Life insurance is essential today, as it financially supports a policyholder’s family in case of unforeseen events. While traditional savings policies offer limited coverage, term life insurance policies deliver substantial protection.
However, a common concern is that the premium paid for term policies is non-refundable, which causes many people to hesitate to purchase them.
SBI Life has introduced a solution for hesitant individuals with the SBI Life Smart Swadhan Neo Policy. This new term plan offers a significant amount of insurance coverage and ensures a full return of the premium paid at the end of the term.
One advantage of this policy is that it can be purchased without any health tests and allows for self-certification of income, which means you can declare your income without providing any supporting documents.
Applying for the Smart Swadhan Neo Policy is simple and straightforward. Anyone between 18 and 60 can purchase the policy.
According to SBI Life, the minimum insurance coverage available through this policy is ₹5 lakhs, with a maximum limit of ₹24.9 lakhs. The minimum premium required to enroll in this term plan is ₹5,000.
Policyholders can select a term duration of 15 to 30 years, and they must pay the premium in a lump sum rather than in installments.
Upon policy maturity, 100 percent of the premium will be returned to the policyholder per the policy rules. However, the designated beneficiaries will receive the insured amount if the policyholder passes away during the term. For example, if the policy is purchased for ₹25 lakhs, that entire sum will go to the policyholder’s family.
If the policy is surrendered after paying the premium for two years, the company will refund the guaranteed surrender value. Surrendering the policy is simple and can be done at any SBI Life branch.
Additionally, those who feel that the insurance amount offered by the Smart Swadhan Neo Term Plan is inadequate can opt for additional riders, such as an accidental benefit rider. This rider can provide coverage ranging from ₹50,000 to ₹74.7 lakhs.
The policy also allows for a loan of up to 50 percent of the surrender value, meaning that policyholders can access funds if needed while enjoying insurance coverage and premium refunds upon maturity.