SBI Life eIncome Shield plan is a term insurance plan which pays regular monthly benefits throughout the remaining duration of the plan if the life insured faces premature death. Moreover, the plan also offers the policyholder to choose the type of monthly income he wants his family to receive – fixed or increasing.
Step 1 – the policyholder chooses the monthly income amount and the type of income he wants the family to receive in case of death. There are four options to receive the monthly incomes which are as follows:
Step 2 – then the policyholder chooses the term and the premium paying frequency.
Step 3- in case of death within the term of the plan, 12 times the monthly income in the year of death is paid in lump sum. Thereafter the incomes are paid as per the benefit option chosen by the policyholder.
Step 4 – If the plan matures, no benefit is paid.
Ashish, a non-smoker male aged 35 years buys eIncome Shield Plan for 25 years. He chooses a monthly income of Rs.50, 000 and pays the premiums annually.
Option 1 – If he chooses Option A, the monthly income of Rs.50, 000 would be paid to his nominee in case of his death. The income would be paid for the remainder of the plan tenure for a minimum of 48 months.
Option 2 – If Ashish chooses Option B, the monthly income in the first year would be Rs.50, 000. Second year would be Rs.51, 500, and so on payable for the remainder of the plan tenure for a minimum of 48 months.
Option 3 – If Option C is chosen the monthly income would increase to Rs.52, 500 in the second year, Rs.55, 000 in the third year and so on.
Option 4 – For Option D, the monthly income would increase by Rs.5000 every policy year.Option 5 – in case the plan matures, Ashish would receive no maturity benefit.
|Age at entry (in completed years)||18 years||50 years|
|Age at maturity (in completed years)||NA||60 years|
|Term of the plan||10 years||35 years|
|Premium paying options||Regular pay|
|Premium Paying term||Equal to the plan tenure|
|Monthly Income||Rs.25,000||No limit|
What is not covered by the plan?
If the life insured dies due to suicide within one year of plan commencement or within one year of revival of a lapsed policy, 80% of the premiums paid are refunded.
Below are the sample rates of premium payable by males and females for different monthly income options and different lifestyle habits. The age of the life insured is 30 years and the term of the plan is also 30 years. The monthly income chosen is Rs.30, 000 and premiums are paid annually.
If the Sum Assured is Rs.1 crore to Rs.2 crores, 16% discount in premiums is allowed. If the Sum Assured is Rs.2 crores and above the discount is 20% of the premium.
Premiums can be paid either monthly or annually.
The monthly premium is expressed as 8.9% of the annual premium and if the policyholder chooses the monthly mode of premium payment, 3 months’ premiums have to be paid in advance.
Yes, the nominee or the beneficiary can choose to receive the outstanding monthly incomes in a lump sum amount. In that case, the aggregate of the monthly incomes payable discounted @ 5% per annum would be payable along with the death benefit which is 12 times the monthly incomes in the year of death.
Premiums paid for the plan qualify for tax exemption under Section 80C. The maximum limit of exemption under this section is limited to Rs.1.5 lakhs. Monthly incomes received and also the lump sum death benefit received is also tax-free in the hands of the nominee or beneficiary. Section 10(10D) of the Income Tax Act exempts the death benefit and subsequent monthly incomes without any upper limit.