Why did SBI Life Decide to Lower Its Premium Rate?
The new and reduced premium rates for SBI Life have brought the company’s term plans on a par with its competitors. As of now, the company has the lowest expense ratios as compared to other private insurers and hence, bringing-in more interested customers to the company.
How Does Reducing Premium On SBI Life Term Plan Benefit Customers?
The reduced premium rates of SBI term plan will help the customers get world-class service of SBI at pocket-friendly rates. Following are the benefits associated with SBI Life Term plan:
- As a policyholder, you are eligible to get loans against SBI Life term plans.
- The insurance holders also have an option to avail tax benefits under the Income Tax Act, 1961.
- The customers will receive maturity benefits in case they survive the policy tenure.
- Some of the SBI life term plans even offer surrender benefits, in case the policyholder wishes to discontinue her/his policy after 2 years. However, this benefit is only applicable for the plans that have policy tenure of 10 years.
What You Should Know Before You Buy A SBI Life Term Plan?
SBI Life term plans are never about returns. Rather, they are more about securing one’s family’s future financially. Though, buying insurance in India is more about availing tax benefits, its primary purpose is to provide protection. These plans will help your family deal with tax benefits the finances while they come to terms with your absence.
There are multiple SBI Life term plans available. Try choosing a plan that provides cover up to a greater age, like 70 or 80, since they provide protection for a longer tenure. Take your time to decide whether the amount of life cover you’re going to opt for is sufficient to replace your income and help your family tide over the difficult times after your death or not. Make sure to include any debt amount you need to pay off and the inflation rate.
Naming your beneficiary is an integral part of your financial planning. Make it appoint to choose the person who will need the money most after your passing – whether it’s your spouse, your kids or your parents. Also, keep your beneficiary informed about your investment along with the key features of your chosen term plan any changes that you decide to make.