneswar, hereby declare that the dissertation report on the topic
“Comparative study of SBI life insurance” submitted in complete fulfilment of PGDM
Program is the original work conducted by me.

The information and the data given in the report is authentic to the best of my knowledge.

This dissertation report is not being submitted to any other University for award of any other
Degree, Diploma and Fellowship.

Subham Choudhury
(Name of the student)
 ACKNOWLEDMENT

With the blessings of God, I take the opportunity with great pleasure, a deep sense of
gratitude and profound thanks to everyone who have spared their valuable time and giving
me their co-operation to make this project successful.

I would like to express my sincere thanks to Prof. Surya Dev (Dean CAD) for her
continuous efforts, and proper guidance, supervision and generous co-operation throughout
this work which enabled me to present this project report.

I would also like to thank my parents for their constant help, support and coordination which
helped me a lot. Special thanks have to be reserved for all the respondents for providing
information and extending full support.
 Chapter 1
INTRODUCTION

1.1 RESEARCH DESIGN

Title of the study
The title of the study is “COMPARATIVE STUDY OF SBI LIFE INSURANCE
COMPANY”.

Objective of the study

1. To understand the customer investment preferences.

2. To get an instant overview of the insurance industry, its perspective,

present Scenarios and the competitors.

3. To study the factors influencing customer preferences towards various

investment Instruments

4. To analyses acceptance of SBI LIFE insurance policies.

Type of Research
The research study is a basic or fundamental research as it is intended to expand the
boundaries of knowledge and is based on both historical and current data.
Historical research is one which uses past or historical sources such as documents, annual
reports, financial statements, articles etc. to study the theoretical concept. Before you begin
new research, you
should start with a thorough review of what others have already done.

Not only does this help us get up-to-date with current research in our area of interest, but it
also typically leads us to examples of useful databases that are available, commonly used
analysis methods, and ideas for ways to present our findings.

Collection of Data
Information expressed in some quantitative form is called Data. Data is of two types- primary
data and secondary data.
Primary Data- The data which is collected for the first time and is original in character
is called primary data.
The primary data was collected through interaction with the company staff through survey
and interviews.
Secondary Data- The secondary data is one which is already available. Secondary data
sources include information retrieved through pre-existing sources: research articles,
Internet or library searches, etc.

Limitation of the study

 The fact that small and medium enterprises (except one) did not
respond to the survey.
 Lack of appropriate information due to issues of
maintaining confidentiality.

INTRODUCTION

Insurance has been known to exist in some form or other since 3000 BC. The Chinese
traders, travelling treacherous river rapid would distribute their goods among several
vessels, so that the loss from any one vessel being lost, would be partial and shared, and
not total. The Babylonian traders would agree to pay additional sums to lenders, as the
price for writing off the loans, in case of the shipment being stolen. The inhabitants of
Rhodes adopted the principle of ‘general average’, whereby if goods are shipped
together, the owners would bear the losses in proportion, if loss occurs, due to jettisoning
during distress. (Capital of ships caught in storms, would throw away some of the cargo
to reduce the weight and restore balance. Such throwing away is called jettisoning) The
 Greeks had started benevolent societies in the late 7th century AD, to take care of the
funeral and families of members who died. The friendly societies of England were
similarly constituted. The Great Fire of London in 1666, in which more than 13000
houses were lost, gave a boost to insurance and the first insurance company, called the
Fire Office, was started in 1680.

The origin of insurance business as in vogue at present, in traced to the Lloyd’s Coffee
House in London. Traders, who used to gather in the Lloyd’s coffee house in London,
agreed to share the losses to their goods while being carried by ships. The losses used to
occur because of pirates who robbed on the high seas or because of occurs because of
pirates who robbed on the high seas or because of bad weather spoiling the goods or
sinking the ship. In India, insurance began in 1818 with life insurance being transacted
by an English company, the oriented Life Insurance Co. Ltd.... The first Indian Insurance
company was the Bombay Mutual Assurance Society Ltd, former in 1870 in Mumbai.
This was followed by the Bharat Insurance Co. in 1896 in Delhi the empire of India in
1897 in Mumbai, the United India in Chennai, the National Indian and the Hindustan
Cooperative in Kolkata.

Later , were established the Cooperative Assurance in Lahore, the Bombay Life
(originally called the Swadeshi Life), the Indian Mercantile, the New India and the
Jupiter in Mumbai and the Lakshmi in New Delhi. These were all Indian companies
started as a result of the swadeshi movement in the early 1900s. By the year 1956, when
the life insurance business was nationalized and the Life Insurance Corporation of India
(LIC) was formed on 1st September 1956, there were 170 companies and 75 provident
fund societies transacting life insurance business in India. After the amendments to the
relevant laws in 1999, the L.I.C. did
not have the exclusive privilege of doing life insurance business in India. By 31.8.2007,
sixteen new lives insure had been registered and were transacting life insurance business in
India.

We live in a risky world. Forces, largely outside our control, that makes threats our financial
wellbeing, constantly surround us. Thus, some of us will experience the premature and
dreadful death of a beloved family member; others will experience the loss or destruction of
their property from natural disasters. Still others will experience poor health from cancer, heart
attacks, and other diseases. In addition, some of us will be totally and permanently disabled
from a crippling automobile accident or a catastrophic illness. Finally, others will experience
the traumatic effects of a liability lawsuit. They're all built into the working of the Universe,
waiting to happen. Therefore, Risk is pervasive conditions of human existence. It has a simple
meaning in every day usage but sometime it has a specialized connotation when used in
particular fields.

Definition of Risk

Risk is defined as "a condition in which there is a possibility of an adverse deviation from a
desired outcome that is expected or hoped for". Thus risk is a combination of circumstances,
and in this combination there is possibility of loss. An adverse even is possible and it has a
probability from a zero to one. This it is neither possible nor definite. We may or may not be
able to measure the degree of risk but the probability of the adverse outcome must be between
zero and one. The undesirable even is known as deviation.
A pure & perfect technique for handling risk is by insurance. For most individuals, this is the
most practical method for handling a major risk. First, risk transfer is used since a pure risk is
transferred to the insurer. Second, the pooling technique is used to spread the losses of the
few over the entire group so that average loss is substituted for actual loss. Finally, the risk
may be reduced by application of the law of large numbers, whereby an insurer can predict
future loss experience with some accuracy.
 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.
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.

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.
 5 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.

4.
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.
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.

5.
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.

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.

6.
 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

7.
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.
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.

8.
 LIFE LONG PENSION
To make post retirement years truly golden, SBI Life introduces Lifelong Pensions
a unique Pension plan for retirement days.

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.

9.
  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.
 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.

10.
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.
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

11.
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: -

Pure Pension Pension cum Life Cover

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

 Regular contribution payment Monthly Quarterly, Half-yearly and Yearly
 Single contribution payment one-time premium payment for the selected term
at commencement.

12.
 EDU SHIELD
Secure your future. Secure your Education Loan.
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.

13.
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

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*

14.
 SCHOLAR II
Why take chances with your child's future?
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

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.

15.
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

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 *
Receiving the Survival Benefits in a single installment along with the Vested Bonus*
(Policy terminates thereafter)
* Vested bonus is the total amount of bonus accrued till date, under the policy.

16.
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

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.

17.
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*

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

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

18.
 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

19.
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.

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.

20.
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;
In 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

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

Tax Benefit
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
Attractive New product for NRIs
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.

24.
 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

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.

25.
 MONEY BACK
Get your Money Back and still stay insured
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

26.
 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

* Single premium mode is also available.

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
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.

27.
 SWADHAN
Get Insured, and your premium back too!
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%
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:
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
 BANCASSURANCE PRODUCT
HOME LOAN INSURANCE.
Life Insurance Cover for SBI Home Loan borrowers
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
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

31.
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.
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.

32.
 CORPORATE GROUP PRODUCT.
Work without any fear.

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 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.

33.
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.
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.

34.
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 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
5 year guaranteed survival benefit is 3,4 or 5 year guaranteed survival
payable benefit is payable.
Minimum age of entry

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 Sum assured + bonus
basic sum assured or accumulated account
which is higher
 TIME & COST OF INSURANCE
SBI Life believes that Savings and insurance are two sides of the same coin.

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.

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.
 NEED OF INSURANCE IN DIFFERENT LIFE STAGE
1) Single Male in Twenties
Vijay Mehra is a single individual in his early twenties. He has just graduated one and a
half year ago. He earns around Rs 1.5 lakhs per annum. His mother is a housewives and
his father works in a government company. He is going to retire after another 7 years.
If you are like Vijay, You are just getting started in life, have a great deal of your life,
and career to look forward to. Maybe you think you don't need life insurance yet, you
are single, and your folks don't really depend on you financially yet. Soon you will be
the rising 'sun' in their golden years. But In the event something unexpected happens, you
don't want to leave behind just memories - some money could be the sweetener they
could use.
Therefore, Life insurance protects you and your loved ones in the event that you meet
with an untimely demise. You may not have a family who relies on you for support, but
life insurance may still serve important functions for you and your family. It can provide
a way for you to leave resources behind for your loved ones when you die. You are
starting to think about your future. Right now, you are probably in good financial shape.
You are probably focused on earning more money to buy yourself a car, maybe save up
enough money for your long yearend holiday abroad, or even have marriage plans
already!

2) Single Female in Twenties

Shreya Dev is a young single lady in her early twenties. She has just completed
graduation, and has been working for the last one year. She earns around Rs 1 lakhs per
annum. Shreya's mother is working in the bank, about to retire in the next 2 years, while
her father has just retired.
If you are like Shreya, you are young, just getting started in life and have a great deal of
your life and career to look forward to. Maybe you think you don't need life insurance
yet, you are single, and your folks don't really depend on you financially. Maybe you
think you may stop working when you marry and have children. But will you

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like the idea of being financially dependent on your husband for the smallest of things?
Especially when you are used to being financially independent?
If you think you should not buy a life insurance policy because you are not sure how long
you will work (and hence pay for your insurance), try looking at an insurance policy that
offers you a limited premium paying term. Alternatively, buy a policy where you can
start receiving money in the next few years (in order to support yourself in case you stop
working while you are raising the kids). In the event something unexpected happens, you
don't want to leave behind just memories - some money could be the sweetener your
family could use.
According to SBI Life Insurance expert Term Plan, Money Back, and Endowment
policy suitable for above2 situation

3) Joined a New Job

Starting a new job is exciting, but it could be slightly stressful as well. It needs to adjust
to different route to commute, a new work environment, new co-workers, bosses, and
most importantly new responsibilities at the work place.
Group life insurance provides insurance to a group of employees through a contract
between an insurance company and the employer. It is similar to the types of life
insurance that are available on an individual basis, although most companies cover their
employees through a term life policy. Usually, a company offers a minimal amount of life
insurance - around one to two times your salary at no additional cost to you.
If new employer does not offer group life insurance; Person should recognize the need
for insurance and may want to consider purchasing an individual policy. If
person have a family that is financially dependent on him, life insurance can be very
important. Starting a new job may mean that he have new insurance needs. For example,
if your income has increased, you may need to increase your insurance to maintain a
consistent relationship between your annual earnings and your coverage amount. But if
any of these factors have changed as a result of your move, then you should take steps
now to protect you and your loved ones.

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4) Marriage
You may have gotten by without life insurance when you were single, or maybe bought
an insurance policy just to make some tax-savings. However, getting married has
changed your life insurance needs. There is now at least one other person in your life that
expects you and your income to help cover current and future living expenses. You will
want to ensure that your spouse is taken care of financially, should anything ever happen
to you.
Now that you are married, you have a spouse, and possibly children, who are dependent
on you for financial support. If you die suddenly without life insurance, your family may
have a crucial time for meeting their financial needs.
To put things a little frankly, will your spouse be able to pay for your car loan, maybe
your housing loan as well, or take care of your parent's health expenses, maybe your
child's schooling and higher education, all alone? Will your family be forced to move to
a less expensive residence (if the existing one has a higher rent), or will your spouse be
forced to leave your children with your aging parents in order to work full-time since you
are gone?
If anyone in your family will suffer an economic loss or hardship as the result of your
death, then you need life insurance.

5) Buying a new house

Buying a house is an important step in life, and is probably one of the biggest
investments will ever making! Even if it means having to take a loan from a bank or
getting an interest-free loan from your employer, having "your own home" is always
worth it all
Like most new homebuyers, you have probably financed your purchase with a home
loan. Simultaneously, you may want to ensure that you have enough life insurance to
enable your family to pay off any existing loan on your home in the event of your death.
By having adequate life insurance, you can be sure that your family will be able to keep
the house if something ever happens to you.

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Moreover, having your own house feels like making a new start! Think about what
your life insurance needs will be once you are settled. Take a moment to consider these
issues. A little planning now may help protect you and your family in the long run.
Taking a housing loan may be convenient but read the fine print - it means that you own
as much of the home as you have made principal payments for, the housing or finance
company owns the rest.
Making all the principal payments may take up to 10-15 years or even 20 years.
What if something untoward happens to you during this period, before the loan is paid
off? Your family may be put in the difficult position of having to pay the balance
installments or to surrender the house to the finance company in case they are unable to
pay the balance amount of money. This could present serious financial difficulties for
your family. They may even have to sell the house in order to make up the balance
payments. This is where the proceeds of a life insurance policy would help. A life
insurance may be used to payoff the remaining loan amount and keep the home for your
family.

6) If you have children

If you have children, you will want to opt for more life insurance. Should something ever
happen to you, your children will be your spouse's biggest expense. Your spouse will
have to provide your children with food, clothing, toys, tuitions, a higher education and
maybe provide for marriage expenses. You should want to make sure that you have
enough life insurance to cover these costs. The more children you have, the more life
insurance you will need. As like Money Back, Scholar, Edu Shield is very significant in
Marriage event.

7) Retirements
You've worked hard to attain various goals: a home, a good education for your children,
married both your daughters in to good families and now all you want to do is live a
peaceful, retired life. In many ways, you have arrived, and now you look forward to your
golden years. However, you continue to face risks - financial and otherwise - and

43.
these risks could endanger the security of your future. To provide yourself with adequate
protection against the risks you face, it is necessary to maintain sufficient insurance.
Retirement is a good time to re-assess your life insurance needs to ensure that they
accurately reflect your new stage in life. Because you may no longer want your insurance
to replace your salaried income, nor do you have any loans or liabilities and nor do you
have to worry about providing for your children's higher education and marriage
expenses (hopefully). In fact, you may now be focused on being financially independent -
ensuring that you and your spouse are not dependent on your children for your finances at
least. When you retire, it is time to re-evaluate your insurance coverage. Because your
financial responsibilities and priorities are changing, your insurance needs change as
well. Your monthly income declines as you stop earning your salary. Your household
expenditure declines as you incur lower expenses on commuting, clothing, and eating-
out. You may be in a lower income tax bracket. With so many changes in your financial
position, you need to ensure that your avenues to retirement are as secured as your life
has been. Insurance companies offer pension products that allow the individual to receive
pension immediately or to receive pension at a certain age. During the term of the policy,
the individual remains insured.
Upon his death, his spouse or nominee have the option of either receiving a monthly
pension for a guaranteed term (which would have been selected by the insured) or
receiving a lump sum amount, where the policy ceases.
Usually, these policies allow individuals to pay money on a regular basis as premium or
even accept single premiums, where only one payment is made. Moreover, some of the
pension policies offer tax benefits, under section 10CCC, which are not available on any
other products. However, keep in mind that the premium paid for such a policy may offer
tax benefits, the money received as pension is subject to being taxed.

8) Divorce
Going through a divorce can be very stressful and frustrating; it disrupts your life, family,
and financial stability. Perhaps there are issues that you are only learning to come to
terms with, such as single handedly taking care of your children, your financial stability
now that it is all dependent on you. Now is the time to review your policies so

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that you and your loved ones remain protected. Typically, divorce raises a number of
issues regarding life insurance. If you have a life insurance policy already, you may want
to re-evaluate your coverage and change your nominee. Your divorce may have left you
with fewer assets or more people to protect in the event of your premature death. Because
of the impact divorce can have on your finances, your need for life insurance will most
likely change. The impact will be greatest when there are children involved.
Purchasing a life insurance policy on your ex-spouse is perhaps the easiest way to protect
yourself. However, you could have problems in paying the premiums, or your ex- spouse
may not co-operate to do the necessary medical examinations and tests. You could help
solve the problem by nominating the children as the beneficiaries. If your
ex-spouse has an existing policy on his/her life, you could ask her/him to designate you
as the nominee, to provide protection of your alimony and/or your child support
payments.
 Findings
During my project I have found out various things by which I have learned a lot. As
insurance is one of the toughest sectors in business world and we are the dream sellers in
the industry because we never give the customers return in that very day, we are assuring
some amount so its all about faith on we people which customers are supposed to do.

General View
(1)Promotional tools which are being used are not so much effective.
(2)Customers are much more relying upon LIC.
(3)Less customer awareness regarding SBI LIFE Insurance.
(4)It still not penetrates in rural area.
(5)Product variety is very less.
(6)All products are not attractive to the customers so that kind of
products are very hard to sale.
(7)Investment plans are very less, that s why people are not accepting the products.
(8)Competitors are very tough.
(9)Brand name helped quite a lot to the company.

Positive view
1. Brand name helped a lot while financial advisors are opting for calling.
2. Branches are almost everywhere.
3. Higher level of advertising and all are very effective
4. Advertising through all media.

Negative view
1. Customers are much more relying upon LIC.
2. People don’t rely upon private insurance sector.
3. Competitors are very tough.
4. All products are not attractive to the customers so that kind of
products are very hard to sale.
5. Less number of traditional plans that’s why people who real y need
traditional plans are still not satisfied.

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 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 untorturable 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.

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 BIBLIOGRAPHY

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

In Economic Growth - P.K. Bandar
 SBI- life Insurance Brochure, Pamphlet, magazines.
 Life Insurance Handbook.
 DNA
 Financial Express.
 Economics Time.
 www.sbilife.co.in
 : http://www.sbilife.co.in/sbilife/content/83425
 http://www.moneycontrol.com/news-topic/sbi-life-insurance-