Overview of Life Insurance

Industry
A new era began in the Indian
insurance sector, with the
passing of the Life Insurance
Act
of 1912. Life Insurance is the
fastest growing sector in India,
since 2000 as Government
allowed Private players and
FDI up to 49 percent. The
insurance industry of India
consists of 57 insurance
companies of which 24 are in
life insurance business and 33
are
non-life insurers. Among the
life insurers, Life Insurance
Corporation (LIC) is the sole
public sector company. Apart
from that, among the non-life
insurers there are six public
sector insurers. In addition to
these, there is sole national re-
insurer, namely, General
Insurance Corporation of India
(GIC Re). Other stakeholders in
Indian Insurance market
include agents (individual
and corporate), brokers,
surveyors and third party
administrators servicing health
insurance claims.
India’s life insurance sector is
the biggest in the world with
about 360 million policies
which are expected to increase
between 12-15% over the next
five years. The country’s
insurance market is expected to
quadruple in size over the next
10 years from its current
size of $60 billion. During this
period, the life insurance market
is slated to cross US$
160 billion. India currently
accounts for less than 1.5
per cent of the world’s
total
insurance premiums and about 2
per cent of the world’s life
insurance premiums despite
being the second most populous
nation. The country is the
fifteenth largest insurance
market in the world in
terms of premium volume,
and has the potential to
grow
exponentially in the coming
years.
Insurance penetration, which is
measured as a percentage of
premiums to gross domestic
product (GDP), saw a rise to
3.49 percent from 3.40 percent
in FY17, according to the
sigma report by global
reinsurer Swiss Re. Life
insurance penetration stood
at 2.72
percent while general insurance
penetration stood at 0.77
percent. The total premium
value of Life insurance is
almost around Rs. 1.4 trillion.
Some of the biggest competitors
are LIC, SBI life, ICICI
prudential, HDFC Life, Max
Life etc.
Government Initiative
There are a number of
initiatives taken by the
government to boost the
insurance sector in
India. Check out some of them
below:
1.The Union Budget has made a
provision, which states that the
foreign investment will
only be allowed up to 49%
through the automatic route.
2. Service tax on particular
annuity policies has been
decreased from 3.5% to 1.4% of
the
premium paid in some cases.
3. Service tax on the business
Life insurance, offered by
means of the annuity, based on
National Pension Scheme,
which is managed by
Pension Fund and
Regulatory
Development of India,
managed being exempted
with effect from April
2016.
4. The Indian Regulatory and
Development Authority of India
(IRDAI) has created two
committees to explore and
suggest ideas to promote e-
commerce in the insurance
sector
in order to raise the insurance
penetration and get the financial
inclusio
Overview of Life Insurance
Industry
A new era began in the Indian
insurance sector, with the
passing of the Life Insurance
Act
of 1912. Life Insurance is the
fastest growing sector in India,
since 2000 as Government
allowed Private players and
FDI up to 49 percent. The
insurance industry of India
consists of 57 insurance
companies of which 24 are in
life insurance business and 33
are
non-life insurers. Among the
life insurers, Life Insurance
Corporation (LIC) is the sole
public sector company. Apart
from that, among the non-life
insurers there are six public
sector insurers. In addition to
these, there is sole national re-
insurer, namely, General
Insurance Corporation of India
(GIC Re). Other stakeholders in
Indian Insurance market
include agents (individual
and corporate), brokers,
surveyors and third party
administrators servicing health
insurance claims.
India’s life insurance sector is
the biggest in the world with
about 360 million policies
which are expected to increase
between 12-15% over the next
five years. The country’s
insurance market is expected to
quadruple in size over the next
10 years from its current
size of $60 billion. During this
period, the life insurance market
is slated to cross US$
160 billion. India currently
accounts for less than 1.5
per cent of the world’s
total
insurance premiums and about 2
per cent of the world’s life
insurance premiums despite
being the second most populous
nation. The country is the
fifteenth largest insurance
market in the world in
terms of premium volume,
and has the potential to
grow
exponentially in the coming
years.
Insurance penetration, which is
measured as a percentage of
premiums to gross domestic
product (GDP), saw a rise to
3.49 percent from 3.40 percent
in FY17, according to the
sigma report by global
reinsurer Swiss Re. Life
insurance penetration stood
at 2.72
percent while general insurance
penetration stood at 0.77
percent. The total premium
value of Life insurance is
almost around Rs. 1.4 trillion.
Some of the biggest competitors
are LIC, SBI life, ICICI
prudential, HDFC Life, Max
Life etc.
Government Initiative
There are a number of
initiatives taken by the
government to boost the
insurance sector in
India. Check out some of them
below:
1.The Union Budget has made a
provision, which states that the
foreign investment will
only be allowed up to 49%
through the automatic route.
2. Service tax on particular
annuity policies has been
decreased from 3.5% to 1.4% of
the
premium paid in some cases.
3. Service tax on the business
Life insurance, offered by
means of the annuity, based on
National Pension Scheme,
which is managed by
Pension Fund and
Regulatory
Development of India,
managed being exempted
with effect from April
2016.
4. The Indian Regulatory and
Development Authority of India
(IRDAI) has created two
committees to explore and
suggest ideas to promote e-
commerce in the insurance
sector
in order to raise the insurance
penetration and get the financial
inclusio
Overview of Life Insurance Industry
A new era began in the Indian insurance sector, with the passing of the Life Insurance Act
of 1912. Life Insurance is the fastest growing sector in India, since 2000 as Government
allowed Private players and FDI up to 49 percent. The insurance industry of India
consists of 57 insurance companies of which 24 are in life insurance business and 33 are
non-life insurers. Among the life insurers, Life Insurance Corporation (LIC) is the sole
public sector company. Apart from that, among the non-life insurers there are six public
sector insurers. In addition to these, there is sole national re-insurer, namely, General
Insurance Corporation of India (GIC Re). Other stakeholders in Indian Insurance market
include agents (individual and corporate), brokers, surveyors and third party
administrators servicing health insurance claims.
India’s life insurance sector is the biggest in the world with about 360 million policies
which are expected to increase between 12-15% over the next five years. The country’s
insurance market is expected to quadruple in size over the next 10 years from its current
size of $60 billion. During this period, the life insurance market is slated to cross US$
160 billion. India currently accounts for less than 1.5 per cent of the world’s total
insurance premiums and about 2 per cent of the world’s life insurance premiums despite
being the second most populous nation. The country is the fifteenth largest insurance
market in the world in terms of premium volume, and has the potential to grow
exponentially in the coming years.
Insurance penetration, which is measured as a percentage of premiums to gross domestic
product (GDP), saw a rise to 3.49 percent from 3.40 percent in FY17, according to the
sigma report by global reinsurer Swiss Re. Life insurance penetration stood at 2.72
percent while general insurance penetration stood at 0.77 percent. The total premium
value of Life insurance is almost around Rs. 1.4 trillion. Some of the biggest competitors
are LIC, SBI life, ICICI prudential, HDFC Life, Max Life etc.

Government Initiative
There are a number of initiatives taken by the government to boost the insurance sector in
India. Check out some of them below:
1.The Union Budget has made a provision, which states that the foreign investment will
only be allowed up to 49% through the automatic route.
2. Service tax on particular annuity policies has been decreased from 3.5% to 1.4% of the
premium paid in some cases.
3. Service tax on the business Life insurance, offered by means of the annuity, based on
National Pension Scheme, which is managed by Pension Fund and Regulatory
Development of India, managed being exempted with effect from April 2016.
4. The Indian Regulatory and Development Authority of India (IRDAI) has created two
committees to explore and suggest ideas to promote e-commerce in the insurance sector
in order to raise the insurance penetration and get the financial inclusio.
Market Share of Life Insurance Companies
LIC is the market leader with
almost 70% of the market share
followed by SBI Life with
5.1% of market share and ICICI
prudential subsequently. The
penetration of Insurance
sector in India is currently
3.49% and Government of
India is aiming to cross
4%
penetration by the end of
FY2019
LIC is the market leader with
almost 70% of the market share
followed by SBI Life with
5.1% of market share and ICICI
prudential subsequently. The
penetration of Insurance
sector in India is currently
3.49% and Government of
India is aiming to cross
4%
penetration by the end of
FY2019
LIC is the market leader with almost 70% of the market share followed by SBI Life with
5.1% of market share and ICICI prudential subsequently. The penetration of Insurance
sector in India is currently 3.49% and Government of India is aiming to cross 4%
penetration by the end of FY2019

1. Market Share of Life

Insurance Companie
 ABOUT SBI LIFE

SBI Life Insurance (‘SBI Life’/’The Company’) one of the most trusted life insurances in
October 2000 and is registered with the insurance regulatory and development
authority of India (IRDIA) in March 2001.

SBI Life strive to make insurance accessible to all, with its extensive presence across the
country through its 1000 offices, 30,015 employees, a large and productive individual
agent network of about 336,922 agent, 70 corporate agent and 15 bancassurance
partner with more than 39000 partner branches, 133 broker and other insurance market
firms.

SBI Life Insurance Co Ltd (SBI Life), a subsidiary of State Bank of India, is an insurance
company that offers life insurance products. The company offers individual plans such as
unit-linked plans, child plans, pension plans, protection plans, and savings plans. It offers
group plans which include group employee benefit retirement and protection plans. SBI
Life Insurance also provides savings protection products, micro insurance plans, group
loan protection products, and banking product packages including housing loans,
education loan, car loan & personal loans. The company's services include a premium
calculator, child education planner, tax calculator, easy plan finder, NRI services, SMS-
based services and premium payment procedure. SBI Life is headquartered in Mumbai,
Maharashtra, India.

Wondering about the meaning of life insurance? A life insurance policy is essentially a
contract between an individual and an insurance provider, where the company promises
to pay a specified amount of money to the family or beneficiary of the individual, in
return for regular payments over a period of time. These payments are known as
premium and are usually paid on an annual basis. The individual who buys the insurance
is known as the policy holder.
Life insurance assures lump sum amount to be paid to the family if the policyholder
passes away unexpectedly. Though money cannot make up the loss, it ensures no
financial hiccups to the family even after the demise of the breadwinner.
The life insurance policy provides with the much-needed cover against risk and offers
you opportunities to grow your savings It is also an effective tool that enables you to
save for future expenses that may occur, such as the higher education or marriage of
children.
Life insurance has meaning especially for those with minor children, children with
special needs, those who wish to secure the financial future of their family or wish to
build savings over the long term.
It is best to buy a policy early, since the premium amount rises with age and if the
individual is a smoker or has pre-existing medical conditions

HISTORY:

The company got incorporated as a public limited company in Mumbai on 11 October

2000 and received Certificate of Commencement of Business from the RoC on 20
November 2000 and got registered with the IRDAI for carrying out business of life
insurance on 29 March 2001. SBI Life is listed on BSE And NSE (Stock Exchanges in India)
and is a leading Life Insurance company in India. SBI Life started as a joint venture with
BNP Cardif S.A,which is the life and property & casualty insurance arm of BNP Paribas,
one of the strongest banks in the world, in 2001. While in its initial stage its business was
mainly from bancassurance channel, and gradually developed an agent network
consisting of 108261 Insurance Advisors (IAs)and 825 offices across the country as on
March 31, 2018 for selling its life insurance products and also collaborated with other
distributions channels which include direct sales and sales through corporate agents
brokers insurance marketing firms and other intermediaries. The company offers
products in individual and group category which includes savings and protection plans
addressing the insurance needs of diverse customer segments and has a comprehensive
range of plans in life insurance and pension schemes. During financial year 2004-05
company's assets under management (AUM) crossed Rs 1000 crore mark and in January
2005 it launched unit-linked product. In subsequent financial year of 2005-06 it became
the first new generation private life insurance company registering profit and posted
profit after tax of Rs 2.03 crore for that year. Its Gross Written Premium (GWP) crossed
the milestone of Rs 5000 crores and AUM crossed the milestone of Rs 10000 crore and it
also achieved cumulative breakeven wiping out all accumulated losses and also its share
capital increased by Rs 500 crore to Rs 1000 crore during financial year 2007-08. Its GWP
crossed the milestone of Rs 10000 crore during financial year 2009-10 and in 2010-11
SBI Life's branch network crossed the milestone of 500 branches all over country and
further during the financial year 2011-12 the company achieved the milestone of profit
after tax (PAT) of Rs 500 crores as it reported PAT of Rs 556 crore for that year declaring a
maiden dividend of 5%.The company's AUM crossed the milestone of Rs 50000 crore
and the total number of branches in the country crossed 750 during the financial year
2012-13.The company's GWP crossed the milestone of Rs 15000 crores during the
financial year 2015-16 and in the subsequent financial year in 2016-17 SBI Life's renewal
premium collection crossed the milestone of Rs 10000 crore and during the year two
companies, Value Line Pte Ltd and McRitchie Investments Pte Ltd. bought stake of 1.95%
each in the company from SBI.

How does SBI Life Insurance work?

An SBI Life Insurance policy is a life insurance policy that is offered by the State Bank of
India. It offers a certain amount of coverage for your life, and the company will pay the
beneficiary after your death. The policyholder has to be an individual who has been in
good health for at least 5 years. If the policyholder dies within 5 years after buying the
policy, then the company will bear a loss of 10% on the premium paid.
SBI Life Insurance is a company that provides life insurance plans to its customers. It has
grown to be one of the largest life insurance providers in India. SBI Life Insurance offers a
range of products, such as term insurance plans, endowment plans, and savings
accounts. The company also provides accident and health insurance for employees and
their dependents.

Benefit of life insurance

Here are some of the benefits of life insurance: -

• Tax benefits: – Enrolling for a life insurance policy

can guarantee you tax benefits. The premiums you
pay towards the policy make you eligible for tax
exemptions of up to ₹1.5 lakhs of your taxable
income, under Section 80C of the Income Tax Act.
The death benefits are also fully tax exempt, under Section 10(10)D of the ITA.

• Guarantee of fix returns: - Life insurance policies guarantee that you get a fixed
amount after a fixed timeline. You need to go through the structure of different life
insurance products. Read through the structure and terms and conditions of different
life insurance products to choose a policy that best suits your needs. Whatever you
choose, you can rest assured that the promised death benefits will be disbursed to the
beneficiary, if the information provided by you at the time of enrolling for the policy was
accurate.

• Risk mitigation and coverage: - These policies provide the quintessential risk coverage
in terms of monetary compensations to mitigate and cover risks after the policyholder’s
death. By enrolling for life insurance, you are protecting your family against financial
risks that would occur if the primary breadwinner meets an untimely death.
• Provision for loan: - Certain policies provide the option of loan and allow to borrow a
sum of money. This means that if you need to take on a loan, for instance, to fund the
education or marriage of a child, you can use the life insurance policy as collateral.

• Health expense coverage: - Most of these policies cover the health and treatment
expense that may occur. if the policy holder falls ill. You can also choose riders to
increase the coverage of the insurance policy to protect your finances even while you
are alive.

What are the Advantages and Disadvantages of SBI Life Insurance?

 The advantages of SBI Life Insurance are:

 It is a life insurance product, which means that it pays you when you die.
 It has an investment-linked policy, meaning that the money invested by the
policyholder grows with time.
 You can invest in a range of mutual funds and stocks through the SBI Life
Insurance policy.
 The policy offers a higher amount of coverage than other policies offered by
different insurance companies in India

 The disadvantages of SBI Life Insurance are:

 Life insurance is one of the most important financial products that you can invest
in because it can protect your loved ones in case of an untimely death. However,
SBI Life Insurance offers a subpar service to their customers due to the high
commissions they charge.
 The disadvantage of SBI Life Insurance is that the premium can be expensive for
some people.
There are so many different different channels in SBI LIFE
 Channel wise NBP and RP for FY 16-17

Amount in crores

The above figures are the

highlights of the financials of
SBI Life distributed among
different channels. These
figures show there is a
prominent part of corporate
solutions in
the total revenues generated by
the SBI Life.
The above figures are the
highlights of the financials of
SBI Life distributed among
different channels. These
figures show there is a
prominent part of corporate
solutions in
the total revenues generated by
the SBI Life.
The above figures are the
highlights of the financials of
SBI Life distributed among
different channels. These
figures show there is a
prominent part of corporate
solutions in
the total revenues generated by
the SBI Life.
The above figures are the highlights of the financials of SBI Life distributed among
different channels. These figures show there is a prominent part of corporate solutions in
the total revenues generated by the SBI Life.

Graphical representation of revenues generated by all the channels

Graphical representation of revenues generated by all the chann
  SBI Life Insurance Plans
Type of Plan SBI Life Insurance plans

Protection plans  eShield Next

 Saral Jeevan Bima
 Poorna Suraksha
 Sampoorn Cancer Suraksha
 Corona Rakshakpolicy
 Smart Shield
 Smart Swadhan Plus
 Saral Swadhan+
 Grameen Bima

Child plans  Smart Champ Insurance plan

 Smart Scholar

Savings plans  Smartplatina Assure

 New Smart Samriddhi
 Smart Future Choices
 Shubh Nivesh
 Smart Bachat
 Smart Humsafar

Pension plans  Retire Smartplan

 Annuityplus
 Saral Retirement Saver
 Saral pension plan

Money-Back/  Smart Money Back Gold

Income plans  Smart Moneyplanner
 Smart Incomeprotect

Wealth  eWealth Insurance

Creationplans  Smart InsureWealthplus
 Smart Wealth Builder
 Smart Wealth Assure
 Smartpower Insurance
 Smart Elite
 Smartprivilege investmentplan

Group plans  Kalyan ULIPplus

 Lifepradhan Mantri Jeevan Jyoti Bima Yojana
 CapAssure Gold
  Sampoorn Suraksha
 Swarna Jeevanplus

Group Business Concept

The CSG (Corporate Solutions

Group) department mainly
focusses on corporate clients
for the business. The products
are diversified according to the
client needs. Insurance
policies are formulated by
Actuaries.for fulfilling the client
needs. These policies are
made according to the
guidelines of IRDAI
The CSG (Corporate Solutions
Group) department mainly
focusses on corporate clients
for the business. The products
are diversified according to the
client needs. Insurance
policies are formulated by
Actuaries.for fulfilling the client
needs. These policies are
made according to the
guidelines of IRDAI
The CSG (Corporate Solutions
Group) department mainly
focusses on corporate clients
for the business. The products
are diversified according to the
client needs. Insurance
policies are formulated by
Actuaries.for fulfilling the client
needs. These policies are
made according to the
guidelines of IRDAI
The CSG (Corporate Solutions Group) department mainly focusses on corporate clients
for the business. The products are diversified according to the client needs. Insurance
policies are formulated by Actuaries. For fulfilling the client needs. These policies are
made according to the guidelines of IRDAI.

Product of SBI Life CSG

For EE Group Only
For EE / NEE Groups Only

For EE / Homogeneous NEE Groups Only

Fir EE / NEE Groups Only

EE – Employer Employee
Groups
NEE – Non Employer
Employee Group
Homogeneous
EE – Employer Employee Groups
NEE – Non-Employer Employee Group

Homogeneous Groups
Any associations where member represent a particular profession / trade / domestic
workers / assigned workers.
Government agencies / Any co-op societies.
Parents of Svhool / college students
Any other groups as may be approved by authority

Differentiator of SBI Life-

Product Of SBI Life Insurance

 Term Plan (Pure Insurance Plan)
 Endowment + Plan
 Endowment + Whole Life
  ULIP
 Smart Platina Assure

Term Plan (pure Insurance Plan): -

Term plans from SBI are a very sought after and popular choice. These protection plans are
tailored to provide financial relief and security to a policyholder’s family in the unfortunate
event of their demise. The term plans from SBI offer only death benefits but also provide riders
that offer additional cover such as accidental death benefits.
A pure term insurance plan is a type of insurance policy that provides death benefits to the
policy holders’s family in case of their untimely death. The assured amount of covered offered
by the pure team insurance plan is high, and this policy is available at convenient premium
costs.

Top SBI Life Term Insurance Plans

Here's a list of the top SBI term plans available:
1. SBI Life eShield
Age of Entry: Minimum age is 18 years as at last birthday and maximum age is 65 years as at
last birthday. Age at Maturity is 70 years. Policy Term: Minimum Term 5 years and Maximum
term 30 years. Sum Assured is minimum sum assured is Rs 25,00,000 and there is no maximum
sum assured limit. Premium payment terms are equal to policy terms. Premium payment
modes: Yearly, Half-yearly, quarterly and monthly. The plan comes with following riders:
Accidental Death Benefit, Accidental total and Permanent Disability and Accelerated critical
Illness Cover. The Policy offers Death benefits. The policy offers Surrender benefits for single
premium policies. There is no survival benefit or paid-up value.
2. SBI Life - Saral Shield
Age of Entry: Minimum age is 18 years as at last birthday and maximum age is 60 years as at
last birthday. Age at Maturity is 65 years. Premium payment terms are equal to policy terms.
Premium payment modes: Yearly, Half-yearly, quarterly and monthly for level term assurance.
Single premium for decreasing term assurance. Riders available are: Accidental Death Benefit,
Accidental total and Permanent Disability and Accelerated critical Illness Cover. The Policy
offers Death benefits.
3. SBI Life - Grameen Bima
Age of Entry: Minimum age is 18 years as at last birthday and maximum age is 50 years as at
last birthday. The policy term is 5 years. Premium payment mode is single. The Policy offers
Death benefits equal to the sum assured. The policy offers surrender benefits from the second
year onwards.
4. SBI Life - Saral Swadhan+
Age of Entry: Minimum age is 18 years as at last birthday and maximum age is 55 years as at
last birthday. Age at Maturity: minimum age of maturity is 28 years and maximum age of
maturity is 70 years. Policy Term: minimum term 10 years and maximum term 15 years.
Premium payment terms are 10 years. Premium payment modes are yearly. The policy offers
death benefits. The policy offers maturity benefits. The policy offers paid up value.

Features and Benefits of SBI term Insurance Plans

1. These plans provide financial security to the family of the deceased policyholder thereby
preventing any burden of financial commitments such as housing loans or education loans from
being passed on
2. The premium amounts to be paid for these term insurance plans are low and affordable
allowing people from all walks of life to enjoy the benefits of the plan. The plans also offer
options of premium payment terms in either single or regular pay
3. The term insurance plan offer riders that can be purchased for additional coverage such as
accidental death benefits
4. The premiums paid towards these term insurance plans are eligible to enjoy tax benefits
under sections 80C of the income tax act, 1961
Anyone who has ever taken an insurance policy would know that the insurer sometimes asks
you to submit a medical report as proof of good health and insurability. This is done by the
insurer to ensure that the applicant is not suffering from any serious or critical illness which
may be life threatening, which in turn drives up the risk factor greatly. However, not every
insurer offering a term plan would require you to submit a medical report for the purpose of
applying and purchasing an insurance policy.
Also Read: Requirement for life insurance After Marriage

Endowment: -
An insurance plan only offers death benefit at the demise of the policy holder, however an
endowment plan is a unique kind of insurance plant that company’s investment with insurance.
If the policy holder survives till the expiry of the endowment plan, she will receive the sum
assured with the bonus as maturity benefit. In case the policyholder dies before the maturity
period, the endowment plan will pay the death benefit to the beneficiaries. The, endowment
policy is a lucrative instrument with due feature of saving and financial protection.

What are the benefits of an endowment plan?

1. Coverage from risks-
Endowment plans pay a lump sum in death benefit to the nominees in case any unprecedented
event strikes. Hence, your family will be financially secured against any monetary difficulty in
your absence.

2. Maturity benefits- If the policyholder survives through the policy term, he/she is paid the
guaranteed maturity benefit. The lump sum amount enables you to meet your long term as well
as short term financial needs and aspirations.

3. Tax Benefits- Endowment insurance is eligible to avail tax benefits under Section 80C of
the Income Tax Act, 1961. Premiums paid towards endowment plans can claim tax deductions
under this provision. You can also save on tax on the maturation of the policy through this
provision.
With its unique dual features and benefits, purchasing an endowment policy is a wise choice for
meeting your investment and insurance goals via a single financial instrument.

Endowment + whole life: -

An endowment policy is a type of life insurance that not only covers the life of the policy holder,
but also help the insurance collect a corpus amount that may be availed of at the time of
maturity. The accumulated amount may be used to meet various personal financial goals.

ULIP (Unit link Insurance Plan): -

A ULIP or Unit-Linked Insurance Plan is a hybrid financial product that provides investment
benefits and life coverage. It allows policyholders to invest their money in various funds, such
as equity, debt, or balanced funds, depending on their risk appetite. Additionally, these plans
offer life coverage, protecting the policyholder's family's financial future. ULIP policies offer
long-term investment options with a lock-in period of five years or more.

ULIP Meaning

We explain unit linked insurance plan are and who the benefit your financial outlook for the
future.
Your future needs can change on a frequent basis. What things change continuously, there are
two important financial aspect you should always keep in mind. Saving and timely protection. In
the market you may find a number of options that focus individually on these two aspects of
your finances.

ULIPs are insurance plans that combine investment opportunities and life insurance. A part of
the premium you pay goes towards providing you with life insurance. The remaining gets
invested in funds of your choice. You can select equity, debt or balanced funds based on your
financial goals and risk appetite. The returns depend on market conditions, so these plans are
called Unit-Linked Insurance Plans.

The government allows certain tax breaks on your ULIP Policy, meaning you can claim
deductions against the premium amount. The returns you get at the end of the policy tenure
are also tax-free.

Benefits of a ULIP Plan

ULIPs have become popular since they offer policyholders numerous benefits. Let's see how
you can benefit from investing in a ULIP.

 Dual Benefits
 ULIPs offer a combination of investment and insurance benefits. The policyholder can
invest their money in various funds while securing their family's financial future with life
insurance.

 Flexibility

ULIPs provide policyholders with flexibility when it comes to investing. Policyholders can
choose the funds based on their risk appetite and future financial goals. Additionally,
they can also select the level of insurance coverage required.

 Tax Benefits

ULIPs fall under the EEE or exempt-exempt-exempt category. The amount invested
enjoys deductions under Section 80C# of the Income Tax Act, 1961. . Proceeds received
on surrender/partial withdrawal/maturity of ULIP plan are exempt from tax subject to
provisions mentioned in Section 10(10D) i.e if the premium payable for any of the years
during the policy term does not exceeds 10% of the death sum assured.

In addition to the above, for policies issued after 1st Feb 2021 tax exemption on
maturity proceeds will be available if premium paid in any of the years towards such
matured polices does not exceed Rs.2,50,000. Out of the total matured policies in a
financial year, exemption u/s 10(10D) will be available only towards those polices who’s
aggregate premium in any years does not exceed Rs. 2,50,000/.

Rest policies exceeding the mentioned limit will be chargeable as capital gains.

Death proceeds are also exempt from tax for all ULIP plans.

 Long-Term Investments

ULIPs are ideal for long-term investment goals since they have a lock-in period of at
least five years. It helps policyholders build a disciplined approach to investments and
can build a significant corpus in the long run.

 Transparency
 Policyholders enjoy complete transparency concerning their investments in ULIPs. They
can track each fund's performance and make switches as and when required to
maximize their returns.

How to Choose a ULIP

Finding the ideal ULIP plan requires careful consideration. Before selecting a policy,
you should evaluate the following:

 Your Investment Objectives

Before selecting any investment policy, take the time to outline your investment goals.
Consider the timeline and how much you would need. Your goals will help you choose
the ideal funds for your needs.

 Your Risk Appetite

Ask yourself how much risk you're willing to take. If you're risk-averse, you could
consider investing heavily in debt funds. They provide slow but steady returns over time.
You can consider investing in a few equity funds if you're open to some risks. They could
offer high market-linked returns but may open you up to losses. Younger investors can
often select more equity funds since they can stay invested for more time and correct
course later. You should choose funds based on your personal risk appetite.

 ULIP Charges

Every ULIP plan has additional premium allocation, policy administration and fund
management charges. Before investing, ensure you evaluate and understand the
additional costs. Certain insurance companies also levy a fund-switching charge.

 The Fund Performance

Do your research before you invest. Check how the fund performed previously. ULIPs
with a history of consistently good performance will likely offer better returns.

ULIP plans are a good investment option for those who want to create wealth in the
long term while also enjoying the benefits of an insurance policy. Before investing,
 ensure you understand how the ULIP works and all the associated charges. Choose a
plan that suits your investment goals, risk appetite, and financial objectives. You may
consult a financial advisor who can guide you through the investment process and help
you make informed decisions. With careful planning and the right approach, ULIPs can
help you build a secure financial future

Smart Platina Assure

A non-linked, non-participating, life endowment assurance savings product

You have accomplished what you had aimed for and are a true champion. You take smart
decisions to ensure that you always stay one step ahead in life.

A smart choice for champions like you is choosing the right savings plan which can minimize risk
and assure a guaranteed return while providing life insurance.

We at SBI Life understand this and are pleased to Introduce SBI Life - Smart Platina Assure, an
individual, non-linked, non-participating, life endowment assurance savings product which
assures guaranteed returns with an advantage of paying premiums for a limited term. This
smart endowment life insurance product will ensure that your money works harder while you
work hard for your family and also give you peace of mind.

This endowment plan offers:

 Security - protection for your loved ones in the case of an eventuality

 Flexibility – choose between monthly or yearly premium payments
 Simplicity – easy online application process
 Reliability – through guaranteed additions

What is SBI Life Smart Platina Plus and how does it work?
SBI Smart Platina Plus is a non-linked, non-participating life insurance savings product from SBI
Life. It is not a ULIP.It claims that this policy can help you to achieve your financial
independence in your later years by delivering consistent, guaranteed, and fixed regular income
during the payout term. It safeguards a family’s financial future throughout their lives. Let us
see more details of this SBI Smart Platina Plus Plan.

SBI Life – Smart Platina Plus delivers assured income during the Payout Period. After the end of
the premium payment period plus one year as a survival benefit, you will get a fixed regular
income. This regular income will be paid during the end of each payout term frequency you
choose. At the end of the policy term, the maturity benefit, which is equivalent to 110% of the
total premiums paid, will be returned.

Income Plan Options of SBI Life Smart Platina Plus: -

 Life Income
 Guaranteed Income

Depending on your choice, you can get your money in Yearly, Half-yearly, Quarterly, or
Monthly payment installments. You may choose the frequency of income payouts, which you
can alter afterward. Within nine months of the Premium Payment Term’s expiration, you can
adjust the income payout frequency you chose at the start by contacting SBI Life. The frequency
to adjust the income payout frequency will only be accessible once for you, i.e. within nine
months of the Premium Payment Term’s expiration date

Key Features of SBI Life Smart Platina Plus:

1. Security: Life insurance protection for your family during the policy period.

2. Option to choose between two income plans to meet your financial needs: Guaranteed
Income and Life Income.
3. Guaranteed Income Benefit: Get a fixed regular income each month for the payment period
you need.

4. Maturity Benefit: At the end of the policy term, you can get 110% of the return.

5. Flexibility:
• Option to choose the payout period that can match your financial goals.
• Option to modify the frequency of income payouts before the payout period.

6. Income benefit frequency options: yearly, half-yearly, quarterly, or monthly basis.

7. Premium payment options are limited: to 7, 8, and 10 years.

8. SBI Smart Platina Plus Tax Benefits: Available Under the provisions of the Income Tax Act, 196

Advantage
 Get Life cover along with Assured return
 Enjoy Guaranteed Additions^ of 5.75% & 6.25% at the end of each policy year
 Pay for just 7 or 10 years and enjoy the benefit throughout the policy term of 15 or 20
years respectively
 Option to choose Monthly or Yearly premium payment frequency, as per convenience
 Get tax benefits* as per the prevailing norms under the Income Tax Act, 1961
*Tax benefits, are as per the provisions of the Income Tax laws & are subject to change from
time to time. Please consult your tax advisor for further details.

SBI Life Smart Platina Plus vs. PPF + Term Insurance:

If you think that SBI Life Smart Platina Plus Insurance Plan is a good investment plan for long-
term investment, then let’s compare it with PPF for a better understanding.

Let’s say, your overall investment amount is Rs. 1, 00, 000

Pure Term Insurance:

Sum Assured = Rs. 50,00,000

So, you are paying an annual premium = Rs. 9, 750

Tenure = 25 years

You can invest the remaining in PPF.

So, your investment amount = Rs. 90, 250 per annum

Tenure = 10 years

PPF’s current Interest Rate = 7.10% with no risk.

Annual Premium/Survival Death Life Insurance

Age Year Death Benefit
Benefit Benefit Premium + PPF

35 1100000 50,00,000
1 -100000 -100000

36 50,00,000
2 -100000 1100000 -100000

37 50,00,000
3 -100000 1100000 -100000

38
4 -100000 1100000 -100000 50,00,000

50,00,000
39 5 -100000 1100000 -100000
40
6 -100000 1100000 -100000 50,00,000

41 50,00,000
7 -100000 1100000 -100000

50,00,000
42 8 -100000 1100000 -100000

43
9 -100000 1100000 -100000 50,00,000

50,00,000
44 10 -100000 1100000 -100000

45
11 0 1100000 -100000 0

46
12 96320 1302383 0 0

0
47 13 96320 1302383 0

0
48 14 96320 1302383 0

49
15 96320 1302383 0 0

50 16 96320 1302383 0 0
51
17 96320 1302383 0 0

0
52 18 96320 1302383 0

53
19 96320 1302383 0 0

0
54 20 96320 1302383 0

55
21 96320 1302383 0 0

0
56 22 96320 1302383 0

57
23 96320 1302383 0 0

0
58 24 96320 1302383 0

59
25 96320 1302383 0 0

60 26 1196320 1302383 ₹37,54,283.12

 IRR 6.58%
5.99%

As you can see in the PPF Return calculator, the Guaranteed Income Option in SBI Life Smart
Platina Plus will give you an IRR (Internal Rate of Return) of 5.99%.

Do you think this 5.99% is a good rate of return?

Will this interest rate of SBI Smart Platina Plus help you beat inflation?

But if you invest in PPF, it will give you an IRR of 6.58% which is slightly higher than the SBI Life
Insurance plan.

After 10 years, the maturity value of PPF will be Rs. 13, 41, 791.

After 25 years, the final maturity value of PPF without annual contribution will be Rs. 37, 45,
283 which is higher than the Guaranteed Income return benefit.

But, in the Guaranteed Income option in SBI Life Smart Platina Plus, you get Rs. 11, 96, 320 as a
return for 26 years and Rs. 13, 02, 383 as a death benefit

In both investment and insurance PPF beats SBI Life Smart Platina Plus.

Still, do you think is it worth investing your money for 26 years?

So, it is a clear win for PPF in battle between SBI Life Smart Platina Plys Vs PPF.

Now, let’s compare the sbi smart platina plus insurance plan with ELSS and see how it
performs!
 SBI Life Smart Insure Wealth Plus Research Methodology

This review analysis so far covered the basic features and the workings of the plan. Next, we
will be analysing the SBI Life Smart Insure Wealth Plus plan in terms of returns.

Calculation of return on investment helps to compare the plan with other similar investments.

SBI Life Smart Insure Wealth Plus Benefit Illustration – IRR Analysis

We have taken a quote from the SBI portal for the calculation of the Internal Rate of Return
(IRR).

A 30-year-old male has opted for the SBI Life- Smart Ensure Wealth Plus policy for a payment
term of 15 years with a Basic Sum Assured of ₹ 12 lakh. He is paying a premium of ₹ 10,000 per
month.
He chooses for 100% Equity Fund under the Smart Choice Strategy. Let’s see how the benefits
are under this plan.

Male 30 years

Sum Assured 12 Lakhs

Policy Term 15 years

Premium paying Term 15 years

Premium 10,000

Premium paying Mode Monthly

If he pays the premium regularly, he will get the fund value at the end of 15 years.

In the below benefit illustration, the assumed gross returns are 8% p.a. and 4% p.a respectively.
These assumed rates of returns are not guaranteed.

So, you should not interpret that the returns under the plan are going to be either 8% p.a. or
4% p.a.
The fund value at the assumed rate of 4% is 20.37 Lakhs and the IRR for the same is 1.63%. The
fund value at the 8% scenario is 27.86 Lakhs and the IRR for the same is 5.58%.

SBI Life Smart Ensure Wealth Plus invests in market-related securities, but the yield is lower
than even a debt instrument’s return. This IRR analysis shows that the risk-return is not
proportionate.

DATA ANALYSIS
 DATA ANALYSIS:

Table 1: Awareness of life insurance among people

D you know about life insurance policy?

RESPONCER NO OF RESPONDENT PERCENTAGE OF

RESPONDENT

Yes 85 85%

No 15 15%

Interpretation According to the data maximum number of people are aware with a life
insurance policy (here 58% people are aware with it). Today, people are aware with this
investment because it covers the risk of the life as well as gives a better return on maturity.
However, there is still a huge untapped demand for insurance.

Market Survey Report

Category of life insurance

Protection of human assets value against 51

uncertainty

Tax benefit device 38

Both 16

16

51 Protection of human assets

value against uncertainty
Tax benefit device
Both
38

Interpretation: -

From the survey it was drawn that life insurance is more a protection of human asset value
against uncertainty (conferred by 51 respondents) where it is a tax saving option (being
accepted by 38 respondents).
Life insurance is a service involving both these prerequisites as depicted by
remaining 16 respondents

 Essentiality of life insurance

YES 78

NO 27

Chart Title

NO
26%

YES
74%

YES NO
GOVERNMENT SECTOR COMPANY

LIC (LIFE INSUURANCE CORPORATION OF INDIA)

The full form of LIC is Life Insurance Corporation of India. LIC is a government-owned
insurance and investment company arising from the Life Insurance Act of India, which
put the life insurance industry under the control of the government by nationalization,
thereby establishing LIC in 1956. According to the LIC ‘s website, the aim is to provide
citizens with a higher return on economic security through services and products than
most other investment players on the market, thereby helping them build a particular
quality of life and providing economic development.

The importance of LIC Life insurance is to provide individuals with financial cover against demise
at affordable costs to rural areas and people who exist in poverty and less fortunate people. The
company has been facing stiff competition from private players in recent years, but still remains
the market leader in India. LIC Life Insurance offers products like term insurance, endowment,
pension plans, and general insurance to individuals and corporate clients.
  LIC Life Insurance Plans List
Type of Plans LIC Life Insurance Plans

Term Life Insurance Plans  TECH TERM

Whole Life Insurance
Plans
Money-Back Plans
Endowment Plans
 Jeevan Amar
 Saral Jeevan Bima
 Jeevan Umang
 New Bima Bachat
 New Money Back Plan-20 Years
 New Money Back Plan-25 Years
 Jeevan Umang
 New Children’s plan
 Jeevan Tarun
 Jeevan Shiromani
 Bima Shree
 Dhana Rekha
 Bima Jyothi
 Bachat Plus
 New Endowment Plan
  New Jeevan Anand
 Single Premium Endowment Plan
 Jeevan Lakshya Plan
 Jeevan Lakshya Plan
 Aadhaar Stambh Plan
 Aadhaar Shila Plan
Pension Plans  Pradhan Mantri Vaya Vandana Yojana
 Jeevan Akshay - VII
 New Jeevan Shanti
 Saral Pension
ULIP Plans  NIVESH PLUS
 LIC’s SIIP
 LIC’s NEW ENDOWMENT PLUS
Micro Insurance Plans  Bhagya Lakhsmi
 New Jeevan Mangal
 Micro Bachat Plan
Health Plans  Cancer Cover
 Arogya Rakshak
Withdraw Plans  Bhagya Lakhsmi
 Jeevan Akshay - VII
 New Jeevan Shanti
 Saral Pension
 Bima Jyothi
 New Jeevan Mangal
 Jeevan Arogya
Group Plans  New Group Superannuation Cash Accumulation Plan
 New Group Gratuity Cash Accumulation Plan
 New Group Leave Encashment Plan
 Group Credit Life Insurance
 Single Premium Group Insurance
  New One Year Renewable Group Term Assurance Plan
I
 New One Year Renewable Group Term Assurance Plan
II
 One Year Renewable Group Micro Term Assurance
Plan
 Group Immediate Annuities
 L Group Assurance plan

Main Objective of LIC

 LIC assist in reaching the country’s rural areas to provide insurance to the most
significant number of people at a reasonable cost for protection against unfortunate
death.
 Maximize mobilisation of revenue in order to make insurance-linked savings attractive.
The funds collected by such schemes are spent in the best interests of policyholders and
in the sectors of national significance to comply with the country’s objectives.
Act as trustees for those who are insured.
 Meet the changing needs for insurance due to changing social and economic
environment.

History of LIC

 The first company in Pre-independent India to offer life insurance services was the
Oriental Life Insurance Company, which concentrated more on the European population
here and forced Indians to pay more premiums.
 Post that, Surendranath Tagore started the Hindustan Insurance Society, until 1956,
several other companies sprang up in this area, but in 1956, the Parliament approved
the act of nationalising the industry due to growing fraud in the industry.
 The Industrial Policy Resolution entered into effect in 1956 in the time frame, which
nationalised various services, one of which was the insurance industry. The insurance
sector’s 245 private players were taken over by the government and nationalised. The
LIC of India was created by the LIC Act, 1956.
 How Does LIC Life Insurance Work?

LIC life insurance is a popular form of life insurance in India. It has been providing
financial protection to Indian families since 1956. LIC offers so many types of policies
such as term and whole life, etc. Term policies offer coverage for a specific period of
time, while whole life policies offer coverage for the entire lifetime of the insured
person.
Life insurance is a type of insurance that pays out a cash sum to the beneficiary or
beneficiaries (usually the family) when the policyholder dies. The life insurance policy is
usually taken out by an individual, but it can also be taken out by a company on behalf of
one of its employees. The company will pay the premiums and in return, they receive
certain tax advantages.
LIC Life insurance is an important part of financial planning because it provides
protection against death and guarantees money for your family if you die prematurely. It
can also be used as a way to save for retirement or protect your business interests.

Benefits of LIC Life Insurance

 Variety of Plans: Life Insurance Corporation (LIC) offers life

insurance policies for individuals, families, senior citizens, and
childless couples. They offer a variety of plans with different
features and benefits; including term plans, whole life policies,
endowment plans, and ULIPs.
 Easy claim Settlement: LIC provides a simplified claim
procedure. This is the reason perhaps why it provided the highest
percentage of Claim Settlement Ratio.
 Excellent Customer support: The customer support of LIC is one
of the best in the industry.
 Trust ensured: LIC is the most trusted insurance company with
hundreds of recognitions and awards and LIC policy is trusted by
millions of people.

Comparison Table of LIC Life Insurance vs SBI Life

Insurance
Here are some of the key parameters based on which they differ from
each other:

Parameter SBI Life Insurance LIC Life Insurance

Claim settlement 93.09% 96.69%

ratio

Solvency Ratio 2.15 1.83

Availability Online/Offline Online/Offline

Life Cover Up to 99 Years Up to 99 years

Number of 514 2048

Branches Available

Death Benefit Yes Yes

Maturity Benefit Yes Yes

E-services  Buy policy  Premium Calculator

 Renewal policy
 Update information
 Claim settlement
 Download Certificates
 Online Premium Payment
 Fund Switch, etc
Riders  Accidental Death Benefit
Rider
 Accidental Total and
Permanent Disability Rider
 Critical Illness Rider
 Term Benefit Rider
 Premium Waiver Benefit
Rider
 Update Information
 Claim Settlement
 Premium Payment
 Policy Status Checking
 Buy Policy
 Renewal Policy, etc
 Accidental Death Benefit
Rider
 Accidental Death and
Disability Benefit Rider
 Critical Illness Benefit
Rider
 New Term Assurance
Rider
Conclusion:
Both the companies SBI Life Insurance Company and LIC Life
Insurance Company offer similar services but in order to make a better
decision, you should make sure that you have all the information about
life insurance companies available in the market. However, this
decision has become much easier with the help of PolicyBachat. Know
all the key features and benefits of SBI Life Insurance and LIC Life
Insurance. To buy the best life insurance policy compare life insurance
quotes at Policybachat.