SWADHAN A life cover that is practically FREE!! SBI Life products Pension Scheme Lifelong Pensions Savings cum Protection Sudarshan Sanjeevan & Young Sanjeevan Protection cum Savings Scholar Protection ? Everyone needs Protection Products As a social security tool: – Protection of the family As a safe tool to build up assets: – Collateral for loans BUT… It would be much better if at least you get some benefits at the end of the term, DON’T YOU? You are not comfortable with the idea of paying premiums for 10 years without receiving any benefits at the end! We have created SWADHAN for you! SWADHAN Pay premiums to protect your family…. And get back entire/part of the premiums paid at the end of the term!! Upto 100% of basic premiums paid are refunded to YOU!! SWADHAN: Product features SWADHAN Age: – Minimum: 18 years – Maximum: 55 years Maximum cover age: – 65 years Sum Assured: – Minimum: Rs. 3 lakhs (x 10,000) – Maximum: Rs. 1 crore Term: – 5 / 6 / 7 / 8 / 9 or 10 years Premium mode: – Yearly / Half-Yearly / Quarterly – Standing instruction on bank / Credit Card Account for renewal premium (First premium always by cheque/draft). Attractive premium rebate for women – 30 days money back guarantee Death benefits Sum Assured is payable to your nominee EASY TO UNDERSTAND Depending on the term chosen… YOU will get at the end Choose the term… Accordingly, YOU will get 5 Years 50% Basic Premiums paid 6 years 60% Basic Premiums paid 7 years 70% Basic Premiums paid 8 years 80% Basic Premiums paid 9 years 90% Basic Premiums paid 10 years 100% Basic Premiums Paid EASY TO REMEMBER Men: Yearly Premium Sum Assured: Rs. 3 lakhs (Yearly premium Net of Rebates) 5 years 6 years 7 years 8 years 9 years 10 years 20 years 1,125 1,360 1,472 1,789 2,273 3,801 25 years 1,178 1,316 1,532 1,858 2,360 3,948 30 years 1,211 1,369 1,615 1,985 2,551 4,295 35 years 1,418 1,635 1,960 2,434 3,145 5,265 40 years 1,857 2,165 2,615 3,265 4,232 7,002 45 years 2,614 3,103 3,785 4,740 6,112 9,831 50 years 3,994 4,749 5,762 7,130 8,999 13,834 55 years 5,955 7,029 8,443 10,302 12,755 18,696 80% 90% 50% 60% 70% 100% of Total Basic Premiums Paid are refunded to you at the end of the policy How much does it effectively cost? (Sum Assured: Rs. 3 lakh - 30 years old Term man – Yearly premium) 5 years 6 years 7 years 8 years 9 years 10 years Yearly premium 1,211 1,369 1,615 1,985 2,551 4,295 Total Premium Paid 6,055 8,214 11,305 15,880 22,959 42,950 3,028 (50%) 4,929 (60%) 7, 914 (70%) 12,704 (80%) 20,663 (90%) 42,950 (100%) Total Insurance real cost 3,028 3,285 3,391 3,176 2,296 NIL Real cost of insurance (p.a.) 606 548 485 397 255 NIL Amount (Rs.) You will get at Maturity Total premium paid = Yearly premium / Term Total insurance cost = Total Premium Paid – Maturity Benefits Real cost of insurance per annum = Total insurance cost / Term Effective premium varies from Rs. 1.66 a day to NOTHING!! Woman Yearly Premium Sum Assured Rs. 3 lakhs (Yearly Premium net of rebates) 5 years 6 years 7 years 8 years 9 years 10 years 20 years 1,052 1,180 1,381 1,682 2,141 3,592 25 years 1,102 1,233 1,439 1,748 2,224 3,732 30 years 1,134 1,284 1,518 1,868 2,406 4,154 35 years 1,330 1,536 1,845 2,295 2,969 4,981 40 years 1,747 2,039 2,466 3,083 4,001 6,629 45 years 2,466 2,929 3,577 4,483 5,985 9,315 50 years 3,775 4,491 5,453 6,951 8,525 13,114 55 years 5,636 6,655 7,197 9,761 12,089 17,727 Attractive premium rates for women What about the competitors? Men, Sum Assured Rs. 3 lakhs, Term: 10 years 20000 15000 10000 5000 0 20 25 30 35 40 45 50 Sw adhan SBI Life New Bima Kiran LIC 55 Man, Sum Assured Rs. 3 lakhs, Yearly Premium, Term: 10 years 27,000 24,000 21,000 18,000 15,000 12,000 9,000 6,000 3,000 0 20 25 Sw adhan SBI Life 30 35 40 45 Premium Back Term Plan Birla Sun Life LifeGuard w ith refund of P ICICI Prudential New Bima Kiran LIC Term Care Allianz Bajaj 50 55 Yearly Premium for Sum Assured Rs. 1 lakh, For of 30 or 45 years old man, Term 10 years Cost Maturity benefit Rs. 1 lac + VB 12,000 10,157 10,268 10,000 8,000 6,000 Maturity benefit 30 years 100% BP refunded 45 years x3 3,277 4,000 1,432 X7 2,000 X7 0 Swadhan Protection Sudarshan Savings Choose what you want and pay accordingly… TAX ADVANTAGES Tax Rebate U/s 88 Made Easy Available for Premium Paid on Life Insurance Policies Policy can be in the name of Spouse or Children (Major or Minor & Married Daughters) Ceiling for Life Insurance Premium Paid: Rs.70,000 Tax Rebate Slabs Gross Total Income (GTI) Tax Rebate Max Admissible Amount Upto Rs. 1.5 lakhs 20% Rs. 14,000 1.5 lakhs – 5 lakhs 15% Rs. 10,500 More than Rs. 5 lakhs NIL NIL 30% Rs. 21,000 Gross Salary Income Not exceeding Rs. 1 lakh (should not be less than 90% of GTI) TAX ADVANTAGES Maturity benefits as well as death benefits are tax-free in the hands of the policyholder /nominee u/s 10 (10D) I.T. Act. SWADHAN : LIQUIDITY Cash if you need After the policy has acquired Surrender Value, loan available at an attractive rate of interest (PLR of SBI + 1%) from any State Bank Group Branch Surrender Value Surrender Value Year 1/2/3 No surrender value Year 4 / 5 / 6 60% Premium Paid – 1st year Premium Year 7 onwards 65% Premium Paid – 1st year Premium In case of unpaid premium Grace period: – 30 days If premium is not paid within this period: – During the first 3 years: policy lapses – After the first 3 years: paid-up value Standing Instruction limits unpaid premium Paid up value An example: – Swadhan: Rs. 5 lakhs Term: 10 years 1st unpaid premium Year 8 – Paid up value: New death benefit: – Rs. 5 lakhs x (7/10) = Rs. 3.5 Lakhs. New maturity benefit: – At the end of the policy, refund of: • (7/10) *100 = 70% of Total Premium Paid SWADHAN 30 days Money Back Guarantee If a client is not satisfied with the features of the policy, he can return it within 30 days of the date of policy SBI Life will give him a complete refund Medical Selection Medical selection Entry Age Only medical questionnaire upto Sum Under Consideration 18 to 35 Rs. 8 lakhs 36 to 45 Rs. 5 lakhs 46 to 55 Compulsory Medical Definition of Sum Under Consideration: Sum Assured for Swadhan + Sum Under Consideration for existing SBI Life individual policies Basic medical test, subject to requirement Premium rebates Due to mode of payment: – Yearly: 2% – Half-Yearly:1% – Quarterly: No rebate For high Sum Assured: – Rs. 1 SA Rs. 3lakh upto Rs. 4.99 lakhs – R. 1.5 SA Rs. 5 lakhs and above Special rebate for women – 5% Special rebate for women! Premium Calculation Based on: Gender Mode of payment Choose the right premium table Depending on: Age Term Find the premium rate Deduct the rebate for high Sum Assured Add extra premium for Non Standard Age Proof if any Multiply the result by Sum assured / 1,00,000 You get the premium amount (final premium should be rounded off to the next higher rupee) EASY TO CALCULATE An example Swadhan for 10 years term Sum Assured: Rs. 5,50,000 Woman: 42 years old Yearly mode Premium calculation: 1. Choose Yearly premium table for woman. 2. Find out the rate for Rs. 1 lakh: • 10 years for a 42 years of age: 2,616.95 3. Deduct the rebate for high Sum Assured • 2,616.95 – 150 = 2,466.95 4. Calculate the premium for Sum Assured Rs. 5,50,000 • Rs. 2, 466.95* 5.5 = Rs. 1 3,568.22 5. Round off to the next higher rupee • Rs. 13,568.22 Rs. 13,569 Ready made premium tables inclusive of all rebates Commissions Depending on Sum Assured Rs. 3 lakhs upto Rs. 5 lakhs and Rs. 4.9 lakhs above 1st year premium 10% 20% Renewal premiums 5% 5% Who are the swadhan’s customers? People who want: – A protection product with maturity benefits. – Tax rebates u/s 88 of I.T. act People who need an additional collateral for loans: – – – – For personnal loan, educational loan S.I.B / S.S.I / Trade Advances segment Loan amount is repaid in case of death Free collateral in case of survival 10 years term: 100% refund of premium Women who want to benefit from low premium rate: – Upto 7% rebate EASY TO SELL Swadhan as a collateral? It doesn’t under any circumstances increase the credit limit / borrowing capacity of the borrowers, as it is not an endowment product. It prevents the bank against N.P.A. due to death, not N.P.A. due to unpaid EMI. Taking a Swadhan policy is not a guaranty of Getting a loan from the bank REMEMBER…. The game of the ladder Adequate Insurance = Windfall and Non / Under insured = Liability the snake SWADHAN: THE snake antidote Why SWADHAN? Simple and affordable: – Choice of S.A. From Rs. 3 lakhs upto Rs. 1 crore – Mode of payment: Yearly / Half-Yearly / Quarterly Automatic debit from the account throught standing instruction – Affordable premium rate One of the lowest of the market Unique feature for 5 / 6 / 7 / 8 and 9 years: – %tage of basic premium paid is refunded, not full basic premium makes premium rates very attractive. Special rebate for women – Up to 7% on premium 30 Days Money Back guarantee – SBI Life gives complete refund of money if the customer is not satisfied within 30 days from the receipt of the policy document.